| Parties seek more money from the taxpayer but | | | | documents. Mr Lawlor, a member of Ireland |
| there will always be tight constraints on this | | | | governing Fianna Fail party, had just spent a week |
| source of funding. The obvious source of big | | | | in Mountjoy Prison for refusing to co-operate with |
| money is rich donors and corporations. But such | | | | the Flood Tribunal. The TD is alleged to be at the |
| donors are not usually motivated by generosity. | | | | centre of a vast web of bribery and backhanders |
| They want to see a return. Political parties in a | | | | involving politicians, councilors, property |
| number of countries now accept large donations | | | | developers, planners and accountants going back |
| on the condition that the donor can be identified. | | | | 20 years. |
| Some have also banned donations from abroad. | | | | President Clinton pardon of sanction buster Marc |
| For officials who are tempted to evade rules on | | | | Rich in the last moments of his administration also |
| party funding the current punishments hardly act | | | | caused public and media outrage. Marc Rich wife |
| as disincentive. Yves Marie Doublet says, where | | | | Denise Rich had made large donations to |
| there are controls on party finance the sanctions | | | | Democratic Party funds and for the Clinton library |
| are usually toothless. In some countries | | | | project. |
| punishments are as little as being banned from | | | | In the USA, concern has focused recently on |
| political office for two years. | | | | campaign financing. "Effective political campaigns |
| Scandals erupted throughout Europe. The Elf | | | | have always been fuelled by money as well as |
| Aquitaine affair spread from France to Germany | | | | ideas. But in recent years, the cost of running for |
| when it was revealed President Mitterrand | | | | Congress and the Presidency has soared to |
| provided slush funds that were passed onto their | | | | record heights. For many candidates, raising |
| allies at the Christian Democratic Union. The | | | | money is no longer one important issues, it is the |
| former German CDU Chancellor, Helmut Kohl, | | | | only issue," says John S Weston, Chairman of the |
| escaped prosecution in March 2001 although he | | | | Committee for Economic Development Research |
| accepted $1m in illegal political donations for the | | | | and Policy committee, introducing a statement |
| CDU when he was in office. Instead Kohl paid a | | | | calling for radical reform of campaign finance laws |
| fine of $142,000 admitting that he had broken the | | | | in the US. In this policy statement, the Trustees |
| rules on the funding of political parties but | | | | of CED makes a strong case for sweeping |
| rejected accusations that he accepted donations | | | | reforms that will restore trust and balance to the |
| in return for political favors. For receiving dubious | | | | campaign finance system, while protecting the |
| funds worth a total of DM12m the CDU was | | | | first amendment rights of candidates and |
| separately heavily fined some DM 18million. The | | | | contributors. |
| scandal delivered a blow to Germany national | | | | In the US the average candidate for Congress |
| self-image. No longer could it be seen as a country | | | | spends $3.8m on their campaign while the |
| considered largely free of ingrained corruption. | | | | average House of Representatives candidate |
| In Britain, despite reforms during the mid 1990s, | | | | spends $500,000. Personal wealth is becoming a |
| the Labor Government which came to power in | | | | key requirement for effective candidacy. Of |
| 1997 has suffered repeated problems over | | | | particular concern were 'soft money' donations |
| political donations despite promises of | | | | that are exempted from the Federal Laws on |
| transparency. As early as 1997 Labor faced | | | | political donations yet are beneficial to candidates. |
| allegations of sleaze after it was revealed that | | | | In 1998 the US national party committees raised |
| one major election donor had later managed to | | | | $201m, a record for a midterm election: The |
| negotiate with the government an exception to a | | | | Republicans raised 112% more than in 1994 and |
| new law. Bernie Ecclestone, the millionaire head of | | | | the Democrats 89% more. The parties use this |
| Formula One Racing, had donated £1million | | | | money for such activities as party building, |
| to the party in the run up to the election. Then | | | | candidate-specific issue ads, and voter registration |
| Ecclestone had also negotiated with the new | | | | and turnout drives. Much of this money was |
| government an exemption for Formula One | | | | raised from contributions from individuals or |
| Racing from the banning of tobacco advertising in | | | | organizations that could afford $100,000 or more. |
| sport. The Labor government argued that the | | | | There are continuing attempts to reform the US |
| two events were unrelated, though it | | | | system. In March 2001 the Senate began a |
| subsequently returned the money. Labor | | | | debate on overhaul of the nation campaign |
| continued to be dogged by allegations. The Hinduja | | | | finance laws, with critics likening the current |
| Brothers, who run their international business | | | | system to a 'money laundering' operation that |
| mainly from London, have been accused of buying | | | | exchanges cash for influence, while its defenders |
| access to politicians with donations. The situation | | | | argued that the prescribed cure would violate |
| was exacerbated when members of the family | | | | free-speech rights and endanger political parties. |
| were questioned by the Indian Police in connection | | | | Two Senators have proposed a bill to reform the |
| with the Bofors guns for bribe | | | | US laws on political donations. At the core of the |
| Parties seek more money from the taxpayer but | | | | McCain-Feingold bill is a ban on unlimited 'soft |
| there will always be tight constraints on this | | | | money' contributions to political parties from |
| source of funding. The obvious source of big | | | | corporations, unions and wealthy individuals. These |
| money is rich donors and corporations. But such | | | | donations have run from $100,000 upwards and |
| donors are not usually motivated by generosity. | | | | have often been associated with pressure on |
| They want to see a return. Political parties in a | | | | politicians for favors in return. |
| number of countries now accept large donations | | | | But it is not all bad news. "Scandinavian countries |
| on the condition that the donor can be identified. | | | | seem to be doing the best, judging by their |
| Some have also banned donations from abroad. | | | | relative lack of scandals. Strong party loyalty? |
| For officials who are tempted to evade rules on | | | | Parties make the decision on candidates for office |
| party funding the current punishments hardly act | | | | and provide funding for campaigns? Enables |
| as disincentive. Yves Marie Doublet says, where | | | | countries such as Sweden to publicly finance |
| there are controls on party finance the sanctions | | | | parties and steer clear of scandal. Abuses are also |
| are usually toothless. In some countries | | | | no - existent in part because Scandinavian |
| punishments are as little as being banned from | | | | countries start with a high level of consensus on |
| political office for two years. | | | | propriety and a low tolerance for corruption. |
| In Dublin in March 2001 journalists watching from | | | | These values carry over into the campaign |
| the street saw Liam Lawlor light a bonfire in his | | | | finance. Yet Scandinavia and Canada almost prove |
| back garden to burn confidential financial | | | | to be the exceptions. |