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THE PANDORA PAPERS, AN ANTHROPOLOGICAL PERSPECTIVE

This not the first time the world is informed of scandals like this one. And also we can be certain that it will not be the last one.
Some years ago, it was the Panama papers. Same thing.
Every time something like this happens, onlookers become misanthropists.
But as some would argue, stealing is an issue of opportunity. “Opportunity makes the thief”. It is quite interesting to see that the Crime Science Journal, back in 1976, did not consider opportunity as a cause, but 22 years later they did.
However, I do not think that is accurate. That would suggest then, than taking the “opportunity” out of the equation, would solve the issue of crime. And that has not happened. If we consider human beings as part of nature, we can then say – as one of the principles of Chaos Theory states – “Life will find its way”. Human beings – as Descartes stated in his Discourse in Method (1637) – exist because they think. And that thinking will always produce new – and more sophisticated – opportunities for criminal behavior.
It seems it is the human being who create the opportunities.
Accordingly, I would like to address this issue of Pandora papers from a quite different perspective.
Getting deep at the leaks from 14 sources, and the work of more than 600 journalists, we find a very interesting common denominator in the properties acquired by this new scheme. Practically all of them were in countries with a clear market economy: capitalism. It is clear than those countries have remained more stable, and the wealthy cadre of the world feels more “secure” in those countries.
I remember, some years ago, in a meeting in Amman, with the CEO of a private equity fund based in Jordan, and one of the top business men from Irak. When I was introduced, it was elicited that I lived in Miami, then, the gentleman from Bagdad told me very proud: “my family too!, in Coconut Grove”. He felt more secure having his family living in the USA.
Why capitalistic countries – or at least with a clear flavor of market economy – are more stable? Let us go to the roots of the economic philosophy defined in the XVIII century by Adam Smith – who actually was not an economist, but a moralist – considered as the father of economics.
Some researchers talk of Smith as the “young” and the “old” one. Being a young moralist, his ultimate purpose was deployed in the title of his most influential work: “An inquiry into the nature and causes of the Wealth of Nations”. The old Smith, however, arrived – as many others have at an old age – to the conclusion of the innate selfishness of human beings. Not few of them have become misanthropic.
And from the political philosophy, we find Thomas Hobbes, with his Leviathan, where most of the modern political systems are based. “Man is the wolf of man”.
Clearly both economic and political philosophies share a deep pessimism in the human nature. Hobbes propose a third party: Leviathan.
Capitalistic economic systems acknowledge the self-interested desires of
each human being – indeed, that is what makes the system work.
As the economist Adam Smith argued almost three centuries ago, what makes societies function successfully is each participant’s innate egoism.
This philosophical distinction in the market driven economy system can be explained with the help of the Nash Equilibrium. Using the classic “prisoner’s
dilemma,” the mathematician John Nash (Nobel Prize in Economics, 1994)
showed that it is precisely the non-cooperation of parties that results in equilibrium. The possibility of getting a reduced sentence is so strong an incentive for the prisoner that betrayal of his partner in crime – the most selfish choice – becomes his best option.
Both self-interest (economic philosophy), and the Leviathan (political philosophy) are the basis of those markets where most of the acquired properties in the Pandora Papers, were made.
The system itself promotes – and actually it is a theoretical principle of an efficient market – opportunistic behavior, just like the one observed in the Pandora Papers.
It will always exist, but for sure, it will be more sophisticated.
The utopian optimism of a world without this kind of behavior resides in people with a poor – or an absence – of a historical perspective.
ABOUT THE AUTHOR:
Alejandro Ruelas-Gossi is a Clinical Professor of Strategy at the University of Navarra. School of Economics and Business. He served as Professor at the University of Miami Business School, and as a research professor at New York University Stern
School of Business Center of Globalization. He has consulted for a number of Fortune 500 companies including Sony, Microsoft, IBM, Boston Scientific, Abbot, Philips among others. Prior to going into academia, he was a senior executive at Cemex and Deere & Company. He also served for a number of years as the founding managing director of Orkestra, the Basque Institute of
Competitiveness, in Spain. He holds a PhD in Strategy from the University of North Carolina-Chapel Hill, and a Master of Science, in the Management of Technology from the Massachusetts Institute of Technology MIT.

PhD: Alejandro Ruelas-Gossi, Clinical Professor Universidad de Navarra School of Economics & Business
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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