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Backward thinking will not steer Afghanistan toward economic development

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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)

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Chinese Politburo signals cautious confidence as Beijing pivots toward targeted tech support

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03/08/2026

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The mid-year meeting of the Communist Party of China (CPC) Politburo has long served as a critical evaluation point for Beijing. The session provides the central government with an opportunity to review developments from the first half of the year and steer the country toward a more realistic economic course in the months ahead.

The latest statement from the top leadership signals cautious confidence. The release indicates that policymakers are favoring a stable, targeted approach over the broad-based stimulus measures that characterized previous years. As China manages its economic transition, the post-Covid era of aggressive spending has clearly drawn to a close. In its place, a strategic and structural approach has taken hold, prioritizing resilience and stability over short-term capital injections.

According to the outcomes of the Politburo meeting, the policy orientation will continue to target specific sectors. Financial support will be directed away from the property market and toward high-tech emerging industries such as artificial intelligence and semiconductors. In the real estate sector, the objective remains stabilizing market confidence and keeping debt risks under control.

Infrastructure investment is likewise being reshaped around the concept of “new infrastructure.” The focus is no longer solely on concrete and physical structures; smart power grids, information technology networks, and data infrastructure have taken precedence.

This approach signifies an investment in future competitiveness rather than simply pumping capital into the economy’s more stagnant sectors. Serving as a new driver of growth, digital infrastructure fulfills a dual purpose: supporting domestic demand in the short term while safeguarding technological competitiveness over the long term.

Finally, Beijing is signaling a more conciliatory posture in international trade. The Chinese leadership aims to establish a more balanced trade framework to mitigate concerns voiced by trade partners such as the European Union over what has been termed “China Shock 2.0.”

As the administration prepares for critical leadership changes next year, its primary focus will remain on stability across both economic and social spheres.

China continues to strike a balance between realistic growth targets and systemic restructuring, maintaining policy leeway to absorb potential external shocks. Beijing’s economic strategy reflects a pragmatic assessment of both domestic and international challenges.

Struggling with weak demand, the domestic economy is not yet in a position to anchor national growth independently. Expansion continues to rely heavily on a record trade surplus alongside the impressive export performance of high-tech and clean energy sectors. However, this reliance has drawn pushback from several trading partners.

To stimulate domestic economic activity and ease trade tensions, Beijing unveiled its first standalone five-year plan focused on consumption. Released in July by the National Development and Reform Commission and the Ministry of Commerce, the plan targets an increase in retail sales to 60 trillion yuan (approximately $8.9 trillion) by 2030. This represents an increase of roughly 20% compared to 2025 levels.

To improve profit margins for small businesses, regulatory authorities are tackling the issue of “involution”—described as excessive internal competition—by curbing platform monopolies and preventing destructive price wars. While these structural adjustments may take longer to yield results, they are viewed as a more sustainable and effective alternative to direct cash handouts.

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Chinese chipmaker profits surge 2,500% on explosive AI computing demand

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6 days ago

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28/07/2026

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Major Chinese microchip manufacturers saw their profits surge by 2,579.5% in the first half of 2026, driven by unprecedented demand for artificial intelligence and computing capacity.

Data from China’s National Bureau of Statistics, cited by the South China Morning Post (SCMP), underscored the industry’s sharp upward trajectory.

Yu Weining, senior statistician at China’s National Bureau of Statistics, explained that this surge is directly connected to the accelerating integration of artificial intelligence across various sectors.

Yu noted that this process has increased the need for computing capacity. The demand for computational processes also lifted profits across the entire electronics industry by 97% year-on-year.

Profits of major Chinese industrial enterprises with an annual revenue exceeding 20 million yuan ($2.9 million) rose 18.7% in the first six months of the year, reaching 4 trillion yuan.

In the first half of 2025, before the global data center construction process had begun, industrial profits had dropped by 1.8% to 3.4 trillion yuan, while profit growth in the electronics sector remained at 3.5%.

The SCMP reported that the global AI boom has generated explosive demand for high-performance computing systems and memory chips, causing a structural pivot in China’s industrial landscape.

Data showed that integrated circuit production in the first half of the year grew by 23% year-on-year to reach approximately 280 billion units.

This figure means that the country produced an average of more than 1.5 billion chips per day.

The profit growth is also corroborated by forecasts from China’s leading chipmakers. Shenzhen Longsys Electronics, one of the largest memory module manufacturers, expects its profits to increase by more than 600-fold in the first half of the year.

Flash memory maker GigaDevice projects that its net profit will surge by approximately 1,099% year-on-year due to supply shortages and rising product prices.

Chinese companies in the AI chip segment are also demonstrating strong profit growth, albeit at a more moderate pace compared to the memory market.

Hygon Information Technology, which develops central processing units and computing units for artificial intelligence, projects that its profits will rise by up to 52.3%.

CXMT hits record high on Shanghai Stock Exchange

Shares of Chinese chipmaker CXMT gained more than 500% on their first day of trading on the Shanghai Stock Exchange on July 27, jumping from 8.66 yuan to 55 yuan.

As a result of this sharp surge in its shares, CXMT’s market valuation reached 3.65 trillion yuan ($539 billion), making the company China’s most valuable publicly traded firm.

At the peak of the rally—even though quoted prices underwent a slight correction toward the close of the trading day—CXMT surpassed Tencent, which was trading on the Hong Kong Stock Exchange with a market capitalization of $514 billion.

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Massive student movement over exam leaks forces resignation of India’s education minister

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1 week ago

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27/07/2026

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Indian public examination reform proposals follow education minister’s resignation after nationwide youth protests

India’s federal government introduced legislation in parliament on Monday to amend the law governing public examinations, days after the “Cockroach” movement forced the resignation of Education Minister Dharmendra Pradhan following nationwide youth protests.

The bill incorporates enhanced sanctions, including longer prison sentences and higher fines for those found responsible for exam leaks and irregularities.

The demonstrations are widely viewed as the most significant youth-led challenge faced by Prime Minister Narendra Modi since he took office in 2014.

What triggered the protests?

Nearly 2 million students took the National Eligibility cum Entrance Test (NEET), an undergraduate medical entrance examination, in May. The federal National Testing Agency cancelled the exam on May 12 following allegations that question papers had been leaked. The examination was re-administered on June 21.

Young people took to the streets to protest against examination fraud, youth unemployment, and a perceived lack of future prospects.

According to a BBC report, the unemployment rate among university and college graduates aged 15 to 25 in the country stands at a critically high level of 40%. The addition of corruption in public examinations to existing economic strain broke the patience of the youth.

Abhijeet Dipke, founder of the Cockroach Public Party (CJP) movement, led the protests.

The movement derived its name from remarks made in May by Supreme Court Judge Surya Kant, who used the terms “cockroach” and “parasite” in a derogatory reference to unemployed youth and protesters. Young demonstrators adopted the insult as a symbol and named their movement after it.

How the movement unfolded

Young protesters organized street demonstrations demanding the resignation of Education Minister Pradhan. Dipke, who initiated the movement in New Delhi, subsequently organized protests in other parts of the country.

Sonam Wangchuk, one of the protesters, began a hunger strike at the demonstration site in support of the movement. As his physical condition deteriorated, authorities forcibly transferred him to a hospital.

The reaction to Wangchuk’s forcible removal from the protest site caused crowds at the venue to expand rapidly.

Tens of thousands of protesters faced tear gas and baton charges by police while attempting to march on parliament. Some demonstrators engaged in clashes with law enforcement officers.

CJP leaders held talks with ministers from the Modi government, who requested time to evaluate the protesters’ demands internally.

Modi called for unity among lawmakers in the ruling coalition to implement strict measures against exam paper leaks, punish those responsible, and establish a secure, leak-proof system.

Opposition representatives led by Rahul Gandhi staged a sit-in at the entrance of Modi’s official residence demanding Pradhan’s resignation. They were briefly detained by police before being released.

Opposition lawmakers supporting the student protesters disrupted proceedings in parliament. Demonstrations expanded to other regions of the country, including the financial hub of Mumbai.

In his first direct statement regarding the protests, published in a post on X, Modi announced that special courts would be established to prosecute individuals involved in exam paper leaks. Protesters rejected the proposal.

Movement leaders held a second round of talks with the government after Wangchuk ended his 26-day hunger strike.

Following those discussions, the government requested time until the afternoon of the following day to respond to the demand for Pradhan’s resignation.

Education Minister Pradhan subsequently announced his resignation, stating that he was stepping down in light of the situation at the protest site and across the country, as well as to prevent “external forces” from exploiting the environment.

On July 26, Modi announced the creation of a task force headed by technology entrepreneur Nandan Nilekani to overhaul the country’s examination system.

On Monday, July 27, the government presented a bill to parliament proposing amendments to the law governing public examinations. The legislation introduces stiffer penalties for offenders, including extended prison terms and increased monetary fines.

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