From Discourse to Action: Avoiding Pitfalls in Political Finance

Political finance is not a new discipline, especially in western democracies. The United States has been addressing the regulation of campaigns since 1867. As political finance systems developed over the last century in established democracies, there were new laws, regulatory bodies, and court interpretations. With each came new ways for political actors to circumvent the legal provisions in the laws. The study of political finance seeks to identify the most appropriate balance in financing political activities and the means by which provisions can be enforced and political actors held accountable.

 
The establishment of democratic governments in South America and the fall of the Soviet Union gave rise to large-scale democracy promotion efforts beginning in the late 1980’s. This paper will explore the role that international assistance organizations can and should play to promote transparency and accountability in the area of political finance. It will first define what we mean by political finance and briefly explore the rise of the discipline as it relates to countries in transition. It will then discuss the role of disclosure in promoting access to information and accountability in established and consolidating democracies, semi-authoritarian regimes, and emerging democracies.

With this background, the paper will discuss the different types of political finance programming that can promote best practices. As each of these types of programming involves possible problems in its implementation, the paper will explore these pitfalls. Included in this discussion are the roles donors, international assistance organizations, practitioners, and academics can play by working effectively together in this relatively new field.
While there has been a great deal of discourse on political finance, little has been done to actively address the issue in emerging and consolidating democracies. The limited efforts that have been made represent some concrete successes while highlighting potential problems in implementing sustainable political finance systems. In its conclusion, this paper will suggest how overcoming these pitfalls will lead to a higher level of accountability among political parties, candidates, and elected officials and will promote confidence in the political process.