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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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China launches patrols east of Taiwan after Japan and Philippines open maritime boundary talks

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Beijing said it had conducted law enforcement patrols in waters east of Taiwan in response to a decision by Japan and the Philippines to launch talks on maritime boundary delimitation.

According to a statement from the China Coast Guard, a flotilla led by the vessel Daishan carried out law enforcement patrols “in accordance with the law” on Monday.

China Coast Guard spokesperson Jiang Lue said the operation was “a necessary action” in response to Japan and the Philippines “unilaterally announcing the start of negotiations on maritime delimitation in waters east of China’s Taiwan Island.”

“Such an announcement seriously infringes upon China’s territorial sovereignty and its maritime rights and interests,” Jiang said.

“We urge Japan and the Philippines to immediately cease all illegal actions that violate China’s sovereignty and rights,” he added.

Jiang also said the coast guard would continue strengthening its control and management of the relevant waters and that China would take concrete measures to “resolutely safeguard territorial sovereignty and maritime rights and interests.”

The United States and most of its allies, including Japan and the Philippines, do not recognize Taiwan as an independent state and acknowledge it as part of China. The United Nations has also adopted resolutions reflecting this position. However, Washington continues to provide arms to Taiwan as part of its broader efforts to counter China and encourages its allies to do the same.

Following a summit in Tokyo between Japanese Prime Minister Sanae Takaichi and Philippine President Ferdinand Marcos Jr., the two countries said in a joint statement issued on Thursday that they had agreed to begin “formal negotiations” to delimit their exclusive economic zones (EEZs) and continental shelves.

Beijing condemned the planned talks as “completely illegal and invalid” and swiftly lodged formal diplomatic protests with both Tokyo and Manila.

Chinese Foreign Ministry spokesperson Mao Ning said on Friday: “The so-called delimitation negotiations are entirely illegal, invalid and void. They will have no impact whatsoever on China’s claims or on China’s exercise of its legitimate rights in the area east of Taiwan Island.”

The latest escalation comes at a time when relations between Beijing and both Tokyo and Manila are already strained. Japan and the Philippines are treaty allies of the United States, while China remains engaged in separate territorial disputes with Japan in the East China Sea and with the Philippines in the South China Sea.

As US attention and resources have increasingly shifted toward the war involving Iran, and as the White House has made the Western Hemisphere a strategic priority, Japan and the Philippines have stepped up diplomatic engagement in the region commonly referred to as the Indo-Pacific.

That effort has included building closer security and defence ties with other countries, prompting Beijing to accuse them of encouraging bloc confrontation in the region.

Japan and the Philippines do not share a maritime boundary. However, their seabed claims could overlap because both countries seek to extend their legal continental shelves beyond 200 nautical miles, equivalent to 370 kilometres or 230 miles.

The overlapping area lies east of Taiwan, southwest of Japan’s Ryukyu Islands and north of the Philippines’ Batanes Islands.

Yang Xiao, a researcher at the Chinese Academy of Social Sciences, China’s highest-ranking state-affiliated think tank, said Taiwan’s EEZ and continental shelf are part of the area under discussion.

“These are China’s rights and are not something that the two sides can negotiate among themselves,” Yang said.

In an interview published on Sunday by Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, before the China Coast Guard announced the patrols, Yang said Beijing would take “historic and unprecedented” countermeasures against Tokyo and Manila.

“Since they are negotiating in a three-party overlapping zone, we can also take further steps to advance our jurisdiction in the waters east of Taiwan,” Yang said.

“If the other side insists on reckless and destructive actions, we will inevitably introduce new countermeasures.”

Yang described the waters east of Taiwan as a vital maritime area for the island’s economic activities.

“If these waters are divided between Japan and the Philippines, that would clearly harm the interests of the people living on Taiwan Island,” he added.

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SoftBank overtakes Toyota to become Japan’s most valuable company

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As artificial intelligence reshapes industrial structures in Japan and South Korea, stock market rankings are being redrawn. SoftBank Group has overtaken Toyota Motor to become Japan’s most valuable listed company.

SoftBank shares have surged as the global artificial intelligence rally gathers momentum, lifting the technology conglomerate’s market capitalisation above that of Toyota for the first time in more than two decades.

The shift reflects a broader reordering of Japan’s equity market. Automakers, alongside banks, steelmakers, energy companies and other traditional heavy industries, are losing ground to chipmakers and companies linked to artificial intelligence.

SoftBank shares jumped 14% on Monday, reaching a new record high. The company’s market value climbed to 48 trillion yen, or $301 billion, making it the most valuable company listed on the Tokyo Stock Exchange.

Toyota had long held the top position, with a market capitalisation of approximately 45 trillion yen. The last time SoftBank surpassed Toyota was in March 2000, at the peak of the dot-com bubble.

SoftBank’s rapid rise has been driven by strong earnings performance and its substantial investment in ChatGPT developer OpenAI.

The Japanese company reported net profit of 1.82 trillion yen, or $11.4 billion, for the first three months of 2026, 3.5 times higher than in the same period a year earlier. The group is also increasing its investment in OpenAI, completing a $10 billion investment in April and committing to invest an additional $20 billion later this year. Total investment is expected to reach roughly $65 billion.

According to The Wall Street Journal, OpenAI plans to file for an initial public offering and aims to list in the United States as early as September. Some media reports suggest the company could seek to raise $60 billion through the offering, potentially valuing it at more than $1 trillion. Such a transaction could become the largest initial public offering in history.

Investors expect the IPO to significantly boost SoftBank’s investment gains. Those expectations have helped drive the technology group’s share price higher. SoftBank shares have risen about 127% since early April.

The company is also planning to invest up to 14 trillion yen in the construction of data centres in France.

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China and Serbia agree to expand cooperation in emerging sectors

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Chinese President Xi Jinping met Serbian President Aleksandar Vucic in Beijing, where the two leaders discussed bilateral ties and oversaw the signing of multiple cooperation agreements. Xi also awarded Vucic the Friendship Medal of the People’s Republic of China.

The meeting between Xi Jinping and Aleksandar Vucic began with an official welcoming ceremony at the Great Hall of the People in Beijing.

The two leaders then proceeded to formal talks. Xi said China and Serbia had achieved “positive results” since jointly launching the construction of a “China-Serbia community with a shared future in the new era” in 2024.

Xi said the partnership had not only benefited the two peoples but had also set an example for international relations.

The Chinese president described relations between China and Serbia as an “iron friendship” based on deep historical ties and mutual trust.

Calling on both sides to strengthen exchanges, deepen practical cooperation and continue supporting each other on issues concerning their core interests, Xi also said the two countries should align their development strategies and advance cooperation under the Belt and Road Initiative. In this context, he pointed to transport, energy and infrastructure projects.

Xi also called for expanding cooperation in emerging sectors such as artificial intelligence, the digital economy, green energy and advanced manufacturing.

Aleksandar Vucic congratulated China on the start of implementation of its 15th Five-Year Plan. Vucic also expressed confidence in China’s future development under Xi Jinping’s leadership.

The Serbian president said Belgrade attached great importance to relations with China and firmly supported Beijing on issues concerning China’s core interests.

Vucic thanked Chinese companies for their contributions to Serbia’s economic development and infrastructure construction.

Saying the two countries had made notable progress since establishing their comprehensive strategic partnership, Vucic added that cooperation had expanded across numerous sectors.

The Serbian president also praised China’s role in international affairs, saying Beijing approached smaller countries on the basis of equality and respect and defended international law.

Following the talks, the two leaders witnessed the signing of more than 20 cooperation agreements covering politics, trade, science and technology, education, legal affairs and culture.

The two sides also issued joint statements on steadily advancing the construction of a China-Serbia community with a shared future in the new era and jointly supporting the implementation of four global initiatives.

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