POLITICAL FINANCE AND CORRUPTION IN EASTERN EUROPE To our families Political Finance and Corruption in Eastern Europe The Transition Period Edited by DANIEL SMILOV University of Sofia, Bulgaria Centre for Liberal Strategies, Bulgaria JURIJ TOPLAK University of Maribor, Slovenia © Daniel Smilov and Jurij Toplak 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Daniel Smilov and Jurij Toplak have asserted their right under the Copyright, Designs and Patents Act, 1988, to be identified as the editors of this work. This volume has been prepared in partnership with European Election Law Association. Published by Ashgate Publishing Limited Ashgate Publishing Company Gower House Suite 420 Croft Road 101 Cherry Street Aldershot Burlington, VT 05401-4405 Hampshire GU11 3HR USA England Ashgate website: http://www.ashgate.com British Library Cataloguing in Publication Data Political finance and corruption in Eastern Europe : the transition period 1. Campaign funds - Europe, Eastern - Case studies 2. Political corruption - Europe, Eastern - Case studies 3. Democratization - Europe, Eastern - Case studies 4. Europe, Eastern - Politics and government - Case studies I. Smilov, Daniel M. (Daniel Mihaylov) II. Toplak, Jurij 324.7'8'0947 Library of Congress Cataloging-in-Publication Data Political finance and corruption in Eastern Europe : the transition period / edited by Daniel Smilov and Jurij Toplak. p. cm. Includes index. ISBN-13: 978-0-7546-7046-9 1. Campaign funds--Europe, Eastern--Case studies. 2. Political corruption--Europe, Eastern--Case studies. 3. Democratization--Europe, Eastern--Case studies. 4. Europe, Eastern--Politics and government--1989--Case studies. I. Smilov, Daniel M. (Daniel Mihaylov) II. Toplak, Jurij. JN96.A975P66 2007 324.7'08947--dc22 2007014536 ISBN-13: 978-0-7546-7046-9 Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall. Contents List of Tables vii List of Contributors ix Acknowledgements xi 1 Introduction: Party Funding, Campaign Finance and Corruption in Eastern Europe Daniel Smilov 1 2 Campaign Finance in Bulgaria Dobrin Kanev 33 3 Party and Campaign Finance in Croatia Josip Kregar, Djordje Gardašević, Viktor Gotovac 53 4 Party Funding in the Czech Republic Císař Ondřej and Tomáš Petr 71 5 Party Funding in Hungary Zsolt Enyedi 91 6 Party Funding and Campaign Finance in Macedonia Renata Treneska 105 7 Political Finance in Poland Marcin Walecki 123 8 Party Funding in Russia Jeff Gleisner 143 9 Party Finance in Serbia Vladimir Goati 159 10 Party Funding in Slovenia Jurij Toplak 171 11 Party Funding in Ukraine Oleh Protsyk and Marcin Walecki 189 Bibliography 209 Index 217 This page intentionally left blank List of Tables Table 1.1 The regulation of political finance in Eastern Europe 4 Table 2.1 Donations permitted according to Bulgarian legislation, 1990–2001 37 Table 2.2 Revenues of parties, party alliances and independent candidates during the parliamentary election campaign of 2001 39 Table 2.3 Parliamentary election campaign expenditure in Bulgaria in 2001 44 Table 2.4 Parliamentary election campaign expenditure in Bulgaria in 2001 (in leva) 44 Table 4.1 Membership contributions (in thousands of Czech crowns) 78 Table 4.2 Membership contributions (percentage of the party’s total revenues) 79 Table 4.3 Private donations (in thousands of Czech crowns) 80 Table 4.4 Private donations (percentage of the party’s total revenues) 80 Table 4.5 Revenues from the renting out of party property (in thousands of Czech crowns) 82 Table 4.6 Revenues from the renting out of party property (percentage of the parties’ total revenues) 82 Table 4.7 Direct public funding (in thousands of Czech crowns) 83 Table 4.8 Direct public funding (percentage of the parties’ total revenues) 83 Table 5.1 The incomes of Hungarian parliamentary parties in millions of forints, according to their published budgets, 1990–1999 99 Table 6.1 Income of selected Macedonian political parties in 2000 115 Table 6.2 Expenditure of selected Macedonian political parties in 2000 115 Table 7.1 Official income from parliamentary candidates – 1997 elections 125 Table 7.2 Official sources of Polish parties’ income, 1997–2000 127 Table 8.1 The 2001 Rules on Party Donations and State Funding 150 Table 10.1 Share of budgetary funds in total party income from 1996 to 2000 (in percent) 183 Table 10.2 Income of major Slovenian parties in 2000 (in Euros) 184 Table 11.1 Distributions of party funds by sources (in Hryvnyas) major parties, 1998 195 Table 11.2 Public perceptions in Ukraine on the acceptance of money to vote for a politician or political party, 2000–2003 (size of the sample given in parentheses) 201 Table 11.3 Funds spent by political parties in Ukraine to March 27, 1998 (the March parliamentary elections) 206 Figure 7.1 The official cost of parliamentary elections in Poland 1991–2001 (in $) 132 This page intentionally left blank List of Contributors Daniel Smilov is a comparative constitutional lawyer and political scientist. He is Programme Director at the Centre for Liberal Strategies, Sofia, Recurrent Visiting Professor of Comparative Constitutional Law at the Central European University, Budapest, and Assistant Professor of Political Theory at the Political Science Department, University of Sofia. He holds doctorates from the University of Oxford (DPhil, 2003) and the Central European University, Budapest (SJD, 1999). In 2003– 2004 he was Jean Monnet Fellow at the European University Institute, Florence. He has also been a Visiting Scholar at the Boalt Hall School of Law, University of California, Berkeley in 1995. Dr. Smilov is co-author (with Martin Tisne) of From the Ground Up: Assessing the Record of Anticorruption Assistance in Southeast Europe, Central European University Press, 2004, and co-editor (with Denis Galligan) of Administrative Law in Central and Eastern Europe, CEU Press, 1999. He has published articles in ICON (International Journal of Constitutional Law, Oxford University Press), Public Law, and the Austrian Journal of Political Science (ÖZP), as well as a number of chapters in edited volumes. daniel@cls-sofia.org Jurij Toplak teaches Constitutional Law at the University of Maribor Law School. He is a member of the State Election Commission of Slovenia. His research is focused on comparative constitutional law, election law and political finance issues. He served as a Fulbright Scholar at the UCLA Law School and researched at Georgetown University, Oxford University, Central European University, and others. In 2000 Jurij Toplak recieved LL.M. degree from Central European University, Budapest. His bibliography contains six books and many articles and book chapters. He is a member of the board of the International Political Science Association (IPSA) Research Committee on Political Finance and Political Corruption. He is a Secretary General of the European Election Law Association and occasionally he serves as an international election observer. He was involved in several election law cases before the Constitutional Court of Slovenia and the European Court of Human Rights in Strasbourg. [email protected] Ondřej Císař is Assistant Professor at the Department of Political Science, Faculty of Social Studies, Masaryk University, Brno. He is currently Fulbright Fellow at Columbia University, New York. [email protected] x Political Finance and Corruption in Eastern Europe Zsolt Enyedi is Associate Professor at Central European University, Budapest. Currently he is Marie Curie Fellow at the European University Institute, Florence. [email protected] Djordje Gardašević is university assistant and doctoral candidate at the Constitutional Law Department, University of Zagreb Faculty of Law. [email protected] Jeff Gleisner is Visiting Senior Research Fellow, Institute of Politics and International Studies, University of Leeds, England. He is a consultant to the Westminster Foundation for Democracy and the UK Foreign and Commonwealth Office. [email protected] Vladimir Goati is full professor of political science and senior research fellow at the Institute of Social Sciences, Belgrade. He is considered one of the leading political scientists in the South Eastern Europe and is the president of Transparency Serbia. [email protected] Viktor Gotovac is university assistant and doctoral candidate at the Labour and Social Security Law Department, University of Zagreb Faculty of Law. [email protected] Dobrin Kanev is an associate professor at the Department of Political Science, New Bulgarian University. Currenty he is advisor to the president of Bulgaria. [email protected] Josip Kregar is full professor at the Sociology Department, University of Zagreb Faculty of Law. Currenty he is the Dean of the University of Zagreb Faculty of Law. [email protected] Oleh Protsyk is Research Associate at European Centre for Minority Issues, Flensburg, Germany. [email protected] Tomáš Petr is a doctoral candidate and researcher at the Faculty of Social Studies, Masaryk University, Brno. [email protected] Renata Treneska-Deskoska is Associate Professor at the Law faculty ‘Justinianus Primus’ in Skopje. She is also Advisor on constitutional and legal issues to the President of the Republic of Macedonia. [email protected], [email protected] Marcin Walecki is IFES Senior Advisor for Political Finance, Washington DC. Currently he is Max Weber Fellow at the European University Institute, Florence. [email protected] Acknowledgements Our thanks go first to one of the programmes of the Open Society Institute (OSI), Budapest – the Constitutional and Legislative Policy Institute, which was reconstituted as the Open Society Justice Initiative in 2002. This organisation provided generous funding for the research on and the production of the book. Our colleagues from OSI – Professor Andras Sajo, Zaza Namoradze, Marijana Trivunovic and Professor Karoly Bard – had an invaluable intellectual input in different stages of the project. Daniel Smilov’s research was supported by another programme of the OSI – the International Policy Fellows Program (IPF).