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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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Ensuring compliance with political finance regulations

This chapter focuses on policy measures and institutional mechanisms to ensure the compliance and review of political finance regulations. While most countries have laws and regulations on party and election financing, if oversight institutions lack the independence and/or legal authority to meaningfully regulate potential violators, existing regulations cannot be fully enforced. The chapter also highlights that sound political finance regulations need sanctions, serving as deterrents for breaches and promoting compliance.

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