Native leaders meet with Canadian PM amid protests

OTTAWA: Indigenous Canadians marched on the capital and other major cities threatening to bring the economy "to its knees" as their leaders met with officials to try to resolve a row over extreme poverty on reserves.

As many as 500 aboriginals protested in freezing rain outside parliament in Ottawa in support of a hunger strike by a northern Ontario chief. Hundreds more held rallies in Montreal and Winnipeg.

Canadian Prime Minister Stephen Harper, meanwhile, met with 20 native chiefs behind closed doors in a bid to stem an escalation of demonstrations and highway blockades across the country.

Aboriginal Affairs Minister John Duncan said after the meeting that the prime minister agreed to ongoing "high level dialogue on the treaty relationship".

But beyond this commitment it was unclear at the end of the day what, if anything, was accomplished except to highlight divisions among Canada's more than 600 tribes.

Attawapiskat Chief Theresa Spence, whose 32-day hunger strike has become a focal point for an aboriginal rights movement calling for improved living conditions on reserves, boycotted the emergency talks.

She and her supporters had insisted on the participation of Queen Elizabeth II's representative in Canada, Governor General David Johnston, describing his attendance as "integral when discussing inherent and treaty rights". Canada's more than 600 indigenous reserves were created by royal proclamation in 1763.

But Johnston declined, saying their plight is a political matter that must be taken up with elected officials.

"We're giving this opportunity for them to resolve the broken promises from the treaty. And all we're asking is a meeting and to sit down with them," Spence told a news conference earlier in the day.

"All we want is justice, equality and fairness which we're entitled (to)," she said, vowing to continue her hunger strike.

Chiefs from Manitoba and Ontario provinces, as well as the Northwest Territories, joined her boycott, insisting on a meeting with the prime minister on their terms and vowing to "bring the Canadian economy to its knees" if their demands were not met.

This could include blocking resource development on their ancestral lands, said Manitoba Grand Chief Derek Nepinak.

"We have the warriors that are standing up now, that are willing to go that far. So we're not here to make requests, we're here to demand attention," he said.

Nepinak was echoed by Grand Chief Gordon Peters of the Association of Iroquois and Allied Indians who called for protests to be stepped up with all major road and rail lines shut down.

Foreign investments in Canada not approved by First Nations could also be targeted, he told reporters.

Assembly of First Nations National Chief Shawn A-in-chut Atleo, after leading a delegation to meet with Harper, avoided speaking to reporters.

Ahead of the talks he said he would seek a commitment from the prime minister for a "long-term process" to address native concerns, including outstanding land claims, hundreds of missing and murdered native women, high unemployment among natives, and too few schools in native communities.

A fix, Atleo said, could also include natives getting a share of royalties from some C$650 billion in resource development planned for the coming decade.

In addition to complaints of severe poverty, natives also blasted changes last month to environmental and other laws they say impact their hunting and fishing rights, which allow tribes to lease reserve lands to non-natives.

Although the government insists the latter was meant to boost economic development, some fear it will result in a loss of native control of reserve lands and eventually lead to the end of aboriginal communities.

- AFP/al

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White House shoots down petition to build Death Star

No Death Star for you.

(Credit:
Daniel Terdiman/CNET)

The White House has rejected a proposal to build a Death Star, saying that in addition to its prohibitive construction costs, the current administration does not advocate destroying other planets.

Today's official statement came in response to a petition posted in November to the White House's We The People platform that called for the administration to begin construction of a moon-size military battlestation armed with a planet-destroying superlaser by 2016. The petition, which attracted well more than the minimum 25,000 signatures necessary for a response from the White House, suggested such a project could give the nation's economy a much-needed boost. The petition

By focusing our defense resources into a space-superiority platform and weapon system such as a Death Star, the government can spur job creation in the fields of construction, engineering, space exploration, and more, and strengthen our national defense.

However, in a playful, "Star Wars"-inspired response titled "This Isn't the Petition Response You're Looking For," Paul Shawcross, the chief of the science and space branch at the White House Office of Management and Budget, explains that construction of the universe's ultimate weapon would cost $850 quadrillion ($850,000,000,000,000,000). The administration also said it was reluctant to spend such an uncountable amount on "a Death Star with a fundamental flaw that can be exploited by a one-man starship."

Shawcross also points out that the U.S. is a participant in the International Space Station ("that's no moon, it's a Space Station!" he writes:

Yes, we already have a giant, football field-sized International Space Station in orbit around the Earth that's helping us learn how humans can live and thrive in space for long durations. The Space Station has six astronauts -- American, Russian, and Canadian -- living in it right now, conducting research, learning how to live and work in space over long periods of time, routinely welcoming visiting spacecraft and repairing onboard garbage mashers, etc. We've also got two robot science labs -- one wielding a laser -- roving around Mars, looking at whether life ever existed on the Red Planet.

Shawcross also points out that exploration of space is no longer a government-only industry and that private companies are already ferrying cargo into space under NASA's Commercial Crew and Cargo Program Office (aka C3PO). He also offered a reminder of some of the space-exploration projects currently under way or on the drawing board.

Even though the United States doesn't have anything that can do the Kessel Run in less than 12 parsecs, we've got two spacecraft leaving the solar system and we're building a probe that will fly to the exterior layers of the sun. We are discovering hundreds of new planets in other star systems and building a much more powerful successor to the Hubble Space Telescope that will see back to the early days of the universe.

Shawcross closes the administration's response with serious note encouraging students to pursue careers in science, technology, engineering, or math-related fields and highlighting the science fairs and White House astronomy sessions initiated by the Obama Administration.

"If you do pursue a career in a science, technology, engineering or math-related field, the Force will be with us!" Shwacross writes. "Remember, the Death Star's power to destroy a planet, or even a whole star system, is insignificant next to the power of the Force."

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U.S. tells computer users to disable Java software

Updated 9:00 p.m. ET

WASHINGTON The U.S. Department of Homeland Security is advising people to temporarily disable the Java software on their computers to avoid potential hacking attacks.

The recommendation came in an advisory issued late Thursday, following up on concerns raised by computer security experts.

Experts believe hackers have found a flaw in Java's coding that creates an opening for criminal activity and other high-tech mischief.

CNET's Topher Kessler writes:

"The malware has currently been seen attacking Windows, Linux and Unix systems, and while so far has not focused on OS X, may be able to do so given OS X is largely similar to Unix and Java is cross-platform.

Even though the exploit has not been seen in OS X, Apple has taken steps to block it by issuing an update to its built-in XProtect system to block the current version of the Java 7 runtime and require users install an as of yet unreleased version of the Java runtime.

Luckily with the latest versions of Java, users who need to keep it active can change a couple of settings to help secure their systems. Go to the Java Control Panel that is installed along with the runtime, and in the Security section uncheck the option to "Enable Java content in the browser," which will disable the browser plug-in. This will prevent the inadvertent execution of exploits that may be stumbled upon when browsing the Web, and is a recommended setting for most people to do. If you need to see a Java applet on the Web, then you can always temporarily re-enable the plug-in.

The second setting is to increase the security level of the Java runtime, which can also be done in the same Security section of the Java Control Panel. The default security level is Medium, but you can increase this to High or Very High. At the High level, Java will prompt you for approval before running any unsigned Java code, and at the Very High level all Java code will require such approval, regardless of whether or not it is signed."

Java is a widely used technical language that allows computer programmers to write a wide variety of Internet applications and other software programs that can run on just about any computer's operating system.

Oracle Corp. bought Java as part of a $7.3 billion acquisition of the software's creator, Sun Microsystems, in 2010.

Oracle, which is based in Redwood Shores, Calif., had no immediate comment late Friday.

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CDC: Flu Outbreak Could Be Waning

The flu season appears to be waning in some parts of the country, but that doesn't mean it won't make a comeback in the next few weeks, according to the Centers for Disease Control and Prevention.

Five fewer states reported high flu activity levels in the first week of January than the 29 that reported high activity levels in the last week of December, according to the CDC's weekly flu report. This week, 24 states reported high illness levels, 16 reported moderate levels, five reported low levels and one reported minimal levels, suggesting that the flu season peaked in the last week of December.

"It may be decreasing in some areas, but that's hard to predict," CDC Director Dr. Thomas Frieden said in a Friday morning teleconference. "Trends only in the next week or two will show whether we have in fact crossed the peak."

The flu season usually peaks in February or March, not December, said Dr. Jon Abramson, who specializes in pediatric infectious diseases at Wake Forest Baptist Health in North Carolina. He said the season started early with a dominant H3N2 strain, which was last seen a decade ago, in 2002-03. That year, the flu season also ended early.

Click here to see how this flu season stacks up against other years.

Cheryl Evans/The Arizona Republic/AP Photo

Increasing Flu Cases: Best Measures to Ensure Your Family's Health Watch Video

Because of the holiday season, Frieden said the data may have been skewed.

For instance, Connecticut appeared to be having a lighter flu season than other northeastern states at the end of December, but the state said it could have been a result of college winter break. College student health centers account for a large percentage of flu reports in Connecticut, but they've been closed since the fall semester ended, said William Gerrish, a spokesman for the state's department of public health.

The flu season arrived about a month early this year in parts of the South and the East, but it may only just be starting to take hold of states in the West, Frieden said. California is still showing "minimal" flu on the CDC's map, but that doesn't mean it will stay that way.

Click here to read about how flu has little to do with cold weather.

"It's not surprising. Influenza ebbs and flows during the flu season," Frieden said. "The only thing predictable about the flu is that it is unpredictable."

Dr. William Schaffner, chair of preventive medicine at Vanderbilt University Medical Center in Nashville, Tenn., said he was expecting California's seeming good luck with the flu to be over this week.

"Flu is fickle, we say," Schaffner said. "Influenza can be spotty. It can be more severe in one community than another for reasons incompletely understood."

Early CDC estimates indicate that this year's flu vaccine is 62 percent effective, meaning people who have been vaccinated are 62 percent less likely to need to see a doctor for flu treatment, Frieden said.

Although the shot has been generally believed to be more effective for children than adults, there's not enough data this year to draw conclusions yet.

"The flu vaccine is far from perfect, but it's still by far the best tool we have to prevent flu," Frieden said, adding that most of the 130 million vaccine doses have already been administered. "We're hearing of shortages of the vaccine, so if you haven't been vaccinated and want to be, it's better late than never."

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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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Fiji's military ruler drops draft constitution

SUVA: Fiji's military government has announced it will dump a draft constitution prepared by an academic panel and prepare its own version, a move New Zealand labelled a "backward step" for the Pacific nation.

Military leaders in the coup-plagued island state commissioned a panel led by Kenyan academic Yash Ghai to draw up a constitution last year but took issue with some recommendations put forward in the document.

President Ratu Epeli Nailatikau said Ghai's blueprint risked reigniting racial tensions in Fiji, where divisions exist between the indigenous population and ethnic Indians brought to the country in the colonial era.

He said it also threatened to undo reforms introduced by Prime Minister Voreqe Bainimarama, who seized power in a 2006 coup and has pledged to hold elections in 2014 after the new constitution has been adopted.

"The Ghai draft (constitution ) can lead to financial and economic catastrophe and ruin," Nailatikau said in a nationally televised address on Thursday night.

While the draft has not been officially released, leaked copies indicate Ghai wanted the military, a key player in the four coups the Pacific nation has endured since 1987, to stay out of politics after the 2014 elections.

He also called for a transitional government to take over ahead of the 2014 vote, meaning Bainimarama would have to cede power.

New Zealand Foreign Minister Murray McCully said the government had effectively "trashed" the work of Ghai's Constitutional Commission, which completed its draft after receiving more than 7,000 public submissions.

He said the international community would be watching closely to ensure the new constitution allowed for free and fair elections, rather than providing a blueprint for the military's version of democracy.

"This is not flash, it's a backward step of some proportions," McCully told Radio New Zealand.

"But it's been the history of this whole process. This is not going to be a simple straight line towards elections and international credibility, there are always going to be steps forward and steps back."

He added that the move by the military to draw up its own draft constitution was "rather larger a step back than any of us feel comfortable with, but it's what we've got to work with".

The new draft constitution is expected to be completed by the end of the month.

- AFP/al

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NASA deems Earth safe from massive asteroid strike in 2036

Asteroid Apophis was discovered in 2004 but NASA scientists have ruled out the possibility of it hitting Earth in 2036.

(Credit:
UH/IA )

Earthlings can breathe a sigh of relief; NASA scientists have officially ruled out the possibility of the 22 million ton asteroid Apophis smashing into the planet in 2036.

"The impact odds as they stand now are less than one in a million, which makes us comfortable saying we can effectively rule out an Earth impact in 2036," manager of NASA's Near-Earth Object Program Office Don Yeomans said in a statement. "Our interest in asteroid Apophis will essentially be for its scientific interest for the foreseeable future."

Apophis is still en route to come exceedingly close to Earth in 2029, however. According to NASA scientists, the asteroid will make history with the closest flyby of an asteroid its size when it grazes the planet's atmosphere at 19,400 miles above Earth's surface.

Initially, when discovered in 2004, scientists feared that Apophis would collide with the Earth in 2029. First calculations of the asteroid's orbit gave it a 2.7 percent chance of crashing into the planet. After new data discoveries in 2007, however, scientists ruled out the possibility of a 2029 collision scenario.

Still, the possibility of a 2036 impact remained. NASA scientists have been hard at work ever since trying to figure out the possibility of Apophis, which is the size of three-and-a-half football fields, hitting the Earth. Using information from both ground and space-based telescopes in 2011 and 2012, as well as data from the asteroid's distant flyby yesterday, they've finally concluded the planet is safe.

For those asteroid gazers, a lesser-known 131-foot asteroid called 2012 DA14 is expected to speed past the planet in the middle of February. This one could come as close as 17,200 miles above the Earth's surface.

"With new telescopes coming online, the upgrade of existing telescopes and the continued refinement of our orbital determination process, there's never a dull moment working on near-Earth objects," Yeomans said.

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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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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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