Capital-labor division is traditionally known to the common man. Even though an economist assigns particular well-defined meaning to both terms, in its simplest form any resources other than labor, capable to reproduce itself by a proportionate mix with labor is called capital. Land, machinery, liquid assets, i.e., gold, cash is the traditional examples of capital. However, knowledge of economics like any other discipline has evolved over time and new concepts have found its way into the existing definitions. It was Theodore Schultz who introduced human capital and human capital formation through education and skills as human capital accumulation. Intellectual property which is now protected by law is another form of capital. Therefore, in economics any resource which has the capacity to render productive service of value to the economy and contribute to additional flow to the national income is called capital. Investment in such resources ensures future return to the economy and further capital accumulation.

Our hypothesis in this article is that stability is a form of capital; and we shall by logical formulation argue that increase in people’s faith in an environment further increases capital accumulation resulting to further strengthening of the stability in over deterministic, dual causality form. In a social context, politico-economic interaction is an obvious fact. Politics change rules of the game for both politics business itself and the business as it is understood. Political parties with different economic agendas drastically influence the business environment and hence economic performance of a country. Political tensions reflect itself in market signals such as prices and exchange rate, which we mostly witness. Dozens of empirical evidence show that countries with greater stability and stronger rule of law have had better and faster growth trajectory in their economic performance. Now the question put to a capitalist is weather committing resources for political and social stability contribute to further capital formation. Let us start the argument by taking the definition of capitals as the benchmark of our analysis. To begin with, stability in a system assures the domestic and international businesses and entrepreneurs to commit their capital for production of goods and services, which will create employment of resources and labor, resulting to increase in production and hence national income. When more resources are spent for creating stability and sound socio-economic environment the public good transform itself in the form of faith in the system by individuals and business houses, more investment and further growth of the economy. Therefore, the direct externality of the stability is an economic return, which if seen from an economist’s view can be called as an investment, a profitable one. Hence, resources spent on stability generate faith, and since it insures return it is an investment. Since the investment in faith lead to further faith in the system and as consequence more investment, faith itself can be called as a form of capital. Economies with high stability scores, have attracted more faith and increased capital inflow to the economy.

Afghanistan is an economy of abundant resources, plethora of cheap labor and favorable laws to business. Such conditions promise high potential of return to investment both to private and public investment and as a result flourishing of national economy. However, to kick start a business everything falls at the mercy political stability, security and in broad term faith in the system, which Afghanistan as a potential business space falls short of. International community, neighboring countries, multinational corporations and domestic players who are interested in return to their investment, would rather first invest in generating and increasing faith to the system. This can be done from a pure business view point, with the expectation of returns to investment, instead of political agenda. Looking from Smithian and neoclassical self-interest perspective too, we can argue faith in stability of the system to be a capital and therefore can urge all capitalist stakeholders who think business to invest in “Faith Capital” in Afghanistan. The Afghan people will benefit only from the positive externality of such investments and the real profit would be enjoyed by the investors. Like any other business, competition should be on who can create better business environment through further stability, rather than the destructive game being played today.