POLITICAL PARTY FUNDING CORRUPTS

This blog is a further idea in the series trying to reduce corruption and improve political contestation (see blogs #1, #2 and #7)

Political party funding

WHAT?

All private funding of political parties in cash or in kind must be banned. Instead, the state alone must fund political campaigns.

WHY?

Political party funding by individuals or companies is inherently problematic. A political party with large financial resources can afford to pay for a much greater presence in every sphere. Essentially, large expensive campaigns tend to beat smaller cheaper campaigns. This does not mean that that party is better, more honest or has better ideas – just that it can raise more money. Advertising works.

The rose - coloured spectacles view of private party funding is that people who are true believers in the party help it with money or resources. Even if this was the case – that means that rich people (who also control the richest companies) get and unfair amount of influence in the future direction of the state as they can afford to fund their favourite parties more than poorer people can.

The truth, though, is far from this. People and especially companies fund parties because they desire a specific legislation or programme to be advanced (at best). So, the coal and oil lobby will fund a climate change denier party and so forth.

More dangerously, as we have seen, people and especially companies fund parties so that they will not be excluded from acquiring government tenders – or to tilt the tenders towards themselves. Often we see that government tender money itself is fed back to pay off political parties. What this means is that the cheapest and best company to give us as citizens the services or infrastructure we are paying for do not get awarded the tenders. Instead, we pay inflated amounts to companies which often cannot do the work and who simply outsource it or do shoddy, incomplete work and then disappear.

Even criminals fund political parties for protection – so that cases against them will not be vigorously pursued.

This must stop. We will never get rid of corruption in the country if the political parties at the top are corrupt and they will be corrupt if their political survival depends on donations.

Lastly, political campaigns do not need to be massively expensive. They only become so because the money is competing – each party needs more than the others in order to be heard. It is an arms race. The USA example is a lesson – news stations even talk about the “fund raising advantage” that one campaign has over another.

A similar system will be needed for lower levels of government

HOW

Each election date must be announced six months before the election – to allow a reasonable campaign time. This should not be longer as politicians should be doing their work and not election focussed.

At that point the government should vote as to how much money will be allocated in total for all parties for the election.

That money needs to be divided between the parties in a way that creates a level playing field for a true contestation of ideas and track record. If the party with the most seats gets the most money (as we now have in terms of the state’s contribution to election costs) – then the incumbent party has an unfair advantage.

To this end, the three largest parties in parliament should receive the same election subsidy. The three next parties a smaller amount (approximately a third of the larger parties) to give them the chance to be heard and perhaps grow. Three more parties should receive a small start – up amount of money (again a smaller percentage – perhaps one ninth - of that given to the largest parties) on condition that they can get (for example)10 000 signatures with unique ID numbers in support. If more than three achieve this then those with the most proven supporters. An example might be R54m for each of the three largest parties in parliament, R18m for the next three and R6m for the three “start – ups” for a total cost to us citizens of R234m. If parliament deem this to be insufficient, they can vote for a larger number – but always divided in this way.

Again, in order that the election period be fair, all state funding for political party constituency work etc (other than the election funding) should cease from the date the election is announced.  This type of funding is intended for good governance and is proportional to the number of representatives in parliament – so again gives an unfair advantage to the ruling party if it continues when all parliamentary work essentially stops as politicians concentrate on getting re-elected.  

WHY NOT

1)        This would be unfair as some parties will get no funding at all.

This is partially true, but it is not undemocratic. Most new ideas in politics arise within existing parties. Political parties drift over time with the electorate – in the 1860’s the USA republican party was the antislavery party (so left wing in today’s terms – which it certainly is not today).  If we have 9 parties being funded to hold election campaigns – that is surely enough to find a home for politicians of all ideologies and all ideas.

2)        We cannot afford for the state to pay for political campaigns.

This is not true. The state paid R651m towards the last national election campaigns, while R231m in donations was declared by parties. So, a maximal amount of R1b should be required. Compare this to the estimate (by government ministers) that up to 20% of the entire budget is lost to corruption. The cost the economy of people and companies contributing towards political campaigns has hidden costs far more than the state just funding them in an open way.

3)        The second tier of parties will not be able to win an election as they will get far less money.

This may be true, but it is extremely rare that a party comes from 4^th or worse in an election to win in the next election in any event, but they will get enough funding to be heard and perhaps get into the top three where they are likely to be included in a coalition government and top challenge for top spot in the next election.

Referendum.

If you would support the idea of banning private political party funding to improve honesty in government and to level the playing field of elections – please give this a “like” on Facebook