Why some engineers become terrorists
Why some engineers become terrorists
30 Mar 2008, 0000 hrs IST,Shashi Tharoor
An IIT graduate — so the story goes — is walking near a pond one day when a frog speaks to him. “Kiss me,” it says, “and i will turn into a beautiful princess.” The IITian does a double-take, turns back to check if he has heard right, and sure enough, the frog repeats itself: “Kiss me and i will turn into a beautiful princess.” He looks thoughtfully at the frog, picks it up and puts it into his pocket. A plaintive wail soon emerges: “Kiss me and i will turn into a beautiful princess.” He ignores it and walks on. Soon the frog asks, “Aren’t you going to kiss me?” The IIT guy stops, pulls the frog out of his pocket, and replies matter-of-factly: “I’m an engineer. I don’t have time for a girlfriend. But a talking frog is cool.”
No prizes for guessing what a literature graduate would have done in the same situation! Such is the self-image of the engineer in India: rational, hard-working, self-disciplined, steady, focused on the results of his work. Parents pray for the smartest of their kids to become engineers. Any child with better than average marks in science at school is pushed towards the profession, sustained by peer pressure that convinces him there could be no higher aspiration.
And no doubt for some there isn’t. But that clearly isn’t the whole story. Disturbing new research at Oxford University by sociologists Diego Gambetta and Steffen Hertog points to an intriguing — one might say worrying — correlation between engineering and terrorism.
If that doesn’t raise eyebrows at the IITs, nothing will. But consider the evidence: Osama bin Laden was a student of engineering. So were the star 9/11 kamikaze pilot Mohammed Atta, the alleged mastermind of that plot, Khalid Sheikh Mohammed, and their all-but-forgotten predecessor, the chief plotter of the 1993 World Trade Center bombing, Ramzi Yousef.
The Oxford scholars, after putting together educational biographies for some 300 known members of violent Islamist groups from 30 countries, concluded that a majority of these Islamist terrorists were not just highly educated, but a startling number of them are engineers. Indeed, according to Gambetta and Hertog, nearly half had studied engineering. A summary of their research in Foreign Policy magazine remarked that “across the Middle East and Southeast Asia, the share of engineers in violent Islamist groups was found to be at least nine times greater than what one might expect, given their proportion of the working male population.”
Is there something about engineering that makes its most proficient graduates vulnerable to the temptations of violent extremism? Gambetta and Hertog seem to think so. They have no patience for the more conventional possible explanation — that engineers might be sought after by terrorist groups for their technical expertise in making and blowing up things. Instead, they argue that the reason there are so many terrorist engineers is that the subject helps produce a mindset that makes one prone to radicalisation.
Engineers consider themselves problem solvers, and when the world seems to present a problem, they look to engineering-type solutions to solve it. Engineering, Gambetta and Hertog suggest, predisposes its votaries to absolute and non-negotiable principles, and therefore to fundamentalism; it is a short step from appreciating the predictable laws of engineering to following an ideology or a creed that is infused with its own immutable laws. It is easy for engineers to become radicalised, the researchers argue, because they are attracted by the “intellectually clean, unambiguous, and all-encompassing” solutions that both the laws of engineering and radical Islam provide. According to Gambetta and Hertog, surveys in Canada, Egypt, and the US have proved over the years that engineers tend to be more devout, and more politically conservative, than the rest of the population.
I’m not suggesting one should buy wholesale the conclusions of the Oxford researchers; I know a few engineers who wouldn’t harm a fly, so i’d be wary of making any sweeping generalisations about an entire profession. But the study does seem to me to open the door to make a nowadays unfashionable case: the argument in favour of studying the humanities. I have always believed that the well-formed mind is preferable to the well-filled one, and it takes a knowledge of history and an appreciation of literature to form a mind that is capable of grappling with the diversity of human experience in a world devoid of certitudes.
If terrorism is to be tackled and ended, we will have to deal with fear, rage and incomprehension that animates it. We will have to know each other better, learn to see ourselves as others see us, learn to recognise hatred and deal with its causes, learn to dispel fear, and above all just learn about each other. It is not the engineering mindset that facilitates such learning, but the vision of the humanities student. The mind is like a parachute — it functions best when it is open. It takes reading and learning about other peoples and cultures to open (and broaden) minds.
Ignorance and lack of imagination remain the handmaidens of violence. Without extending our imagination, we cannot understand how peoples of other races, religions or languages share the same dreams, the same hopes. Without reading widely and broadening our minds, we cannot understand the myriad manifestations of the human condition, nor fully appreciate the universality of human aims and aspirations. Without the humanities, we cannot recognise that there is more than one side to a story, and more than one answer to a question.
That, of course, is never true in engineering. Perhaps the solution lies in making it compulsory for every engineering student to take at least 20% of his courses in the humanities. Maybe then he might even kiss the frog.
Air fares set to rise again
Air fares set to rise again
By Zoe Sinclair (Our staff reporter)KHALEEJ TIMES 28 March 2008
DUBAI — Passengers’ pockets are likely to be hit again with airlines serving the UAE yesterday indicating fare increases due to escalating fuel prices.
The price of oil is circling around $110 per barrel while the UK airports — Heathrow and Gatwick — have raised taxes. The airlines are being forced to consider passing the cost on to their passengers.
Emirates Airline president Tim Clark announced on March 5 it would be increasing fares amid plans to cut costs by $100 million.
A statement this week revealed fares were increased by 5.5 per cent as of February 15.
“Emirates increased fares by 5.5 per cent across all three classes — First, Business and Economy — with effect from February 15,” a spokesperson said.
“Our fares incorporate our operating costs which include fuel, salaries, taxes, fees for use of facilities and other costs of operation. As with every airline, pricing is also subject to market forces and we will continue to evaluate our fare structure based on these.
“The staggering increase in fuel prices has had an inflationary effect on all our operational costs. However, Emirates will continue to work very hard to shield our customers from any price fluctuations,” the spokesperson said.
A British Airways spokesperson has indicated it would cover the passengers’ airport taxes for those who had already purchased tickets.
However, the airline would in future pass on some of the additional cost of airport taxes to its passengers.
The airline currently charges a fuel surcharge on its tickets and said it was continually reviewing the situation as to whether any increases had to be made. An Air Arabia spokesperson said the airline had included a fuel surcharge in its ticket fare but had not increased this charge for the past year.
“We usually do our best not to increase ticket prices as per the cost of fuel,” the spokesperson said.
“This (a fuel surcharge increase) is an option to consider if the fuel prices keep rising.”
Etihad Airways spokesperson Thomas Clarke said the airline was continually reviewing fuel prices but used tactics, including hedging, to avoid peak prices.
“Rising fuel costs are a challenge for all airlines and remain a significant proportion of Etihad’s total costs,” Clarke said.
“Our hedging policy helps us to achieve greater certainty and allows us to manage seasonal fluctuations.
“Fuel costs represent about one-third of Etihad’s total costs.”
A time to balance
A time to balance
Manu Kaushik / Business Today March 17, 2008
Has the volatility of the past two months altered your risk tolerance level? Has the value of your stock portfolio declined alarmingly and been overtaken by bond assets, which have increased in size? In either case, your asset allocation needs a makeover.
The main challenge investors face is to earn a reasonable return while managing risk appetite. And maintaining your risk appetite means rebalancing your portfolio towards the desired asset allocation.
As things stand today, should you choose more of debt or equity? That depends on your risk tolerance levels. Market conditions have changed in the past few weeks.
But a good asset allocation strategy can help you make prudent investing decisions. “The first step towards rebalancing your portfolio is to review what you expect by way of returns and weigh that against your tolerance for risk. The state of markets (equity and debt) also decide where you ivest and how much,” says Prateek Agarwal, VP & Head (Equities), Bharti AXA Investment Managers.
Balancing it right
Keeping a diverse portfolio means among different classes of assets (e.g., stocks, debt and liquid assets) so that they work together to build your wealth, while affording you some protection from downturns in any specific asset class. Says Arpit Agrawal, MD & Group CEO, Dawnay Day AV Financial Services: “Any asset class is impacted by three basic things— momentum, liquidity and fundamentals. In the short term, momentum and liquidity play a major role, but over the long term, fundamentals are more important.”
In times of volatility, especially when the markets are shrinking, savvy investors who stick to their asset allocation make the best of a disciplined approach.
During boom times, these investors book partial profits and add on debt, and during bad times in the equity market, they sell debt and add on equities to maintain the asset allocation equilibrium. “The idea behind this rule is to keep your asset allocation within the desired risk profile. During booming markets, most investors are tempted to add more to equities, rather than book gradual profits, leading to an asset allocation mismatch. This rule brings a greater sense of discipline for an investor and provides much needed guidelines for resisting greed and temptation in rising markets,” adds Ambareesh Baliga, VP, Karvy Stock Broking.
On the other hand, when the markets are booming, adding debt by sticking to your original asset allocation can reduce the volatility. Says Sanjay Matai, Promoter, Wealtharchitects.in: “Debt funds can help you counter volatility in the markets and provide a certain degree of stability to your holdings.”
When and why
Knowing how to rebalance your portfolio is half the battle; knowing when to rebalance is the other. One way to rebalance is to increase your investment in asset categories that have fallen below your original allocation percentages. Another is to sell assets in one category and use that money to increase your investment in categories that have become underweight. Says Agarwal: “I recommend that you take a look at your portfolio at least once a year and think about pruning any asset class that has moved beyond its target by more than 5 per cent.”
Let us assume that an investor buys units in various equity funds for Rs 7 lakh, and invests Rs 3 lakh in debt funds. The objective is to maintain a constant asset mix of 70-30 through the investment horizon. The problem starts when stock and bond prices change. The reason is that movements in these asset prices will change the net asset value of the funds, and that, in turn, will change the investor’s desired mix. If the equity portion of the portfolio, for instance, increases from Rs 7 lakh to Rs 8.5 lakh, while the bond portion moves to Rs 1.5 lakh, the total equity exposure will be 85 per cent. This is clearly in excess of the investor’s desired equity exposure. Under such circumstances, the investor must cut equity in the portfolio by Rs 1.5 lakh to maintain the ideal mix.
Once you get started, it’s not a difficult thing to follow. But the best part is that you will, by default, add equity to your portfolio when the times are bad and, thus, buy stocks at cheap prices, and book profits when the times are good.
Eight mistakes to avoid while investing
Eight mistakes to avoid while investing
26 Mar, 2008, 0358 hrs IST,Dhruv Agarwala & Kartik Varma,
Investing is not just about picking winners, but also about avoiding mistakes. Retail investors can be better off if they avoid making the following mistakes.
Overconfidence – Don’t be unrealistically optimistic
A bull market makes retail investors believe that they are geniuses – after all, anything they put money into goes up. This overconfidence in their own abilities leads to a complete disregard of the risks involved. Every new generation that invests in the market ignores past experience. These new investors wrongly believe that stock prices only go up.
Don’t be overconfident and don’t start believing that you have superior skills compared to the market. Recognise that in a bull market you are benefiting because the whole market is going up. If those around you are getting unrealistically optimistic, start managing your risk accordingly. Remember that sometimes markets do come crashing down.
Over enthusiasm to trade – Not every ball should be hit
Good batsmen realise that some balls outside the off-stump should be left alone. Similarly, professional investors realise that sometimes its better to just stand still than to rush into a stock. Retail investors often make the mistake of “flashing outside the off-stump” because they cannot resist the temptation to trade in every opportunity. And, like an inexperienced batsman, they suffer the same fate.
Too much trading will lead to a lot of churn, extra commissions to your broker and huge tax implications for you. Some of the world’s best investors follow a buy and hold strategy – you should too.
Missing the benefits of compounding of capital – Learn from Einstein
Albert Einstein is reputed to have said that compounding of capital is the 8th wonder of the world because it allows for the systematic accumulation of wealth. Even though any one in class 5 could tell you how compounding works, retail investors ignore this basic concept.
Compounding of capital can benefit you only if you leave your money uninterrupted for a long period of time. The sooner you start investing, the bigger the pool of capital you will end up with for your middle-aged and retirement years.
Don’t wait to start investing only when you have a large amount of money to put to work. Start early, even if it’s with a small amount. Watch this grow to a very large amount with the passage of time.
Worrying about the market – But there is no answer to your favourite question
Smart investors don’t worry about the direction of the market – they worry about the business prospects of the companies whose stocks they own. Retail investors are obsessed with the question “Where do you think the market will go?” This is a wrong question to ask. In fact, no one knows the answer.
The right question to ask is whether the company, whose stock you are buying, is going to be a much bigger business 10 years from now or not? Don’t take a view on the market, take a view on long-term industry trends and how your chosen companies can create value by exploiting these trends.
Timing the market – Around 99% of investors will fail in this strategy
Its very difficult to time the market, i.e, be smart enough to buy at the absolute bottom and sell at the absolute top. Professionals understand that timing the market is a wasted exercise.
Retail investors always wait for that elusive best opportunity to get in or to get out. But by waiting they let great investment opportunities go by. You should use systematic or regular investment plans to make investments. You’ll have to make fewer decisions and yet can accumulate substantial wealth over time.
Selling in times of panic – You should be doing the opposite
The best opportunity to buy is when the markets are falling and there is fear in the minds of investors. Yet, many retail investors do exactly the opposite. They sell when the markets are falling and buy only when the markets are high. This way they end up losing twice – by selling low and buying high, when they should be doing exactly the opposite.
If nothing has changed about the long-term outlook for the company that you own, then you should not sell this company’s stock. Use this opportunity to buy more of the same stock in falling markets. Some of the world’s biggest fortunes were made by buying when others were selling in panic.
Focusing on past performance – Its like driving forward while looking backwards
It is a very common perception that because a stock has done well in the past one year, it’s the best stock to invest in. Retail investors do not realise that often the best performers will underperform the market in the future because their optimistic outlook has already been priced into the stock.
Don’t go after hot sectors that are currently producing high returns. Don’t let greed drive your investment decisions. Look forward to see whether the gains produced in the past can get repeated or not. Short-term trends of the past might not get repeated in the future.
Diversifying too much will kill you – Investing is all about staying alive
Beyond a point, having too many names in a portfolio can be counterproductive. You might end up duplicating, or end up taking too much exposure to a sector. Over-diversification can upset your portfolio, especially when you have not done enough research on all the companies you have invested in.
If you are an active investor in the stock market, maintain a manageable portfolio of 15-25 names. Instead of adding new names to this portfolio, recognise ideal ones. Then back them with more capital. In the long-run, this will produce better returns for you than adding another 20 names to your portfolio. Investing is all is about patience and discipline. By avoiding mistakes you can improve the long-term performance of your portfolio, whatever the economic conditions prevailing in the market.
Courtesy: http://www.iTrust.in / The Economic Times
Dubai Customs joins AskDubai service
Dubai Customs joins AskDubai service
27 March 2008 KHALEEJ TIMES
DUBAI — Dubai eGovernment has announced that Dubai Customs has become the 15th government department to join the AskDubai service, an initiative that facilitates interaction between the government and its public through a single point of contact.
Through the AskDubai call centre, the public can enquire about various services offered by Dubai Customs through multiple channels of communication.
AskDubai is a unified, bilingual contact centre connecting to government departments in Dubai through multi channels including a call centre, internet chat, e-mail and fax. It integrates key features of Customer Relationship Management, which has become a crucial component in many IT-enabled customer care services. AskDubai utilises industry-leading technologies that ensure each call gets immediate attention from an agent or an automated voice response system.
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