Categories: Market Overview

Three ways the victory of the Taliban might reverberate around the world

The capital of Kabul fell into the hands of the ultraconservative militants more than a week ago, marking the collapse of the civilian government as the U.S. withdrew its military presence ahead of the Aug. 31 deadline.

  1. Rise in terrorism
    Afghanistan could once again become a “hotbed” for terrorism, providing sanctuary for extremists, experts warned. The Taliban have “never broken” their alliance with al-Qaeda over the last two decades despite military pressure and two years of negotiations in Qatar, according to Richard Fontaine, CEO of the Center for a New American Security. A United Nations report this year reached a similar conclusion: It said the Taliban and al-Qaeda “remain closely aligned and show no indication of breaking ties.” The Taliban previously refuted those claims.
  2. Refugee crisis
    There are growing fears of an impending refugee crisis — much like the one from 2015, when more than a million refugees fled the war in Syria to seek refuge in Europe. “You are likely to have an influx of refugees pretty much anywhere the [Afghans] can go,” said Shamaila Khan, director of emerging market debt at AllianceBernstein.
  3. Regional instability
    The political chaos in Afghanistan could spill into neighboring countries, and potentially exacerbate tensions between India and its neighbors, Pakistan and China. Indian analysts are worried that the Taliban’s return may create space for terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammed to launch attacks against Indian targets, according to Elizabeth Threlkeld, senior fellow and deputy director of the South Asia Program at the Stimson Center.

Three ways the victory of the Taliban might reverberate around the world, CNBC, Aug 24

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