Having achieved independence in 2002 and boasting a population of only 1.3 million people, Timor-Leste is the youngest and the second least-populated country in Southeast Asia. Despite this, the country has achieved significant progress in terms of human development, mainly driven by revenue from offshore oil and gas. According to the World Bank, the proportion of Timorese living in poverty declined from 50% in 2007 to an estimated 42% in 2014.
Surplus oil and gas revenues go into a sovereign fund, the Timor-Leste Petroleum Fund, which was established in 2005. According to the World Bank's Timor-Leste Economic Report 2021, the country has also achieved significant declines in child and maternal mortality rates, increases in youth literacy, and improvements in energy and transport infrastructure.
