
Welcome to the Endeavor Editors’ Weekly Current Affairs Choicest Blog series. Get a weekly roundup – on news from business, economy, markets, policy, and more. A quick capsule format news summary and update to keep you abreast with all the latest current affairs.
Current Affairs August 2021 – Week 4
1) International News and Global Economy
T-Mobile probe into breach finds more customers hit, tally now at 53 million
T-Mobile US Inc said an ongoing investigation into a data breach revealed that hackers accessed personal information of an additional 5.3 million customers, bringing the total number of people affected to more than 53 million. The third-largest U.S. wireless carrier said earlier this week that personal data of more than 40 million former and prospective customers was stolen along with data from 7.8 million existing T-Mobile wireless customers. The latest update, comes days after the U.S. Federal Communications Commission (FCC) opened an investigation into the breach. The wireless carrier is the latest victim of a series of cyberattacks on large corporations in the United States as hackers exploit weakened user system privacy and security due to work-from-home policies instituted since the onset of the coronavirus pandemic.
For details visit .
Why The U.S. can’t stop Cyber Attacks
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Chinese astronauts conduct second spacewalk outside planned space station
Chinese astronauts working on the country’s planned space station carried out their second spacewalk on 20th August, according to the China Manned Space Agency. Since they were sent into space in June, the three-man crew has been working and living on the Tianhe core module of the space station, the largest spacecraft developed by China to date. They plan to have the space station, called Tiangong or Heavenly Palace, fully crewed and operational by December 2022 — an ambitious target for China’s rapidly expanding space program. The astronauts carried out their first spacewalk in early July, during which they tested new-generation spacesuits, installed equipment, elevated a panoramic camera and tested the station’s robotic arm. It was also only China’s second spacewalk at the time, since its first was carried out in 2008.
For details visit .
Successful second spacewalk on the China Space Station
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Ismail Sabri Yaakob is Malaysia’s new Prime Minister
Malaysia’s King Al-Sultan Abdullah on August 20 named former Deputy Prime Minister Ismail Sabri Yaakob as the country’s new Prime Minister. The Malaysian King met with other senior royals on August 20 to decide on the next prime minister of the country, after former leader Muhyiddin Yassin resigned earlier this week. No elections were held to appoint Malaysia’s new prime minister as the king had ruled it out over coronavirus pandemic concerns. Notably, In Malaysia, the king has the constitutional power to appoint a new prime minister. Muhyiddin had had to step down because he lost majority support in parliament, ending his troubled 17-month stint in office, which was plagued by infighting within the ruling alliance amid rising COVID-19 cases and a weakened economy.
For details visit.
A look at Malaysia’s 9th Prime Minister Ismail Sabri’s rise to power
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Biden’s approval rating flips for the first time amid Afghan crisis
President Biden’s job approval has flipped for the first time in his presidency amid the chaotic U.S. withdrawal from Afghanistan, with more Americans now disapproving of his performance in office than supporting it, according to the RealClearPolitics polling average. The measure, which combines the results of recent national surveys, pegged Biden at 48.6 percent disapproval — nearly a full percentage point greater than the 47.8 percent of Americans who said they still approve of his performance. Biden, who enjoyed a 20-point approval edge in the early days of his presidency, has seen that level of support slowly erode, with independents becoming increasingly disenchanted with his administration as inflation climbed and the coronavirus pandemic persisted.
For details visit.
Rifles, Humvees and millions of rounds of ammo: Taliban celebrate their new American arsenal
US national security officials are working to account for more than 20 years’ worth of weapons provided to the Afghan military as images of Taliban fighters brandishing American-made rifles and riding in abandoned Humvees are raising concerns about what else was left behind. The Taliban’s newfound American arsenal is likely not limited to small arms, as the group captured sizable stockpiles of weapons and vehicles held at strongholds once controlled by US-backed forces, including modern mine-resistant vehicles (MRAPs) and Humvees. Initial estimates suggest the Taliban may now also possess several Black Hawk helicopters and other US-funded military aircraft, according to a congressional source familiar with early assessments provided by defense officials.
For details visit.
Europe fears Afghan refugee crisis after Taliban takeover
Haunted by a 2015 migration crisis fueled by the Syrian war, European leaders desperately want to avoid another large-scale influx of migrants and refugees from Afghanistan. Except for those who helped Western forces in the country’s two-decade war, the message to Afghans considering fleeing to Europe is: If you must leave, go to neighbouring countries, but don’t come here. Austria, among the EU’s migration hard-liners, suggested setting up “deportation centres” in countries neighbouring Afghanistan so that EU countries can deport Afghans who have been denied asylum even if they cannot be sent back to their homeland.
For details visit.
Europe faces migration crisis from Afghanistan
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Afghan resistance fighters take back territory from Taliban
The fight for Afghanistan may not be entirely over. A high-ranking former Afghan government official said that resistance fighters — mainly made of about 300 battle-ready mujahideen members and commanders linked to the Northern Alliance — wrestled three districts in the north-eastern Baghlan province out of Taliban control, killing upwards of 36 Taliban fighters and wounding dozens more. The local fighters, often referred to as the public uprising forces, are said to have used their own weapons to retake control of Banu, Pol-e-Hesar and De Salah districts in the beleaguered province.
For details visit.
China allows couples third child amid demographic crisis
China will now allow couples to legally have a third child as it seeks to hold off a demographic crisis that could threaten its hopes of increased prosperity and global influence. The ceremonial legislature on 20th August amended the Population and Family Planning Law as part of a decades-long effort by the ruling Communist Party to dictate the size of families in keeping with political directives. It comes just six years after the last change. The rules were eased for the first time in 2015 to allow two children as officials acknowledged the looming consequences of the plummeting birth rate. The overwhelming fear is that China will grow old before it becomes wealthy.
For details visit .
China to allow three-child families as birth rate declines sharply – BBC News
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Israel, once the model for beating Covid-19, faces new surge of infections
Last spring, Israel’s remarkably swift vaccination campaign was seen as a global model. Coronavirus infections plummeted, an electronic pass allowed the vaccinated to attend indoor concerts and sporting events, and distancing rules and mask mandates were eventually scrapped. Israel offered the world a hopeful glimpse of the way out of the pandemic. No longer. A fourth wave of infections is rapidly approaching the levels of Israel’s worst days of the pandemic last winter. The daily rate of confirmed new virus cases has more than doubled in the past two weeks, making Israel a rising hot spot on the international charts.
For details visit.
2) India
Covid update
First Covid-19 vaccine for children above 12 years gets emergency use nod
Gujarat-based Zydus Cadila’s three-dose Covid-19 vaccine was granted emergency use authorization for use in adults and children above 12 years, making it potentially the first vaccine to be administered to the adolescent population in India. With the central drug regulator clearing the vaccine, Zydus Cadila’s ZyCoV-D is set to become the first Covid vaccine candidate developed on a plasmid DNA platform to be commercially introduced anywhere in the world. While the vaccine has been approved for use in the adolescent population, it’s for the government to take a call on whether to roll out the vaccination drive for this age group.
For details visit.
Other updates
India’s national security challenges becoming complex: Rajnath
Noting that India’s national security challenges are increasing and becoming “complex” in view of the changing geopolitical situation globally, Defence Minister Rajnath Singh strongly pitched for a strong, capable and completely ‘self-reliant’ defence industry in the country. Singh’s comments came amid growing concerns in India and elsewhere over the Taliban sweeping across Afghanistan this month, seizing control of Afghanistan following the collapse of the US-backed government. “It is necessary that we not only create strong, modern and well-equipped forces, but also develop our defence industry, which is equally strong, capable, and most importantly, completely ‘self-reliant’,” the defence minister said. The defence minister called upon the private sector to contribute in strengthening the defence manufacturing sector.
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Rajnath defends farm laws but says ready for talks if any clause against farmers’ interest
Defense Minister Rajnath Singh defended the Centre’s three contentious farm laws but said his government is ready to talk to farmers if they feel there is any clause in the legislations against their interests. Stressing that there is a need to fully understand the laws, Singh said an “atmosphere of opposition” is being created and farmers should understand this. Farmers, mainly from Punjab, Haryana and western Uttar Pradesh, have been camping at Delhi’s borders since late November in protest against the laws, demanding their withdrawal.
Farmer groups have alleged that the laws will end the mandi and MSP procurement systems, leaving them at the mercy of big corporates.
For details visit.
Taliban halts trade with India via Pakistan, seals two terminals
India’s apex body of exporters has said that the Taliban have stopped all imports and exports with India and sealed two terminals crucial for trade through land on the Pakistan-Afghanistan border. “Taliban have sealed the land-border trade route and stopped the movement of cargo on the transit route with Pakistan,” said Ajay Sahai, director-general of the Federation of Indian Export Organizations (FIEO). However, trade happening through Dubai is not impacted.
For details visit.
Afghan crisis: Indian exporters flag trade impact | India Development Debate
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Rs 21-crore fraud sparks scrutiny at EPFO offices across India
Following a Rs 21-crore EPFO fraud, the Employees’ Provident Fund Organization has decided to scrutinize all transactions – especially recent ones, including those of the previous financial year – at all field offices across the country. The decision was taken following an internal audit in August at the EPFO office in Mumbai which exposed the fraud. Details from an ongoing internal investigation claimed that a 37-year-old clerk at EPFO’s Kandivali office used as many as 817 bank accounts, mostly of migrant workers, to fraudulently claim PF amounting to Rs 21.5 crore on their behalf.
For details visit.
Probe begins after alleged scam at Mumbai Provident Fund Office
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Curfew, violence, police post ransacked, rifles, vehicles snatched in Shillong, why Meghalaya burned
Meghalaya, which has always been peaceful, erupted in protest on 15th August. Shekhar Gupta analyses the violent support for a former insurgent who controversially died in police firing, leading to an unheard unrest in Shillong. Also, what is old insurgent group HNLC, and understanding Meghalaya.
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3) Economy
Satisfied at recovery being broad-based, Crisil ups India Inc’s credit outlook to ‘positive’
Crisil Ratings said a broad-based recovery is on for India Inc currently, and upgraded its credit quality outlook to ‘positive’ from the earlier ‘cautiously optimistic’. The rating agency said the credit ratio, which illustrates the number of upgrades to downgrades, rose to over 2.5 times in the first four months of the fiscal, as compared to 1.33 times in the second half of FY21, it said in a statement. The rating agency said it has also done a study of 43 sectors, excluding the financial sector, accounting for 75 per cent of the overall Rs 36 lakh crore in outstanding debt, which shows that the current recovery is broad-based.
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4) Markets, Banking and Finance
MPC minutes: Jayanth Varma says time to take a hard look at accommodative stance
The monetary policy committee (MPC) is conscious of its objective of anchoring inflation expectations, the MPC Minutes, that was released on August 20, read out. The MPC also suggests that the outlook for aggregate demand is improving, but still weak and overcast by the pandemic. There is a large amount of slack in the economy, with output below its pre-pandemic level. MPC’s current assessment was that the inflationary pressures during Q1 2021-22 were largely driven by the adverse supply shocks and are expected to be transitory. The MPC suggests that while the government has taken certain steps to ease supply constraints, efforts in this direction are necessary to restore the demand-supply balance. Prof. Jayanth R Varma had expressed reservations that the current levels of the reverse repo rate are no longer appropriate. He expressed that the current balance of risk and reward is gradually shifting as the pandemic continues to mutate and that merits a hard look at the accommodative stance.
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CarTrade’s dud listing sounds a note of caution for Tech IPOs
Auto marketplace platform CarTrade debuted on the bourses on August 20 at a discount of more than 1% against the issue price of INR 1,618. The stock further fell to INR 1,491 by the end of the day’s trading — down 6.8% from the opening price of INR 1,600 on the Bombay Stock Exchange (BSE) and INR 1,599.80 on the National Stock Exchange (NSE). Interestingly, while a sharp sell-off hurt the CarTrade stock price on its listing day, there were also several bulk deals by major asset managers. Goldman Sachs, Plutus Wealth Management and Jupiter India fund bought the company’s shares in bulk in the range of INR 1,563 to INR 1,575. The cold reception to a profitable tech start-up like CarTrade may sow doubts in the minds of promoters and top management of other IPO-bound companies like Paytm, Nykaa, Mobikwik, Fino Payments Bank, Ixigo, Tracxn, according to market watchers.
For details visit.
Cars24 to raise $350 million, aims to float IPO in 18 to 24 months: Report
India’s biggest online marketplace for used automobiles, Cars24 Services Pvt, is closing in on a deal to raise about $350 million from DST Global, SoftBank Group Corp. and other investors, according to a person familiar with the matter. The fundraising would also include Falcon Edge Capital and value the start-up at close to $2 billion. Demand for used vehicles has boomed in India as consumers try to avoid mass transit systems during the Covid-19 pandemic. The outbreak has hurt new auto sales, but cost-conscious buyers are looking for pre-owned cars.
For details visit.
5) Business
Chip crisis threatens to cut auto output by 7.1 million cars
The global shortage of semiconductors will cut worldwide auto production by as many as 7.1 million vehicles this year, and pandemic-related supply disruptions will hobble the industry well into next year, IHS Markit said. The lack of chips won’t stabilize until the second quarter of next year, with recovery coming in the second half, IHS said in a report. The grim outlook is further proof that the chip crisis is far from over. And the research firm’s forecast doesn’t include the latest cuts from Toyota Motor Corp., which plans to briefly pause output at 14 plants next month and slash production 40%.
For details visit.
Rs 90,000 crore discom losses speculations grossly inflated: Power Minister
The government said, speculations about discoms posting loss levels of Rs 90,000 crore in FY2021 were “grossly inflated.” The adverse performance of discoms seem to have gone past the inflexion point, showing green shoots of turnaround, an official statement by the union power ministry said. The sector is witnessing tell-tale signs of improvement in performance and increase in efficiencies due to a multitude of initiatives made by the central and state governments and the discoms themselves, it said.
For details visit.
Prospects for sugar exports are encouraging for SY 2022: ICRA
Prospects for sugar exports are encouraging for next sugar season (SY2022) on account of recent surge in international prices of raw sugar prices, according a note by rating agency ICRA. Even as sugar prices have been trending higher since beginning of calendar 2021 anticipating lower global surplus position for the commodity, the recent sugar production data for Brazil pointing to further contraction in country’s volumes for the season aided in further uptick in international raw sugar prices, ICRA said.
For details visit.
Facebook eyes Indian start-ups for investments
Facebook is eyeing a large part of the fast growing and lucrative Indian start-up ecosystem. Facebook is eyeing early-stage companies in line with its investments in social commerce platform Meesho and EdTech enterprise Unacademy. Both Meesho and Unacademy have become unicorns. In an India-only initiative, Facebook also launched a ‘Small Business Lending Initiative’ for companies that have a presence on its platform. This will give them instant access to credit through independent lending partners. Through Facebook’s partnership with Indifi, small businesses can get loans between Rs 5 lakh and Rs 50 lakh at a pre-determined interest rate of 17-20% per annum and applicants will not be charged a processing fee by Indifi.
For details visit.
6) Technology
China passes new personal data privacy law, to be implemented November 1
China’s National People’s Congress officially passed a law designed to protect online user data privacy and will implement the policy starting November 1, according to state-media outlet Xinhua. The law’s passage completes another pillar in the country’s efforts to regulate cyberspace and is expected to add more compliance requirements for companies in the country. The law states that handling of personal information must have clear and reasonable purpose and shall be limited to the minimum scope necessary to achieve the goals of handling” data. It also lays out conditions for which companies can collect personal data, including obtaining an individual’s consent, as well as laying out guidelines for ensuring data protection when data is transferred outside the country.
For details visit.
Explained: China’s new strict data privacy-law and what it means for tech giants
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Lionel Messi launches ‘Messiverse’ NFT crypto art collection
Argentine soccer star Lionel Messi has launched his own collection of non-fungible tokens (NFTs), crypto art that was created with his image by digital designer BossLogic. An NFT is a form of crypto asset which uses blockchain to record the ownership status of digital objects, such as images, videos and text. While anyone can view the item, only the buyer of an NFT has the official status of being its owner. The market for NFTs has exploded in recent months. In March of this year, Christie’s auction house sold a digital work by the artist known as Beeple for almost $70 million.
For details visit.
CRED Enters P2P Lending; Promises upto 9% interest to users
Fintech start-up CRED has announced the launch of its peer-to-peer (p2p) community-driven product — CRED Mint. This is the start-up’s first community-driven product. It will enable members to earn interest on idle money by lending to other high-trust members. P2P lending is a system wherein individuals and small businesses can lend money to other individuals or small businesses without using a bank as intermediary. CRED Mint is launched in partnership with the RBI-registered P2P NBFC — Liquiloans. The start-up posits that those investing in the service can earn interest rates of up to 9% per annum.
For details visit.
CRED launches new peer-to-peer lending product, CRED Mint | StartUpCentral
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India among the global leaders for crypto adoption
Asian countries are outpacing the rest of the globe in terms of cryptocurrency adoption. According to a recent analysis from market research firm Finder, the top five nations in terms of bitcoin ownership are all located in Asia. Most of them were considered unimportant in the cryptocurrency industry; however, a recent study contradicts the same. The Asian country with the highest percentage of cryptocurrency ownership was Vietnam, at 40 per cent, followed by Indonesia, India, Malaysia, and the Philippines, respectively. 30 per cent of individuals polled in Indonesia and India stated that they held cryptocurrency. According to media reports, India also ranked #2 in a poll of nations that use cryptocurrency the most, with 9% of the respondents claiming they used crypto. Meanwhile, the United States and the United Kingdom had the lowest proportion of cryptocurrency owners, with 8 per cent and 9 per cent, respectively.
For details visit.
Banks tap fintechs to deliver new-age credit products
Banks and non-bank financiers are partnering with fintech companies to offer new-age digital products to their customers in areas they would otherwise have to invest significantly more if developed in-house. While the thrust is on retail products, banks are also working with these nimbler fintechs on business products. Areas of collaboration include buy now pay later (BNPL) for retail and merchant credit, trade finance for small businesses and commodity financing. When fintechs started arriving on the financial services space, it was though they would compete with traditional banks and non-bank lenders for a share of the credit pie. However, lenders have taken the opportunity to use their lending muscle in collaboration with the new-age expertise of fintechs.
For details visit.
7) Politics
Regional assertion at Opposition unity meet held by Congress
The process of Opposition consolidation gained further momentum as 19 parties participated in a meeting called by Congress chief Sonia Gandhi, with regional parties dominating the narrative, saying all like-minded parties irrespective of their alliance with the Congress should be part of a united front to take on the BJP. Following an hour-and-a-half long meeting, the Congress released a ‘joint statement’ demanding action from the Centre on 11 points. Soon thereafter, the Trinamool Congress issued a separate wishlist with just five points — vaccine for all, repeal farm laws, fuel and LPG price hike, Rs 7,500 per month dole to all outside the income tax bracket, and judicial probe on Pegasus.
For details visit.
Armed with 127th Amendment Bill and welfare schemes, BJP to begin OBC outreach ahead of UP polls
The Bharatiya Janata Party’s (BJP) poll strategy for upcoming Uttar Pradesh elections includes an outreach programme highlighting measures it took for the welfare of Other Backward Classes (OBCs), including the Constitution (127th Amendment) Bill, 2021 that was passed in Parliament in the recently-concluded Monsoon Session. The ruling party in Uttar Pradesh also plans to highlight other decisions such as the recent one by the Centre to allocate 27 percent reservation for OBCs in the all-India quota for medical seats. The Constitution (127th Amendment) Bill, which restores powers of states and union territories to notify their own OBC lists was passed in both houses of Parliament during the Monsoon Session that concluded on August 11. The outreach assumes significance as half of the population of Uttar Pradesh comes from backward castes. According to an estimate, the backward castes make up 54% of the state’s population, including Yadavs, the largest among these castes.
For details visit.
8) Sports
India vs England 2nd test match: India registers historic win at Lord’s against England, takes 1-0 series lead
India vs England 2nd test match: India declared on 298-8 just after lunch to set England 272 to win in 60 overs. It was a victory target the hosts never intended to chase, but one they couldn’t defend either. Both openers, Rory Burns and Dom Sibley, were out for 0 — the first time that has happened to England at home in 143 years of test cricket. It was India’s third test win at Lord’s. All the fastest bowlers contributed with ball.
For details visit.
Junior World Championships: Indian grapplers return with a rich haul of medals
In a first, Indian girls finished third in the Junior World Wrestling Championships in Ulfa, Russia. USA 143 points, Russia 134 points, India 134 points, Belarus 96 points and Turkey 92 points were the top five finishers in points standing. Indian girls won five medals including three silver medals. Meanwhile, the boys won six – one silver and five bronze medals. In the men’s freestyle, India finished sixth among 12 countries in medals tally and fifth among points table.
For details visit.
9) Opinion
Decoding the caste-based census, and its implications for Indian politics
With the crucial Uttar Pradesh elections next year, and other state polls to come in the run up to the great finale in 2024, regional political parties with considerable influence in their own bastions would think of reviving the once-powerful Other Backward Castes (OBC) card to get back at the BJP. These parties are demanding that a caste-based census be conducted as part of the delayed Census 2021. On August 10, the Lok Sabha passed a constitution amendment bill to restore the power of states to make their own OBC lists. Given the attempt to rev up the caste card, the caveats sought by regional parties are hardly intriguing: a demand for the removal of the 50 per cent cap on reservation and a caste-based census.
For details visit.
The caste census, debate around it & the Constitution angle
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Are oil bonds to blame for the high fuel prices?
While it is true that these oil bonds aren’t pleasant to deal with, there’s a whole host of other reasons why the government cannot cut taxes right now. GST collections have been subpar. Covid has forced the government to borrow beyond its means. The government has had a horrid time trying to sell its prized assets. And they simply don’t have a lot of money to spare right now. Therefore, we can’t say that fuel prices are at a record high right now because of oil bonds. There are multiple factors at play here and to reduce this complex equation to a single variable is a bit of a disservice really.
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With US exit, Russia’s power in Central Asia grows ever stronger
The strengthening of Russia’s position as the major force in Central Asian security matters is part of a broader shift brought about by the Taliban’s rise to power. Russia, China and Pakistan all stand to gain influence in regional affairs with the West’s withdrawal, while the United States and India stand to lose. For Moscow, the chaotic U.S. withdrawal, while reminiscent of Russia’s humiliating 1989 retreat from Afghanistan after its disastrous 10-year intervention, was a propaganda victory on a global scale. From Latin America to Eastern Europe, Russia has fought for influence by insisting that the United States cannot be trusted. Nikolai Patrushev, secretary of Russia’s Security Council, warned that America’s friends in Ukraine could soon also be disappointed. The rapid fall of President Ashraf Ghani’s government was also a vindication of Russia’s years long strategy of building a diplomatic relationship with the Taliban. As Western diplomats scrambled to flee Kabul this week, Russian officials stayed put, with the Taliban guaranteeing the security of the Russian Embassy.
For details visit.
Why India should forget Afghanistan, Pakistan, ‘Terroristan’ & shift strategic gaze to the seas
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View: What will the Taliban do with a $22 billion economy?
Throughout their two decades in the wilderness, the Taliban have shown themselves capable of generating resources to maintain an insurgency, mostly from the drug trade, illegal mining and donations from supporters abroad, but also from taxes and rents in areas under their control. In good years, the Taliban’s revenues amounted to upwards of $1 billion. But the Afghan budget is more than five times that size. The country’s gross domestic product, estimated at $22 billion, has grown nearly threefold since the Taliban were driven from power in 2001. And the economy has for several years been in precarious health, propped up by foreign aid. By the World Bank’s reckoning, three-fourths of the government’s budget is funded by international donors, led by the U.S. Managing that economy has been a cohort of Afghan technocrats, many of them Western-educated or trained. Very few of them are expected to remain in the country, despite the Taliban’s promise of “amnesty” for anyone who worked with the deposed government. The most urgent economic challenge for the new rulers, then, is a yawning skills deficit in government ministries and departments. The Taliban will struggle to find ministers and administrators whom foreign donors and investors can trust.
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Explained: The Taliban war chest
In returning to power in Kabul, the Taliban demonstrated both the success of a lightning military offensive against Afghanistan’s then government, as well as their remarkable resilience in the face of onslaughts by the world’s most powerful military for 20 years. Where have the Taliban found the funds to sustain themselves over a two-decade war with an adversary with almost limitless resources? In a May 2020 report, the United Nations Security Council estimated that “overall Taliban annual combined revenues range from $300 million to upwards of $1.5 billion per annum”. It said that while the figures for 2019 were lower, officials “were careful to note that the Taliban used resources effectively and efficiently and were not experiencing a cash crisis”. The primary source of the Taliban’s funds has been the drug trade, as report after report has shown over two decades.
For details visit.
With that, we come to an end for our Weekly Current Affairs August 2021 -week 4. Hope you have liked it. Write your feedback in the comments below and let us know if there is anything else you would like us to cover.
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