Asia
Backward thinking will not steer Afghanistan toward economic development
Afghanistan is considered rich in natural resources among other countries. It is said that the country has approximately one trillion dollars worth of natural resource reserves. Over the years, it has been continuously reiterated that if the government of Afghanistan can extract these reserves and use the money to strengthen the economy, Afghanistan’s economy will rapidly improve. This improvement would extend to the well-being of its citizens, propelling the country into a rapid development trajectory, and transforming it into an influential player in the world. It’s not expected that ordinary citizens, unfamiliar with the complexities of the economic world and the prerequisites of development, would engage in scientific discourse or provide flawless comprehensive views.
However, it’s peculiar that even national experts in the field of development and economy sometimes believe that extracting natural resources and utilizing them will work like a miracle, potentially elevating the country’s economy and welfare within a few years. Following this common belief, the Taliban, since their return to power, have focused primarily on mining and have entered into contracts in this regard with various foreign companies. Certainly, in the absence of transparency in the Taliban’s operations, it is unclear how the funds acquired from this endeavor are managed and allocated. Recently, the George W. Bush Institute claimed that the Taliban, in cooperation with some regional countries, are engaged in plundering Afghanistan’s mines. Regardless of the calamity the Taliban bring upon Afghanistan’s mines and natural reserves, it’s necessary to address the question: does the utilization of Afghanistan’s natural resources indeed play a crucial role in improving the country’s economy and contributing to development?
The most important point in this regard is that merely possessing natural resources and reserves cannot bring about a significant transformation in a country’s economy. We currently have examples of countries that are much richer in natural resources than Afghanistan, yet due to corruption, incompetence of officials, and the mafia-like behavior of intermediaries with divine wealth, the existence of natural resources has not helped them much but rather caused numerous other problems. Conversely, many advanced countries in the world are absolutely poor in terms of natural resources, yet their leaders have found ways, through scientific management and rational planning, not only to compensate for the absolute poverty in terms of natural resources but also to elevate themselves to the highest levels in terms of industry and development. The central point is that progress and advancement, on the one hand, depend on developments and progress in other areas of life, and on the other hand, they rely on the scientific rationality of officials and their proper understanding of the complexities and nuances of economic relationships.
Which country considered best in terms of economic success
It’s worth mentioning Milton Friedman, the Nobel Prize-winning economist and one of the leaders of the Chicago School of Economics, in this context. In response to a question about which country he considered the best in terms of economic success and development, he published an article in The New York Times. According to him, the best country in this regard is Taiwan because it lacks natural resources, all of its land is rocky and unsuitable for cultivation, and it is surrounded by the sea, with storm waves coming at it from all sides. Taiwan needs to import everything, even sand and gravel, and it must rely on other countries for these resources. Despite all these challenges, it’s astonishing that a country facing such daunting hurdles is the fourth-largest financial reserve holder globally. According to Friedman, the remarkable success of Taiwan lies in its reliance on the capacity, workforce, and initiative of its people, rather than the pursuit of mines and natural riches. Human resources are inexhaustible and renewable.
One of the golden points in Friedman’s remarks in the article he penned for The New York Times is that the progress of countries in the twenty-first century can be measured by how successful they are in educating effective educators, providing useful education and upbringing for their children, and strengthening diligence and seriousness in them, as well as investing in an appropriate educational system. The results achieved through education and training determine the power and wealth of nations, not the money obtained through the sale of natural resources such as oil, diamonds, and gold.
Friedman concludes his essay by stating, “It’s good for a country to have oil, gas, and diamonds, but if these riches are not managed properly or are not spent to develop the knowledge and skills of the country’s citizens, they will not bring much benefit.”
The purpose of quoting one of the foremost economists of our time is to clarify that contrary to the propaganda the Taliban have propagated, the solution to eradicating poverty and generating wealth for a country is not possessing natural resources and underground riches. Freedom from poverty and prosperity requires precise and long-term scientific planning. A government that, through its misguided policies, creates conditions conducive to the flight of young and skilled labor to other countries should by no means expect miracles to happen. A regime that is preoccupied with expelling its citizens and, with suffocating restrictions, driving them to foreign lands, if it believes that it can help strengthen the economy by extracting and selling underground resources, is making a fatal mistake.
How a nation can achieve economic development when it deprives its people from education
Under the shadow of the Taliban regime, education is in its worst state, which can be described as a state of decay. Not only has this regime deprived half of the society of acquiring sufficient literacy, but by ideologicalizing the education system, it has severely restricted access to modern and useful education. Many male students and students have been prevented from continuing their education. When the Taliban speak of the necessity of improving the country’s economy, they blatantly lie. How can you, by employing medieval teachings restricting men and women and depriving them of awareness of the latest human achievements in various fields, improve a country’s economy?
Moreover, the lack of transparency mechanisms in the extraction and utilization of underground resources, and the absence of institutions to oversee how the money obtained is spent, are the most significant obstacles to the proper and rational use of the funds derived from these resources. Nigeria is one of the countries rich in oil resources and also has vast fertile land, but in practice, natural riches have not only failed to save this country from poverty and misery, but have also led to the strengthening of the mafia economy and terrifying administrative corruption at various levels of government, and has somehow increased the presence of criminal militias in the country. According to the authors of the book “Why Nations Fail,” the economic backwardness and progress of countries primarily depend on the presence of powerful inclusive institutions. This is while the Taliban, through monopolizing power and staunch opposition to democratic institutions, have endeavored to weaken and even destroy institutions that were semi-functional in the past.
No noticeable change in the Afghan economic situation despite extraction of mineral resources
According to reports from reputable international organizations, the Taliban have so far earned billions of dollars from the extraction and sale of Afghanistan’s natural resources. However, there has been no noticeable change in the economic situation of citizens. If it were not for the aid sent to Afghanistan by the United States and its allies weekly, the country’s already weak economy would likely collapse rapidly. Currently, more than half of Afghanistan’s population relies on foreign aid, and if this aid is not provided, a humanitarian catastrophe will occur, and some individuals may die of starvation.
The Taliban are using the proceeds from the sale of mines and underground resources to strengthen and equip their military forces as much as possible and also use this money for their purposes. The Taliban’s handling of the wealth obtained through the sale of underground resources or other means is akin to seizing war booty in medieval wars and thus they do not consider themselves accountable. It is not inappropriate that in the literature of this group, the occupation of various cities of the country is called “conquest,” and they use the same terms that were prevalent in defining the relations between empires in the Middle Ages. The Taliban rule with a modern foreign government and, by dealing with national assets in a medieval manner, are reducing the chances of economic progress and human development in the country more than ever. Those who have recently descended from the mountains and villages to the cities and do not understand the complex economic mechanism believe that by collecting tithes, alms, taxes, and additional levies from the people, they can achieve economic prosperity. However, these actions not only do not contribute to improving the economy at inappropriate times and places but also severely damage it. Economic progress requires a comprehensive plan and transformation and advancement in other areas. One of the prerequisites for economic transformation is the flourishing of creative forces in all fields. (HashteSubhDaily)
Asia
South Korea emerges as major beneficiary of shifts in global arms market
Uncertainty in the global arms market, driven by the United States reassessing its relationships with allies and a broad rearmament drive across many countries, is creating major commercial opportunities for South Korea. According to an analysis published by Politico, Seoul has become the world’s fastest-growing supplier of military equipment.
The report said that large-scale conflicts around the world have created urgent demand for weapons as countries seek both to support allies and strengthen their own defenses against potential future confrontations. At the same time, changes in the US role within the global arms market have opened new opportunities for South Korean manufacturers. Statements and policy decisions by US President Donald Trump regarding NATO have led allies to question Washington’s reliability in times of crisis, increasing uncertainty across the global market. In addition, the diversion of a large share of US weapons supplies to the Middle East because of ongoing conflicts has placed further strain on already overstretched supply chains.
European countries increase purchases from South Korea
Faced with what Politico described as the Trump administration’s more distant approach toward allies, European countries in particular have accelerated arms purchases from South Korea. The publication noted that Seoul’s growing influence as a supplier has been driven largely by major defense contracts signed with Poland.
Following the outbreak of the conflict in Ukraine, several Eastern European capitals, including Warsaw, transferred portions of their military inventories to Kyiv, relying on German support to replenish their arsenals. However, Berlin’s slow pace in replacing allied stockpiles generated frustration across the region.
South Korea emerged as an alternative supplier during this period and became a reliable source of military equipment for Eastern European countries. Poland became Seoul’s largest customer through a $13.7 billion agreement covering the purchase of tanks, rocket launchers, self-propelled howitzers and other military equipment.
“We were originally preparing against North Korea, but now we are ready to provide these solutions to customers around the world,” said Choo Hyung-kim, head of the Security Management Institute, a defense analysis organization affiliated with South Korea’s National Assembly.
Lack of political baggage gives Seoul an advantage
Politico reported that one of the greatest advantages enjoyed by South Korean defense companies is the absence of the “political baggage” associated with major arms exporters such as the United States, China, Russia and Israel.
According to the figures cited, the combined projected revenue of South Korea’s largest defense companies, including Hanwha Group, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries, is expected to reach approximately $37 billion in 2026. That would represent a fourfold increase from their combined revenues in 2021.
Meanwhile, an official from the office of former South Korean President Yoon Suk-yeol told the Yonhap news agency in 2024 that the scale of any weapons shipments to Ukraine would depend on Russia’s approach to its relationship with North Korea. Seoul later clarified that it had no plans to provide ammunition directly to Ukraine.
Asia
DeepSeek raises $7.4 billion in funding round, surpasses $50 billion valuation
Chinese artificial intelligence startup DeepSeek has raised more than 50 billion yuan ($7.4 billion) in its first funding round. According to Reuters, citing The Information, the company’s valuation has surpassed $50 billion.
The Wall Street Journal (WSJ) reported that the capital will be used to support the costly development of advanced artificial intelligence technologies.
According to the newspaper, citing sources familiar with the matter, investors valued the company at more than $50 billion. The valuation makes DeepSeek the most valuable AI startup in China.
DeepSeek founder Liang Wenfeng reportedly owned about 90% of the company before the funding round. Liang is said to have contributed roughly $3 billion during the fundraising process, making him the largest participant in the round.
According to Reuters, the transaction was structured in an unusual way that allows Liang to retain control of the company.
Rather than investing directly in DeepSeek, investors were required to invest through a limited partnership managed by a senior executive of the startup. Under the arrangement, investors were not granted voting rights. The report also said restrictions were placed on the use of invested funds for a period of five years.
The sole exception was the China National Artificial Intelligence Industry Investment Fund. The fund reportedly invested approximately $150 million directly in DeepSeek, allowing it to retain both voting rights and full discretion over its stake.
Other major investors in the funding round included Tencent, which invested approximately $1.5 billion, and Contemporary Amperex Technology, which invested about $740 million.
Bloomberg previously described the transaction as one of the largest fundraising rounds undertaken by a Chinese startup. According to the agency, the investment marks a new stage in the efforts of leading Chinese AI companies to compete with their US rivals.
DeepSeek told prospective investors that it would prioritize foundational and transformative AI research over short-term commercialization.
Based in the Chinese city of Hangzhou, DeepSeek emerged as one of Beijing’s most prominent AI companies after unveiling a more powerful and lower-cost model more than a year ago. The WSJ reported that interest surrounding the company has accelerated AI adoption in China and increased investor appetite for domestic startups.
Liang Wenfeng has previously said he intends to continue developing open-source AI models and ultimately aims to achieve artificial general intelligence (AGI). According to Bloomberg, the strategy continues an approach that has contributed to the spread of open models and influenced companies across China’s AI market, including Alibaba’s Qwen platform.
Bloomberg added that while global rivals such as OpenAI and Anthropic are exploring public offerings and revenue-generation strategies, DeepSeek has maintained its “research first” approach.
Asia
China issues white paper on global governance reform, urging support for UN-centered international system
China’s State Council Information Office on Wednesday released a white paper titled “A More Just and Equitable Global Governance: China’s Principles, Proposals and Actions.”
The white paper was issued to introduce China’s principles, proposals, and actions regarding global governance, to foster a broader consensus within the international community, to enable more effective responses to global challenges, and to build a more just and equitable global governance system.
The document states that global governance is a common endeavor concerning the well-being of all humanity, and that building a just and equitable global governance system is a shared vision long pursued by people around the world. It also emphasizes that China has always been an active participant, contributor, and builder of global governance.
According to the white paper, in the new era, Chinese President Xi Jinping has put forward the vision of building a community with a shared future for mankind. Advancing a global governance system shaped on the basis of extensive consultation, joint contribution, and shared benefits, Xi has called for true multilateralism to promote an equal and orderly multipolar world and an economic globalization that is inclusive and beneficial for all.
In 2025, Xi proposed the Global Governance Initiative (GGI). This initiative was designed to offer China’s solutions to two urgent questions of the era: What kind of global governance system should be established, and how should global governance be reformed and improved?
The white paper notes that shortly after its introduction, the GGI received support from approximately 160 countries and international organizations, with more than 60 countries joining the Group of Friends of the Global Governance Initiative. It states that the international community is of the view that the GGI sends a clear message: to defend multilateralism, join forces, and strive for a just future.
According to the white paper, the GGI aligns with the growing trend toward greater democracy in international relations and strengthens international confidence in the practice of multilateralism. The initiative provides a clear and actionable roadmap for the improvement of global governance, injecting valuable stability and positive energy into a turbulent world.
The white paper emphasizes that China proposed the GGI to accelerate the construction of a more just and equitable global governance system. The document states that firmly defending the authority and status of the United Nations is of fundamental importance for the effective implementation of this initiative.
According to the white paper, success will also depend on major countries acting with a sense of responsibility and all nations working together in unity to bridge deficits in peace and development. It states that rather than attempting to reinvent the wheel, all countries must firmly defend the international system with the UN at its core, maintain the international order based on international law, and uphold the fundamental norms of international relations based on the purposes and principles of the UN Charter.
In addition to the preface and conclusion, the white paper consists of five chapters: “Today’s World Faces Severe and Complex Challenges,” “The Global Governance Initiative Responds to the Challenges of Our Era,” “China’s Contribution to the Development of Global Governance,” “Directing the Course of Change Toward a Bright Future,” and “Advancing Hand in Hand at a Critical Juncture in History.”
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