Ransom Money Finances Taliban Resurgence

The lesson in the classic Economics in One Lesson is that bad economics focuses only on immediately visible effects of a given policy. For example, a broken window "stimulates" the economy by providing work for the glazier, as well as the glazier's clients, the glazier's clients' clients, etc. Ignored are the invisible uses that that money might have been used for, as well as the the pure loss that the broken glass represents. This led to the Keynsian fallacy that war is good for an economy because it revives the construction business. By extrapolation, it has enabled the drunken sailor spending habits of governments by convincing them that any expenditures have this magic infinite stimulatory effect.

Similarly, appeasement looks good in the short term because it creates feel-good photo opportunities of hostage family reunions, while the enormous number of future victims is invisible. As Israel prepares for the mother of all hostage ransoms, citizens should consider the South Korean lesson as the Islamist kidnappings skyrocket, along with innumerable preventable jihadi attacks:

Millions of dollars handed over to secure the release of South Korean hostages in Afghanistan have been used to buy weapons deployed against British and American forces in the country, the Taliban claims.

Major Alexis Roberts, 32, Prince William’s former platoon commander at Sandhurst, was one of the victims of the Taliban offensive funded by the hostage money. According to Taliban fighters interviewed by The Sunday Telegraph, the money has also been used to train recruits to carry out terrorist attacks in Britain and America.

South Korea has repeatedly denied claims by Afghan officials that it paid cash to secure the release in August of 21 Christian volunteers who were held for nearly six weeks. But in a recent meeting, three Taliban fighters involved in the conflict with the British in Helmand province said that $10 million cash handed over in two installments had been used to boost operations in Afghanistan and abroad.

"It was a God-sent opportunity," said Mullah Hezbollah, 30. "It has helped us to multiply our stockpile of weapons and explosives to wage battle for at least a year or so."

He said the money had been paid in August, shortly before the Taliban’s fugitive spiritual leader, Mullah Omar, ordered Operation Nusrat (victory), an offensive against coalition troops which ran throughout the Muslim holy month of Ramadan, which finished last week. During the operation, four British soldiers were killed in southern Afghanistan, including Major Roberts.

"We were really concerned when we received orders to launch Operation Nusrat, because we had hardly any funds to buy weapons to carry out such a major offence," said Mullah Hezbollah. Thanks to the ransom payments, however, the operation proceeded with "full vigour".