Washington Archive

Republican victories in first election test for Obama

Washington, Nov 4 (DPA) Republicans appeared headed for victory Tuesday in two US state elections that were being viewed as an early measure of President Barack Obama’s popularity.

Bob McDonnell was elected governor of Virginia in a landslide, winning 59 percent to 41 percent for Democrat Creigh Deeds and recapturing a state that voted for Obama in the 2008 presidential election.

In New Jersey, usually a reliably left-leaning state, Republican Chris Christie was winning 50 to 44 percent over Democratic incumbent Jon Corzine with more than 80 percent of the votes counted.

The elections in Virginia and New Jersey are the first major polls since Obama was elected in November 2008. The November 2010 congressional elections will be the bigger test, when the entire House of Representatives and one-third of the Senate is up for grabs.

The country’s struggling economy was a dominant issue in both states. Republicans tapped into anger over still-rising unemployment and what some voters perceive as reckless spending by centre-left Democrats to revive the economy.

Both elections garnered national attention as Republicans looked to reverse their fortunes of the last few years. Democrats hoped to maintain the momentum of the election a year ago but struggled to harness the excitement that was generated by Obama’s candidacy.

Michael Steele, chairman of the Republican National Committee, called the Virginia victory a ‘blow’ to Obama’s Democrats and ‘a clear signal that voters have had enough of the president’s liberal agenda’.

White House spokesman Robert Gibbs had played down the day’s elections, warning against drawing too many inferences for the Democrats’ electoral future.

A majority of Virginia voted for Obama a year ago, marking the first time the state sided with a Democrat for president in more than four decades. Republicans had lost the state’s last two elections for governor before Tuesday.

McDonnell campaigned on a promise of reviving job growth and smaller government in Virginia, mirroring the national campaign themes of centre-right Republicans.

Christie, a former prosecutor, campaigned heavily on curbing corruption in New Jersey, a state that has been dogged by political scandals.

The elections attracted some major political star power. Obama, Vice President Joe Biden and former president Bill Clinton all returned to the campaign trail over the last month. Top Republicans including former presidential candidates John McCain, Mitt Romney and Mike Huckabee also campaigned.

Voters were also choosing mayors Tuesday in several major cities, including New York, Atlanta and Pittsburgh, Pennsylvania.

In New York, billionaire Michael Bloomberg was widely expected to win an unprecedented third four-year term as mayor. But early results showed him locked in a surprisingly close race against Democratic challenger William Thompson. Bloomberg led 49-48 percent with about half of the votes counted.

A special election for Congress in upstate New York was also being watched closely. Initial results gave Democrat Bill Owens the lead in a district that has been a Republican stronghold for more than a century.

Owens benefited from a split among Republicans. Republican Party candidate Dede Scozzafava, a moderate with left-leaning views on social issues, quit the race Saturday after many of her party’s national figures threw their support behind a conservative third-party candidate, Doug Hoffman.

US, Europe must accept climate change obligations: German chancellor

Washington, Nov 4 – German Chancellor Angela Merkel has made an impassioned plea to the US and European nations to accept binding obligation on climate change to influence countries like China and India without whom no agreement was possible.

‘There can be no agreement without India and China,’ she said in an historic address before both houses of the US Congress on Tuesday. ‘No doubt about it, in December, the world will look to us, to the Europeans and to the Americans. And it is true, there can be no agreement without China and India.’

‘But I’m convinced, once we in Europe and America show ourselves ready to adopt binding agreements; we will also be able to persuade China and India to join in,’ she said.

‘We need an agreement on one objective: Global warming must not exceed 2 degrees Celsius,’ Merkel said stressing the importance of work together on efforts to curb global warming and to help forge a binding climate-change deal at an international meeting in Copenhagen next month.

Merkel said that people must tear down mental walls that blocked them from seeing the plight of future generations if warming continued unchecked with the same resolve that Germans had when they brought down the Berlin Wall on Nov 9, 1989.

The first German chancellor to address a joint session of the US Congress in 50 years, Merkel also called for building a stable partnership with India, China and Russia, noting that the world today is both freer and more integrated than ever before

‘The fall of the Berlin Wall, the technological revolution in information and communication technology, the rise of China, India and other countries to become dynamic economies-all of this has changed the world of the 21st century into something completely different from what we knew in the 20th century,’ she said.

‘There is no doubt NATO remains the crucial cornerstone of our common security,’ the German Chancellor said. But ‘Europeans, I am convinced, may contribute even more in the future, for we Europeans are currently working on giving a new contractual basis to our European Union,’ she said.

‘This will make the European Union stronger and more capable of action, and thereby turn it into a strong and reliable partner for the United States. We can build stable partnerships on this sound basis, first and foremost with Russia, China and India,’ Merkel said.

As leader of Europe’s largest economy, Merkel also pledged to keep working with the Group of 20 major economies, including India, to take coordinated steps to prevent a another global financial meltdown.

‘The cooperation between the Americans and the Europeans is a crucial cornerstone. It is not an exclusive, but an inclusive cooperation. The G-20 have shown they are capable of action. And we need to resist the pressure of those who almost led the nations of this planet to the abyss.’ she said.

(Arun Kumar can be contacted at arun.kumar@ians.in)

India’s National Defence College was terror target

Washington, Nov 4 – Two Pakistan-born Chicago men charged with plotting to launch terrorist attacks in India and Denmark in association with Pakistan based terror outfit Lashkar-e-Taiba (LeT) were targeting India’s National Defence College (NDC), a US court was told.

In court papers filed in Chicago Tuesday to have a federal judge detain Chicago businessman Tahawwura Hussain Rana without bond, federal prosecutors said he discussed the attack on NDC with David Coleman Headley, a Pakistan-born American national.

Prosecutors told magistrate Judge Nan Nolan that the alleged discussion of an attack on the New Delhi-based premier military college for senior service and civil officers shows that Rana was serious about taking part in terrorism and wasn’t merely Headley’s dupe as Rana’s lawyers contend.

Rana, a Pakistan-born Canadian national, and Headley, whose former name was Daood Gilani, are also charged with plotting to attack Danish newspaper Jyllands-Posten. The newspaper sparked outrage throughout the Muslim world in 2005 by publishing 12 cartoons depicting the Prophet Muhammad.

After a brief hearing Tuesday, the detention question was continued to Nov 10 before magistrate Judge Nolan.

The government’s memorandum in support of Rana’s detention pending trial said the planners of this attack included at least one member of LeT and Ilyas Kashmiri, who is affiliated with Al Qaeda, another terrorist organization that has been so designated since 1999.

Recorded conversations involving Rana, emails and other documentary evidence demonstrate that the Rana conspired to provide, and did provide, material support to the conspiracy, it said.

Rana was aware of the object of the conspiracy and the ongoing efforts to further the plot, the memo said. For example, on Sep 7, 2009, Rana and Headley, actively discussed the efforts to communicate with Kashmiri.

Rana and Headley also discussed the need to get Headley’s ‘reports’ and ‘notes’ to Kashmiri. ‘In doing so, Rana was neither laughing nor ridiculing Headley, as suggested by Rana during oral argument,’ prosecutors said.

In the same conversation, Headley and Rana discussed Denmark and other targets, including the National Defence College in India, the memo said noting Rana, in fact, used the English word ‘target’ in this discussion.

Rana also misled a government official, the Pakistani Consulate in Chicago, to obtain a visa for Headley to facilitate his prospective overseas travel.

Rana, the owner of a Grundy County goat farm and a Chicago immigration business, also allegedly communicated with a person affiliated with Let about smuggling in workers to the US.

He allegedly e-mailed an LeT associate last December concerning a ‘loophole’ in American immigration policy. ‘Whenever you find easy way to come to US immediately think there is a catch to it,’ Rana wrote, prosecutors said.

‘Only one loophole is business, which they believe is OK and intelligence can play a role,’ he was quoted as saying

Meanwhile, a team of Indian officials have arrived in the US to join the US Federal Bureau of Investigation (FBI) in probing the foiled terror plot.

The officials were expected to interview at least Headley in a bid to determine the intended target in India and when the alleged attack was to be carried out. However, both Indian and American officials declined to ‘confirm or deny’ whether they had questioned Headley.

(Arun Kumar can be contacted at arun.kumar@ians.in)

GM confirms to keep Opel, scraps Magna deal

Washington, Nov 4 (DPA) General Motors’ board voted Tuesday to hold on to its Opel division rather than sell a majority stake to Canada-based Magna, ending months of uncertainty and dashing the hopes of German officials.

‘Given an improving business environment for GM over the past few months, and the importance of Opel-Vauxhall to GM’s global strategy, the GM board of directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest,’ GM said in a statement.

US, EU resume talks on climate change

Washington, Nov 4 (DPA) The US and European Union resumed talks on climate change Tuesday as they intensify efforts to reach an accord ahead of next month’s UN summit in Copenhagen, expressing confidence a pact could be reached.

US President Barack Obama said the discussions focused ‘extensively’ on reaching a deal to reduce greenhouse gases by 2020. Obama has accepted the goals for reducing global warming but has come under increasing pressure from the European Union to do more.

While the two sides remain far apart they are still optimistic a deal can be reached at the Copenhagen conference Dec 7-18.

‘I am more confident now than I was some days before,’ Jose Manuel Barroso, the president of the European Commission, told reporters.

Swedish Prime Minister Fredrik Reinfeldt, whose country holds the rotating EU presidency and EU foreign policy chief Javier Solana also participated in the meeting.

Other issues on the agenda were the war in Afghanistan, curbing Iran’s nuclear ambitions, the economic recovery, trade and the Middle East peace process.

The United States has been criticized by the EU and other countries for failing to commit to curbs on its greenhouse-gas emissions blamed for global warming. Obama has been reluctant to agree to a strong global climate treaty without the backing of

Congress, where Obama’s fellow Democrats are struggling to pass a pollution-curbing bill.

‘We are confident that if all countries involved recognize this is a unique opportunity, that we can get an important deal done,’ Obama said during a separate meeting with Reinfeldt on Monday.

The United Nations hopes governments will agree to a new treaty that can replace the 1997 Kyoto Protocol. The US-EU talks will continue on Wednesday.

The US Senate last week began considering a bill that would force US companies to cut their climate-damaging emissions, but even administration officials have acknowledged that a bill is unlikely to reach Obama’s desk in time for the Copenhagen talks.

By contrast, the EU’s 27 member countries on Friday reached a compromise on how much money to offer developing countries to fight climate change, a key stumbling block for a global treaty. Obama has not said how much the US is willing to contribute.

The EU’s 27 national leaders endorsed estimates by the European Commission, the EU’s executive, that rich nations will have to offer developing countries around 100 billion euros ($147 billion) per year by 2020.

Obama, Merkel meet to discuss Afghanistan, climate change

Washington, Nov 3 (DPA) US President Barack Obama and German Chancellor Angela Merkel met Tuesday to discuss the war in Afghanistan and ongoing negotiations to produce an international climate change pact.

Merkel met Obama for the first time since her re-election in September and as the Obama administration conducts a comprehensive review in Afghanistan, where the war remains deeply unpopular in Germany and increasingly so in the US.

‘Germany has been an extraordinary strong ally on a whole host of international issues,’ Obama said in brief remarks to reporters. ‘We appreciate the sacrifices of German soldiers in Afghanistan.’

The US and the European Union as well as other major powers have been in discussions to establish a climate change agreement ahead of a UN meeting in Copenhagen in December.

Merkel has been one of the leading advocates for an agreement to rein in global warming. Obama has endorsed reaching an agreement as well, but has not gone as far as Merkel would like for greater reductions in the greenhouse gases blamed for warming.

During her meeting with Obama, Merkel expressed her gratitude for America’s support for reuniting Germany. Merkel grew up in the former East Germany. Her meeting with Obama took place on the sidelines of the EU-US summit.

Merkel decries Iranian denial of Israel’s right to exist

Washington, Nov 3 (DPA) Iran’s denial of Israel’s right to exist is unacceptable and Tehran must be prevented from obtaining a nuclear weapon, German Chancellor Angela Merkel said in a speech before the US Congress Tuesday.

A nuclear armed Iran would pose a threat to international security, Merkel said, adding that there is limited patience in the ongoing talks with Iran to come clean about its nuclear activities.

‘Iran needs to be aware of this, Iran knows our offer, but Iran also knows where we draw the line,’ Merkel said.

She also said trivialising the Holocaust and rejecting Israel’s right to exist by Iran’s leaders was ‘not acceptable’.

‘Whoever threatens Israel also threatens us,’ she said.

She was addressing Congress to mark the 20th anniversary of the fall of the Berlin Wall, which took place Nov 9, 1989.

Keep up the stimulus, but devise credible exit strategies: IMF

Washington, Nov 3 – In yet another sign of global economic recovery, across the G-20 nations including India, the average overall deficit is projected to fall from 7.9 percent of GDP in 2009 to 6.9 percent of GDP next year, according to the IMF.

Both these figures are somewhat better than projected in July 2009, the International Monetary Fund (IMF) said in its latest edition of the Cross-Country Fiscal Monitor released here Tuesday.

However, excluding losses from financial sector support measures, deficits are projected to widen in advanced G-20 economies in 2010, with reduced stimulus measures more than offset by higher automatic stabilisers as the output gap widens, and by increases in other types of spending.

Spending pressures affect nearly all emerging G-20 countries and particularly Argentina, China, India, Russia, and Saudi Arabia, the fund stated, noting revenue declines relative to 2007 are larger in commodity producers Russia and South Africa.

Moreover, the simulations suggest potentially more adverse debt dynamics for countries where debt levels were higher at the onset of the crisis or where fiscal balances have deteriorated sharply during 2009.

Even in the baseline, debt ratios will remain above 60 percent of GDP for Brazil and India and will increase markedly for Mexico, South Africa, and Turkey, the Fund said, noting: ‘The results underscore the importance for these countries of securing the projected medium-term fiscal adjustment.’

The Fiscal Monitor draws on projections from the October 2009 World Economic Outlook and shows that:

Government debt in advanced G-20 economies is projected to reach 118 percent of GDP in 2014. New IMF research confirms that stabilising debt at these levels would imply increases in interest rates of up to 2 percentage points globally.

Communication of exit strategies now can help contain any potential adverse market response, it said, suggesting credible exit strategies for advanced countries will need to go well beyond the non-renewal of stimulus measures.

Weak pre-crisis structural fiscal positions in many countries have been further eroded by underlying spending pressures, the Fund said.

To get debt below 60 percent by 2030 will require raising the average structural primary balance by 8 percentage points of GDP over 2010-20 and then keeping it there for a further decade.

This could be achieved by a combination of non-renewal of stimulus measures; a freeze in real per capita spending excluding pensions and health; reforms to keep the growth of pension and health spending in line with that of GDP; and tax increases averaging about 3 percentage points of GDP for advanced G-20 countries.

Fiscal policy will continue to provide substantial support to aggregate demand in most countries this year, and is projected to remain supportive of economic activity in advanced countries in 2010, the Fund said.

Though maintenance of fiscal support remains appropriate, governments need to devise and communicate credible exit strategies now, it added.

Yale varsity to honour Nilekani with Leadership Award

Washington, Nov 3 – Nandan Nilekani, Infosys co-founder and chairman of India’s Unique Identification Database Authority, is set to become the first Indian to receive Yale university’s prestigious Legend in Leadership Award.

The award of the Yale Chief Executive Leadership Institute will be presented to Nilekani by varsity’s president Richard C. Levin at a ceremony in New Delhi Nov 6, the New Haven based business school announced Tuesday.

The Yale CEO Leadership Summit will bring together over 100 world-renowned business leaders in New Delhi Nov 5-6 to discuss the theme of ‘Navigating the Global Oceans of Opportunity for Indian Business.’

The universal ID card project under Nilekani, who co-founded IT bellwether Infosys in 1981 and served as its CEO from 2002 to 2007, is expected to help ensure that most of the billions of dollars India and other organisations spend on aid reach the people for whom it was intended.

In 2009, Time magazine placed Nilekani on the Time 100 list of the World’s Most Influential People.

He is the inspiration for New York Times columnist Thomas Friedman’s book ‘The World Is Flat’.

Nilekani’s own book, ‘Imagining India,’ dissected a range of political, economic and social issues confronting the country.

In 2006, he was awarded the Padma Bhushan, one of the highest civilian honours awarded by the government of India.

The Legend in Leadership Award was created 20 years ago to honour current and former CEOs who serve as living legends to inspire chief executives across industries, sectors, and nations.

Past winners of the award include: Jamie Dimon of JP Morgan Chase, Robert Iger of The Walt Disney Company, Stephen Schwarzman of The Blackstone Group, Roger Enrico of PepsiCo, John Pepper of Proctor & Gamble and Don Keough of The Coca-Cola.

The Yale CEO Leadership Summit is an invitation-only event that is held each June and December in New York city by The Chief Executive Leadership Institute, part of the Yale School of Management. The Institute is the world ’s first school for incumbent CEOs.

The New Delhi summit, The Chief Executive Leadership Institute’s 60th programme and its first in India, is organised in association with the Federation of Indian Chambers of Commerce and Industry (FICCI). The US-India Business Council is a strategic partner for the event.

Supporters of the event include: PepsiCo, UPS, HSBC India, Modi Enterprises, Oil and Natural Gas Corporation Ltd. (ONGC), GAIL (India) Ltd, and the Steel Authority of India Ltd. (SAIL).

Pratham USA names IIT Bombay graduate as chairman

Washington, Nov 3 – Arvind Sanger, an Indian American with a B. Tech degree from the Indian Institute of Technology, Bombay, has been appointed chairman of Pratham USA, which helps underprivileged children in India to learn reading and writing skills.

The National Board of Directors of Pratham USA appointed Sanger as chairman of the board Oct 19. His predecessor and co-board member Vijay Goradia, who held the position since Pratham USA’s founding in 1999, nominated him, the institution announced.

In 2007, the William and Flora Hewlett Foundation and the Bill and Melinda Gates Foundation awarded Pratham a $9.1 million grant to scale its innovating learning techniques across the country in a campaign known as ‘Read India’. To date, the campaign has reached over 34 million children in 21 Indian states.

Arvind Sanger founded Geosphere Capital Management, a global long-short equity hedge fund, in 2007. This fund focuses on natural resources and industrial companies globally with offices in New York and Singapore.

Between 2002 and 2007, he was a portfolio manager at SAC Capital, and was one of the most senior equity portfolio managers, managing a team of six investment professionals in New York and Singapore.

Prior to his tenure at SAC, he had a 15-year career as a top-ranked sellside oil services and equipment analyst at a number of firms, including Deutsche Bank, DLJ (1995-2000), and Kidder Peabody.

Arvind graduated from the Indian Institute of Technology, Bombay, with a B.Tech in 1984 and received his MBA from Tulane University in 1987.

In addition to his service on the Board of Pratham USA, he is a member of the Business School Council at The A.B. Freeman School of Business at Tulane University.

‘Having been closely involved with Pratham USA for several years, I am excited by its growth and inspired by the tremendous impact that Pratham’s programmes are having in India. I am honoured by the opportunity to serve as chairperson of the Pratham USA board,’ said Sanger.

‘I look forward to working closely with the rest of the team as we continue to build and strengthen the organisation, thereby allowing us to reach and impact more children.’