Saturday, November 06, 2010

Cost-Benefit: You decide


Bomb-proof tunnel with air conditioning: Obama's security go to extraordinary measures for his tour of the Gandhi museum


President Barack Obama and First Lady Michelle arrived in India's commercial hub of Mumbai on Saturday, days after voters punished his Democrats in mid-term elections.

Probably not since the days of the Pharaohs or the more ludicrous Roman Emperors has a head of state travelled in such pomp and expensive grandeur as the President of the United States of America.


Read more: http://www.dailymail.co.uk/news/article-1326962/Obamas-India-visit-security-erect-bomb-proof-tunnel-Gandhi-museum.html#ixzz14XFwfIulWhile lesser mortals – the Pope, Queen Elizabeth and so on – are usually happy to let their hosts handle most of the security and transport arrangements when they venture beyond their home shores, the United States creates a mini-America on the move to ensure that nothing is left to chance.
The President and First Lady clasped hands as they arrived in Mumbai Saturday morning with their huge entourage

The President and First Lady clasped hands as they arrived in Mumbai Saturday morning with their huge entourage

Enlarge The red carpet was literally rolled out for the President and First Lady when their jumbo jet landed

The red carpet was literally rolled out for the President and First Lady when their jumbo jet landed

Obama arrives in India at the start of a ten-day tour of Asia. At the heart of the White House caravan is ‘The Beast’, a gigantic, ‘pimped-up’ General Motors Cadillac which security experts say is, short of an actual battle tank, probably the safest road vehicle on the planet.

But an outlandish car is only the start. Mr Obama will fly, of course, on Air Force One, the presidential private jumbo jet, which, boasting double beds and suites, is fitted out more like a luxury yacht. Some reports suggest it costs around $50,000 (£31,000) an hour to operate.

Of course threats can come from any direction, so a squadron of U.S. naval ships will patrol offshore. Some reports have claimed that 34 ships, including two aircraft carriers, will be involved (not far off the size of the Royal Navy’s entire Surface Fleet) but the White House has denied this.
The pair were greeted wtih flowers and gifts as they stepped off the plane

The pair were greeted wtih flowers and gifts as they stepped off the plane
Enlarge Click on this graphic to see the full extent of the President's entourage

Click on this graphic to see the full extent of the President's entourage

On land, as well as The Beast, Mr Obama’s entourage will travel in a fleet of 45 U.S.-built armoured limousines, half of which will be decoys. He will also travel with 30 elite sniffer dogs, mostly German Shepherds.

The White House has, according to some reports, booked the entire Taj Mahal Palace Hotel in Mumbai, the city’s most luxurious. It is not uncommon for the grander heads of state to reserve a floor or two, but a whole hotel is unprecedented. This hotel was the main target of the 2008 attacks by Pakistani militants which left 166 dead.


More...

* Michelle Obama is Mumbai chic as First Lady makes mid-air outfit change before arrival in India
* Republicans assert their power to a humbled Obama as Democrats eke out two more victories
* More bad news, Mr President... Obama no longer 'world's most powerful man'
* China warns a flood of new U.S. dollars could spark a fresh global economic crisis

As to the cost of all this, the White House will not reveal details – which has allowed Mr Obama’s political foes to bandy about sums including a widely-quoted $200million (£123million) a day. Whatever the figure, it makes the costs associated with the Royal Train and the late Royal Yacht Britannia seem like small change.

It is also reported that a bomb-proof tunnel will be erected for Mr Obama ahead of his visit to Mani Bhavan - the Gandhi museum - on Saturday.
U.S. President Barack Obama and first lady Michelle Obama step aboard Air Force One at Andrews Air Force Base in Maryland en route to India

Getting away: Barack Obama and First Lady Michelle Obama board Air Force One today to travel to India on the first stop of their 10-day Asia tour before visiting Indonesia, South Korea, Japan and China

According to Daily News & Analysis, U.S. secret service agents visited the museum on Monday to plan Mr Obama's security during his tour.

They were accompanied by Mumbai Police officers and civic officials of the D ward where Mani Bhavan is located.

While they were inspecting the route and the buildings lining the path to the museum, U.S. security officers noticed a nearby skyscraper in the highly populated area that could pose a threat.

To the amazement of the Indians accompanying the U.S. agents, it was apparently decided to erect a bomb-proof over-ground tunnel, which will be installed by U.S. military engineers in just an hour.

The kilometre-long tunnel will measure 12ft by 12ft and will have air-conditioning, close-circuit television cameras, and will be heavily guarded at every point.

It's being built so it is large enough for Mr Obama's cavalcade to pass through and will be manned at its entry and exit points.

A kilometer long bomb proof tunnel will reportedly be built on the route leading to Mani Bhavan - the Gandhi museum for Obama's tour while in India.

Security measures: A kilometer long bomb-proof tunnel will reportedly be erected on the route to Mani Bhavan - the Gandhi Museum - ahead of President Obama's tour of the building on Saturday

The material that the tunnel would be made of has not been released but officials said that the structure would be dismantled immediately after Mr Obama and his party leaves the area.

Meanwhile the furore over reports that his Asia trip is going to cost taxpayers $200million a day has been dismissed by the Obama administration who called the figure 'wildly inflated'.

Last week an Indian government source told the NDTV channel: 'The huge amount of around $200million would be spent on security, stay and other aspects of the Presidential visit.'

The claim was immediately seized upon by talk show hosts and rights wing politicians who relished the opportunity to rub salt into Mr Obama's wounds saying the trip was a waste of government funds during the country's recession.

But the White House have refused to reveal the true cost of the three-day trip to Mumbai and Delhi.

'The numbers reported in this article have no basis in reality', White House spokesman Tommy Vietor said.
Enlarge US security department officials stand near their vehicles outside the Taj Mahal Palace hotel in Mumbai this afternoon

US security department officials stand near their vehicles outside the Taj Mahal Palace hotel in Mumbai this afternoon

He added: 'Due to security concerns, we are unable to outline details associated with security procedures and costs, but it's safe to say these numbers are wildly inflated'.

The White House have said these claims are exaggerated but with any presidential trip, Mr Obama travels with a large number of staff and security detail includes his own aircraft and fleet of secure vehicles.

There will also be tens of thousands of Indian police and members of the military protecting the US delegation.

Secret Service agents travelled to India last week to address security concerns at locations the president is likely to visit.

Mr Obama will visit India, Indonesia, South Korea, Japan and China as part of a 10-day state tour of Asia.
Indian policemen await deployment orders outside the Taj Mahal hotel. President Obama is scheduled to stay at the hotel this weekend

Indian policemen await deployment orders outside the Taj Mahal hotel. President Obama is scheduled to stay at the hotel this weekend
Tense: An Indian policeman guards the Chhatrapati Shivaji train station in Mumbai, one of the targets of Islamist militants during the 2008 attacks

Tense: An Indian policeman guards the Chhatrapati Shivaji train station in Mumbai, one of the targets of Islamist militants during the 2008 attacks

The trip has sparked some criticism in the U.S., which is battling high unemployment and stagnant economic growth.

Mr Obama will spend three days in India, and will also visit New Delhi.

The White House will be hoping to secure more than $10 billion in new business for American firms in what is the biggest trade mission in US history.

Mr Obama is bringing 250 U.S. executives including GE chief Jeffrey Immelt and Honeywell's David Cote, which the U.S. India Business Council says is the largest such delegation to ever accompany a president on a foreign visit.

The presidents of six universities, including Georgetown and Duke, are also set to come.

Last fiscal year, India's $11 billion worth of investments in the U.S. matched U.S. investments in India for the first time ever, according to the U.S. India Business Council.
Enlarge On guard: A security guard stands outside the grounds of Humayun's Tomb in New Delhi, where Mr Obama is expected to visit

On guard: A security guard stands outside the grounds of Humayun's Tomb in New Delhi, where Mr Obama is expected to visit

Enlarge A man walks with a camel past a sand sculpture depicting President Barack Obama ahead of Obama's arrival to the country, in Puri

A man walks with a camel past a sand sculpture depicting President Barack Obama ahead of Obama's arrival to the country, in Puri

Bilateral trade, on track to hit $50 billion this fiscal year ending March, has more than doubled since 2004.

But sentiment has frayed since the two countries signed a civil nuclear cooperation agreement in 2008.

Then-President George W. Bush pushed through that deal, which allowed nuclear trade with India despite its weapons programme and seemed to herald a new era of cross-continental commerce.
It hasn't been that simple.

The job creating power of India's big, fast-growing market is hampered by its restrictions on foreign access to key sectors like retail, finance, education and insurance.

Multinationals are wary of the shape-shifting rules that seem to govern things like taxes and environmental permits in India.

And the large defence contracts that headline the wish list of deals for Obama's visit come burdened with offsets and foreign investment caps.
Enlarge Preparations: A billboard welcoming Mr Obama is seen in Mumbai. The U.S. President will hope to cement improving relations with India during his three-day visit

Preparations: A billboard welcoming Mr Obama is seen in Mumbai. The U.S. President will hope to cement improving relations with India during his three-day visit
Enlarge Indian bottle artist Basavaraju Somaraje Gowda holds a bottle into which he has placed a frame photograph of US President Barack Obama (L) and Indian Prime Minister Man Mohan Singh in the southern Indian city of Bangalore

Indian bottle artist Basavaraju Somaraje Gowda holds a bottle into which he has placed a frame photograph of US President Barack Obama (L) and Indian Prime Minister Man Mohan Singh in the southern Indian city of Bangalore

The Americans who accepted outsourcing of IT and back office functions in boom times as a way to free up capital for job creation at home seem less certain of the strategy's benefits during a bust.

With U.S. unemployment at 9.6 pe rcent, India's putative role as a driver of job insecurity has leaked into campaign rhetoric - Barbara Boxer's attacks on Carly Fiorina for sending Hewlett-Packard jobs to India and China helped her win the California Senate race - and popular culture alike.

NBC's new sitcom, 'Outsourced', tells the story of a Kansas City company that sends most of its jobs to India.

Indian companies keep insisting, quietly, that they're not really the problem: If you don't like jobs getting sent overseas, better to direct your anger at major U.S. corporations whose race for low cost competitiveness drives India's $50 billion software services sector.

'We strongly believe the global delivery model is beneficial to customers,' said Infosys chief executive S. Gopalakrishnan.

'It increases their competitiveness. It reduces costs. It gives them access to a scalable high quality

talent pool and to emerging markets. That's why it's growing.'
Indian Shiite Muslims hold an effigy of U.S. President Barack Obama, before setting it on fire, as they gather for a protest after Friday prayers outside a mosque in Lucknow, India

Unwelcome: Some Indian Shiite Muslims are unhappy about Mr Obama's trip and held an effigy of him before setting it on fire as they gather for a protest after Friday prayers outside a mosque in Lucknow, India today

The U.S. Congress seemed to disagree, hiking visa fees for Indian outsourcing companies by about $2000 per worker in August, provoking howls of discontent here.

'It's tens of millions of dollars,' said Tata Consultancy Services chief executive N. Chandrasekaran.
The law pinches Indian outsourcers where it hurts, at the heart of the industry's hopes for future growth in its most important global market.

The companies have been trying to diversify into health care and government work and move up the delivery chain to higher value areas like consulting. All require workers, with visas or U.S. passports, in the United States.

Many here fear the backlash will get worse by the 2012 elections, barring a turnaround in the U.S. labour market.

Indian outsourcers - and their clients in corporate America - are happy to move jobs to the U.S. as long as it doesn't disrupt their low-cost business model.

That translates into very few jobs.
Indian policemen report for duty allocation ahead of US President Barack Obama's visit in Mumbai

Indian policemen report for duty allocation ahead of US President Barack Obama's visit in Mumbai

Enlarge Mahesh Gupta, centre left, holds a portrait of U.S. President Barack Obama which he claims to have made from his blood to welcome him

Mahesh Gupta, centre left, holds a portrait of U.S. President Barack Obama which he claims to have made from his blood to welcome him
Guinness Rishi
Guinness Rishi

Permanent record: Guinness Rishi, who has more than 200 flags tattooed on his body, had Mr Obama inked on his side the day the President arrived in India (oddly, it looks more like former president Jimmy Carter)

Lobby group Nasscom says India's software services exporters have created 35,000 high-paying U.S. jobs in the last five years.

Industry leader Tata Consultancy Services is looking to hire 1,000 Americans this fiscal year. Less than one per cent of its global work force are American, according to company data.

Infosys is also looking to hire 1,000 Americans. Its 1,600 permanent U.S. employees - not counting an additional 600 or so who work for two U.S. subsidiaries - make up 1.3 per cent of the company's global work force.

'We can't replace all the people from here with people from the United States and have the same value proposition,' said Chandrasekaran.

From the U.S. side, perhaps most disillusioning is a law passed by India's parliament that extends liability to the suppliers of nuclear plants, making it difficult for private companies to compete against their state owned French and Russian peers in India's multibillion dollar nuclear reactor build-out.
Enlarge Infosys Technologies boss S. Gopalakrishnan looks on after announcing the company's quarterly financial results. The company is now hiring Americans

Infosys Technologies boss S. Gopalakrishnan looks on after announcing the company's quarterly financial results. The company is now hiring Americans

Enlarge A sweeper cleans the premises of Mughal emperor Humayun's tomb in New Delhi. President Barack Obama is expected to visit the tomb during his tour of India

A sweeper cleans the premises of Mughal emperor Humayun's tomb in New Delhi. President Barack Obama is expected to visit the tomb during his tour of India

'There has been a reality check,'said Stephen Cohen, a South Asia security expert at the Brookings Institution.

Backers of the civil nuclear deal in Washington, he said, 'made believe India was a true ally and would never let us down'.

U.S. India Business Council president Ron Somers said India's signing last week of an International Atomic Energy Agency convention on liability is a step forward and will require Indian laws to conform to international norms, which do not make private companies liable unless there is malfeasance.

Even India's purchase of 10 Boeing C-17 transport aircraft, expected to be finalised during Obama's visit, will probably be worth less than the anticipated $5.8 billion because of fewer add-ons, said Guy Anderson, lead analyst at Jane's Defence Industry.

India is second only to China in ramping up military procurement, making it an attractive market for U.S. defense companies.

But the bureaucracy is so inefficient the government doesn't manage to spend the money earmarked for military procurement each year, and Russia still dominates sales in a country where some, especially in the older generation, continue to regard U.S. intentions with skepticism.

Somers says naysayers are too impatient and points out that from 2007 to 2009, the U.S. sold India $4.3 billion worth of defense equipment - a huge jump from the $342 million sold from 2001 to 2006.
'We've come a long way,' he said.


Read more: http://www.dailymail.co.uk/news/article-1326962/Obamas-India-visit-security-erect-bomb-proof-tunnel-Gandhi-museum.html#ixzz14XG8fk1y

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