>> tom: apple's profits shine, marking its most profitable quarter ever. pushing those earnings higher: surging iphone sales led by its debut in china. you're watching "nightly business report" for monday, january 25. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: d. international fund, but some experts say that would just encourage more corruption. >> translator: what i recommend instead is for the german government to directly support projects on the ground by aimed at improving the fighters' economic situation by providing them with new jobs and education. >> reporter: another idea being discussed is expanding training programs for the afghan army and police forces so they can shoulder the security burden sooner. german chancellor angela merkel and cabinet ministers will be honing the government's stance on these issues before the london conference is due to convene on thursday. >> with that we continue our look this week at president obama's key foreign policy challenges one year into his term. we call it obama and the world. tonight weocus on afghanistan and pakistan. joining us tonight, ahmad kamal, pakistan's former ambassador to the united nations, and hassan abbas, another former pakistani government official who is now with the asia society and is a professional of international affairs at columbia university. and thanks to both of you gentlemen for joining us. before we do get to the big picture, i want to focus on the news that we have just seen, and that is all about the feasibility of some sort of negotiated settlement with the taliban. what are the chances that can happen? >> it's welcome and overdue. evolution of american foreign policy that has taken place. so far american foreign policy was an extension of the bush doctrine, which was to find a military solution in iraq and afghanistan and pakistan based on the concept of cut off the head of the snake and everything will fall into place. this doctrine which was evolved originally by israel did not succeed in palestine. did not succeed in iraq. and cannot succeed in afghanistan and pakistan. because the militants draw their strength in their objective, which is panic and attrition. they draw their strength from a public unhappiness which is based on a public opposition to their own government and to u.s. policies. so that oxygen has to be dried up. and that requires a change in u.s. policy toward dialogue and dialogue which hopefully the american public will support. >> i found a myself wondering about the timing of this. is it a hill sudden? >> it is a little sudden, yes. but after agreeing with the ambassador, i would like to look at it from a different perspective. number one, how do we define taliban? if these are the same taliban who we were fighting for the last eight years using american taxpayers' money, failing miserably, then what's the purpose? i think they may have different interpretation a different definition of taliban, number 1. number two, the whole issue is that all pashtuns in that area, some of them who don't want outside forces, they're not all taliban. and secondly, they have to be, no doubt, different ways, means to which you talk to people. talko the people of afghanistan. if we are talking about a negotiated deed with afghan taliban who were the killers and butchers, i don't think that is possible. >> defense secretary gates, in addition to talking about power sharing as we've heard, also said he doesn't believe the taliban will even entertain this possibility unless it has concluded it can't win militarily. >> that's not correct. it is the essence is not with the taliban. and their understandg of where the victory is around the corner or not. the essence lies with american foreign policy understanding, that a military solution is just not possible. and that you have to found a political solution for rtantly, in pakistan.ore afghanistan is not a patch compared to the problem of pakist because pakistan is larger. it is 170 million people. it is a hopelessly divided country. divided politically, divided provincially, divided economically and it has a highly inefficient and inept government. that is where the essence of american foreign policy lies, and american security lies in finding a solution to the economic problems, th of afghanistan and of pakistan and of course to its own job creation in the united states. >> let's take a look at things more broadly. here ware one year into president obama's term. can you tell us a littleit, what's happening in afghanistan militarily? what is going on on the ground? >> nothing. >> nothing? we're about to have a huge troop surge there though. >> i would arguehat we are stuck between two extremes. for the last eight years, we were seeing falsely in my view, that we are doing a nation building. no one can do nation building. yes, maybe state building in some ways, and now we are saying no, it will only be -- for some time they were saying there will only be a military option. president obama took a long time. we can defend that, that he took a long time to review but we cannot define inaction. this is the time to implement that policy. state building to some extent, accepting the realities involving the original powers, unless we involve the original countries. and i see some hope that there have been many political leaders and military leaders going to pakistan, hopefully in the air, china and others. >> so one year in, is our foreign policy, with respect to afghanistan, succeeding? >> no, not succeeding. but some of the elements which can become part of a successful story and successful policy are being put in place. >> do you agree? >> absolutely. it is evolving. it is evolving in the right direction. and therefore, there is hope that this evolution will lead to success both in afghanistan and in pakistan. >> now all of this talk about negotiated settlements, however, coincides with a very aggressive use of these unmanned predator drones, particularly along the afghan-pakistani border. >> that's part of the same policy of the mitary approach to the problem.drones cannot so. because this is, the concept is to cut off the head of the snake. the collateral damage is far greater than the head of the snake. and the collateral damage then sets off a snow ball effect of opposition to the drone attacks. you see that in pakistan and pakistan there is enormous opposition to u.s. policies, particularly with reference to the drone attacks. >> does the use of the drones set us back, do you think? >> the problem is yes. we have converted a tactic into a strategy. by killing four alleged trusts, we are creating ten real terrorists. it can be a good tactic, if bin laden is taken out, everybody will be very happy. but that has not happened. >> let me get to you look ahead to one year. what do you think should be the priority in the next year of president obama's term? >> i think the original approach involving the original countries, improving the relations with the muslim world overall which the president committed in cairo and turkey, that is the way forward. >> i agree it means including both iran and india in the afghanistan-pakistan context. >> all right. thank you both. ahmad kamal and hassan abbas. we appreciate you being with us today. >> thank you. >> thank you. >> we would also like to hear what you think about all this. our question tonight, should the united states and its allies start engaging the taliban with the aim of a power sharing arrangement? you can tell us what you think by going to the how you see it section of our website. that's at worldfocus.org. and that brings us to our signature story. we routinely hear a great deal about how the war in afghanistan affects pakistan, its neighbor to the east. obvious and much less covered is how what happens in afghanistan affects its neighbor to the west. iran. you may or may not know that iran's oil money has made it dramatically wealthier than some of its neighbors. and much as mexicans seek work in the wealthier united states, millions of afghans have fled the chaos in their country, seeking work in iran. bijan saliani traveled to iran last summer and discovered that iran remains an attractive destination for poor workers seeking a better life. our report tonight is by richard o' reegan. >> reporter: while the world is still reeling from the ongoing economic meltdown, iran's economy is pushed by this stream of money that comes here to pay for its oil. things have slowed with the downturn in oil prices but being the world's second largest producer does still mean money in the bank. and having cash means there is not much you can buy here. from high-end autos to the latest computers, it's all for sale in tehran's market and its famous bazaar. while iran is considered a nuclear outlaw and a supporter of terrorism by europe and the u.s., to neighbors like afghanistan and iraq, iran looks like a model of stability. so the odds are pretty good that someone working in a low wage job here is a refugee from one of iran's troubled or impoverished neighbors. nearly three million of them are from afghanistan. two thirds of them are here illegally. >> translator: i have been here for a year and a half. my family is back in afghanistan. i send them money. i came here to find work. >> reporter: gorban, his four brothers and a few others will spend most of next year building a luxury condo in tehran's fancy north side. they make their own home three flights below ground. in the condo's unfinished basement is an invisible afghan village. there is water from a hose but no other plumbing. they tapped into the building's electrical line. in every building around here, there is a similar scene. >> my brother did this. we have a team, and we all move from job to job together. >> reporter: the construction company lets the afghans stay here in part to hide them from the authorities. 32-year-old gorban is part of this team. >> translator: i have been arrested three time. the first two times, they made me sign a letter promising to leave. the third time, i had to pay $600. >> reporter: $600 is about three months' pay. bu each at that price, gorban and his men are doing far better here than they would at home. >> they pay me around $10 a day for a laborer. but you can make 25 to $30 a day if you have a skill. ofhat $10, we spend $3 on food and send the rest back home. >> reporter: the afghans do their best to stay out of sight. when outside they try to blend in. western afghanistan, where these men come from, was once part of persia so they do speak the same language. like most iranians, they're shia plus limbs. but at home and here, life is less about cultural connections and more about family and villages. >> translator: this is not a good life. we are not home with our families, but we make good money and have better opportunities here than at home. i hope i can go home in a year and save enough to go back for good in five years. >> reporter: iran would like to see their backs sooner than that. but taking a hard line would create an economic crisis across the border. ify this is the ministry of interior's official in charge of refugees and immigrants. >> right now, afghanistan is not stable. there is no work for these refugees. we believe when there is a vibrant economy, with help, education, homes and security, they will go back to their country. >> reporter: the $2.5 billion that flows each year from workers in iran to their afghan families is about as much as afghanistan's entire national budget. >> not as hard in iran as we thought it would be. life is pretty good here. i send money. >> reporter: life underground has its comforts. there is enough to eat. a boom box bought from an upgrading contractor, and even a tv. tonight's feature is a korean historical soap opera dubbed into persian. the dubbing is crucial. few of the workers on this team can read. working as laborers is their only option. the iranian government actually sees their lack of education as a reason to let them stay. they come from afghan communities that oppose iran's eniban. so keeping those communities healthy is in iran's interests. >> translator: if they ever go back to afghanistan and try to run their country, they need to be literate, and be able to decide for themselves the kind of society they want. 3,000 afghan refugees are going to iranian universities. more than 95% of taliban forces are illiterate so we can see this education as a way to fight the terrorists. >> reporter: the refugees have more simple dreams. >> translator: i have two boys and a girl. i'm not happy to be away from them. my hope is to make enough money ck and live with my wife and kids. >> reporter: for "worldfocus," tehran. >> we want to tell you tonight about another parallel between mexico and t united states, and afghanistan and iran. it is a far more sinister connection, also not well reported in this country. just as the united states is fighting a war on drugs that come here through mexico, iran is engaged in a similar battle against drugs from afghanistan. in a report that offers a rare look at iran's drug problem, the alireza ronaghi from al jazeera says at least part of the blame is aimed at the west. >> reporter: the park in southern tehran, a place for kids to kick a ball around, but also a meeting point for drug dealers and addicts. at 36, he looks much older. he has been shooting up since he was 10. he lost his job as a shop keeper a long time ago and now sleeps rough in the park. he tells us that drugs are readily available in his neighborhood, and ever child runs the risk of growing up to be like him. guards are supposed to keep the park clean and drug-free, buthe. he said it is pointless to beat up drug dealers becausthe constant supply of narcotics brings them back day after day. >> translator: drugs come in from afghanistan. if the government stops the trafficking, our youth will have a chance to grow up clean they won't be heroin addicts and they won't have any drugs to take. >> reporter: iran's eastern border with afghanistan is long and porous and thousands of tons of drugs pore through it every year. iranian authorities say they can only do so much to stem the flow. iranian police have seized 400 tons of drugs since last march. they say tens of police officers are killed in the war on drugs every year. it is a war they say they are fighting on behalf of the western world. >> reporter: at a conference in drug control in tehran, the head of the anti-drug task force lashes out at international organizations in western powers. he said his men are being killed by traffickers as they try to stop drugs from reaching the west and they get little thanks for their efforts. >> translator: they are the main culprits. those who chase terrorists in afghanistan. they have left drug traffickers free and i think they even guide traffickers. they allow a 50% increase of drug production in afghanistan's helmand province, where the british forces are located. what does that mean? >> reporter: the representative u.n. says his hands are tied. >> our technical assistance problem, let me say that it is funded by extra budgetary sources. so that does not have funding at its disposal to change any equipment, carry out any training, or even to chasing drug-sniffing dogs. >> reporter: iran is calling for more help from the international community buit is too late to help him and so many others like him, whose lives have been blighted by drugs. alireza ronaghi, al jazeera, tehran. in iraq, three suicide bombers struck today in baghdad near hotels popular with journalists and foreign contractors. security officials said at least 37 people were killed and more than 100 injured in the bombings which all occurred within 15 minutes in downtown baghdad. there was no claim of responsibility for the attacks, but they were seen as the latest attempt to disrupt iraq's parliamentary elections in the beginning of march. the gernment blamed insurgents linked to the former regime of saddam hussein. shortly after those bombings, the government announced a cousin of saddam hussein known as chemical ali had been executed. former general ali hassan al majid was hanged a week after he received a fourth death sentence for poison gas attacks that killed more than 5,000 iraqi kurds in 1988, and earned him his infamous nickname. he was known as one of the most brutal members of saddam hussein's inner circle, leading military campaigns against the kurds in the north, shiites in southern iraq. those campaigns claimed tens of thousands of lives. and in the waters off beirut, lebanon, a search is continuing tonight for passengers on an ethiopian airlines jet that crashed into the sea. the plane went down in stormy weather minutes after taking off in the capital. lebanon's president says that sabotage is not suspected. pieces of the boeing 737 and other debris washed ashore in the hours after the crash. the plane was carrying 90 people and by nightfall, 21 bodies had been recovered. no survivors were found. finally tonight, an inspiring story about the will to overcome adversity through perseverance and strength. in this case, the strength of a boxing champion who made her way out of communist north korea and into a new life of freedom and fame. let's go ringside tonight with rahul pathak of al jazeera english. >>he's been dubbed south korea's million-dollar baby. to others she is simply the defector boxer girl. whatever you want to call her, there is no denying that 19-year-old choi hyun-mi has had a remarkable journey. one thatas taken her from the streets of pyongyang in north korea to the boxing rings as a world champion. >> translator: i don't mind that nickname. it is true that i defected from north korea so it's okay but i want to be known for my boxing more than the fact that i defected from north korea. >> reporter: she might want to be known for just her boxing but it is hard to get away from her past. a talented junior in north korea, choi's life changed forever when her father decided the family would defect in 2004. the family was smuggled into china before traveling to vietnam and finally arriving in south korea. >> translator: i was like wow, i finally got here. it felt like i crossed the finish line of a long track. >> reporter: however once in south korea, choi and her family fell victim to the prejudice that many poorer north koreans experienced in the more affluent south. but slowly her success in the ring began to win people around. after turning professional in 2007, she won the wba featherweight title a year later, a title she still holds. people now draw comparisons to the movie "million-dollar baby" the clint eastwood film about a female boxer. >> translator: i rushed out to see it. i just couldn't it. i was so disappointed by the sad way it finished. >> reporter: that film might have ended in the tears, but choi seems intent on making sure her story finishes with a happy ending. rahul pathak, al jazeera. that's "worldfocus" for this monday evening. a reminder, there is much more news and perspective at worldfocus.org. i'm edie magnus. in new york. thank you for joining us. good night. major support for "worldfocus" has been provided rosalind p. walter and the peter g. pettion, dedicated to promoting fiscal responsibility and addressing key economic challenges facing america's future. and additional funding is provided by the following supporters --