Love Hormone Boosts Strangers' Sex Appeal

Love Hormone Boosts Strangers' Sex Appeal
Oxytocin Could Play a Key Role in Choosing Mates
By EWEN CALLAWAY

A chemical best known for cementing the bond between a mother and her newborn child could also play a part in picking mister (or miss) right.

A new study shows that men and women who inhale a whiff of the hormone oxytocin rate strangers as more attractive.

When oxytocin courses through our blood, "we are more likely to see people we don't know in a more positive light," says Angeliki Theodoridou, a psychologist at the University of Bristol, UK, who led the new study.

This effect adds to the hormone's known role in human relationships. One study found that oxytocin levels spike after new mothers look at or touch their newborns and may help bonding.

Other work has hinted at the importance of oxytocin in social situations between adults too.
People administered the hormone make overly generous offers in an economic game that measures trust, while men who got a dose of oxytocin proved better at remembering the faces of strangers a day later, compared to subjects who got a placebo.

Dampened Fear?

In the latest trial, Theodoridou's team tested 96 men and women in a double-blind placebo-controlled trial. After participants got either a spritz of oxytocin or a placebo, they rated pictures of 48 men and women for attractiveness and 30 for trustworthiness. Her team also tested for mood.

No matter their sex or mood, volunteers who received oxytocin rated male and female strangers as both more attractive and trusting.
Theodoridou's study did not examine how oxytocin could affect social judgements, but she speculates that the hormone dampens brain activity in a region involved in processing fearful emotions, called the amygdala.

A previous study found that oxytocin tempered amygdala activation in volunteers who saw a face that had previously been paired with a slight shock.

Love Spray

Although Theodoridou's study shows that oxytocin acts similarly on men and women when rating strangers, sex differences could emerge in real-world situations, says Jennifer Bartz, a psychologist at Mount Sinai Medical School in New York.

More research is needed to see if this is the case, she says.Unsurprisingly, entrepreneurs are already trying to make a buck off of oxytocin's social effects. One company offers a spray that claims to engender trust in others, though it offers little more than testimonials as evidence that it works. Could a similar spray spark romances between total strangers? Theodoridou doesn't think so. "I would not endorse any of these products," she says.

The two faces of Dhirubhai Ambani

The two faces of Dhirubhai Ambani

PARANJOY GUHA THAKURTA

HE achieved what almost everybody would consider impossible. In a life spanning 69 years, he built from scratch India’s largest privately controlled corporate empire. Dhirajlal Hirachand – better known as Dhirubhai – Ambani would often say that success was his biggest enemy. He was a man who aroused extreme responses in others. Either you loved him or you hated him. There was just no way you could have been indifferent to this amazing entrepreneur who thought big, acted tough, knew how to bend rules or have rules bent for him. He was a visionary as well as a manipulator, a man who communicated with the rich and the poor with equal felicity, who was generous beyond the call of duty with those whom he liked and utterly ruthless with his rivals – a man of many parts, of irreconcilable contrasts and paradoxes galore.

Dhirubhai Ambani expired on Saturday July 6, roughly ten minutes before midnight, at Mumbai’s Breach Candy Hospital where he had been admitted after he suffered a vascular stroke on the evening of June 24. This was his second stroke – the first had occurred more than sixteen years earlier, in February 1986, leaving the right side of his body paralysed. At his cremation, the well-heeled rubbed shoulders with the ordinary. No Indian businessman ever attracted the kind of crowd that Dhirubhai did on his last journey. After his cremation on the evening of Sunday July 7, his elder son Mukesh reminded those gathered on the occasion that in 1957, when Dhirubhai arrived in Mumbai from Aden in Yemen, he had only Rs 500 in his pocket.


He was not exactly a pauper since Rs 500 meant much more than what the amount means in this day and age. Nevertheless, one could not ask for a more spectacular ‘rags-to-riches’ tale. The second son of a poorly paid school-teacher from Chorwad village in Gujarat, he stopped studying after the tenth standard and decided to join his elder brother, Ramniklal, who was working in Aden at that time. (Not surprisingly, Dhirubhai ensured that his two sons went to premier educational institutions in the US – Mukesh was educated at Stanford University and Anil at the Wharton School of Business.)

The first job Dhirubhai held in Aden was that of an attendant in a gas station. Half a century later, he would become chairman of a company that owned the largest oil refinery in India and the fifth largest refinery in the world, that is, Reliance Petroleum Limited which owns the refinery at Jamnagar that has an annual capacity to refine up to 27 million tonnes of crude oil.

When he died, the Reliance group of companies that Dhirubhai led had a gross annual turnover in the region of Rs 75,000 crore or close to US $ 15 billion. The group’s interests include the manufacture of synthetic fibres, textiles and petrochemical products, oil and gas exploration, petroleum refining, besides telecommunications and financial services. In 1976-77, the Reliance group had an annual turnover of Rs 70 crore. Fifteen years later, this figure had jumped to Rs 3,000 crore. By the turn of the century, this amount had skyrocketed to Rs 60,000 crore. In a period of 25 years, the value of the Reliance group’s assets had jumped from Rs 33 crore to Rs 30,000 crore.

The textile tycoon’s meteoric rise was not without its fair share of controversy. In India and in most countries of the world, there exists a close nexus between business and politics. In the days of the licence control raj Dhirubhai, more than many of his fellow industrialists, understood and appreciated the importance of ‘managing the environment’, a euphemism for keeping politicians and bureaucrats happy. He made no secret of the fact that he did not have an ego when it came to paying obeisance before government officials – be they of the rank of secretary to the Government of India or a lowly peon.


Long before Dhirubhai entered the scene, Indian politicians were known to curry favour with businessmen – licences and permits would be farmed out in return for handsome donations during election campaigns. The crucial difference in the business-politics nexus lay in the fact that by the time the Reliance group’s fortunes were on the rise, the Indian economy had become much more competitive. Hence, it was insufficient for those in power to merely promote the interests of a particular business group; competitors had to simultaneously be put down. This was precisely what happened to the rivals of the Ambanis.

Who remembers Swan Mills? Or Kapal Mehra of Orkay? Even Nusli Wadia of Bombay Dyeing is a pale shadow of what he would certainly have liked to be. The undivided Goenka family that used to control the Indian Express chain of newspapers – which carried on a campaign against the Reliance group in 1986-87 – is currently divided into three factions. Whereas the multi-edition newspaper has not entirely lost its feisty character, it is yet to fulfil its late founder Ramnath Goenka’s cherished dream of becoming a market leader in at least one of its many publishing centres.


A popular joke starts with a question: Which is the most powerful political party in India? Answer: the Reliance Party of India. Others divide the country’s politicians into two groups: a very large ‘R-positive’ group and a very small ‘R-negative’ section. It is hardly a secret that Dhirubhai’s support base would easily cut across political lines. Very few politicians have had the gumption to oppose the Ambanis, just as the overwhelming majority of journalists in the country preferred not to be critical of the Reliance group. The Indian media, most of the time, has chosen to lap up whatever has been doled out by the group’s public relations executives.

The bureaucracy too has, by and large, favoured the Ambanis, not merely on account of the fact that many babus have got accustomed to receiving expensive hampers on the occasion of diwali.
While Dhirubhai did not have too many scruples when it came to currying favour with politicians and bureaucrats, what cannot be denied is the fact that perhaps no businessman in India attracted the kind of adulation he did. He was more than just a legend in his lifetime. He successfully convinced close to four million citizens, most of them belonging to the middle class, to invest their hard-earned savings in Reliance group companies. He was fond of describing Reliance shareholders as ‘family members’ and the group’s annual general meetings acquired the atmosphere of large melas attended by hordes.

What cannot also be refuted is the fact that the Reliance group believed in rewarding its shareholders handsomely. Much of the credit for the spread of the so-called ‘equity cult’ in India in recent years should rightfully go to Dhirubhai, even if the Reliance group was often accused of manipulating share prices. Two group companies that once carried the cumbersome names of Reliance Poly-Ethylene and Reliance Poly-Propylene – popularly called Ilu and Pilu – went to the extent of blandly stating in the fine print of their public issue prospectus documents that the value of the shares of the companies had been increased though thin and circular trading. On another occasion in January 1998, a functionary of Reliance Petroleum replied to a show-cause notice served on the company by agreeing to shell out a sum of Rs 25 crore to ‘buy peace’ with the income tax authorities.


When, after having spent eight years in Aden, Dhirubhai returned to Mumbai, his lifestyle was akin to that of any ordinary lower middle class Indian. In 1958, the year he started his first small trading venture, his family used to reside in a one room apartment at Jaihind Estate in Bhuleshwar. After trading in a range of products, primarily spices and fabrics, for eight years, Dhirubhai achieved the first of the many goals he had set for himself when he became the owner of a small spinning mill at Naroda, near Ahmedabad. He did not look back.

He decided that unlike most Indian businessmen who borrowed heavily from financial institutions to nurture their entrepreneurial ambitions, he would instead raise money from the public at large to fund his industrial ventures. In 1977, Reliance Industries went public and raised equity capital from tens of thousands of investors, many of them located in small towns. From then onwards, Dhirubhai started extensively promoting his company’s textile brand name, Vimal. The story goes that on one particular day, the Reliance group chairman inaugurated the retail outlets of as many as 100 franchises.


He had by then already succeeded in cultivating politicians. Indira Gandhi returned to power in the 1980 general elections and Dhirubhai shared a platform with the then prime minister of India at a victory rally. He had also become very close to the then finance minister Pranab Mukherjee, not to mention the prime minister’s principal aide R.K. Dhawan. He realised that it was crucial to be friendly with politicians in power, especially at a time when the group had embarked on an ambitious programme to build an industrial complex at Patalganga to manufacture synthetic fibres and intermediates for polyester production.

In 1982, Dhirubhai created waves in the stock markets when he took on a Kolkata-based cartel of bear operators that had sought to hammer down the share price of Reliance Industries. The cartel badly underestimated the Ambani ability to fight back. Not only did Dhirubhai manage to ensure the purchase of close to a million shares that the bear cartel offloaded, he demand physical delivery of shares. The bear cartel was rattled. In the process, the bourses were thrown into a state of turmoil and the Bombay Stock Exchange had to shut down for a couple of days before the crisis was resolved.

The mid-eighties were a period during which the Reliance group got locked in a bitter turf battle with Bombay Dyeing headed by Nusli Wadia. The two corporate groups were producing competing products – Reliance was manufacturing purified terephthalic acid (PTA) and Bombay Dyeing, di-methyl terephthalate (DMT). Wadia lost the battle and reportedly became the source of information for many of the articles against the Ambanis that subsequently appeared in The Indian Express. In 1985, the Mumbai police accused a general manager in a Reliance group company of conspiring to kill Wadia, a charge that was never established in a court of law. Many years later, a newspaper owned by the Ambanis would accuse Wadia of illegally holding two passports and played up the fact that he was Mohammed Ali Jinnah’s grandson.

1986 was a crucial year for Dhirubhai. He suffered a stroke in February that year. A few months later, the Express began publishing a series of articles attacking the Reliance group as well as the Indira Gandhi regime for favouring the Ambanis. These articles were coauthored by Arun Shourie who, ironically, as Union Minister for Disinvestment in the Atal Behari Vajpayee government, presided over the sale of 26 per cent of the equity capital of the former public sector company, Indian Petrochemicals Corporation Limited (IPCL), to the Reliance group in May this year. By gaining managerial control over IPCL, the Reliance group would now be able to dominate the Indian market for a wide variety of petrochemical products.


Shourie’s coauthor for the famous series of anti-Reliance articles was Chennai-based chartered accountant S. Gurumurthy who happens to be a leading light of the Swadeshi Jagaran Manch, an outfit that espouses the cause of economic nationalism and is closely affiliated to the Rashtriya Swayamsevak Sangh (RSS), the ideological parent of the ruling Bharatiya Janata Party (BJP). The Express articles written by Shourie and Gurumurthy meticulously detailed a host of ways in which the government of the day had gone out of its way to assist the Ambanis. One article was on the subject of how the Reliance group imported ‘spare parts’, ‘components’ and ‘balancing equipment’ of textile manufacturing machinery to nearly double its production capacities. The article provocatively claimed the Ambanis had ‘smuggled’ in a plant.


Another story detailed how companies registered in the tax haven, Isle of Man, with ridiculous names like Crocodile Investments, Iota Investments and Fiasco Investments had purchased Reliance shares at one-fifth their market prices. Curiously, most of these firms were controlled by a clutch of nonresident Indians who had the same surname, Shah. Though Pranab Mukherjee had to change a reply he gave in Parliament on the investments made by these firms, an inquiry conducted by the Reserve Bank of India could not find any evidence of wrongdoing. Yet another article detailed how the group had been the beneficiary of a ‘loan mela’ – a number of banks had loaned funds to more than 50 firms that had all purchased debentures issued by Reliance Industries.

Vishwanath Pratap Singh was one of the few politicians who took on the Ambanis. In May 1985, as finance minister in Rajiv Gandhi’s government, he suddenly shifted imports of PTA from the OGL (Open General Licence) category. At that juncture, Reliance needed to import this product to manufacture polyester filament yarn. It was found that the group had ‘persuaded’ a number of banks to open letters of credit that would allow it to import almost one full year’s requirement of PTA on the eve of the issuance of the government notification changing the category under which PTA could be imported. It was hardly a coincidence that soon after V. P. Singh fell out with Rajiv Gandhi, various tax agencies of the Indian government raided the premises of the Express group.

Things got difficult for the Ambanis after V.P. Singh became prime minister in December 1989. In 1990, government-owned financial institutions like the Life Insurance Corporation and the General Insurance Corporation stonewalled attempts by the Reliance group to acquire managerial control over Larsen and Toubro, one of India’s largest construction and engineering companies. Sensing defeat, the Ambanis resigned from the board of the company after incurring large losses. Dhirubhai, who had become L&T chairman in April 1989, had to quit his post to make way for D. N. Ghosh, former chairman of the State Bank of India.


Once again, in an ironical twist of fate, more than eleven years later, the Reliance group suddenly sold its stake in L&T to Grasim Industries headed by Kumaramangalam Birla. This transaction too attracted adverse attention. Questions were raised about how the Reliance group had increased its stake in L&T a short while before the sale to Grasim had taken place. The watchdog of the stock markets, the Securities and Exchange Board of India (SEBI) instituted an inquiry into the transactions following allegations of price manipulation and insider trading. Reliance had to later cough up a token fine imposed by SEBI.

These are hardly the only controversies involving the Reliance group. Two senior executives of the Reliance group, including one who was known to be close to Dhirubhai, have been accused of violating the Official Secrets Act after a Cabinet note was found in their office during a police raid. One of these executives reportedly had links with a mafia don. Earlier, there had been a major uproar in the stock exchanges over alleged cases of ‘switching’ of shares and the issue of duplicate shares. Some of these transactions pertained to Dhirubhai’s personal physiotherapist.


More recently, last year, Raashid Alvi, a Member of Parliament belonging to the Bahujan Samaj Party, levelled a large number of allegations against the Reliance group. He distributed a voluminous bunch of photocopied documents to journalists that included the letter in which a Reliance group company had sought to ‘buy peace’ with the income tax department. The MP accused the Reliance group companies of manipulating their balance sheets and annual statements of account.

A week after Dhirubhai’s death, the Department of Company Affairs (DCA) confirmed that there was basis to some of the allegations raised by Alvi and that there were certain discrepancies in the balance sheet issued by Reliance Petroleum seven years ago. A group spokesperson sought to dismiss the discrepancy as a minor printing error that had been inadvertently committed. The DCA subsequently confirmed that different Reliance group companies had transferred interest income to one another in a questionable manner.

The plethora of scandals and controversies surrounding the Reliance group left Dhirubhai’s supporters completely unmoved. His supporters – and there was no dearth of them – would argue that there was no businessman in India whose track record was lily-white. Had the textile tycoon himself not acknowledged once to Time magazine that he was no Mother Teresa, they would ask. Even Hamish McDonald’s unflattering portrayal of Dhirubhai in his book The Polyester Prince – published in Australia by Allen and Unwin and not available in India – acknowledges his remarkable entrepreneurial talent that made him one of the few Indians on the Forbes list of the world’s wealthy and placed Reliance among the leading 500 companies in the developing world compiled by Fortune magazine.


Senior journalist T.V.R. Shenoy, in a tribute to Dhirubhai entitled ‘A Superman named Ambani’ posted on the rediff.com website, points out that the Reliance group accounts for three per cent of India’s gross domestic product (GDP), five per cent of the country’s exports, 10 per cent of the Indian government’s indirect tax revenues (excise and customs duties), 15 per cent of the weight of the sensitive index of the Bombay Stock Exchange and 30 per cent of the total profits of all private companies in the country put together. Another journalist, Manas Chakravarty, concluded his not-so-adulatory article in the Business Standard with the following sentence: ‘…it was (Dhirubhai’s) common touch combined with his uncommon vision that was the secret of his success.’

Dhirubhai’s supporters like to recall instances of his ‘common touch’ and his ability to interact with individuals from different walks of life. In 1983, he had hosted a lunch for 12,000 of his company’s workers on the occasion of the marriage of his younger daughter Dipti. The departed Reliance group patriarch would often wonder aloud that if he could achieve what he did in a lifetime, why could a thousand Dhirubhais not flourish. He was sure that there were at least one thousand individuals like him in the country who would dare to dream big. And if all these entrepreneurs could achieve their ambitions, India would become an economic superpower one day, he would remark.

Dhirubhai’s managerial skills were undoubtedly exceptional and he would repose his faith in professionals, many of whom had earlier worked in much-maligned public sector organisations. Whether it was the building of the petroleum refinery at Jamnagar in three years at a capital cost that was 30 per cent lower than comparable projects, or the restarting of the Patalganga plant in one month’s time after sudden floods had occurred in July 1989, the Reliance management team displayed their competence on many occasions.


The Ambanis often scored because they stuck to their knitting or focused sharply on their areas of ‘core competence’. The group flopped when they entered new areas, be these the print medium or financial services. The group’s foray into power generation too has so far not yielded significant results. Dhirubhai’s sons, Mukesh (45) and Anil (43) are keen on effectively implementing their plans of diversifying into the ‘new economy’, into new areas like telecommunications, life sciences and insurance. The Reliance group intends proving telecom services in many parts of the country and is currently building an optic fibre based broadband internet network connecting 115 cities. Only time will tell whether Mukesh and Anil prove to be worthy successors to their father. But one thing seems certain: they will try their level best not to be as controversial as Dhirubhai was.

Secret wealth abroad

Secret wealth abroad

--S. Gurumurthy*

Switzerland has been accused of giving shelter to black money and there has been a lot of inflow of such wealth from India and other countries of the world.” This is not L K Advani, on election mode, speaking last Sunday, but the Swiss ambassador to India briefing the media in Delhi last year.

The occasion was the 60th anniversary of Indo-Swiss Friendship Treaty. Admitting that Indian black money gets hoarded in his country, he added that the new law in Switzerland would, not stop it, but control it “up to a certain limit”.

The Swiss diplomat authentically answers the first of the FAQs, that is, whether a lot of Indian money is really stashed away in Swiss banks. Swiss banks are not the only secret destination. There are 37 such shelters in the world, says US Inland Revenue. The secret owners of the secreted monies operate in secrecy — venal businessmen, corrupt politicians, public servants, drug lords, and criminal gangs like the D-company. The slush monies are the financial RDX for terror, besides weapons of mass destruction of national and global finance. That there is secret money is no more a secret. Only the amounts and persons are secret. But how much of India’s stolen wealth could be stashed in Switzerland? Specific estimates of this later. Before that, here is a sideshow, but a relevant one.

In the late 1980s, at the behest of The Indian Express, while investigating the Reliance scam, I had attempted to trail the Indian monies secreted abroad. In the course of the probe, I had contacted Fairfax, a US investigative firm, to uncover the Indian wealth stashed abroad. Impressed by their skills, I persuaded the Government of India to engage the firm for the task. Fairfax agreed to work for a slice of the black wealth uncovered by them as fee.

According to Swiss sources then, the Indian money secreted in Swiss banks was some $300 billion. That was enough to excite Fairfax to go for the kill. But, soon my efforts landed me in jail on March 13, 1987, when the CBI arrested me on charges that later turned out to be bogus, but were enough to stop the probe. The whole nation knew then that the real reason why rulers struck was their fear that the probe had targeted the Bofors payoff and secret money of the ruling family abroad. Rajiv Gandhi, who was the prime minister then, moved honest and bold civil servants like Vinod Pandey and Bhure Lal out of the probe and eventually sacked V P Singh who, as finance minister then, had authorised the efforts.

The chain of events that followed led to corruption emerging as the major issue in the 1989 polls in which Rajiv Gandhi, who had wiped out the opposition in 1984 elections, was defeated, and V P Singh became the prime minister. But there is a great lesson in these developments that often goes unnoticed. And that is, the way the bold national interest initiative to unearth the Indian black wealth abroad was aborted clearly confirmed that the ruling family was mortally afraid of any probe into secret money abroad. This fear haunts the family-led Congress party even today. That is why the 1987 episode is relevant now.

Now back to the main story.

Illicit money is the dirty outcome of modern capitalism. But, after 9/11, the US realised that not just the buccaneers in business, but Osama bin Laden could also hide his funds in secret havens and use them to bomb the world. Campaigns against dirty money as high security risk commenced with the path-breaking research done by Raymond W Baker, a Harvard MBA and a Brookings scholar. He published his research as a book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free- Market System. The book was published in 2005. This set off intense debate in the US as the exposure linked dirty business and dirty money with terror and national security.

Raymond Baker had estimated, using authentic data, tools and reasons, the dirty wealth secreted in banks at $11.5 trillion to which, he found, one more trillion was being added annually. He added that in the process the West was getting an annual bounty of $500 billion from the developing countries, India included.

Global Financial Integrity (GFI), a global watchdog headed by Baker to curtail illicit money flows, has recently brought out detailed estimates of the black wealth hoarded in secret havens from different countries. GFI research shows that during the period 2002 to 2006, annually $27.3 billion was stashed away from India, making a total of $137.5 billion for the five-year period. That is, in just five years, Indian wealth amounting to Rs 6.88 lakh crore has been smuggled out of India. This gives a clue as to how much Indian money would have slipped out of India in the last 62 years, particularly during the Nehruvian socialist regime when the income tax (97.5 per cent) and wealth tax (almost equal to the income earned on investments) together constituted double the income earned.

It is undisputed that the Nehruvian socialist model forced huge sums out of India. So the amount of Indian black wealth secreted away in the last 60 years — estimated at from $500 billion (Rs 25 lakh crore) to $1400 billion (Rs 70 lakh crore) — does not seem to be wide off the mark. Economists call it flight of capital. This is the people’s money stolen from them.

See the consequence even if part of it is brought back. A portion of it would make India free from all external debts which is now over $220 billion; India will transform into an economic superpower; some 10 or 15 Indian rupees could buy a US dollar which today 50 Indian rupees cannot; a litre of petrol on our roadside would cost Rs 15 or even less, against today’s 50 plus; the cost of imports in rupee terms would be down to a third or half; India’s entire infrastructure needs can be funded; India will become so energy efficient and costcompetitive that exporters may need no sops at all; India will lend to — not, as it does now, borrow from — the world; Indian housing can be funded at affordable cost; rural poverty can be wiped out... The list is endless. But, then, is it possible to bring back the secreted monies? What are the roadblocks to such efforts?

A deafening silence on funny money

It was unthinkable six months ago. Switzerland, once a pet of Western capitalism, is now its hate object. During World War II, the tiny nation was the common love of both the Allied and Axis powers, at war with each other. But neutral Switzerland, a friend of all since Napoleonic days, is friendless today. Its prime attraction, financial secrecy secured by law, has become its nemesis.

Germany first, France next, the US later, with the UK joining last, have, individually and together, declared a war against secret banking and tax havens like Switzerland.

It is a crusade by the West against the Swiss, says the media. Tax havens ask for no income tax from non-citizens and their banks ask no questions about their money. Modern capitalism had all along winked at secret banks

and tax shelters; even nicknamed secret money ‘funny money’. But now the West chases secret money like it targets al-Qaeda.

Why this miraculous shift? The short answer: ‘financial crisis’. The Guardian of UK wrote (March 4), “European leaders grew increasingly agitated at how tax havens have fostered secrecy that has contributed to the collapse of banks the world over”. The newspaper’s Tax Gap Series estimated the unaccounted global wealth held in secret havens, including Switzerland, at $13 trillion. The annual tax evasion on the dirty fund, estimated at $255 billion was, the newspaper said, twice the global budget for poor nations. Der Spiegel, a German magazine, reported (March 3) that “Cash strapped governments around the world see the opportunity to finally put an end to bank secrecy” to access the money concealed by their nationals. It added “British Prime Minister Gordon Brown, French President Nicholas Sarkozy and German Chancellor Angela Merkel are now joining forces” and “they have set their sights on Switzerland”.

The crusade against Swiss banks was started by Germany in early 2008 when its intelligence bribed — bribed? Yes — an informant in LGT Bank in Liechtenstein and got a CD containing the names of some 1,500 tax dodgers, and raided half of them, who were its citizens. It also offered, free of cost, the names of citizens of other countries. Many accepted the offer gratefully.

Thereafter, in the third quarter of 2008, Germany pressed the Organisation of Economic Co-operation and Development (OECD) to blacklist Switzerland for protecting tax dodgers.

Switzerland is an OECD member and twothirds of the Swiss speak German. Yet Germany couldn’t care less. Soon, France joined Germany.

“We want to put a stop to tax havens”, thundered Sarkozy.

At the preparatory G20 summit in Berlin early February, European leaders vowed to launch a global crusade against tax havens at the G20 meet in London, said the Irish Financial News. Europe’s anger was explicit in its refusal to allow the Swiss plea to be presented before the G20 in London.

The US moved even more menacingly. On February 18, the US Inland Revenue threatened the largest Swiss bank, UBS, with a lawsuit — that would have bankrupted it — unless the bank disclosed the names and accounts of some 300 American tax dodgers. A frightened UBS forthwith surrendered the secret data to the US before the account holders could stall it by a Swiss court order. Later, the Obama administration told the US Senate that it would bring laws to prise open the world’s most secretive tax havens.

At this point the UK joined the crusade.

Switzerland wilted under the pressure. Spiegel wrote that, for generations, the Swiss had held bank secrecy as “not negotiable”, and added that it was “no longer” so. The magazine quoted Swiss finance minister Merz as saying that they would have “to compromise”. The Swiss justice and foreign ministers, the magazine reported, had hinted that the country might have to stop protecting tax dodgers. Subsequently, a nervous Merz met Gordon Brown on March 14 with a deal to prevent any move in G20 to blacklist his country. The deal was that Swiss banks would adopt the bank transparency rules of OECD countries. Brown claimed that it was “the beginning of the end of banking secrecy”. Yet, the US is pressing ahead with a law to punish banking secrecy.

When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008]. More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it – clear proof that the government is scuttling, not getting, the details.

Second, when, in the G20 preparatory meeting at Berlin, Germany and France were threatening to blacklist Swiss and other secret tax shelters, India’s silence at Berlin was deafening.

Montek Singh Ahluwalia, the PM’s righthand who, along with Dr Rakesh Mohan, represented India at Berlin, did not utter a word in support of Germany and France. India, a principal victim of banking secrecy, should have been leading the war cry against it. But it did not even morally support those waging the war.

Third, when on Sunday last L K Advani told Manmohan Singh that India should join in the G20 effort to break banking secrecy, the PM did not respond. The spokesperson of the Congress Abhishek Singhvi responded that G20 was not the forum for that, being blissfully ignorant of the fact that it was a main agenda of G20 meet.

In fact just ahead of the meeting, Sarkozy had threatened to walk out unless the G20 decisively acted against secret banks and tax havens.

No need to strain further to understand Manmohan’s compulsions. The fear that drove the ruling family to abort the 1987 probe into Indian monies secreted abroad is still evident. But Advani’s threat to turn the recovery of Indian wealth secreted abroad an election issue has got the PM and his party off guard. The party has blundered, saying G20 is not the forum, when it is precisely that. Now the prime minister cannot remain silent. He has to do something. At least make a show of doing. But can he? QED: Dr Manmohan Singh stands between the devil and the deep sea — between his party and L K Advani.

*Swaminathan Gurumurthy(Tamil: ஸ்வாமிநாதன் குருமூர்த்தி;Hindi: स्वामिनाथन गुरुमूर्ती) is the convenor of the Swadeshi Jagaran Manch and a well-known Chartered Accountant.
Gurumurthy is an acclaimed writer whose columns have found place on several dailies and periodicals. He is known for his radical views and opinions while his intense combination of words and moods are a testimony of his passion towards raging issues.
He is a nationalist to the core and is a strong proponent of the traditional Indian economic wisdom that was a part of every home and village model but has been slowly and stealthly been discarded by British Rule and subsequently by the disastrous and short-sighted Nehruvian economic policies post Independence.

The 10 Very Best Zen Stories

Many teachings from Zen-Buddhism are told in short and delightful stories. They are usually designed to develop the mind and to free it from distortions and so to connect with our spirit.
Some of them are really inspiring and enlightening. It is helpful to the mind to think about them and feel the deeper meaning. Even if it is not possible to grasp them fully, the beauty and simplicity of the message usually gets through to us one way or the other.

The following 10 Zen stories are a selection of the ones I found most inspiring and really worth to ponder about. Some may be instantely understood, some others need to be thought through and recognized in oneself.

They are about the following topics: life in the present moment, different perspectives, attachment, resistance, judgment, delusion, beliefs and thought as mental concepts but not truth and unconditional love.

1. A Cup of Tea
Nan-in, a Japanese master during the Meiji era (1868-1912), received a university professor who came to inquire about Zen.

Nan-in served tea. He poured his visitor’s cup full, and then kept on pouring.

The professor watched the overflow until he no longer could restrain himself. "It is overfull. No more will go in!"

"Like this cup," Nan-in said, "you are full of your own opinions and speculations. How can I show you Zen unless you first empty your cup?"

2. The Burden
Two monks were returning to the monastery in the evening. It had rained and there were puddles of water on the road sides. At one place a beautiful young woman was standing unable to walk accross because of a puddle of water. The elder of the two monks went up to a her lifted her and left her on the other side of the road, and continued his way to the monastery.

In the evening the younger monk came to the elder monk and said, "Sir, as monks, we cannot touch a woman ?"

The elder monk answered "yes, brother".

Then the younger monk asks again, "but then Sir, how is that you lifted that woman on the roadside ?"

The elder monk smiled at him and told him " I left her on the other side of the road, but you are still carrying her."

3. Finding a Piece of the Truth

One day Mara, the Evil One, was travelling through the villages of India with his attendants. he saw a man doing walking meditation whose face was lit up on wonder. The man had just discovered something on the ground in front of him. Mara’s attendant asked what that was and Mara replied, "A piece of truth."

"Doesn’t this bother you when someone finds a piece of truth, O Evil One?" his attendant asked.

"No," Mara replied. "Right after this, they usually make a belief out of it."

4. The Other Side

One day a young Buddhist on his journey home came to the banks of a wide river. Staring hopelessly at the great obstacle in front of him, he pondered for hours on just how to cross such a wide barrier. Just as he was about to give up his pursuit to continue his journey he saw a great teacher on the other side of the river. The young Buddhist yells over to the teacher, "Oh wise one, can you tell me how to get to the other side of this river"?

The teacher ponders for a moment looks up and down the river and yells back, "My son, you are on the other side".

5. Is That So?

The Zen master Hakuin was praised by his neighbors as one living a pure life.
A beautiful Japanese girl whose parents owned a food store lived near him. Suddenly, without any warning, her parents discovered she was with child.

This made her parents very angry. She would not confess who the man was, but after much harassment at last named Hakuin.

In great anger the parents went to the master. "Is that so?" was all he would say.

When the child was born, the parents brought it to the Hakuin, who now was viewed as a pariah by the whole village. They demanded that he take care of the child since it was his responsibility. “Is that so?” Hakuin said calmly as he accepted the child.

A year later the girl-mother could stand it no longer. She told her parents the truth - that the real father of the child was a young man who worked in the fishmarket.

The mother and father of the girl at once went to Hakuin to ask his forgiveness, to apologize at length, and to get the child back again.

Hakuin was willing. In yielding the child, all he said was: "Is that so?"

6. Maybe
Once upon the time there was an old farmer who had worked his crops for many years. One day his horse ran away. Upon hearing the news, his neighbors came to visit. “Such bad luck,” they said sympathetically.

“Maybe,” the farmer replied.

The next morning the horse returned, bringing with it three other wild horses. “How wonderful,” the neighbors exclaimed.

“Maybe,” replied the old man.

The following day, his son tried to ride one of the untamed horses, was thrown, and broke his leg. The neighbors again came to offer their sympathy on his misfortune.

“Maybe,” answered the farmer.

The day after, military officials came to the village to draft young men into the army. Seeing that the son’s leg was broken, they passed him by. The neighbors congratulated the farmer on how well things had turned out.

“Maybe,” said the farmer.

7. Cliffhanger

One day while walking through the wilderness a man stumbled upon a vicious tiger. He ran but soon came to the edge of a high cliff. Desperate to save himself, he climbed down a vine and dangled over the fatal precipice.

As he hung there, two mice appeared from a hole in the cliff and began gnawing on the vine.
Suddenly, he noticed on the vine a plump wild strawberry. He plucked it and popped it in his mouth. It was incredibly delicious!

8. The Blind Men and the Elephant
Several citizens ran into a hot argument about God and different religions, and each one could not agree to a common answer. So they came to the Lord Buddha to find out what exactly God looks like.

The Buddha asked his disciples to get a large magnificent elephant and four blind men. He then brought the four blind to the elephant and told them to find out what the elephant would "look" like.

The first blind men touched the elephant leg and reported that it "looked" like a pillar. The second blind man touched the elephant tummy and said that an elephant was a wall. The third blind man touched the elephant ear and said that it was a piece of cloth. The fourth blind man hold on to the tail and described the elephant as a piece of rope. And all of them ran into a hot argument about the "appearance" of an elephant.

The Buddha asked the citizens: "Each blind man had touched the elephant but each of them gives a different description of the animal. Which answer is right?"

9. Right and Wrong
When Bankei held his seclusion-weeks of meditation, pupils from many parts of Japan came to attend. During one of these gatherings a pupil was caught stealing. The matter was reported to Bankei with the request that the culprit be expelled. Bankei ignored the case.

Later the pupil was caught in a similar act, and again Bankei disregarded the matter. This angered the other pupils, who drew up a petition asking for the dismissal of the thief, stating that otherwise they would leave in a body.

When Bankei had read the petition he called everyone before him. "You are wise brothers," he told them. "You know what is right and what is not right. You may go somewhere else to study if you wish, but this poor brother does not even know right from wrong. Who will teach him if I do not? I am going to keep him here even if all the rest of you leave."

A torrent of tears cleansed the face of the brother who had stolen. All desire to steal had vanished.

10. Nothing Exists

Yamaoka Tesshu, as a young student of Zen, visited one master after another. He called upon Dokuon of Shokoku.

Desiring to show his attainment, he said: "The mind, Buddha, and sentient beings, after all, do not exist. The true nature of phenomena is emptiness. There is no realization, no delusion, no sage, no mediocrity. There is no giving and nothing to be received."

Dokuon, who was smoking quietly, said nothing. Suddenly he whacked Yamaoka with his bamboo pipe. This made the youth quite angry.

"If nothing exists," inquired Dokuon, "where did this anger come from?"

Bonus 11. Teaching the Ultimate

In early times in Japan, bamboo-and-paper lanterns were used with candles inside. A blind man, visiting a friend one night, was offered a lantern to carry home with him.
"I do not need a lantern," he said. "Darkness or light is all the same to me."
"I know you do not need a lantern to find your way," his friend replied, "but if you don’t have one, someone else may run into you. So you must take it."
The blind man started off with the lantern and before he had walked very far someone ran squarely into him. "Look out where you are going!" he exclaimed to the stranger. "Can’t you see this lantern?"
"Your candle has burned out, brother," replied the stranger.

Samurai Sword

A katana is a type of Japanese sword (,nihontō), and is often called a "samurai sword." The term katana may be applied to the standard size moderately curved Japanese sword with a blade length of greater than 60 cm (23.6 inches)

The katana is characterized by its distinctive appearance: a curved, slender, single edged blade, circular or squared guard, and long grip to accommodate two hands. It has historically been associated with the samurai of feudal Japan, and has become renowned for its sharpness and cutting ability, to the point that its purported cutting capabilities have reached mythical status.

The katana originated in the Muromachi period (1392–1573) as a result of changing battle conditions requiring faster response times. The katana facilitated this by being worn with the blade facing up, which allowed the samurai to draw and cut their enemy in a single motion. Previously, the curved sword of the samurai was worn with the blade facing down. The ability to draw and cut in one motion also became increasingly useful in the daily life of the samurai

The length of the katana's blade varied considerably during the course of its history. In the late 14th and early 15th centuries, katana blades tended to be between 70 and 73 cm (27.6 and 28.7 inches) in length. During the early 16th century, average length was much closer to 60 cm (23.6 inches), but late in the 16th century, it was again approximately 73 cm (28.7 in)

The authentic Japanese sword is made from a specialized Japanese steel called "Tamahagane". The katana gets its gentle curve from quenching during forging, as it is straight prior to quenching. A process of differential tempering causes martensite to form predominantly in the edge of the blade rather than the back; as the spine has lower retained lattice strain, it cools and contracts, and the blade takes on a gently curved shape.

A coating of clay mixed with ashes and a small portion of rust is applied to every surface but the edge of the blade during hardening. This provides heat insulation so that only the blade's edge will be hardened with quenching.

The hardening of steel involves altering the molecular structure of that material through quenching it from a heat above 1472 Fahrenheit (800 Celsius) (bright red glow), ideally no higher than yellow hot. If cooled slowly, the material will break back down into iron and carbon and the molecular structure will return to its previous state. However, if cooled quickly, the steel's molecular structure is permanently altered. The reason for the formation of the curve in a properly hardened Japanese blade is that iron carbide, formed during heating and retained through quenching, has a lesser density than its root materials have separately.

After the blade is forged it is then sent to be polished. The polish takes between one and three weeks. The polisher uses finer and finer grains of polishing stones until the blade is like glass. This makes the blade extremely sharp and reduces drag making it easier to cut with.

Japanese sword usually refers to the katana (or nihontō), a traditional Japanese sword.

The term may also refer to:
Chisakatana, a shortened katana
Chokutō, a type of straight and (usually) single-edged Japanese sword that dates back to pre-Heian times
Daikatana, a pseudo-Japanese term meaning "large sword"
Dōtanuki, a very thick, long handled sword resembling a katana
Hachiwara, a type of blunt, knife-shaped weapon resembling a jitte
Kodachi, a Japanese sword that is too short to be considered a long sword but too long to be a dagger
Nagamaki, a Japanese weapon popular between the 12th and 14th centuries
Ninjatō, the most common name for the reputed sword a ninja would have carried
Nodachi, a large two-handed Japanese sword
O-katana, a katana slightly longer than a regular katana
Ōdachi, a type of long Japanese sword
Shin gunto, a style of japanese katana designated as part of the uniform for officers of the Imperial Japanese Army from 1934 until the end of World War II
Shinken, a sharp Japanese style sword uses for high level iaido or tameshigiri (cutting) practice
Tachi, a Japanese sword, often said to be more curved and slightly longer than the katana
Tantō, a common Japanese single or, occasionally, double edged knife or dagger with a blade length between 15 and 30 cm
Tsurugi, a Japanese word used to refer to any type of broadsword, or various Chinese heroes' weapons or Chinese swords
Uchigatana, a Japanese blade and predecessor of the katana
Wakizashi, a traditional Japanese sword with a shōtō blade between 30 and 60 cm
Zanbatō, an especially large type of Japanese sword, the historical use of which is completely fictional

Prevent a cyber 26/11

Pic:Ankit Fadia, 23, is a cyber security expert. He helped police trace the email sent by terrorists soon after the 26/11 attacks on Mumbai.

Prevent a cyber 26/11
-by Ankit Fadia
The rising threat of terrorism has led to unprecedented levels of security at Indian airports, railway stations, hotels, ports etc. But the government does not seem to see the bigger threat, which will not come from AK-47s, bombs and rifles. The next big attack will be come from terrorists in the cyber world.

We live in a technologically interconnected world. Most of us cannot imagine even a single day without our cell phones, internet and ATMs. There is hardly any distinction between where our bodies end and technology begins. Would it be surprising then, if terrorists choose to attack India via the internet?

Let me share some facts about how real and damaging that threat can be If a terrorist group were to attack our stock market and financial infrastructure, it would cause widespread panic and losses to millions of people and organizations. Imagine yourself running helplessly from one ATM to another, trying to withdraw money from your account, only to find that the attack has forced banks to suspend online transactions.

Likewise, our telecom infrastructure. If it were flooded with malicious data, business and personal life would grind to a standstill. Terrorists could also target India's top businesses, hacking into their systems, stealing valuable intellectual property, sensitive information and company secrets. Even military networks can be targeted.

These scenarios are not from a Bollywood flick, but tangible threats that loom large. In May 2007, Estonia — a small but technologically sophisticated Baltic country — fell victim to a cyber attack. The unidentified terrorists bombarded the country's network with data traffic, clogging it and rendering major services unusable. People were not able to access financial utilities, communications and data services for several hours and some, for days together. What stops cyber terrorists from launching similar attacks in India?

Very little because, despite being an infotech power, India lags on cyber security. Neither the government, nor the private sector is adequately prepared to face a cyber attack. We have the necessary laws in place, but they are futile in the absence of trained security experts and police officials to enforce them. Recently, I was at a conference in the Capital, attended by numerous Delhi Police officials. During the question-answer session, one police official asked me: "All this is fine Mr Ankit, but yeh internet ki building kidhar hai?" According to him, the internet was a huge building and, in order to protect it from cyber terrorists, the police had simply to stand all around it, holding rifles and lathis to fight off viruses, worms and criminals! If this is the state of affairs in the police department of the national capital, one can't even begin to imagine the way it is in other cities.

The fact that few engineering colleges in India offer courses on cyber security is a major reason for the lack of cyber experts. The result is that when a private company website gets hacked, the incident is brushed under the carpet lest its brand image is tarnished. Worse, it's considered normal for most Indian government websites to get hacked regularly.

But the lack of trained professionals and a lax attitude are the least of India's concerns. The internet has no boundaries and allows cyber terrorists to hide behind geographic, political and diplomatic clouds. It is easy for a criminal to hide behind proxy servers and bounce off systems in unfriendly countries to stop security agencies from tracing the culprits. The dynamic nature of cyber security, coupled with the obsolete techniques used by the Indian forces, means it is a losing battle for India.

Let's not wait for a cyber 26/11 to happen. A willingness to make changes, a proactive approach with some nimble execution can fix the chinks in India's cyber security and drastically improve our preparedness to fight a cyber war.

Real-life spy thriller in cyberspace

Real-life spy thriller in cyberspace

By: Eric Auchard, a Reuters columnist. The opinions expressed are his own –

Once in a while a good computer security scare comes along that has all the makings of a taut Cold War spy thriller and the latest news of a global computer espionage ring is one such story.

A new report entitled “Tracking GhostNet: Investigating a Cyber Espionage Network,” argues that poorly defended computers used by government and private organizations in 103 nations may have been violated. The study has attracted widespread media attention after a New York Times story about it at the weekend.

The study by a group of activist researchers based in Toronto called “Information Warfare Monitor” says computers in various foreign ministries, embassies and Taiwanese trade groups have been pilfered by computers located at a Chinese government intelligence center on the island of Hainan. A computer in the private offices of the Dalai Lama was infected and e-mail lists and negotiating documents were stolen using a virus that “phoned home” to its controller, it alleges.

Data retrieved in the attacks appears to have been used to rein in Tibetan critics of China. But the report has trouble pinning the theft of computer secrets back to the Chinese government. It is also unclear how much information of value was gathered, outside a handful of instances. It conflates evidence of sniffing with acts of actual snooping.

A spokesman for China’s Foreign Ministry has dismissed the report’s claims as rumor and said his government was committed to protecting Internet security. “There’s a ghost abroad called the Cold War and a virus called the China threat,” ministry spokesman Qin Gang told a news conference.

In fairness, the researchers acknowledge up front that its findings raise more questions than answers and that it is “not clear whether the attacker(s) really knew what they had penetrated, or if the information was ever exploited for commercial or intelligence value.” It says that proving who is responsible for cyber attacks remains a major challenge — what experts refer to as the “attribution problem.”

The report was conducted at the request of the office of the Dalai Lama and Tibetan exile organizations, who have long accused the Chinese government of using cyber war to disrupt their activities. It describes the sophisticated techniques used to infiltrate the computers of the offices of the Tibetan government-in-exile. But the connections it draws to a wider global spy ring are sketchy. Some of the break-ins may be explained by shoddy computer maintenance.

In cyberliterature, the bad guys, typically unknown, break into vital government, military, banking or political organizations and cause immeasurable damage or steal uncounted billions of dollars. Throw in contemporary geopolitical rivalries and references to the latest techno-jargon and the formula is more or less complete.

To be sure, international computer security experts have seen the hand of Chinese hackers in growing number of computer intrusions around the world in recent years. The global scale combined with the sophisticated targeting of specific computers by GhostNet make most efforts at wiretapping government opponents scrawny by comparison.

But China is not alone among major world governments in viewing cyber warfare as a tenet of national security. To an unknown degree, for example, the United States, Israel and Britain snoop not just on their enemies but also their critics.

The problem with much of the writing about computer security is that it conflates basic issues of computer hygiene with diabolical threats to society or the economy. In the virtual world, teenage vandalism of web sites blurs into acts of terror. Police and government officials don’t help by painting the Internet’s inherent tension between openness and security as a danger to public safety.