Meaning: This quote by José Ramos-Horta, the former President and Prime Minister of East Timor, encapsulates the country's approach to managing its petroleum fund. The petroleum fund is a sovereign wealth fund created to manage the revenues received from the exploitation of petroleum resources in the Timor Sea. It was established to ensure that the wealth generated from these resources is prudently managed and preserved for the benefit of current and future generations of Timorese citizens.

The significance of the petroleum fund lies in its role as a vehicle for intergenerational equity and sustainable development. By investing the revenues in conservative, safe, long-term investment portfolios, the fund aims to generate returns that can support the country's economic and social development over the long term. This approach reflects a commitment to responsible stewardship of natural resource wealth and a recognition of the finite nature of petroleum reserves.

The decision to invest in US Treasury Bonds is indicative of the fund's emphasis on security and stability. US Treasury Bonds are widely regarded as low-risk investments backed by the creditworthiness of the US government. By allocating a portion of the fund's assets to these bonds, East Timor's petroleum fund seeks to preserve capital while earning a modest return. This conservative investment strategy aligns with the fund's mandate to safeguard its assets for the future.

The choice of US Treasury Bonds also reflects the fund's adherence to international best practices in sovereign wealth management. Investing in assets with strong credit ratings and liquidity helps mitigate risk and ensures that the fund remains resilient in the face of market volatility. Furthermore, US Treasury Bonds are denominated in US dollars, a widely recognized and stable currency, offering an added layer of protection against currency fluctuations.

The quote underscores the importance of transparency and accountability in the management of the petroleum fund. By emphasizing that the fund was created by law and operates within a legal framework, José Ramos-Horta highlights the institutional and regulatory foundations that govern the fund's operations. This legal framework provides a clear set of rules and guidelines for the fund's management, ensuring that it operates in the best interests of the country and its citizens.

Furthermore, the mention of significant sums of money in the petroleum fund signals the fund's growing size and the increasing responsibility that comes with managing substantial assets. As the fund accumulates more revenues from petroleum activities, the challenge lies in effectively deploying these resources to generate sustainable returns while maintaining a prudent risk profile.

In conclusion, José Ramos-Horta's quote sheds light on East Timor's approach to managing its petroleum fund, emphasizing the importance of conservative, safe, and long-term investments in ensuring the fund's sustainability and the welfare of future generations. The fund's adherence to legal frameworks, transparent governance, and international best practices reflects a commitment to responsible resource management and economic development. As East Timor continues to navigate the complexities of resource wealth management, the petroleum fund stands as a symbol of the country's aspirations for a prosperous and equitable future.