People do not trust political parties. World Value Survey asked people in 54 countries if they have confidence in political parties (2004-2007), the percentage that answered “not very much” or “not at all” was 73%. There are few indications that this is decreasing.

Part of the reason for this is a real and perceived lack of transparency in how and where political parties receive and use money (particularly during election campaigns). This fact was recognised when the United Nations Convention against Corruption (UNCAC) came to include an appeal to all countries to “enhance transparency in the funding of candidatures for elected public office and, where applicable, the funding of political parties” (article 7(3)).

However, many problems remain. Of the 107 UNCAC member states for which information is available, 61 countries or 57% do not have formal disclosure requirements for the income and expenditure of political parties. The number of countries that lack effective oversight mechanisms is much higher.

While money is a necessary part of any democratic process, vote buying, influence of illicit funding, corruption and the abuse of state/administrative resources are some of the problems that tend to haunt all countries, be they post-conflict societies or established democracies. While the exact problems vary, in no country is the role of money in politics unproblematic. In many parts of Latin America focus is placed on the overall cost of election campaigns, in Africa patronage systems and vote buying are common, in East and Central Europe the abuse of administrative resources is all too frequent and corruption scandals involving senior politicians trouble a number of Asian countries.

In its work to promote transparency and accountability in political life, IFES works with political finance regulators and civil society groups worldwide to address the negative aspects money can have in the political process. From assisting oversight efforts of the Election Commission in Liberia, aiding civil society programmes aimed at monitoring financial transactions of election candidates in Afghanistan or training journalists in investigating financial scandals in Indonesia, IFES supports efforts to raise awareness and counteract abuses of campaign and political party finance.

IFES also conducts groundbreaking research, such as the first study on public funding of political parties in Muslim-majority countries and its recent global research on political finance regulations, drawing on information from 139 countries on all continents. Case studies on countries such as Georgia, Lebanon and Afghanistan have been developed recently.

Key concepts regarding money in politics are transparency and public awareness, and IFES collaborates with a range of actors to achieve increased understanding of these issues. In 2008-2009, for example, IFES partnered with leading international election observer groups such as the Carter Center, the Organisation for Security and Co-Operation in Europe (OSCE), the Organisation of American States (OAS), EISA (formerly the Electoral Institute of Southern Africa), the Commonwealth Secretariat and the National Democratic Institute for International Affairs (NDI). This work aimed at strengthening the inclusion of campaign finance monitoring in observer mission initiatives and reports. Our ongoing cooperation with Transparency International (TI) focuses more on issues of illicit funding and political corruption.

To further increase information sharing of experiences worldwide, IFES runs the www.moneyandpolitics.org website which includes news, reports, legislation and regulations from 40 different countries in English, Arabic, Spanish, French and Dari. In addition, we developed a separate Political Financing Module within the BRIDGE curriculum (Building Resources in Democracy, Governance and Elections) and extended information on political finance in the ACE Encyclopaedia (Administration and Cost of Elections).

More and more actors come to understand the importance of monitoring and controlling the role of money in politics. While effective reform often takes decades, now is the time to focus on this crucial aspect of democratic governance and electoral processes.

By Dr Magnus Ohman, IFES Senior Political Finance Advisor