Financing Democracy

Funding of Political Parties and Election Campaigns and the Risk of Policy Capture

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The recent debate on the role of money in politics has shed the light on the challenges of political finance regulations. What are the risks associated with the funding of political parties and election campaigns? Why are existing regulatory models still insufficient to tackle those risks? What are the links between money in politics and broader frameworks for integrity in the public sector? This report addresses these three questions and provides a Framework on Financing Democracy, designed to shape the global debate and provide policy options as well as a mapping of risks. It also features country case studies of Canada, Chile, Estonia, France, Korea, Mexico, United Kingdom, Brazil and India, providing in-depth analysis of their political finance mechanisms and challenges in different institutional settings.

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Addressing the risks of policy capture

Money is a necessary component of the democratic processes, enabling the expression of political support as well as competition in elections. Yet, the increasing concentration of economic resources in the hands of fewer people presents a significant threat to political and economic systems. This chapter highlights the risks of policy capture through political finance and presents a Framework on Financing Democracy: Supporting Better Public Policies and Averting Policy Capture, which provides policy options and a mapping of risks.

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