Czechs elect president in break with eurosceptic past

PRAGUE: Czechs head to the ballot box for a second day of voting Saturday, with a field of Europe-friendly candidates including an artist tattooed head-to-toe, vying to take over after a decade under eurosceptic Vaclav Klaus.

While former prime ministers Milos Zeman and Jan Fischer, both ex-communists, are tipped as favourites, media pundits said Foreign Minister Karel Schwarzenberg might capitalise on a last-minute charm offensive.

First-round voting in the Czech Republic's first-ever direct presidential election continues on Saturday until 1300 GMT.

None of the nine contenders is likely to clinch a first-round victory, so a runoff between the two top finishers is expected on January 25-26.

With the powers of the Czech president being relatively limited, issues related to the republic's role within the European Union and corruption woes are key in the election.

Both the straight-talking veteran left-winger Zeman and the mild-mannered centre-right statistician Fischer have a far more friendly approach towards the 27-nation bloc than Klaus. Their line echoes the attitude of Klaus's predecessor, the late Velvet Revolution icon Vaclav Havel.

"The Czech Republic should take steps towards more solid EU structures including a single European economic policy," Zeman said in a recent interview, endorsing what Klaus has long described as a nightmare.

As prime minister in 1998-2002, Zeman was responsible for negotiating the 2004 EU entry of his 10.5 million-strong ex-communist country.

Despite Zeman's leftist and pro-European stance, right-winger Klaus -- who wastes no opportunity to slam the EU -- has nevertheless suggested he would vote for him.

"My point is to have a president who has done something for this country and whose experience we can all see," Klaus said after casting his ballot in Prague on Friday. His second and final five-year term ends on March 7.

The centre-right Fischer who served as premier in 2009-2010, has meanwhile insisted that the Czech Republic should be "active in the debate on the EU's future."

All the candidates cast their ballots on Friday.

"I guess you wouldn't expect me to vote for someone else," Fischer conceded to reporters after voting.

"He's a serious man who's in the know, he's no fool," pensioner Udo Cerny told AFP after voting for him in Cernosice, a small town near Prague.

Pipe-smoking 75-year-old Karel Schwarzenberg, an aristocrat bearing the full name of Karl Johannes Nepomuk Josef Norbert Friedrich Antonius Wratislaw Mena Furst zu Schwarzenberg, has also been wooing voters. Many of them perceive him as honest and experienced.

"I feel he would be the least likely to steal," Prague senior citizen Alena Zurkova told AFP, referring to the chronic levels of corruption in Czech politics.

"He is the least corrupt and the most experienced when it comes to diplomacy and international contacts," said Alena Poulova, a young IT expert voting in Cernosice.

The most colourful candidate -- in all senses -- is Vladimir Franz, a 53-year-old drama teacher, classical composer and visual artist tattooed from his head to his feet.

"I think a bit of pure heart would do no harm in politics," Franz, told AFP ahead of the vote. A self-described citizens' candidate with no political experience, he named education, tolerance and culture as his priorities.

Three women and two senators are also in the running.

The election is the first direct presidential vote in the central European nation.

In February 2012, lawmakers approved a switch to popular universal suffrage used in many EU countries to boost the legitimacy of the office. Klaus's re-election in 2008 by parliament was widely perceived as political horse-trading.

The Czech Republic, a NATO and EU member yet to join the eurozone, has been mired in recession for a year, with its central bank predicting moderate 0.2-percent economic growth in 2013. Joblessness stood at 9.4 percent in December.

- AFP/al

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Wrapping up computers, tablets, and hardware at CES 2013

LAS VEGAS--Computers and related hardware are rarely the top category at the annual CES, with last year being a possible exception, thanks to ultrabook hype. In 2013, we found laptops, desktops, and tablets in shorter supply than usual, with the main culprit being the October 2012 release of Microsoft's Windows 8 operating system, and the flood of new systems that went along with it.

The following are some of the big-picture trends and ideas we took away from the show, while a breakdown of our Best of CES nominees in this category is here.

Ultrabook DNA is everywhere

Even after criticism from some corners about the Intel's limited success in making the ultrabook (a trademarked Intel marketing term) a household name, the program's fingerprints are practically everywhere. Thinner, lighter laptops at nearly every price were the norm at
CES, even if they don't carry the official ultrabook name and sticker (we're looking at you, HP Sleekbook).

Touch is practically a requirement

Woe be the laptop that showed up at CES 2013 without a touch screen. One of the only notable examples of this feature faux pas was Dell's otherwise excellent XPS 13, which added a higher-res display, but no touch screen. We've tried navigating small
Windows 8 laptops with only a touch pad or mouse -- it's no picnic. Other PC makers, including Samsung and Toshiba, were smartly revamping existing product lines with touch screens, while keeping prices steady.

Intel wants to lead laptop development

A fourth generation of Intel Core i-series CPUs, code-named Haswell, is part of Intel's road map for computers into 2014. Besides big claims about better battery life, notable are the new requirements Haswell systems will have for future laptops (such as this sharp-looking design concept) that want to use the ultrabook name -- these include touch screens and Wireless Display, a useful Intel remote screen tool we'd be happy to see get wider adoption.

Tablets-as-PCs are everywhere
Between the Razer Edge and Surface Pro on the small end and full-sized all-in-one desktop/tablet devices at the large end, PCs with the flexibility of tablets are on the rise. While it might seem like a gimmick at first, it turns out that a lot of these devices have myriad use cases and could lead to PCs becoming extremely modular soon enough. It might even lead to a true breaking down of boundaries across desktops, laptops and tablets.

Android tablets wait for Mobile World Congress
To say that traditional Android tablets had an underwhelming showing at CES 2013 would be an understatement. While there were plenty of great value tablets, there was nothing worth getting excited about. Luckily, the Nvidia Shield was there to at least get some really interesting conversations started. On to Mobile World Congress.

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Sheriff: Calif. teen planned attack on classmates

Updated at 9:40 p.m. ET

TAFT, Calif. A 16-year-old student armed with a shotgun walked into a rural California high school on Thursday, shot one student and fired at others and missed before a teacher and another staff member talked him into surrendering, officials said.

The teen victim was in critical but stable condition, and the suspect, whose pockets were stuffed with ammunition, was still being interrogated, Kern County Sheriff Donny Youngblood said at a news conference Thursday evening.

The suspect used a shotgun that belonged to his brother and went to bed Wednesday night with a plan to shoot two fellow students, Youngblood said.

Surveillance video shows the alleged shooter trying to conceal the gun as he nervously entered Taft Union High School through a side entrance after school had started Thursday morning.

When the shots were fired, teacher Ryan Heber tried to get the more than two dozen students out a back door and engaged the shooter in conversation to distract him, Youngblood said. Campus supervisor Kim Lee Fields responded to a call of shots fired and also began talking to the teen.

"They talked him into putting that shotgun down. He in fact told the teacher, `I don't want to shoot you,' and named the person that he wanted to shoot," Youngblood said.

"The heroics of these two people goes without saying. ... They could have just as easily ... tried to get out of the classroom and left students, and they didn't," the sheriff said. "They knew not to let him leave the classroom with that shotgun."

The shooter didn't show up for first period, then interrupted the class of 28 students.

Youngblood said the suspect alleges the two students he targeted had bullied him for more than a year, but the sheriff couldn't confirm the allegations.

"Certainly he believed that the two people he targeted had bullied him, in his mind. Whether that occurred or not we don't know yet," Youngblood said.

Youngblood did not release the student's disciplinary record, saying he didn't have it.

The shotgun is believed to belong to the boy's brother and was in the boy's home, Youngblood said.

The Sheriff's Department did not release the boy's name because he was a juvenile and had yet to be charged. But many students and community members said they knew the boy and said he was often teased, including Alex Patterson, 18, who went to Taft with the suspect before graduating last year.

"He comes off as the kind of kid who would do something like this," Patterson said. "He talked about it a lot, but nobody thought he would."

Trish Montes, who lived next door to the suspect, said he was "a short guy" and "small" who was teased about his stature by many, including the victim.

"Maybe people will learn not to bully people," Montes said. "I hate to be crappy about it, but that kid was bullying him."

Montes said her son had worked at the school and tutored the boy last year, sometimes walking with him between classes because he felt sorry for him.

"All I ever heard about him was good things from my son," Montes said. "He wasn't Mr. Popularity, but he was a smart kid. It's a shame. My kid said he was like a genius. It's a shame because he could have made something of himself."

The wounded student was flown to a hospital in Bakersfield and was listed in stable but critical condition Thursday evening. Officials said a female student was hospitalized with possible hearing damage because the shotgun was fired close to her ear, and another girl suffered minor injuries during the scramble to flee when she fell over a table.

Officials said there's usually an armed officer on campus, but the person wasn't there because he was snowed in. Taft police officers arrived within 60 seconds of first reports.

Bakersfield television station KERO reported receiving phone calls from people inside the school who hid in closets. About 900 students are enrolled at the high school, which includes ninth through 12th grades.

Wilhelmina Reum, whose daughter Alexis Singleton is a fourth-grader at a nearby elementary school, got word of the attack while she was about 35 miles away in Bakersfield and immediately sped back to Taft.

"I just kept thinking this can't be happening in my little town," she told The Associated Press.

"I was afraid I was going to get hurt," Alexis said. "I just wanted my mom to get here so I could go home."

Taft is a community of fewer than 10,000 people amid oil and natural gas production fields about 120 miles northwest of Los Angeles.

The attack there came less than a month after a gunman massacred 20 children and six women at Sandy Hook Elementary School in Newtown, Conn., then killed himself.

That shooting prompted President Barack Obama to promise new efforts to curb gun violence. Vice President Joe Biden, who was placed in charge of the initiative, said he would deliver new policy proposals to the president by next week.

Sen. Dianne Feinstein, D-Calif., said in a statement that her father had attended Taft Union and she has visited the school over the years.

"At this moment my thoughts and prayers are with the victims, and I wish them a speedy recovery," Feinstein said. "But how many more shootings must there be in America before we come to the realization that guns and grievances do not belong together?"

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Judge: Holmes Can Face Trial for Aurora Shooting

Jan 10, 2013 8:45pm

(Arapahoe County Sheriff/AP Photo)

In a ruling that comes as little surprise, the judge overseeing the Aurora, Colo., theater massacre has ordered that there is enough evidence against James Holmes to proceed to a trial.

In an order posted late Thursday, Judge William Sylvester wrote that “the People have carried their burden of proof and have established that there is probable cause to believe that Defendant committed the crimes charged.”

The ruling came after a three-day preliminary hearing this week that revealed new details about how Holmes allegedly planned for and carried out the movie theater shooting, including how investigators say he amassed an arsenal of guns and ammunition, how he booby-trapped his apartment to explode, and his bizarre behavior after his arrest.

PHOTOS: Colorado ‘Dark Knight Rises’ Theater Shooting

Holmes is charged with 166 counts, including murder, attempted murder and other charges related to the July 20 shooting that left 12 people dead and 58 wounded by gunfire. An additional 12 people suffered non-gunshot injuries.

One of the next legal steps is an arraignment, at which Holmes will enter a plea. The arraignment was originally expected to take place Friday morning.

Judge Sylvester indicated through a court spokesman that he would allow television and still cameras into the courtroom, providing the outside world the first images of Holmes since a July 23 hearing. Plans for cameras in court, however, were put on hold Thursday afternoon.

“The defense has notified the district attorney that it is not prepared to proceed to arraignment in this case by Friday,” wrote public defenders Daniel King, Tamara Brady and Kristen Nelson Thursday afternoon in a document objecting to cameras in court.

A hearing in the case will still take place Friday morning. In his order, Judge Sylvester said it should technically be considered an arraignment, but noted the defense has requested a continuance.  Legal experts expect the judge will grant the continuance, delaying the arraignment and keeping cameras out of court for now.

Sylvester also ordered that Holmes be held without bail.

Holmes’ attorneys have said in court that the former University of Colorado neuroscience student is mentally ill. The district attorney overseeing the case has not yet announced whether Holmes, now 25, can face the death penalty.

SHOWS: World News

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U.S., Afghanistan discuss "last chapter" in war aims: Panetta

WASHINGTON (Reuters) - U.S. Defense Secretary Leon Panetta and Afghan President Hamid Karzai discussed on Thursday the "last chapter" in building a sovereign Afghanistan that can provide its own security, including the nature of U.S. involvement after combat troops withdraw in 2014.

Panetta said he and Karzai made "very good progress" on the issues they discussed, but he declined to say whether they had agreed on the size of any residual U.S. force that would remain in Afghanistan to do counterterrorism operations and training once combat troops withdraw.

Panetta said both sides were committed to the goals approved at the NATO summit in Chicago in May, which calls for a continuing effort by members of the alliance to train, advise and assist Afghan forces. Karzai is scheduled to meet President Barack Obama on Friday for more talks on the remaining issues.

The Obama administration has been considering a residual force of between 3,000 and 9,000 troops in Afghanistan to conduct counterterrorism operations while providing training and assistance for Afghan forces. But the administration said this week it did not rule out a complete withdrawal after 2014.

While Karzai has been critical of U.S. troop activity in Afghanistan, it is unclear how Afghan forces would perform without U.S. helicopters, medical facilities, intelligence and other military support, of which Afghanistan has very little.

"After a long and difficult past, we finally are, I believe, at the last chapter of establishing ... a sovereign Afghanistan that can govern and secure itself for the future," Panetta told Karzai after a welcoming ceremony at the Pentagon that included an honor guard and 21-gun salute.

Panetta said 2013 would mark an important step in the war, with Afghans due to take over the lead role for security across the country.

"We've come a long way towards a shared goal of establishing a nation that you and we can be proud of, one that never again becomes a safe haven for terrorism," Panetta said. "Our partnership, forged ... through almost 11 years of shared sacrifice, is a key to our ability to achieve the final mission."

STRAINS IN RELATIONSHIP

Karzai's three-day visit to Washington follows a year of growing strains on the U.S.-Afghan partnership, including incidents in which Afghan soldiers or police attacked and killed U.S. or coalition troops. U.S. forces also were involved in a series of incidents that enraged Afghans, including burning Korans, which touched off days of rioting.

In addition to discussing the U.S. troop presence after 2014, the two countries are negotiating long-term support for the Afghan military. Afghan officials came with a list of military equipment, including aircraft, they hoped to obtain.

General Martin Dempsey, chairman of the Joint Chiefs of Staff, said he and Afghan Defense Minister Bismillah Khan Mohammadi discussed the equipment issue and agreed to start with a broader review of Afghanistan's threats and military needs.

"What we talked about yesterday was ... let's move beyond a wish list of equipment and start by discussing what is your vision for the future of the Afghan military against threats and requirements," Dempsey said.

"He was very open, very eager to enter into that kind of comprehensive strategic review, and from that will come ... a view of how to move from where they are today, which is clearly focused on counterinsurgency, to something they may wish to become in the future," he said.

Karzai, in remarks in Panetta's office, said he was confident that the two sides during his trip would "work out a modality for a bilateral security agreement" in the interests of both countries.

The United States is insisting on immunity for any U.S. troops that remain in Afghanistan. That question also may come up at Karzai's talks with Obama on Friday.

(Editing by Paul Simao and Peter Cooney)

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Google's Kurzweil on teaching human language to computers

Google's Ray Kurzweil.

Famed inventor and futurist Ray Kurzweil joined Google last month to work on "some of the hardest problems in computer science," specifically machine learning and language processing.

"The project we plan to do is focused on natural language understanding," Kurzweil told Singularity Hub in an interview (see video below). "We want to give computers the ability to understand the language that they're reading."

As the Web giant's director of engineering, Kurzweil's said the challenge isn't just one of the hardest but also the most important.

"It's ambitious, in fact there's no more important project than understanding intelligence and re-creating it," he said

Kurzweil explains that one of the chief challenges he and his team at Google face is that language is hierarchical and only mammals have the ability to understand hierarchical ideas. Kurzweil notes that computers such as IBM's Watson are now being programmed to process human information in a similar fashion.

Kurzweil predicts that fruits of his research will eventually be applied to "Google scale" -- the Web giant vast data resources.

"I envision some years from now that the majority of search queries will be answered without you actually asking," Kurzweil said. "It'll just know this is something that you're going to want to see."

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Mom who shot intruder inspires gun control foes

LOGANVILLE, Ga.A Georgia mother who shot an intruder at her home has become a small part of the roaring gun control debate, with some firearms enthusiasts touting her as a textbook example of responsible gun ownership.

Melinda Herman grabbed a handgun and hid in a crawl space with her two children when a man broke in last week and approached the family at their home northeast of Atlanta, police said. Herman called her husband on the phone, and with him reminding her of the lessons she recently learned at a shooting range, Herman opened fire, seriously wounding the burglary suspect.

The National Rifle Association tweeted a link to a news story about the shooting, and support poured in from others online, hailing Herman as a hero. The local sheriff said he was proud of the way she handled the situation.

"This lady decided that she wasn't going to be a victim, and I think everyone else looks at this and hopes they have the courage to do what she done," Walton County Sheriff Joe Chapman said Wednesday.

Herman was working from home Friday when she saw a man walk up to the front door. She told police he rang the doorbell twice and then over and over again. He went back to his SUV, got something out and walked back toward the house, a police report said.

Herman took her 9-year-old son and daughter into an upstairs bedroom and locked the door. They went into bathroom and she locked that door, too. She got her handgun from a safe, the report said, and hid with her children. At some point, she called her husband, who kept her on the line and called 911 on another line.

In a 10-minute 911 recording released by the Walton County Sheriff's Office, Donnie Herman calmly explained what was happening to a dispatcher. His part of the conversation with his wife was also recorded.

"Is he in the house, Melinda? Are you sure? How do you know? You can hear him in the house?" Donnie Herman said.

His wife told him the intruder was coming closer.

"He's in the bedroom? Shh, shh, relax. Just remember everything that I showed you, everything that I taught you, all right?" Donnie Herman told his wife, explaining later to the dispatcher that he had recently taken her to a gun range.

It wasn't clear from the recording exactly when they went to range and Donnie Herman told The Associated Press on Wednesday the family didn't want to talk about the shooting.

After Donnie Herman told his wife police were on the way, he started shouting: "She shot him. She's shootin' him. She's shootin' him. She's shootin' him. She's shootin' him."

"OK," the dispatcher responded.

"Shoot him again! Shoot him!" Donnie Herman yelled. He told the dispatcher he heard a lot of screaming, but he seems to get increasingly worried when he doesn't hear anything from his wife.

Melinda Herman told police she started shooting the man when he opened the door to the crawl space. The man pleaded with her to stop, but she kept firing until she had emptied her rounds, she told police. She then fled to a neighbor's house with her children.

The man drove away in his SUV. Police found the SUV on another subdivision street and discovered a man bleeding from his face and body in a nearby wooded area. Police identified the suspect as 32-year-old Paul Slater of Atlanta.

Chapman said the hospital asked him not to comment on Slater's condition, but he said he is not certain Slater will survive.

CBS Atlanta affiliate WGCL-TV reports Slater is on a ventilator.

Authorities have a warrant but haven't formally arrested Slater yet. They plan to charge him with burglary, possession of tools for the commission of a crime and aggravated assault, Walton County sheriff's Capt. Greg Hall said.

A phone number for Slater was not listed and it was not clear whether he has an attorney.

Authorities believe Slater targeted a home in another local subdivision but left when confronted by the homeowner, Chapman said.

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Flu Kills 4 Seniors, Sickens 700 in Boston

An early and nasty flu season has prompted a public health emergency in Boston, where health officials say 700 people have been diagnosed with the cold-weather virus. Four Bostononians -- all elderly -- have died from flu.

"This is the worst flu season we've seen since 2009, and people should take the threat of flu seriously," Boston Mayor Thomas Menino said in a statement.

This time last year the city had seen only 70 cases of influenza, The Associated Press reported. And with flu activity likely to extend into March or even April, the number will only grow.

Menino said the city is working with health care centers to offer free flu vaccines, and he urged anyone with flu-like symptoms to stay home from work or school.

"This is not only a health concern, but also an economic concern for families," he said in the statement. "I'm urging residents to get vaccinated if they haven't already."

Eighteen people have died from flu in Massachusetts, one of 41 states battling widespread influenza outbreaks. Emergency rooms across the country have been overwhelmed with flu patients, turning away some of them and others with non-life-threatening conditions for lack of space.

The proportion of people seeing their doctor for flu-like symptoms jumped to 5.6 percent from 2.8 percent in the past month, according to the CDC.

U.S. Emergency Rooms Inundated With Flu Patients Watch Video

Earliest Flu Season in a Decade: 80 Percent of Country Reports Severe Symptoms Watch Video

Northwestern Memorial Hospital in Chicago reported a 20 percent increase in flu patients every day. Northwestern Memorial was one of eight hospitals on bypass Monday and Tuesday, meaning it asked ambulances to take patients elsewhere if they could do so safely.

Dr. Besser's Tips to Protect Yourself From the Flu

Most of the hospitals have resumed normal operations, but could return to the bypass status if the influx of patients becomes too great.

"Northwestern Memorial Hospital is an extraordinarily busy hospital, and oftentimes during our busier months, in the summer, we will sometimes have to go on bypass," Northwestern Memorial's Dr. David Zich said. "We don't like it, the community doesn't like it, but sometimes it is necessary."

A tent outside Lehigh Valley Hospital in Salisbury Township, Pa., was set up to tend to the overflowing number of flu cases.

A hospital in Ohio is requiring patients with the flu to wear masks to protect those who are not infected.

State health officials in Indiana have reported seven deaths. Five of the deaths occurred in people older than 65 and two younger than 18. The state will release another report later today.

Doctors are especially concerned about the elderly and children, where the flu can be deadly.

"Our office in the last two weeks has exploded with children," Dr. Gayle Smith, a pediatrician in Richmond, Va., said

It is the earliest flu season in a decade and, ABC News Chief Medical Editor Dr. Besser says, it's not too late to protect yourself from the outbreak.

"You have to think about an anti-viral, especially if you're elderly, a young child, a pregnant woman," Besser said.

"They're the people that are going to die from this. Tens of thousands of people die in a bad flu season. We're not taking it serious enough."

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Analysis: Modi's Gujarat growth model might not work across India

SURAT, India (Reuters) - Turning a single Indian state with a long tradition of entrepreneurship and a solid political majority into an investor-friendly economic powerhouse is one thing.

Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.

While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.

"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat.

Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.

The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.

Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily.

Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.

Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.

"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialization, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."

HIGHER OFFICE?

The stocky Modi, who favors traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions.

But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.

"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.

Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough. In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels.

"Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.

FRIEND OF BUSINESS

Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal.

Ford Motor Co and Maruti Suzuki are also building plants in the western state - high profile investments that carry the added benefit of acting as marketing tools.

In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.

By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.

Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration.

"Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said Anjalika Bardalai, an analyst with the Eurasia Group in London.

Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.

"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less." ($1 = 55.0700 Indian rupees)

(Editing by John Chalmers and Alex Richardson)

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Israeli, US defence chiefs discuss Middle East issues

WASHINGTON: US Defence Secretary Leon Panetta and his Israeli counterpart Ehud Barak met to underscore a "strong US commitment to Israel's security", the Pentagon said.

US Defence Department spokesman George Little said in a statement that the two men "discussed a range of issues, and expressed their commitment to ensuring continued cooperation on many important regional issues -- particularly Syria, Iran, and Gaza".

"The secretary commended Minister Barak on his tireless efforts in advancing the US-Israel strategic relationship," Little said, adding the pair "reiterated the strong US commitment to Israel's security and the strong US-Israel defence relationship."

The meeting was the 11th for Barak and Panetta, who is leaving his post shortly.

President Barack Obama has nominated former US senator Chuck Hagel to succeed Panetta, a longtime Washington figure who has said he will be leaving public life.

- AFP/al

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