'People will forgive you for being wrong, but they will never forgive you for being right - especially if events prove you right while proving them wrong.' Thomas Sowell
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Why we trust fraudsters
From Enron to Wirecard, elaborate scams can remain undetected long after the warning signs appear. What are investors missing? Tom Straw in The FT
In March 2020, the star English fund manager Alexander Darwall spoke admiringly to the chief executive at one of the largest investments in his award-winning portfolio. “The last set of numbers are fantastic,” he gushed, adding: “This is a crazy situation. People should be looking at your company and saying ‘wow’. I’m delighted, I’m delighted to be a shareholder.”
Seated in a swivel chair at his personal conference table, Markus Braun sounded relaxed. The billionaire technologist was dressed all in black, a turtleneck under his suit like some distant Austrian cousin of the late Steve Jobs, and he had little to say about swirling allegations the company had faked its profits for years. “I am very optimistic,” he offered, when Darwall voiced his hope that the controversy would amount to nothing more than growing pains at a fast expanding company.
“I haven’t sold a single share,” Darwall assured him, doing most of the talking, while also acknowledging how precarious the situation was. The Financial Times had reported in October 2019 that large portions of Wirecard’s sales and profits were fraudulent, and published internal company documents stuffed with the names of fake clients. A six-month “special audit” by the accounting firm KPMG was approaching completion. “If it shows anything that senior people misled, that would be a disaster,” Darwall said.
His assessment proved correct. Three months later the company collapsed like a house of cards, punctuated by a final lie: that €1.9bn of its cash was “missing”. In fact, the money never existed and Wirecard had for years relied on a fraud that was almost farcical in its simplicity: a few friends of the company claimed to manage huge amounts of business for Wirecard, with all the vast profits from these partners said to be collected in special bank accounts overseen by a Manila-based lawyer with a YouTube following. Braun, who claims to be a victim of a protégé with security services connections who masterminded the scheme and then absconded to Belarus, faces a trial this autumn alongside two subordinates that will examine how the final years of the fraud were accomplished.
Left behind in the ashes, however, is a much larger question, one which haunts all victims of such scams: how on earth did they get away with it for so long? Wirecard faces serious questions about the integrity of its accounts since at least 2010. Estimates for losses run to more than €20bn, never mind the reputation of Frankfurt as a financial centre. Why did so many inside and outside the company — a long list of investors, bankers, regulators, prosecutors, auditors and analysts — look at the evidence that Wirecard was too good to be true and decide to trust Braun?
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In 2019 I worked with whistleblowers to expose Wirecard, using internal documents to show the true source of its spellbinding growth in sales and profit. As I faced Twitter vitriol and accusations I was corrupt, the retired American short-seller Marc Cohodes regularly rang me from wine country on the US west coast to deliver pep talks and describe his own attempts to persuade German journalists to see Wirecard’s true colours. “Keep going Dan. I always say, ‘there’s never just one cockroach in the kitchen’.”
He was right on that point: find one lie and another soon follows. But short-sellers who search for overvalued companies to bet against are unusual, because they go looking for fraud and skulduggery. Most investors are not prosecutors fitting facts into a pattern of guilt: they don’t see a cockroach at all.
Think of Elizabeth Holmes, another aficionado of the black turtleneck, who persuaded a group of experts and well-known investors to back or advise her company, Theranos, based on the claim it had technology able to deliver medical results from an improbably small pinprick of blood. The involvement of reputable people and institutions — including retired general James Mattis, former secretary of state Henry Kissinger and former Wells Fargo chief executive Richard Kovacevich as board members — seemed to confirm that all was well.
Another problem is that complex frauds have a dark magic that is different to, say, “Count” Victor Lustig personally persuading two scrap metal dealers he could sell them a decaying Eiffel Tower in 1925. As Dan Davies wrote in his history of financial scams, Lying for Money, “the way in which most white-collar crime works is by manipulating institutional psychology. That means creating something that looks as much as possible like a normal set of transactions. The drama comes much later, when it all unwinds.”
What such frauds exploit is the highly valuable character of trust in modern economies. We go through life assuming the businesses we encounter are real, confident that there are institutions and processes in place to check that food standards are met or accounts are prepared correctly. Horse meat smugglers, Enron and Wirecard all abused trust in complex systems as a whole. To doubt them was to doubt the entire structure, which is what makes their impact so insidious; frauds degrade faith in the whole system.
Trust means not wasting time on pointless checks. Most deceptions would generally have been caught early on by basic due diligence, “but nobody does confirm the facts. There are just too bloody many of them”, wrote Davies. It makes as much sense for a banker to visit every outpost of a company requiring a loan as it would for the buyer of a pint of milk to inquire after the health of the cow. For instance, by the time John Paulson, one of the world’s most famous and successful hedge fund managers, became the largest shareholder in Canadian-listed Sino Forest, its shares had traded for 15 years. Until the group’s 2011 collapse, few thought of travelling to China to see if its woodlands were there.
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Yet what stands out in the case of Wirecard are the many attempts to check the actual facts. In 2015 a young American investigator, Susannah Kroeber, tried to knock on the doors at several remote Wirecard locations. Between 2010 and 2015 the company claimed to have grown in a series of leaps and bounds by buying businesses all over Asia for tens of millions of euros apiece. In Laos she found nothing at all, in Cambodia only traces. Wirecard’s reception area in Vietnam was like a school lunchroom; the only furniture was a picnic table for six and an open bicycle lock hung from one of the internal doors, a common security measure usually removed at a business expecting visitors. The inside was dim, with only a handful of people visible and many desks empty. She knew something wasn’t right, but she also told me that while she went half mad looking for non-existent addresses on heat-baked Southeast Asian dirt roads, she had an epiphany: “Who in their right mind would go to these lengths just to check out a stock investment?”
Even when Kroeber’s snapshots of empty offices were gathered into a report for her employer, J Capital Research, and presented to Wirecard investors, the response reflected preconceived expectations: these are reputable people, EY is a good auditor, why would they be lying? The short seller Leo Perry described attending an investor meeting where the report was discussed. A French fund manager responded by reporting his own due diligence. He’d asked his secretary to call Wirecard’s Singapore office, the site of its Asian headquarters, and could happily report that someone there had picked up the phone.
The shareholders reacted at an emotional level, showing how fraud exploits human behaviour. “When you’re invested in the success of something, you want to see it be the best it can be, you don’t pay attention to the finer details that are inconsistent”, says Martina Dove, author of The Psychology of Fraud, Persuasion and Scam Techniques. She adds that social proof and deference to authority, such as expert accounting firms, were powerful forces when used to spread the lies of crooks: “If a friend recommends a builder, you trust that builder because you trust your friend.”
Wirecard’s response, in addition to taking analysts on a tour of hastily well-staffed offices in Asia, was to drape itself in complexity. Like WeWork, the office space provider that presented itself as a technology company (and which wasn’t accused of fraud), Wirecard waved a wand of innovation to make an ordinary business appear extraordinary.
At heart, Wirecard’s legitimate operations processed credit and debit card payments for retailers all over the world. It was a competitive field with many rivals, but Wirecard claimed to have become a European PayPal and more, outpacing the competition with profit margins few could match. Wirecard was “a technology company with a bank as a daughter”, Braun said, one using artificial intelligence and cutting-edge security. As the share price rose, so did Braun’s standing as a technologist who heralded the arrival of a cashless society. Who were mere investors to suggest that the results of this whirligig, with operations in 40 countries, were too good to be true?
It seems to me Wirecard used a similar tactic to the founder of software group Autonomy, Mike Lynch, who charged that critics simply didn’t understand the business. (Lynch has lost a civil fraud trial relating to the $11bn sale of the group, denied any wrongdoing, said he will appeal, and is fighting extradition to the US to face fraud charges. Autonomy’s former CFO was convicted of fraud in separate American proceedings.)
When this publication presented internal documents describing a book cooking operation in Singapore, Wirecard focused on the amounts at stake, which were initially small, rather than the unpunished practices of forgery and money laundering, which were damning.
Then there was the thrall of German officials. Three times, in 2008, 2017, and 2019, the financial market regulator BaFin publicly investigated critics of Wirecard, taken by observers as a signal of support. Indeed, BaFin fell for the big lie when faced with an unenviable choice of circumstances: either foreign journalists and speculators were conspiring to attack Germany’s new technology champion using the pages of a prominent newspaper; or senior executives at a DAX 30 company were lying to prosecutors, as well as some of Germany’s most prestigious banks and investment houses. Acting on a claim by Wirecard that traders knew about an FT story before publication, regulators suspended short selling of the stock to protect the integrity of financial markets.
Proximity to the subject won out, but the German authorities were hardly the first to fail in this way. Their US counterparts ignored the urging of Harry Markopolos to investigate the Ponzi schemer Bernard Madoff, a former chairman of the Nasdaq whose imaginary $65bn fund sent out account statements run off a dot matrix printer.
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For some long-term investors, to doubt Wirecard was surely to doubt themselves. Darwall first invested in 2007, when the share price was around €9. As it rose more than tenfold, his investment prowess was recognised accordingly, attracting money to the funds he ran for Jupiter Asset Management, and fame. He knew the Wirecard staff, they had provided advice on taking payments for his wife’s holiday rental. Naturally he trusted Braun.
Darwall did not respond to requests for comment made to his firm, Devon Equity Management.
In the buildings beyond the shades of Braun’s office, staff rationalised what didn’t fit. Wirecard was a tech company, yet in early 2016 it suffered a tech disaster. On a quiet Saturday afternoon, running down a list of routine maintenance, a tech guy made a typo. He entered the wrong command when decommissioning a Linux server. Instead of taking out the one machine, he watched with rising panic as it killed all of them, pulling the plug on almost the entire company’s operations without warning.
Customers were in the dark, as email was offline and Wirecard had no weekend helpline, and it took days for services to recover. Following the incident, a small but notable proportion of clients left and new business was put on hold as teams placated those they already had, staff recalled. Yet the pace of growth in the published numbers remained strong.
Martin Osterloh, a salesman at Wirecard for 15 years, put the mismatch between claims and capabilities down to spin. Only after the fall was the extent of Wirecard’s hackers, private detectives, intimidation and legal threats exposed to the light. Haphazard lines of communication, disorganisation and poor record keeping created excuses for middle-ranking Wirecard staff and its supervisory board, stories to tell themselves about a failure to integrate and start-up’s culture of experimentation.
It was perhaps not as hard to believe as we might think. Facebook, which has probed the legal boundaries of surveillance capitalism, famously encouraged staff to “move fast and break things”. Business questions often shade grey before they turn black. As Andrew Fastow said of his own career as a fraudster, “I wasn’t the chief finance officer at Enron, I was the chief loophole officer.”
Braun’s protégé was chief operating officer Jan Marsalek, a mercurial Austrian who constantly travelled and struck deals, with no real team to speak of. Boasting that he only slept “in the air”, he would appear at headquarters from one flight with a copy of Sun-Tzu’s The Art of War tucked under an arm, then leave a few hours later for the next. Questions were met with a shrug, that strange arrangements reflected Marsalek’s “chaotic genius”. As scrutiny intensified in the final 18 months, the fraudulent imitation shifted to problem solving, allowing board members and staff to think they were engaged in procedures to improve governance.
After the collapse I shared pretzels with Osterloh on a snowy day in Munich and he seemed embarrassed by events. He and thousands of others had worked on a real business, until they were summarily fired and learned it lost money hand over fist. Osterloh spoke for many when he said: “I’m like the idiot guy in a movie, I got to meet all these guys. The question arises, why were we so naive? And I can’t really answer that question.”
Tuesday, 1 June 2021
Tuesday, 28 July 2020
Thursday, 11 June 2020
Saturday, 28 September 2019
Saturday, 14 September 2019
Sunday, 7 October 2018
Why Religious Faith is becoming more and more Popular
How many believers are there around the world?
If you think religion belongs to the past and we live in a new age of reason, you need to check out the facts: 84% of the world’s population identifies with a religious group. Members of this demographic are generally younger and produce more children than those who have no religious affiliation, so the world is getting more religious, not less – although there are significant geographical variations.
According to 2015 figures, Christians form the biggest religious group by some margin, with 2.3 billion adherents or 31.2% of the total world population of 7.3 billion. Next come Muslims (1.8 billion, or 24.1%), Hindus (1.1 billion, or 15.1%) and Buddhists (500 million, or 6.9%).
The next category is people who practise folk or traditional religions; there are 400m of them, or 6% of the global total. Adherents of lesser-practised religions, including Sikhism, Baha’i and Jainism, add up to 58m, or well below 1%. There are 14m Jews in the world, about 0.2% of the global population, concentrated in the US and Israel.
But the third biggest category is missing from the above list. In 2015, 1.2 billion people in the world, or 16%, said they have no religious affiliation at all. This does not mean all those people are committed atheists; some – perhaps most – have a strong sense of spirituality or belief in God, gods or guiding forces, but they don’t identify with or practise an organised religion.
Almost all religions have subdivisions. Christians can be Roman Catholic (the biggest group with almost 1.3 billion adherents), Protestants, Eastern Orthodox, Greek Orthodox, Anglican or many other sub-denominations. Muslims might be Sunni (the majority), Shia, Ibadi, Ahmadiyya or Sufi. Hinduism has four main groups: Vaishnavism, Shaivism, Shaktism and Smartism. There are two main traditions in Buddhism – Theravāda and Mahayana, each with subgroups. Jews can be Orthodox (or ultra-Orthodox), Conservative, Reform or belong to smaller groups.
Geography is important in religion. Asia-Pacific is the most populous region in the world, and also the most religious. It is home to 99% of Hindus, 99% of Buddhists, and 90% of those practising folk or traditional religions. The region also hosts 76% of the world’s religiously unaffiliated people, 700m of whom are Chinese.
Three-quarters of religious people live in a country where they form a majority of the population; the remaining quarter live as religious minorities. For example, 97% of Hindus live in three Hindu-majority countries: India, Mauritius and Nepal, while 87 %% of Christians live in 157 Christian-majority countries. Three-quarters of Muslims live in Muslim-majority countries. Among the religiously unaffiliated, seven out of 10 live in countries where they are in the majority, including China, the Czech Republic and North Korea.
In contrast, most Buddhists (72%) live as a minority in their home countries. There are seven countries where Buddhists form the majority of the population: Bhutan, Myanmar, Cambodia, Laos, Mongolia, Sri Lanka and Thailand.
Which religions are growing, and where?
The short answer is religion is on the wane in western Europe and North America, and it’s growing everywhere else.
The median age of the global population is 28. Two religions have a median age below that: Muslims (23) and Hindus (26). Other main religions have an older median age: Christians, 30; Buddhists, 34 and Jews, 36. The religiously unaffiliated come in at 34.
Islam is the fastest-growing religion in the world – more than twice as fast as the overall global population. Between 2015 and 2060, the world’s inhabitants are expected to increase by 32%, but the Muslim population is forecast to grow by 70%. And even though Christians will also outgrow the general population over that period, with an increase of 34% forecast mainly thanks to population growth in sub-Saharan Africa, Christianity is likely to lose its top spot in the world religion league table to Islam by the middle of this century.
Hindus are set to grow by 27%, and Jews by 15% mainly because of the high birth rate among the ultra-Orthodox. The religiously unaffiliated will see a 3% increase. But proportionately, these religious groupings will be smaller than now because their growth is lower than the increase in the overall global population. And Buddhists are forecast to see a 7% drop in their numbers.
It’s mainly down to births and deaths, rather than religious conversion. Muslim women have an average of 2.9 children, significantly above the average of all non-Muslims at 2.2. And while Christian women have an overall birth rate of 2.6, it’s lower in Europe where Christian deaths outnumbered births by nearly 6 million between 2010 and 2015. In recent years, Christians have had a disproportionately large share of the world’s deaths (37%).
And while the religiously unaffiliated currently make up 16% of the global population, only about 10% of the world’s newborns were born to religiously unaffiliated mothers between 2010 and 2015.
But 23% of American Muslims say they are converts to the faith, and in recent years there has been growing anecdotal evidence of Muslim refugees converting to Christianity in Europe.
China has seen a huge religious revival in recent years and some predict it will have the world’s largest Christian population by 2030. The number of Chinese Protestants has grown by an average of 10 % annually since 1979, to between 93 million and 115 million, according to one estimate. There are reckoned to be another 10-12 million Catholics.
In contrast, Christianity is in decline in Western Europe. In Ireland, traditionally a staunchly Catholic country, the proportion of people identifying with Catholicism fell from 84.2% to 78.3% between the two censuses of 2011 and 2016, and down to 54% among people aged between 16 and 29. Those with no religious affiliation increased to 9.8% – a jump of 71.8% in five years.
In Scotland, another country steeped in religious tradition, a majority of people, 59%, now identify as non-religious – with significantly more women (66%) than men (55%) turning away from organised faith. Seven in 10 people under the age of 44 said they were non-religious; the only age group in which the majority are religiously affiliated is the over-65s.
What about theocratic states?
The Islamic Republic of Iran is probably the one that springs to mind first. Until the 1979 revolution, the country was ruled by the Shah, or monarch. But the leader of the new state was the Ayatollah Ruhollah Khomeini, who implemented a political system based on Islamic beliefs and appointed the heads of the judiciary, military and media. He was succeeded in 1989 by Ayatollah Ali Khamenei. There is an elected president, currently Hassan Rouhani, who is considered a moderate, reformist figure. Iran is one of only two countries in the world that reserves seats in its legislature for religious clerics (the other is the UK).
Other Islamic theocracies are Mauritania, Saudi Arabia, Sudan and Yemen. Twenty-seven countries enshrine Islam as their state religion.
The only Christian theocracy is Vatican City, the tiny but powerful centre of Roman Catholicism, where the Pope is the supreme power and heads the executive, legislative and judicial branches of the Vatican government.
Thirteen countries (including nine in Europe) designate Christianity or a particular Christian denomination as their state religion. In England, the Anglican church – the Church of England – is recognised as the official “established” church of the country with important roles relating to state occasions. Twenty-one bishops sit in the House of Lords by right.
Israel defines itself as the “Jewish state”, with an 80% majority Jewish population. However the government is secular.
In 2015, more than 100 countries and territories have no official or preferred religion.
What religions are oldest and are there any new ones?
The oldest religion in the world is considered to be Hinduism, which dates back to about 7,000 BCE. Judaism is the next oldest, dating from about 2,000 BCE, followed by Zoroastrianism, officially founded in Persia in the 6th century BCE but its roots are thought to date back to 1,500 BCE. Shinto, Buddhism, Jainism, Confucianism and Taoism bunch together around 500-700 BCE. Then along came Christianity, followed about 600 years later by Islam.
Some might argue that the newest religion is no religion, although non-believers have been around as long as humans. But periodically new religious movements spring up, such as Kopimism, an internet religion, the Church of the Flying Spaghetti Monster or Pastafarianism (officially recognised by the New Zealand government but not the Dutch), and Terasem, a transreligion that believes death is optional and God is technological.
In 2016, the Temple of the Jedi Order, members of which follow the tenets of the faith central to the Star Wars films, failed in its effort to be recognised as a religious organisation under UK charity law. In the last two censuses, Jedi has been the most popular alternative religion with more than 390,000 people (0.7% of the population) describing themselves as Jedi Knights on the 2001 census. By 2011, numbers had dropped sharply, but there were still 176,632 people who told the government they were Jedi Knights.
Does religion have an impact on the world?
Of course – there are huge consequences to religious belief and practice. Firstly, countless wars and conflicts have had an overt or covert religious dimension throughout history right up to the present day. In the past few years, we’ve seen Islamic extremists waging war in the Middle East, a power struggle between Sunni and Shia across the region, the persecution of Rohingya Muslims in Myanmar, the Boko Haram insurgency in Nigeria, violent clashes between Christians and Muslims in Central African Republic, to name a few. Women are subjugated, LGBT people are persecuted, and “blasphemists” are tortured and murdered in the name of religion.
Then there’s the political impact. Donald Trump won the 2016 presidential election with the overwhelming support of white evangelical Christians. Legislators in Argentina recently voted against legalising abortion under pressure from Catholic bishops and the pope. Hungary’s far-right prime minister, Viktor Orbán, has cited the need to protect his country’s “Christian culture” to justify his anti-immigration policies.
But it’s not all bad news. There are millions of people of faith across the world engaging in social action projects to help the poor and marginalised. Look at the involvement of churches, mosques and synagogues in food banks and projects to support refugees, the sanctuary church movement in the US, the extraordinary sums raised by Islamic charities for relief work in some of the world’s most desperate places.
What happens next?
More prejudice and persecution. Followers of most major religions report increasing hostility and, in many cases, violence. Christians have been largely driven out of the Middle East, with some calling it a new genocide. Meanwhile antisemitism and Islamophobia are rising in Europe.
One of the biggest upheavals on the religious landscape in the next few years is likely to be the death (or, possibly, retirement) of Pope Francis, who is 81 and has a number of health issues. His efforts to reform the Vatican and the church have led to a significant backlash by conservative forces, who are organising against his papacy and preparing for the moment when the post becomes vacant.
Further reading
A Little History of Religion by Richard Holloway
Jerusalem: The Biography by Simon Sebag Montefiore
A History of God: The 4,000-Year Quest of Judaism, Christianity, and Islamby Karen Armstrong
The Caliphate by Hugh Kennedy
The God Delusion by Richard Dawkins
God Is Not Great: How Religion Poisons Everything by Christopher Hitchens
The Bible
The Qur’an
Monday, 2 April 2018
Religion is not simply a set of beliefs. It is also a means of creating a sense of community
Abandon all hope, ye who enter here. So runs the inscription above the gates of hell in Dante’s Inferno. Through those gates walks Dante with his guide Virgil:
Now sighs, loud wailing, lamentation
Resounded through the starless air,
So that I too began to weep.
Unfamiliar tongues, horrendous accents,
Words of suffering, cries of rage, voices
Loud and faint, the sound of slapping hands…
Inferno is the first part, or canticle, of the Divine Comedy, Dante’s great triptych of journeys through hell, purgatory and heaven. Today, we read it as poetry, even if it is poetry that seems to have been touched by the divine. Seven hundred years ago, it was read as a glimpse of something far more real. Dante’s imaginative recreation of both the physical and the moral universe, and of the interlacing of the two, infused medieval culture and allowed Europeans to understand both their place in the physical architecture of the cosmos and their duties in the moral architecture of Christian society.
So far have we moved today from Dante’s reality that even the pope, if we are to believe the Italian journalist Eugenio Scalfari, no longer acknowledges the existence of hell. Scalfari asked Pope Francis where “bad souls” go after death. Hell, Francis supposedly replied, “doesn’t exist”. “Sinning souls” simply “disappear”.
The Vatican has condemned the article, published in La Repubblica, insisting that the pope was misquoted. Whatever the truth, the controversy nevertheless points up the dilemma in which religion finds itself in the modern world. Religious values are immensely flexible over time. Christian beliefs on many issues have changed enormously in the past two millennia. Yet an institution like the Catholic church can never be truly “modern”.
Christianity, like all monotheistic religions, views human desires and beliefs as unreliable guides to notions of good and bad. Values derive primarily from God, and the authority of the church rests on its claim to be able to interpret the Bible and God’s word. Were the church to modify its teaching to meet the wishes of its flock, the authority of the institution would inevitably weaken. But were it not to do so, a chasm would emerge between official teaching and actual practice. Dante’s hell may be difficult to believe in, but to jettison difficult beliefs is to question the need for religion itself.
A recent pan-European survey by Stephen Bullivant, professor of theology at St Mary’s University in London, showed that in a dozen countries, including Britain, a majority of young people are irreligious. And even those who identify as religious have attitudes increasingly like those of their irreligious neighbours.
A survey of the social attitudes of British believers published in 2013 by Linda Woodhead, professor of sociology of religion at Lancaster University, suggested that two thirds of Catholics accepted abortion of some kind. Half said that they are primarily guided by their own reason, intuition or feelings. Fewer than one in 10 sought guidance from the church or Bible.
Religion is not simply a set of beliefs. It is also a means of creating a sense of community
Meanwhile, Woodward observes,, a minority of believers have marched in the opposite direction. They possess an absolute belief in God, make moral decisions primarily on the basis of religious sources, and are deeply conservative on issues of social morality. The literalism of fundamentalist Muslims and evangelical Christians speaks to a yearning for the restoration of strong identities and moral lines. The sectarianism of fundamentalist religion is reflected also in the political sphere. Witness the rise of tribal politics and of social movements built around excluding the Other.
All this poses a challenge, not just for believers, but for non-believers, too. Religion is not simply a set of beliefs. It is also a means of creating a sense of community, identity and meaning. One reason for the growth of fundamentalism is that all these seem in short supply today. The world appears increasingly trapped between an atomised liberalism, on the one hand, and a sense of community created by fundamentalist religion or reactionary politics, on the other.
In his 1946 book Man’s Search for Meaning, the Austrian psychiatrist Viktor Frankl, who spent three years incarcerated in German concentration camps, meditates on that experience; a meditation on surviving hell.
“This is a profoundly religious book,” suggested the rabbi Howard Kushner in the foreword to the second edition. Frankl’s faith is, however, very different to that embodied in religion. It is a hymn not to a transcendent deity but to the human spirit that, through its own efforts, can transcend the immediacy of its being in the world. Humans, he suggests, find themselves only through creating meaning in the world. Meaning is not something to be discovered through God. It is something that humans create. “Man is ultimately self-determining,” Frankl wrote. “Man does not simply exist but always decides what his existence will be.”
Today, it is that very capacity to “decide what our existence will be” that seems to have ebbed away. For all the material improvements in the world, life feels more precarious for millions of people. They seem to have less control in shaping the direction of their world.
Liberals often laud the Enlightenment as the moment when faith was replaced by reason. The new moral vision was, however, also rooted in faith, though of a different kind – faith that humans were capable of acting rationally and morally without guidance from beyond. It was that faith upon which Frankl drew. It was expressed not just through science and technology but also through politics that helped overthrow tyranny and bring about democracy. That faith, too, has eroded, as have the movements in which it was embodied.
Religion once helped provide meaning and identity through sublimating human agency to God’s will. Not only is it less capable of doing so these days, but when it does so, it often takes sectarian or bigoted forms. Equally, as the optimism that once suffused the humanist impulse has ebbed away, politics, too, is less capable of providing a means through which people can express agency. The politics that today seeks to do this is also often sectarian or bigoted.
“God is dead,” Nietzsche wrote, before adding: “Yet his shadow still looms.” That shadow is in reality our failure to create movements and institutions that can nurture a sense of meaning and belongingness and dignity. Disbelief in God carries little weight without also a faith in ourselves as human beings. Otherwise, we find ourselves in a different kind of hell.
Friday, 8 December 2017
The Brexit monomania built on blind faith
For Christmas reading, the British political establishment might pick up something by William Golding, winner of the Nobel Prize for literature in 1983. Lord of the Flies is his most famous work, with its grim suggestion that the line between innocent children and murderers is thin. For an insight into Brexit Britain’s current predicament after a week of chaos, however, I recommend The Spire.
The book is a study of monomania. Dean Jocelin has visions of adding to his cathedral a 400-foot steeple, an expression of human prayers reaching into the heavens. But the intensity of his ambition blinds him to his other duties and threatens both the cathedral and the community around it. As Jocelin himself admits, “at the moment of vision, the eyes see nothing”.
Friday, 13 October 2017
Will India get over its obsession with godmen?
K N Pannikar in The Hindu
The recent revelations about the ‘divine preoccupations’ of godmen in the sacred precincts of their ashrams have been appalling, not because they were bereft of such qualities in the past. From the time of the Maharaj libel case (1862) through the intrigues of Chandraswami and Dhirendra Brahmachari, to the contemporary saga of Dera Sacha Sauda and Asaram Bapu, the list is unending. But this time the incidents of sex, murder and mayhem, which were reportedly enacted in their ashrams, are lurid and startling. That the godmen were able to pursue their interests for years without attracting the attention of the state is perhaps not surprising, given the nexus between political power and religious establishments, but it is reprehensible.
The unflinching faith of the followers in the divinity of godmen is the latter’s main capital, which is assiduously constructed over time. Under coercion or consent, the devotees appear to submit to the extortion or exploitation of godmen. Contemporary India looks like a modern country with scientific establishments, and high-speed trains and expansive highways, but set in a social situation reeking of medievalism, caste discrimination, religious obscurantism, gender inequality and superstitions.
Modernity and irrationality
The coexistence of modernity with irrationality and obscurantism, which has often been dismissed as a passing phase of a society in transition, has been a (the?) hallmark of independent India. The ruling elite pinned their hopes on economic development to overcome this impediment, but economic development has not been all-embracing. Facing the crisis thus generated by the apparently elite character of development, it was not surprising that a large segment of the population succumbed to the temptations of an unreal world which godmen proffered.
Yet another constituency of the godmen were the members of the burgeoning middle class of the post-Independence era. The hallmark of this class was the intense cultural and social crisis for which they sought a solution in other-worldliness advocated by the godmen. They were led to an island of liberation where all social inhibitions could be shed, and peace and salvation promised, through the medium of the godmen. The mindless support godmen thus elicit from their unsuspecting followers is used to garner social, political and economic power.
In recent times, the increasing number of godmen (and women) are spotted in State governments and corporate board meetings, educational institutions, and all other important places. They are not spiritual men but ambitious con artists who purvey deception, falsehood and religiosity in the name of god.
Education not enough
Rationalists and liberals looked upon education which promoted scientific temper and rational thinking as the antidote to what they conceived as a result of cultural and social backwardness. But education has not adequately fulfilled this role. After all, the substantial following that godmen command is not from the illiterate masses, but from the well-educated middle class that tends to celebrate the irrational in the name of culture.
Popular media, either consciously or unconsciously, promotes and reinforces irrationality and superstition. The reading material available in almost all Indian languages is replete with accounts of the charismatic personae and spiritual qualities of godmen. Not only religious channels, but some secular channels too telecast programmes eulogising their qualities and achievements. From these popular representations, and patronage they seem to enjoy from the state, they derive considerable legitimacy.
The godmen are here to stay, until social consciousness undergoes a qualitative change.
Friday, 19 May 2017
The courts and matters of faith
We need to make a distinction between matters of conscience and matters of faith
There is an uncanny similarity of argument between the Rashtriya Swayamsevak Sangh (RSS) and the All India Muslim Personal Law Board (AIMPLB) on controversies that have to do with belief. This is illustrated best in their respective positions on the Ram Setu and the triple talaq debates.
In 2005, on the Ram Setu issue, the RSS stated that their opposition to the UPA government’s plan to dredge a canal between Rameswaram, off the coast of Tamil Nadu, and the islands of Mannar, near Sri Lanka, was a “matter of faith and hence required no substantiation”.
Twelve years later the counsel for the AIMPLB has offered a similar argument in the Supreme Court when making his client’s case on the practice of triple talaq. A Constitution Bench of five justices is to decide on whether the practice of divorce by triple talaq is consistent with the protections guaranteed to individuals by the Indian Constitution. In opposition to pleas that the practice be considered unconstitutional, the AIMPLB counsel stated that triple talaq “is a matter of faith. Hence there is no question of constitutional morality and equity”.
This argument that matters of faith be given special status needs to be assessed. Why should matters of faith be given immunity from scrutiny?
Three responses can be offered to this question. Let me, on grounds of brevity, refer to them as (i) the special status of faith, (ii) the issue of validity, and (iii) ethical codes in modern democracies.
Special status of faith
At the outset we must acknowledge that faith, as religious belief, must have special status in any constitutional order. It constitutes the core of an individual’s sense of self and is the basis of a believer’s conscience.
Belief is a matter of personal choice and no external authority, whether state, cultural community, or religious congregation, can tell an individual what her beliefs should be. To do so is to violate the individual’s freedom of conscience guaranteed by most constitutional systems and human rights covenants. But on matters of faith, an important distinction has to be made.
All ‘matters of conscience’ are ‘matters of faith’, but not all ‘matters of faith’ are ‘matters of conscience’. It is only matters of conscience that are protected by the freedom-granting provisions of the Constitution. Matters of conscience are individual-centric. They have an ethical core that guides the choices that an individual makes.
They endow the world with meaning and give the individual purpose. In contrast, the ‘matters of faith’ which the RSS and the AIMPLB are referring to — while they may look similar to ‘matters of conscience’ — are not so for they are group, not individual, centric. They have a component that is based on evidence, whether this is textual, historical, or empirical. In other words, the belief is contingent on the evidence. For example it would take the following form: ‘we believe X because it is said so in our holy book’.
It is the ‘because of’ component that demands analytical and scientific scrutiny of the matters of faith. Does the holy book actually say so? Did Lord Ram really build the Setu?
Further, when matters of faith have harmful social consequences, they must be subject to scrutiny since the Constitution guarantees the individual protection from harm.
This is the basis of all social reform in our history.
When the AIMPLB says that triple talaq has evolved in the last 1400 years, it has inadvertently conceded that the practice is not cast in stone. Let the court’s intervention be part of that evolution.
The issue of validity
The many advances in linguistics, cultural anthropology, gender studies and, of course, the natural sciences can make the probing of the ‘because of’ component of the belief very exciting. For example, a textual analysis of a holy book using a study of old and new grammar, or the etymology of the word, or its placement in a sentence are all ways of arriving at the meaning of the statement.
Textual analysis has advanced considerably and hence is available to determine the validity of the interpretation being offered by scriptural authority. The many schools of Islamic jurisprudence are testimony to this plurality of interpretations.
To that can be added the modern tools of linguistic analysis, gender studies, human rights jurisprudence, and cultural anthropology. The validity of triple talaq must be subject to textual interpretation. Similarly with the Ram Setu claim. It too must be scrutinised by modern science.
Ethical codes in democracies
The most difficult issue in this debate is how to respond to the situation where, after scrutiny, the matter of faith is found to be valid but considered by many in need of change such that it conforms to the contemporary ethics of human rights.
When the counsel for the AIMPLB says that there is “no question of constitutional morality and equity” in matters of faith, he is building a wall, a fashion these days, behind which the orthodox will police their community. Such a wall must not be built. It has no place in a constitutional democracy.
Friday, 14 April 2017
Faith still a potent presence in Western politics
Faith remains a potent presence at the highest level of UK politics despite a growing proportion of the country’s population defining themselves as non-religious, according to the author of a new book examining the faith of prominent politicians.
Nick Spencer, research director of the Theos thinktank and the lead author of The Mighty and the Almighty: How Political Leaders Do God, uses the example that all but one of Britain’s six prime ministers in the past four decades have been practising Christians to make his point.
The book examines the faith of 24 prominent politicians, mostly in Europe, the US and Australia, since 1979. “The presence and prevalence of Christian leaders, not least in some of the world’s most secular, plural and ‘modern’ countries, remains noteworthy. The idea that ‘secularisation’ would purge politics of religious commitment is surely misguided,” it concludes.
It includes “theo-political biographies” of Theresa May, an Anglican vicar’s daughter who has spoken publicly about her Christianity since taking office last July, and her predecessors David Cameron, Gordon Brown, Tony Blair and Margaret Thatcher. Only John Major is absent from the post-1979 lineup.
Spencer writes that May is a “politician with strong views rather than a strong ideology, and those views were seemingly shaped by her Christian upbringing and faith. That Christianity gives her, in her own words, ‘a moral backing to what I do, and I would hope that the decisions I take are taken on the basis of my faith’.”
May told Desert Island Discs in 2014 that Christianity had helped to frame her thinking but it was “right that we don’t flaunt these things here in British politics”. According to Spencer, “in this regard at very least, May practises what she preaches”.
However, the prime minister’s apparent reticence did not stop her lambasting Cadbury’s and the National Trust this month over their supposed downgrading of the word Easter in promotional materials and packaging.
Elsewhere, the book looks at five US presidents – Ronald Reagan, Bill Clinton, George W Bush, Barack Obama and Donald Trump – five European leaders, three Australian prime ministers and Vladimir Putin of Russia. Five leaders from other countries – including Nelson Mandela – complete the list.
The “great secular hope” was that religion would fade out of the political landscape, Spencer writes. But “the last 40 years have turned out somewhat different”, with the emergence of political Islam, the strength of Catholicism in central and south America and the explosion of Pentecostalism in the global south.
Even in the west, “Christian political leaders have hardly become less prominent over recent decades, and may, in fact, have become more so,” he says.
But Spencer told the Guardian: “There is no one size fits all, politically. You don’t find them clustering on the political spectrum.”
At the rightwing end were Thatcher and Reagan. At the other was Fernando Lugo, the president of Paraguay between 2008 and 2012, a prominent Catholic “bishop of the poor”, liberation theologist and part of a wave of leftwing leaders in Latin America.
There were also significant differences in the political contexts in which Christian politicians were operating, Spencer said. “There are places where you stand to make a lot of political capital by talking about your faith – such as the US or Russia.
“But in countries like the UK, Australia, Germany, France, where electorates are hyper-sceptical, politicians stand to lose political capital. No politician in the UK or France talks about their faith in order to win over the electorate.”
Tony Blair in 2001. Photograph: Jonathan Evans/Reuters
Blair’s communications chief Alastair Campbell famously warned a television interviewer against asking the then prime minister about his faith, saying: “We don’t do God.” He believed the British public was instinctively distrustful of religiously-minded politicians.
After he left Downing Street, Blair spoke of the difficulties of talking about “religious faith in our political system. If you are in the American political system or others then you can talk about religious faith and people say ‘yes, that’s fair enough’ and it is something they respond to quite naturally. You talk about it in our system and, frankly, people do think you’re a nutter.”
Although Blair’s faith reportedly shaped all his key policy decisions in office, the same was not true of all politicians, said Spencer. “There are some politicians for whom faith has shaped politics, and others for whom you can be more confident that politics are shaping faith. Trump is an example of that,” he said.
According to the chapter on Trump – a late addition to the book – the president “is not known for his interest in theology, the church or religion. His statements about faith, not least his own faith, have been infrequent and vague. And yet, Trump is insistent that he believes in God, loves the Bible and has a good relationship with the church … Simply to dismiss Trump’s faith talk would be to dismiss Trump, and 2016 showed that that is a mistake”.
Leaders’ faith
Theresa May Daughter of an Anglican vicar, the British prime minister goes to church most Sundays and has said her Christian faith is “part of who I am and therefore how I approach things ... [it] helps to frame my thinking and my approach”.
Vladimir Putin The Russian president has increasingly presented himself as a man of serious personal faith, which some suggest is connected to a nationalist agenda. He reportedly prays daily in a small Orthodox chapel next to the presidential office.
Angela Merkel The German chancellor is a serious Christian believer but one whose faith is very private. “I am a member of the evangelical church. I believe in God and religion is also my constant companion, and has been for the whole of my life,” she told an interviewer in 2012.
Fernando Lugo The former president of Paraguay was also a prominent Catholic bishop, a champion of the poor and a leading advocate of liberation theology. He urged “defending the gospel values of truth against so many lies, justice against so much injustice, and peace against so much violence”.
Viktor Orbán A relatively recent convert to faith, the Hungarian prime minister frequently invokes the need to defend “Christian Europe” against Muslim migrants. “Christianity is not only a religion, but is also a culture on which we have built a whole civilisation,” he said in 2014.
Ellen Johnson Sirleaf The president of Liberia and a Nobel peace laureate, Sirleaf was brought up in a devout family and has frequently appealed for “God’s help and guidance” during her 10 years as head of state. In a 2010 speech, she described religion and spirituality as “the cornerstone of hope, faith and love for all peoples and races”.
Saturday, 12 March 2016
The millionaire, the guru and lessons for the rest of us
Friday, 19 February 2016
Why I Left Islam and Now Help Others Who Are Doing the Same
The first thing you need to know about ex-Muslims is that the best term in Arabic to describe us is basically a swear word: murtadd, meaning someone who "turns their back" on Islam. The word has a dirty, spit-on-the-ground feeling to it, with a rolling "R" and a sharp drop at the end. This is where you need to start if you want to even begin unpacking the ubiquitous, systematic discrimination we face that can pervade all aspects of our lives.
One key form of discrimination is the erasure or downplaying of our experiences through stereotypes, the most common of which is, "You probably weren't a real Muslim." I spent half my life growing up in Saudi Arabia, travelling to Makkah every year for Umrah, a holy pilgrimage. My first book was a gorgeous red and gold-trimmed copy of the Riyad us-Saliheen, a compilation of hadiths (transmitted sayings and actions) of the Prophet Muhammad and his Sahaaba (companions). I've been praying, fasting and memorizing the Quran since as long as I can remember and would devour books proving Islam's truth through scientific miracles and its moral code.
My family moved to the UK just before 9/11, and many Muslims will understand what I mean when I say the atmosphere changed after that day. At school boys gave me the nickname "terrorist" and to this day I still own a shirt where some of them drew explosives and bombs on my last day of high school. That discrimination didn't affect what was then a deep and abiding love for Islam — it just strengthened it.
So what happened? If everything was geared towards me spending my life as a practicing Muslim, why would I leave? One of the key tenets of orthodox Islam is its perfect nature and the infallibility of the Quran, two claims I unwaveringly held on to for two decades. But as I grew older and my critical thinking developed, the accepted truths about the morality of the Prophet's actions and the miracles described in the Quran got harder to swallow.
I stopped believing mountains were "stakes" or "pegs," protecting the Earth from earthquakes. Ironically, mountains are actually most common where earthquakes are most plentiful: in tectonic zones.
I no longer believed that Islam had come down to slowly phase out the loathsome institution of slavery. Instead I began to feel that the institutionalization of slavery in Islamic scripture under the auspices of "prisoners of war" allowed for millions of Africans and other non-Arabs to be taken as slaves by the various Caliphates, in some places exceeding even the horrific Transatlantic slave trade.
I had thought that Islam had given women equal rights to men, and this may or may not have been true if we were talking about 1,400 years ago. However, taken literally the same scripture can be used to reduce the inheritance and legal rights of women, enforce certain ritualistic clothing and practices on women but make them either a choice or non-existent for men, ban women from marrying non-Muslims but extend that right to men... the list went on and on in my mind.
Yet through all this I could not internally accept I had left Islam because I didn't know I could leave. The very idea that one could be a practicing Muslim but then leave Islam was completely and utterly alien to me. I was finally forced to accept I no longer believed in Islam at the beginning of 2012, but I had no identity to go to and nobody who understood what I was going to speak to. My friend Aliyah described this stage as being like an "alien in your own skin," and I felt like a complete outcast.
Another feeling that hovered over my leaving Islam was fear. Islam had presented itself as a complete and objective blueprint for my life, in charge of dictating my role in this world and my relationship to death and an afterlife. This left me believing that without the religion, even if I lived life making a difference in this world I would no longer be abd Allah, a slave of Allah, and thus my life would be aimless. It told me that that apocalyptic Yawm al-Qiyamah(day of judgement) would come when I would be judged as an apostate, one of the worst of sins, and put into Jahannum (hell). The language around hell in Islamic scripture can be terrifying — is it any wonder many new ex-Muslims have to cope with the anxiety it creates?
This period of fear and isolation did not last very long as I quickly found others out there when I stumbled on a Reddit group called /r/exmuslim. Suddenly I had access to thousands of active ex-Muslims, their stories, advice and experiences of discrimination. Almost all of these Redditors were anonymous because of the inherent physical and social risks to leaving Islam, so I began to reach out. I came up with a vetting protocol, carefully checking people out one at a time and hosting private ex-Muslim socials of sometimes up to 60 people. Sharing your story for the first time with another ex-Muslim is exhilarating, and there were so many of us to share with! Sure we still felt like aliens, but there were a lot of us aliens and we felt more comfortable in our own skin.
Around this time, I had a chance meeting with two gay lawyers who gave me some advice: what really changed for LGBTQ people in Britain was not just that they organized into communities but that they began to come out publicly. This resonated strongly with me so I joined forces with Aliyah Saleem, a feminist ex-Muslim activist, and we started what grew to become "Faith to Faithless," an organization that creates online and offline platforms to promote apostate voices.
The very first Faith to Faithless event was a year ago at Queen Mary University of London (QMUL). Although we had members of the QMUL Islamic society and some da'wah(preaching) groups leafleting our event, it was a massive success. Some of the ex-Muslims we met there have since spoken at other events. Although we received support from the wider public (including Muslims), we also received plenty of hate mail and abuse. I've had people spit on the ground and call me a murtadd, while insults to female Faith to Faithless speakers are always framed in disgustingly sexist terms. Even worse is that we've often been let down by the very people who should be helping us, including some feminist and leftist activists who have used racialized terms like "native informant" to describe us, undermining our agency as a minority within a minority.
As you would imagine, many ex-Muslims contact Faith to Faithless for advice or urgent help and have faced abuse in different forms. Some, although accepted as members of their family, are constantly told that they are going to "burn in hell" and should repent. Others are forced out into the streets with no financial support whatsoever. Some are physically abused, such as one ex-Muslim girl who was kicked in the stomach by her brother and then locked into her room by her parents.
It's important to note that not all Muslims have treated ex-Muslims in this way. Some of the most important voices to me were my Muslim friends who privately messaged me giving me their support and love. We need to be able to stand together to fight both anti-Muslim and ex-Muslim discrimination, which can often go hand-in-hand. If you're a young ex-Muslim who has left their faith and feels alone or isolated, get in touch. You are definitely not alone.