Money in Politics: a Study of Party Financing Practices in 22 Countries
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Money in Politics A study of Party Financing Practices in 22 countries Edited By Shari Bryan & Denise Baer Bangladesh • Benin • Botswana • Bulgaria • Cambodia Croatia • Ghana • Guyana • India • Kenya • Macedonia Mozambique •Malawi • Nepal • Nigeria • Peru • Romania Senegal • South Africa • Tanzania • Uganda • Zambia National Democratic Institute for International Affairs Money in Politics A study of Party Financing Practices in 22 countries Edited by Shari Bryan & Denise Baer National Democratic Institute for International Affairs Library of Congress Cataloging-in-Publication Data Money in politics: a study of party financing practices in 22 countries / edited by Shari Bryan & Denise Baer. p. 156 ISBN 1-880134-34-9 1. Campaign funds--Africa--Case studies. 2. Political parties--Africa. 3. Campaign funds--Cross-cultural studies. 4. Politi- cal parties--Cross-cultural studies. 5. Political corruption--Cross-cultural studies. I. Bryan, Shari. II. Baer, Denise L. III. National Democratic Institute for International Affairs. JQ1879.A15M64 2005 324.7’8--dc22 2005012031 © National Democratic Institute for International Affairs (NDI) 2005. All rights reserved. Portions of this work may be reproduced and/or translated for noncommercial purposes provided NDI is acknowledged as the source of the material and is sent copies of any translation. Printed in the United States of America The National Democratic Institute for International Affairs (NDI) is a non-profit organization working to strengthen and expand democracy worldwide. Calling on a global network of volunteer experts, NDI provides practical assistance to civic and political leaders advancing democratic values, practices, and institutions. NDI works with democrats in every region of the world to build political and civic organization, safeguard elections, and promote citizen participation, openness, and accountability in government Kenneth D. Wollack, President Shari Bryan, Regional Director for Southern and East Africa Sefakor Ashiagbor, Senior Program Manager, Southern and East Africa Fifth Floor 2030 M Street, NW Washington, DC 20036 Telephone: 202-728-5500 Fax: 202-728-5520 Website: www.ndi.org Table of Contents PREFACE AND ACKNOWLEDGEMENTS ........................................................................................................... 1 EXECUTIVE SUMMARY ................................................................................................................................... 3 SECTION I A. POLITICAL PARTY FINANCE IN AFRICA ........................................................................................................... 7 B. PURPOSE OF APPFI: RESEARCH DESIGN AND METHODOLOGY ......................................................................... 7 C. THE CONCERN OVER CORRUPTION AND PARTY FINANCING .............................................................................. 9 D. SOURCES OF POLITICAL PARTY FUNDS ........................................................................................................ 10 E. MANAGEMENT OF POLITICAL PARTY FUNDS ................................................................................................. 11 F. GENERAL SOURCES OF CANDIDATE FUNDS .................................................................................................. 12 G. POLITICAL PARTY AND CANDIDATE PATTERNS OF EXPENDITURE ...................................................................... 14 H. DIRECT BENEFITS, VOTE-BUYING, AND INTIMIDATION .................................................................................. 16 I. THE INTERSECTION OF BUSINESS AND POLITICS ............................................................................................ 19 J. LEGAL FRAMEWORKS, PUBLIC FUNDING, AND ENFORCEMENT .......................................................................... 20 K. CHALLENGES FACING POLITICAL PARTIES ..................................................................................................... 22 L. REFORMS RECOMMENDED BY POLITICAL LEADERS ......................................................................................... 24 M. FINDINGS AND RECOMMENDATIONS ............................................................................................................ 25 SECTION II BANGLADESH ..........................................................27 MALAWI ................................................................ 84 BENIN ...................................................................32 MOZAMBIQUE ......................................................... 90 BOTSWANA ............................................................38 NEPAL ................................................................... 95 BULGARIA ..............................................................42 NIGERIA .............................................................. 100 CAMBODIA .............................................................48 PERU .................................................................. 105 CROATIA ................................................................54 ROMANIA ............................................................. 110 GHANA .................................................................60 SENEGAL .............................................................. 116 GUYANA ................................................................65 SOUTH AFRICA ..................................................... 122 INDIA ....................................................................69 TANZANIA ............................................................ 128 KENYA ..................................................................75 UGANDA ............................................................. 134 MACEDONIA ...........................................................79 ZAMBIA ............................................................... 140 APPENDICES A. METHODOLOGICAL APPROACH ................................................................................................................. 145 B. POLITICAL FINANCE LAWS AND REGULATIONS ............................................................................................. 147 C. LEGISLATIVE AND ELECTORAL SYSTEMS ...................................................................................................... 149 Preface & Acknowledgements Corruption related to political party financing poses a legal and legislative initiatives. They interviewed those most grave threat to democratic development worldwide. Covert closely involved in party funding—political leaders, elected party funding streams, influence peddling, and leveraging members of parliament, regulatory officials, civic leaders, state resources for party purposes all compromise the single and members of the media. greatest asset of democracy: the faith and support of ordi- nary citizens in the political process. The findings of the APPFI research study are divided into two sections. The first section compares the information With multiparty systems less than a decade old, low levels gathered from all 22 countries, highlighting themes com- of economic development, and traditional political constitu- mon to most countries, yet indicating differences based on encies based on tribal, ethnic, and regional interests rather a country or region. For example, the research found that than on ideology, many African political systems remain a majority of campaign funds are spent on direct voter fragile and weak. Still, political parties form the cornerstone contact throughout the countries studied, but that those of a democratic society, aggregating and representing the in- expenses vary from country to country and among regions terests of citizens to create public policy. Leaders of African based on factors such as access and availability of television, political parties must find solutions, not only to the economic or the condition of state roads and highways. The second and social problems facing their nations, but to the negative section profiles each of the countries individually, providing influences of money, which affect key aspects of their orga- current information about the nature of political parties; a nizational purpose. description of electoral system; a discussion of relevant party financing laws; a summary of research findings; and recom- Although there is a growing awareness about the problems mendations for reform. of party finance in Africa, solutions have not fully emerged. Approaches taken in more developed democracies—includ- The research shows that most politicians are aware of ing legal restrictions, reporting requirements, and public the problems of money in politics and are prepared to ad- financing of parties—have not proven a panacea; rather, dress them. It also found that, perhaps surprisingly, most of they are tools that can be used should political will and civic the money raised and spent on campaigns appears to come pressure make party finance practices a priority. from legitimate sources and is spent for legitimate political purposes: to organize political events which serve to contact The purpose of the African Political Party Finance Initia- voters through a variety of methods such as advertising, ral- tive is to assist political parties and democratic activists in lies, and political meetings. In addition, the study revealed Africa as they begin to confront the debilitating and corrupt that despite great international concern over vote-buying party finance practices in their countries. The APPFI report