PRIA Events Talk on "Money in Politics” by Mr. Sam van der Staak, Senior Programme Manager, Political Parties Team, International IDEA. Date and Venue: Wednesday, 25 February 2015, 3.30-5.00 pm Mr. Sam van der Staak, Senior Programme Manager, Political Parties Team, International IDEA gave a very interesting and informative talk on the topic of Money in Politics. The talk was attended by PRIA staff and development executives from several Delhi based NGOs. Mr. Staak was particularly happy to see the women’s participation in the event and said that the discussion on politics should not be limited to men.

1. ”International Practices on Political Finance”
Sam van der Staak
International IDEA

2. • The International Institute for Democracy and
Electoral Assistance is the only global
intergovernmental organization with a direct
mandate to support democracy worldwide
• 28 Member States on 6 continents, including
India; Member States are the owners of the
Institute and provide strategic directions with
regards to its budget, workplans.

4. Political finance database
• Political finance laws
and regulations
• From 180 countries
• www.idea.int/political-finance

5. Regional & global overviews
• Latin America
• Africa
• MENA region
• Global handbook
2003: revised 2014

6. Direct assistance
In-country law reform advice in
 Kenya,
 Mongolia,
 Sweden,
 Myanmar etc

7. Political Finance:
India’s place in the world

8. I. How is India similar to Asia and the world?

9. High spending
• High spending: no firm data on unreported
funds (some estimate USD 5 billion)
• Similar to Brazil, Mexico, South Africa,
Indonesia etc.
• Making politics more accessible to the rich or
well-connected.

10. No ban on corporate donations
(Asia & global 70%)

11. Limits on candidate expenditure

12. Do parties report on their finances?

13. II. How is India different from Asia and the
world?

14. Indian expenditure is still higher than that of richer
countries such as the United Kingdom, Germany or
Sweden.
This is even more so when adjusted for income levels!
Country Election Year Costs of Elections Voting Population Costs per Voter
Australia 2010 145 mil USD 17 mil 8,5 USD
Brazil 2010 2 bil USD 151 mil 13,24 USD
India 2014 5 bil USD (est!) 788 mil 6,35 USD
Kenya 2007 62 mil USD (est) 18 mil 3,44 USD
Sweden 2014 7,5 mil USD 7,6 mil 0.98 USD
UK 2010 91 mil USD 49 mil 1,86 USD
US 2012 6,8 bil USD 241 mil 28,22 USD
Germany 2013 93 mil USD 67 mil 1,39 USD

15. Legal anomalies
1. India has no political finance Act.
2. India has no donation limits (but spending limits).
3. India only has spending limits for candidates, not for
political parties.
4. India only bans anonymous donations to political
parties, not to candidates.
5. India only has reporting requirements for political
parties, not for candidates.
6. India has no state funding for campaigns or political
party development.
7. India lacks some formal penalties.

16. 1. Political finance legislation

17. Gap between laws and compliance:
Although strong regulations are essential,
formal rules alone cannot have a significant
impact.

18. Ban on abuse of state resources?

19. Ban on vote buying?

20. Ban on donations from
corporations with govt contracts?

21. Ban on anonymous donations?

22. Possible problems with regulatory system
 too vague
 too complicated
 too restrictive
 adequate but lacking an effective enforcement
framework
 adequate but enforced in a discriminatory fashion
 lack of political will to enforce

23. 2. Donation limits

24. 4. Ban on anonymous donations to
candidates

25. 5. Candidate reporting

26. 6. State funding

27. 7. Penalties

28. Good international practices
Law reform:
 Poland: combined several laws into one
Reporting:
 UK: easy, accessible online reporting.
State funding:
 US: makes state funding conditional on complete transparency.
 The Netherlands: earmarks state funding to party building (youth wings, think
tanks) throughout electoral cycle.
 Germany: ties state funding to received private funding.
 France, Kenya: makes public funding available for women candidates.
 UK: allows only state-funded media campaigning.
Finally:
 Europe: regional peer network.

29. Further info…
www.idea.int/political-
finance
@IDEApolparties

30. Thank you!
@IDEApolparties