Abdullah Abdullah (L) and Ashraf Ghani (R) sign an agreement to end their political fued EPA
Abdullah Abdullah (L) and Ashraf Ghani (R) sign an agreement to end their political fued EPA
Abdullah Abdullah (L) and Ashraf Ghani (R) sign an agreement to end their political fued EPA
Abdullah Abdullah (L) and Ashraf Ghani (R) sign an agreement to end their political fued EPA

Will Afghanistan's new coalition government have what it takes to face the Taliban?


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The formation of Afghanistan’s latest coalition government may have ended months of political uncertainty, but it is unlikely to provide a speedy remedy for all of the country's challenges. First and foremost, it is essential that the leaders of the country’s new coalition set aside the deep personal animosity that has dominated the political scene since last September’s presidential election contest.

As with Afghanistan’s previous presidential election in 2014, the 2019 ballot was marred by claims of corruption and increasingly bitter exchanges between President Ashraf Ghani and his main rival and erstwhile coalition partner, Abdullah Abdullah, who served as the country’s chief executive in the previous administration.

Dr Abdullah, in particular, resorted on several occasions during the campaign to indulging in personal insults against Mr Ghani, denouncing him as a remote, self-centred leader who had deceived and disappointed the public, even describing him as an “ant without wings.”

Afghan security forces sit in a Humvee vehicle amid ongoing fighting between Taliban militants and Afghan security forces in Kunduz on May 19, 2020. AFP
Afghan security forces sit in a Humvee vehicle amid ongoing fighting between Taliban militants and Afghan security forces in Kunduz on May 19, 2020. AFP

The deep antipathy that has existed between the two men and their supporters since then is one reason it has taken eight months for them to resolve their differences and agree to form a new coalition.

For the feud did not end with the election, the results of which were not announced until February. Although the electoral commission concluded that Mr Ghani had won, Dr Abdullah dismissed its conclusion as fraudulent, and declared himself the winner. This led to the ludicrous spectacle whereby, on March 9, the two politicians each conducted their own inauguration ceremonies, held just metres apart in Kabul, in which, in effect, they sought to establish rival governments.

Thankfully, the high farce that has characterised Afghan politics in recent months is now at an end after the two leaders finally agreed to resolve their differences and sign a political agreement under which they will share power equally. Under the terms of the agreement, which was signed last Sunday, Mr Ghani will continue to serve as President while Dr Abdullah is appointed Chairman of the National Reconciliation High Council, with both leaders agreeing to appoint equal numbers of cabinet ministers.

The failure of the two men to resolve their differences earlier has been a source of immense frustration both for the Afghan people and the wider world beyond, especially the US, which has been immersed in peace negotiations with the Taliban to end the civil war while the Afghan government has been reduced to a state of limbo by the constant political in-fighting.

Thus, while Washington is clearly pleased that Afghanistan now has a new government, US Secretary of State Mike Pompeo, who announced an intention to cut $1 billion in aid to Kabul in protest at the two-governments fiasco, nevertheless could not resist chiding the Afghan leaders for taking so long to resolve their differences. A terse statement issued by the State Department remarks: “Secretary Pompeo noted that he regretted the time lost during the political impasse.”

A wounded youth receives treatment at a hospital after gunmen stormed a mosque, killing some worshipers and wounding several others, in Parwan province, north of Kabul, Afghanistan, May 20, 2020. AP Photo
A wounded youth receives treatment at a hospital after gunmen stormed a mosque, killing some worshipers and wounding several others, in Parwan province, north of Kabul, Afghanistan, May 20, 2020. AP Photo
Thankfully, the high farce that has characterised Afghan politics in recent months is now at an end

While Mr Ghani, commenting on the formation of the new government, said its goals were “to ensure a path to peace, improve governance, protect rights, respect laws and values”, it is clear, certainly from Washington’s perspective, that its first priority must be to revive peace negotiations between the Taliban and the Afghan government.

A first round of talks, which were due to take place on March 10, were delayed by the ongoing political standoff between Mr Ghani and Dr Abdullah. The meeting had been arranged after the US and the Taliban signed their historic deal on February 29, whereby the US agreed to withdraw its remaining forces from Afghanistan in return for the Taliban helping to reduce violence in the country and ensure that Islamist terror groups, such as Al Qaeda and ISIS, would no longer be offered sanctuary.

There have been promising signs from the Taliban that the militant group is serious about upholding its end of the deal. A letter issued by Haibatullah Akhundzada, the leader of the Taliban, to mark the end of Ramadan reiterated that the militants are "committed to the agreement [with the US]...and urges the other side to honour its own commitments and not allow this critical opportunity to waste”.

Yet serious questions do remain following a significant upsurge in terrorist activity since it was signed, with Afghan government officials reporting that more than 3,800 attacks have been carried out since early March.

These include last week’s horrific attack on a maternity ward in Kabul, in which 24 people, including mothers, babies and nurses, were killed, which the Afghan government has blamed on the Taliban.

In spite of the ferociousness of the attacks, the US continues to insist that the Taliban are sticking to their end of the bargain because they have observed their commitment not to attack US-led coalition forces.

But this distinction will bring little comfort to the Afghan people, who continue to suffer at the hands of the Taliban and other extreme Islamist groups, such as ISIS.

As Dr Anwar Gargash, the UAE Minister of State for Foreign Affairs, commented on Twitter following the formation of the new Afghan coalition, “abhorrent violence targeting the helpless in Afghanistan must be strongly opposed”, adding that “a political process cannot succeed until there is an end to the terror engulfing the country”.

Whether the recent upsurge in violence can be brought to an end now depends on the ability of the new Afghan government to engage in peace talks with the Taliban, a process that Kabul has previously resisted on the grounds that it does not negotiate with terrorists. But with the Taliban buoyed by its deal with Washington and now a major force in Afghan politics, the new government may find it has no alternative but to reach a deal with its bitter foe.

Con Coughlin is the Telegraph’s defence and foreign affairs editor

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MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

Profile of Hala Insurance

Date Started: September 2018

Founders: Walid and Karim Dib

Based: Abu Dhabi

Employees: Nine

Amount raised: $1.2 million

Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers

 

Asia Cup Qualifier

Venue: Kuala Lumpur

Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September

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Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore

Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman

Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal

Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore

Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong

Thu Sep 6: Final

 

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Venue: Dubai and Abu Dhabi

Schedule: Sep 15-28

Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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