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Six years after a hard-fought independence, East Timor is stuck in poverty despite sitting on a wealth of oil and natural gas reserves.

As global food prices soar, the country – one of Asia's smallest and poorest - is going hungry.

International aid groups say most households are "food insecure".

The government has dipped into its petroleum funds to double its annual budget and subsidises rice and fuel prices.

But critics say the fund – now worth $3.5 billion - is meant to safeguard East Timor's future generations.

They fear corruption and waste will kick in as the government lacks the mechanisms to deal with the sudden influx of money transparently.

This week, 101 East asks if East Timor's riches in oil and gas have become a problem or a solution.

This episode of 101 East aired from Thursday, November 13, 2008.