Editor's Pick
Biden Administration Rejects Global Tax on Billionaires
US Stance Contrasts with Support for Global Minimum Corporate Tax
By Kasim Abdulkadir:
The Biden administration opposes a global tax on billionaires’ assets, a proposal supported by several G20 nations. Treasury Secretary Janet Yellen emphasizes progressive taxation but rejects international wealth taxation schemes.
A proposal under consideration by some G20 nations to impose a worldwide tax on the assets of billionaires lacks support from the Biden administration, according to U.S. Treasury Secretary Janet Yellen. Speaking to The Wall Street Journal, Yellen reaffirmed the U.S.’s commitment to progressive taxation, where the wealthy pay a larger share of their income. However, she clarified that the U.S. does not support a global arrangement for taxing billionaires, stating, “We’re not supportive of a process to try to achieve that. That’s something we can’t sign on to.”
Without U.S. backing, the proposal faces slim chances of implementation, despite support from leaders of large economies like France and Brazil. The U.S. stance on this issue contrasts sharply with its endorsement of a global minimum tax on international businesses, an agreement Yellen helped broker early in President Joe Biden’s tenure.
The Global Billionaire Tax Proposal
The aim of a global tax on billionaires is to curb tax evasion by the ultra-wealthy, who often move assets across borders to tax havens, avoiding domestic tax authorities. Unlike income tax, which can be minimized through various investment strategies, a wealth tax targets the total assets of billionaires.
Economist Gabriel Zucman, director of the EU Tax Observatory, highlighted the regressive nature of the current global taxation system at a G20 finance ministers meeting in February. Zucman’s research shows that billionaires often pay a lower effective tax rate than average taxpayers. He advocates for international coordination to establish a common minimum standard, arguing that it would prevent the ultra-wealthy from relocating to low-tax jurisdictions.
According to Zucman’s organization, a 2% annual tax on the wealth of approximately 3,000 billionaires worldwide could generate $250 billion in revenue each year.
Moral and Economic Arguments
Prominent economists have voiced support for the global billionaire tax. MIT professor and Nobel Prize-winning economist Esther Duflo, addressing a G20 meeting in Washington, backed the 2% tax and a global tax on international businesses. Duflo argued that the revenue should aid poor nations in adapting to climate change, framing it as a “moral debt” owed by wealthy individuals and corporations whose activities contribute significantly to global carbon emissions.
Duflo emphasized, “Rich people and rich corporations are making their income from selling their products everywhere in the world, including in poor countries. We are not talking about extortion; we are talking about paying your fair share.”
Brazilian Finance Minister Fernando Haddad also defended the proposal, highlighting the need for international taxation to address economic inequality and support the United Nations Sustainable Development Goals. Haddad stressed that individual national efforts are insufficient without international cooperation to prevent tax evasion by the wealthy.
French Finance Minister Bruno Le Maire and International Monetary Fund Managing Director Kristalina Georgieva echoed these sentiments, advocating for fairness and efficiency in global tax systems. Le Maire stated, “You can count on France’s absolute support. It is a matter of efficiency and justice.”
Georgieva pointed out that in many countries, the wealthy pay fewer taxes than the middle class and even the poor. She called for closing loopholes and preventing tax evasion through international agreements that facilitate tax information sharing.
In conclusion, the Biden administration’s rejection of a global tax on billionaires highlights a significant divergence in approaches to international taxation. While the U.S. supports a global minimum tax on corporations, it remains opposed to a wealth tax on billionaires. This stance underscores the complexities and challenges in achieving international consensus on taxing the ultra-wealthy.
As the debate continues, the future of global taxation will likely depend on broader international cooperation and the willingness of major economies to align their tax policies to address growing economic inequalities and the pressing needs of climate change adaptation.
Editor's Pick
Somalilanders Call for International Action Against Hostile Provocations
Somalilanders have strongly condemned a recent attack in the Harshin area (Daawaley village) of Somalilanders, where security forces from the Somali region allegedly targeted local villagers, resulting in multiple deaths and injuries. The attack, described as politically motivated, is seen as part of a larger strategy to destabilize Somaliland and undermine its pursuit of international recognition.
Proxy War Allegations and Regional Tensions
The Federal Government of Somalia (FGS) is accused of escalating tensions and disseminating false narratives portraying Somaliland as an instigator of violence. Somalilanders argue that these narratives aim to derail their progress toward stability and international legitimacy. The use of Somali region security forces, notably the Liyu police, has reportedly amplified hostilities, further straining regional relations.
This act of aggression is viewed as a deliberate attempt to involve Somaliland in a broader proxy war, undermining its sovereignty and aspirations. The Somali region’s involvement has not only endangered lives but also complicated ongoing efforts to de-escalate tensions through traditional conflict resolution mechanisms.
Calls for Accountability and Intervention
In response to the attack, Somalilanders have dispatched traditional elders to mediate and restore peace in the affected area. However, they stress that regional administrations, particularly Jigjiga and the Federal Government of Ethiopia, must take immediate steps to hold those responsible accountable and curb further aggression. Somalilanders urge these governments to recognize the destabilizing implications of such actions and prioritize diplomatic solutions.
An Appeal to the International Community
Somalilanders are appealing to the international community, including influential global players, to address the gravity of the situation. They emphasize that the expansion of proxy wars in the region not only threatens Somaliland’s sovereignty but also jeopardizes peace and stability in the Horn of Africa.
Somaliland remains committed to resolving disputes through dialogue and peaceful means, calling for international recognition of its legitimacy and a firm stance against actions that fuel instability. Leaders stress that immediate intervention is essential to prevent further loss of life and uphold justice in the region.
Upholding Justice and Sovereignty
As tensions escalate, Somalilanders’ message is clear: deliberate provocations aimed at destabilizing Somaliland must not be tolerated. The international community’s engagement is critical to safeguarding peace and supporting Somaliland’s legitimate aspirations for recognition. Somaliland’s commitment to stability remains unwavering, but the region’s future hinges on global acknowledgment of the challenges it faces and a concerted effort to address them.
Editor's Pick
Ethiopia Relocates Over 2,500 Displaced People to New Settlement in Somali Region
In a significant milestone for Ethiopia’s internal displacement crisis, the Somali Regional State has successfully relocated 524 households—comprising 2,570 individuals—from the overcrowded Qoloji Internally Displaced Persons (IDP) camps to a newly developed settlement in Bayahow. This initiative, part of Ethiopia’s Durable Solutions Initiative (DSI), aims to provide long-term, sustainable solutions for displaced populations.
The relocation, conducted in four phases starting in early December, concluded this week with the final movement of 132 households. Led by the Somali Regional Disaster Risk Management Bureau (DRMB) in collaboration with the International Organization for Migration (IOM) and other partners, the program prioritizes voluntary and dignified transitions while offering displaced families a chance to rebuild their lives.
“This is more than just moving people. It’s about restoring dignity and creating opportunities for displaced communities to thrive,” said a senior DRMB official.
The Bayahow settlement has been equipped with essential services, including a health center, schools, water and sanitation facilities, and community spaces. Local leaders report strong support from the host community, fostering unity and collaboration.
Relocated families have received housing, essential non-food items, and medical support. Hafid Abdirahman, one of the relocated individuals, expressed optimism for the future: “We were well cared for during the journey and are excited about the opportunities here. With farming support near the Shebelle River, we can finally build a better future.”
The Bayahow initiative extends beyond immediate resettlement, focusing on sustainable livelihoods. With support from the Somali Region Agricultural Bureau and the UN Food and Agriculture Organization (FAO), displaced families are being empowered to start farming or restock livestock. Youth employment programs and small business development initiatives are also being introduced to promote economic independence.
The project’s funding, provided by the Swiss Agency for Development and Cooperation (SDC) and the Swedish International Development Cooperation Agency (Sida), underscores global commitment to addressing Ethiopia’s displacement challenges.
Local leaders, including Abdu Ahmed Elmi, Shebelle Zone Early Warning Coordinator, praised the host community’s welcoming attitude. “The host community’s acceptance has been incredible—100 percent,” Elmi noted, emphasizing the importance of local collaboration in ensuring a smooth transition.
The success of Bayahow is being celebrated as a model for Ethiopia’s Durable Solutions Initiative. An IOM representative highlighted its significance: “This progress shows that with planning, international support, and community involvement, we can create lasting solutions for displaced populations.”
Ethiopia continues to face the dual challenges of conflict and climate change-induced displacement. The Bayahow relocation project demonstrates the potential for sustainable solutions, serving as a blueprint for similar initiatives across the country. As displaced families settle into their new community, Bayahow stands as a symbol of resilience and a commitment to rebuilding lives.
Editor's Pick
EUCAP Somalia workshop paves the way for women’s leadership in fisheries
Women in Somalia’s fisheries sector take center stage in a groundbreaking initiative addressing systemic challenges.
A two-day workshop hosted by EUCAP Somalia and Somalia’s Ministry of Fisheries and Blue Economy is set to redefine opportunities for women in the country’s fisheries sector. Held on December 9-10 in Mogadishu, the initiative attracted stakeholders across the industry to confront systemic barriers and promote women’s leadership in maritime industries.
The workshop focused on the entire fisheries value chain, from aquaculture and processing to sales and extraction. Despite their significant contributions, women in Somalia’s fisheries sector often face hurdles such as inadequate access to resources, training, and decision-making platforms.
EUCAP Somalia fisheries expert Alberto Lopez-Asenjo called the workshop a “transformative journey,” emphasizing the need to amplify women’s voices and recognize their contributions. Interactive sessions explored fisheries governance, business strategies, environmental policy, and international legal frameworks, offering practical solutions to bolster women’s involvement and leadership in Somalia’s blue economy.
EUCAP Somalia, operational since 2016, supports the country’s maritime security and governance. This initiative marks another step in its mission to strengthen Somalia’s maritime capacity while fostering inclusivity in one of its most critical industries.
By addressing these challenges, the workshop aims to unlock the full potential of Somalia’s fisheries sector, driving sustainable development and gender equity in an industry vital to the country’s economy and food security.
Editor's Pick
Ramla Ali launches 786 Entertainment with Saudi backing
Boxer and activist Ramla Ali teams up with Saudi Prince Faisal Al Saud to launch a production company spotlighting minority and female-driven narratives.
British boxer and activist Ramla Ali is stepping into the entertainment world with the launch of 786 Entertainment, a film and TV production company aimed at championing underrepresented voices. Backed by Saudi Prince Faisal Al Saud and his Vainqueur Family Group, the venture seeks to highlight minority-led stories and female-driven narratives.
Ali, a former Somali refugee, Time Magazine’s 2023 Woman of the Year, and the first woman to compete in a professional boxing match in Saudi Arabia, is co-founding the company with her husband, Richard A. Moore. Moore, known for producing acclaimed sports documentaries, brings expertise to the enterprise alongside Prince Faisal’s partner, Bilal Nasser.
Headquartered in London with plans for a production office in Saudi Arabia, 786 Entertainment has already lined up impactful projects. One highlight is Iron House, a powerful story about U.S. army veteran Bobby Body, whose journey from abandonment and homelessness to the Paralympics is nothing short of inspiring.
Ali, who also executive-produced her own biopic In The Shadows, expressed her enthusiasm for storytelling as a means of amplifying diverse voices: “786 is something I’m proud of—supportive, global, and meaningful.” Prince Faisal echoed this sentiment, highlighting Saudi Arabia’s growing influence as a cultural hub and its mission to connect and foster opportunities worldwide.
With a vision rooted in empowerment and cross-cultural collaboration, 786 Entertainment positions itself as a transformative force in the global entertainment industry, creating new avenues for storytelling and representation.
Editor's Pick
China tightens export controls: Economic implications for Europe and beyond
Beijing adopts U.S.-style extraterritoriality and sanctions, escalating global economic warfare through its latest export control regulations.
China’s implementation of its revamped Export Control regulations on December 1 marks a significant shift in global economic strategy, directly affecting Europe and its trading partners. The measures mirror the U.S.’s “Export Administration Regulations” (EAR), signaling a more aggressive approach to controlling sensitive technologies and raw materials. These steps are not only a response to escalating global tensions but also a bid to expand China’s leverage in international trade.
Key elements of the new regulations include controls on dual-use goods, such as semiconductors, artificial intelligence technologies, and raw materials critical to strategic industries. For the first time, China has embraced extraterritoriality, applying its rules to re-exports of Chinese goods, technologies, or components outside its borders. This includes foreign products that incorporate Chinese inputs or were developed using Chinese technology, a significant escalation in oversight.
Two sanctions lists—the “Watch List” and “Control List”—have been established, akin to the U.S.’s Unverified List and Entity List. The move enables Beijing to penalize companies and individuals globally for non-compliance, with penalties ranging from administrative sanctions to criminal prosecution. Furthermore, Article 38 of the regulation mandates Chinese approval for any foreign authority conducting compliance checks on Chinese-affiliated entities, effectively shielding its industries from external scrutiny.
The implications for Europe, which depends heavily on Chinese imports, are profound. China is the EU’s largest supplier, accounting for 20.5% of imports in 2023, spanning telecommunications equipment, batteries, and strategic raw materials like gallium, germanium, and antimony. These materials are critical to industries such as aeronautics, automotive, and renewable energy. For France, whose imports from China exceeded €71 billion in 2023, any disruptions could be catastrophic for supply chains, especially in high-tech sectors.
Beijing’s decision to tighten export controls on key materials earlier this year, such as gallium and germanium, demonstrated its readiness to use trade as a geopolitical tool. The latest measures further embed this strategy, leveraging Europe’s reliance on Chinese supply chains to advance its interests.
This regulatory pivot amplifies economic warfare through law, mirroring the U.S.’s own export restrictions targeting Chinese firms. Both powers are now wielding trade controls as tools of geopolitical influence, locking trading partners into complex and precarious dependencies.
The challenge for Europe is twofold: diversifying its supply chains to reduce reliance on China and countering Beijing’s regulatory reach without escalating economic conflict. As Beijing consolidates control over essential resources and technologies, the balance of power in global trade may shift further, with consequences that reverberate across industries and borders.
Editor's Pick
Illegal Chinese Gold Mining in DRC Sparks Environmental and Economic Crisis
Rampant mining by Chinese firms devastates local communities and evades regulation, fueling discontent in the Democratic Republic of the Congo.
The Democratic Republic of the Congo (DRC) is grappling with the unchecked rise of illegal Chinese-operated gold mining, a crisis that is devastating both the environment and local livelihoods. In South Kivu’s Kamituga region, Chinese companies dominate mining operations through partnerships with local cooperatives, circumventing national laws that prohibit foreign involvement in artisanal mining.
While artisanal miners scrape together meager incomes in hazardous conditions, Chinese firms employ industrial-scale operations that destroy vast tracts of fertile land, pollute water supplies with mercury and cyanide, and deplete fish stocks through river dredging. One site in South Kivu saw the loss of 82 hectares of forest within four years, exemplifying the ecological toll of this activity.
Local communities report little benefit from the mining boom, despite gold production in the province skyrocketing to over 5,000 kilograms in 2023. Most profits bypass local economies, with much of the gold smuggled through neighboring Rwanda, further fueling corruption and tax evasion. Armed guards employed by these companies prevent oversight, leaving regulators powerless to assess the scale of the problem or hold perpetrators accountable.
Efforts to clamp down on illegal mining have gained traction. South Kivu’s governor suspended unlicensed mining activities in July, while the national government has called for diversifying investment partners to reduce dependency on Chinese companies. However, entrenched corruption, weak enforcement mechanisms, and the lucrative nature of smuggling present significant obstacles to reform.
This crisis underscores the broader challenge of resource governance in the DRC, where vast mineral wealth often enriches foreign powers and local elites while leaving the population mired in poverty. Without decisive action, the environmental degradation and exploitation caused by illegal mining will continue to erode the country’s future.
Editor's Pick
Fall of Wagner: Unraveling Prigozhin’s Empire After the Mutiny
Once heralded as the largest private military company in the world, Wagner’s trajectory has dramatically shifted, particularly following the audacious mutiny led by its founder, Yevgeny Prigozhin. From the battlegrounds of Syria and Libya to the frontlines in Ukraine and the dirt roads of Mali, Wagner’s influence has waned, leaving many to wonder about the future of Prigozhin’s empire.
Founded in 2014 by Prigozhin and former military officer Dmitri Utkin, Wagner became synonymous with covert operations and mercenary deployments. However, on June 23, 2023, the tension reached its boiling point. With a force he claimed numbered 50,000, Prigozhin initiated the so-called “march of justice” towards Moscow, an unprecedented act of rebellion against the Kremlin.
The mutiny was ignited by several factors, primarily President Vladimir Putin’s decree mandating that mercenaries sign contracts directly with the Russian Ministry of Defense. This move was met with staunch opposition from Prigozhin and the majority of his mercenaries. The situation escalated after a video was released in which Prigozhin accused Russian Defense Minister Sergei Shoigu of targeting Wagner’s operations in Ukraine—a claim he believed warranted dismissals at the highest levels of military command.
As Wagner’s column advanced without significant resistance, the threat to Moscow loomed larger. Yet, within a day, the revolt concluded. An agreement, brokered by Belarusian President Alexander Lukashenko, saw Prigozhin exit Russia to establish a base in Belarus alongside approximately 6,000 of his men. Nevertheless, this was not simply a retreat; it marked the beginning of a steep decline for Wagner and Prigozhin’s influence.
By the end of June 2023, Russian authorities imposed a media blackout on Prigozhin’s outlets, effectively stifling his public voice. The closure of the Molkino training base that had prepared Wagner’s mercenaries further underscored the collapse of an empire that had once thrived on military prowess and private contracts.
Although Wagner continued to maintain a presence in Africa—particularly in Libya and the Central African Republic—its operational capacity was significantly diminished. The turning point came on August 23, 2023, when Prigozhin’s private jet mysteriously crashed shortly after takeoff from Moscow. All aboard, including key figures like Dmitri Utkin and Valeri Chekalov, perished. The timing of the crash, occurring exactly two months after the mutiny, sparked speculation about possible foul play, given that only Putin had the means to orchestrate such an event.
With the death of Prigozhin, the heart of Wagner effectively ceased to beat. Many former mercenaries transitioned to civilian roles, while others sought employment in Chechen units under Ramzan Kadyrov, drawn by comparable salaries. Some chose to remain in Africa or Belarus, marking a stark departure from their previous lives as elite mercenaries.
Moreover, the Concord group, Prigozhin’s broader business entity, saw its military contracts transferred to the Russian government, effectively dismantling the private sector’s hold on these operations. The Russian military began assuming control of Wagner’s assets and files in various regions, signaling a definitive shift in power dynamics.
The aftermath of Prigozhin’s reign illustrates a cautionary tale of ambition subverted by rebellion. His initial surge in power resulted in privileges bestowed upon him by Putin, yet those very actions led to his downfall—culminating in the loss of his life, influence, and the mercenary group he created.
For those seeking a deeper understanding of the rise and fall of this enigmatic figure and his empire, “Death is Our Business” by Ilia Barabanov and Denis Korotkov offers an insightful exploration into the complexities of Prigozhin, Utkin, and the Wagner Group.
As the dust settles on this tumultuous chapter, the geopolitical landscape remains vigilant, for the impact of Wagner’s collapse will surely echo in the corridors of power across Russia and beyond in the years to come.
Editor's Pick
Who is Abu Mohammed al-Golani, the leader of Syria’s surprise insurgency?
Abu Mohammed al-Golani, born Ahmad Hussein al-Shara, is a prominent and controversial figure in the Syrian conflict, leading the militant group Hayat Tahrir al-Sham (HTS). HTS emerged from the Nusra Front, the Syrian branch of al-Qaeda, which al-Golani established in 2012 at the behest of al-Qaeda in Iraq (AQI) leader Abu Bakr al-Baghdadi.
Initially a senior figure in al-Qaeda, al-Golani helped Nusra Front grow into a significant force during Syria’s civil war. In 2016, al-Golani announced the group’s formal split from al-Qaeda, renaming it Jabhat Fateh al-Sham, ostensibly to facilitate cooperation with other Syrian factions and reduce international pressure.
In 2017, al-Golani consolidated various Islamist factions into HTS. The group became the dominant force in Idlib, imposing its rule through a “salvation government” and strict governance, often criticized for human rights abuses.
Al-Golani has worked to distance himself and HTS from its jihadist roots, promoting an image of pragmatism and tolerance. He has sought to gain legitimacy by engaging with ethnic and religious minorities and advocating for Syria-focused objectives, claiming HTS poses no threat to the West.
Al-Golani’s leadership during HTS’s recent offensives, including the capture of Aleppo and other territories, underscores his strategic acumen. These advances have reignited Syria’s conflict, challenging President Bashar al-Assad’s authority.
Despite his rebranding efforts, al-Golani and HTS remain designated as terrorists by the United States and other nations due to their violent history and extremist ideologies. The group’s control of Idlib has significant implications for the region, including humanitarian concerns and the broader geopolitical conflict in Syria.
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