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Paul Kagame’s transformation of Rwanda comes with allegations of abuses Welcome to Balance of P

Paul Kagame’s transformation of Rwanda comes with allegations of abuses [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. President Paul Kagame delivered a message this week to Rwanda’s critics: “I don’t need permission from anybody to do what we have to do to protect ourselves.” He was referring to allegations by United Nations experts and the US State Department that the African nation has been a major party to the proxy wars that have killed and displaced millions in the east of neighboring Democratic Republic of Congo. But he could have been talking about the alleged assassinations of dissidents, human-rights abuses and lack of political opposition that critics decry. His supporters maintain that the administration is determined to prevent a repeat of 30 years ago, when the then-Rwandan government orchestrated a genocide that killed more than 800,000 people, mostly from Kagame’s Tutsi ethnic group. He led a rebel army to liberate the country and [has been in charge ever since](. Kagame’s reelection in July is all but guaranteed — he’s never won less than 93% of the vote. While critics complain, supporters point to the remarkable economic transformation over which he’s presided, turning a country essentially left for dead into one of Africa’s most developed. Western partners see how their money is spent on infrastructure rather than lining ministers’ pockets and what is arguably the continent’s best-trained army can do — save TotalEnergies’ $20 billion LNG project in Mozambique from jihadis, for example. Yet the tension between Rwanda’s gains and how it’s achieved them is what makes the country so polarizing. Just ask British Prime Minister Rishi Sunak, whose government has struck a deal with Kagame to take in migrants in exchange for hundreds of millions of pounds. Rwanda now finds itself in the middle of a [political firestorm]( in the UK. Kagame’s response is typically unapologetic: If the deal falls through, he’ll give the money back. — [Neil Munshi]( Kagame at a campaign rally in 2017. Photographer: Marco Longari/AFP/Getty Images Global Must Reads President Xi Jinping’s government is facing a painful truth: As shown by China’s $6 trillion stock market rout, [pessimism runs deep]( about the outlook for the world’s second-largest economy. Part of Beijing’s response [is an order to local governments]( to get used to belt-tightening — no stationery at meetings, no flashy buildings, and no food wastage. Joe Biden sought to energize his US presidential reelection campaign this week by deploying two close aides from the West Wing after growing concerns from allies [about his potential weakness]( in a November matchup against Donald Trump. Democratic lawmakers say privately his age — 81 — is a concern and that the party is losing votes over high prices and the war in Gaza. Argentina’s labor movement is testing popular support for Javier Milei’s austerity blitz in a [national strike]( less than two months into his presidency. Thousands of Argentines flooded the streets and avenues surrounding congress yesterday as the libertarian economist attempts to slash the size of the state to tame triple-digit inflation. A key vote on part of that agenda was postponed by lawmakers until next week. A Milei caricature puppet during a protest in Buenos Aires yesterday. Photographer: Sarah Pabst/Bloomberg Indonesia’s finance and foreign affairs ministers are [considering quitting]( as a result of President Joko Widodo’s attempts to secure a successor in next month’s elections, sources say. The unease has been created by his behind-the-scenes backing for Prabowo Subianto, a former rival who is campaigning for a coalition opposed to the president’s party — with Jokowi’s eldest son as his running mate. European Commission President Ursula von der Leyen said that it’s time to address the growing divisions over agriculture as she tried to respond to [burgeoning protests from farmers]( over green policies and subsidy cuts in a crucial election year for Europe. Her remarks are part of an EU effort to address what farmers see as a tangle of ever-shifting regulations that have pushed many of them to the brink of bankruptcy. South Africa’s main opposition party, the Democratic Alliance, secured [more large donations]( than the ruling African National Congress in the lead-up to this year’s national elections. Hungary will drop its objections to the creation of a €5 billion ($5.4 billion) Ukraine military assistance fund, paving the way for an agreement to revamp a vehicle that aims to provide a [steady supply of weapons]( to Kyiv. Russia bolstered its influence in the troubled Sahel region of West Africa with about 100 military personnel arriving in Burkina Faso yesterday, the [first large deployment]( in that nation. Washington Dispatch Boeing boss Dave Calhoun is expected back on Capitol Hill today as his company faces intensifying scrutiny after a door panel on a 737 Max 9 aircraft blew off in mid-flight. Calhoun plans to meet with Senator Ted Cruz of Texas, the top Republican on the Commerce, Science, and Transportation Committee — a day after the Federal Aviation Administration [ordered a halt]( to further Max production increases. At the same time, the FAA approved the inspection procedures that airlines must carry out in order to resume flights with 737 Max aircraft, which were grounded by the agency after the door panel incident on an Alaska Airlines flight this month. Transportation Secretary Pete Buttigieg has promised a wide-ranging review of oversight and quality control. He said that “right now everything is on the table” to ensure that the design and manufacturing of Boeing aircraft was as strong as it could be. After meeting with other lawmakers yesterday, Calhoun said he believed questions regarding the Max 9 could be answered in “days and weeks, not months.” One thing to watch today: Quarterly data for US gross domestic product will be released. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day The next UK government will inherit the [most challenging]( set of tax and spending problems in 70 years, according to the Institute for Fiscal Studies, a leading think tank. Soaring debt and rising interest rates have added about £50 billion ($64 billion) a year to government borrowing costs, stripping public services of much-needed funding and driving the UK tax burden to a postwar high. And Finally Singapore prides itself as a haven of clean governance, but the city state has been [rocked by an investigation]( involving a supremely well-connected Malaysian-born billionaire that has already toppled one of its most senior politicians. All 27 charges against former Transport Minister S. Iswaran are related to alleged dealings with Ong Beng Seng and his companies, including obtaining a flight on his private plane as well as tickets to English Premier League football games and London musicals. Ong with former Formula 1 boss Bernie Ecclestone in 2018. Photographer: Hoch Zwei/picture-alliance/dpa/AP Photo More from Bloomberg - Listen to the [In the City]( podcast on the potential economic fallout if Trump wins the presidential election. It’s also available on [Apple Podcasts]( and [Spotify]( - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [India Edition](, an insider’s guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](

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