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Financing democracy
published: Tuesday | April 1, 2003

This is the conclusion of a two-part article, the first of which appeared in yesterday's Gleaner. The Carter Center recently convened the conference "Financing Democracy: Political Parties, Campaigns, and Elections" in collaboration with the Organisation of American States' Inter-American Forum on Political Parties. A group of government and political party leaders, prominent scholars, policy experts, private sector representatives, civil society leaders, media professionals and international organisations from the Western Hemisphere met for two and half days in plenary sessions and working groups to discuss the dilemmas of political financing. They offered their advice to The Carter Center's Council of Presidents and Prime Ministers of the Americas, a group of 35 leaders, 10 of whom participated in the conference and another one of whom sent a representative. Based on the group's findings, the Council now offers the following conclusions and recommendations.

The Carter Center convened the conference "Financing Democracy: Political Parties, Campaigns, and Elections" in collaboration with the Organisation of American States' Inter-American Forum on Political Parties. A group of government and political party leaders, prominent scholars, policy experts, private sector representatives, civil society leaders, media professionals and international organisations from the Western Hemisphere met for two and half days in plenary sessions and working groups to discuss the dilemmas of political financing. They offered their advice to The Carter Center's Council of Presidents and Prime Ministers of the Americas, a group of 35 leaders, 10 of whom participated in the conference and another one of whom sent a representative. Based on the group's findings, the Council now offers the following conclusions and recommendations.

IN IMPROVING the financing of democracy, citizens' groups and international organisations have an important role to play in helping achieve these principles. We urge the following:

ROLES FOR INTERNATIONAL ORGANISATIONS

The OAS Inter-American Forum on Political Parties, other international organisations, multilateral banks, and universities should sponsor research to help us better understand the contributing factors of campaign costs, the effectiveness of potential tools to control those costs, and the impact of new technology such as the Internet and direct television programming. For example, conflicting information exists with regard to whether and how fast campaign costs are rising relative to GDP, and what the sources may be: television and radio advertising costs in modernising campaigns; taxation systems; patronage politics and vote-buying in more traditional campaigns; internally democratising parties; length of the campaign; the nature of the electoral system.

Hemispheric governments should adopt the basic principles on political financing at the next Summit of the Americas, as a concrete measure to implement Article 5 of the Inter-American Democracy Charter.

Non-governmental organisations such as The Carter Center, International IDEA, and Transparency International should work together to develop a set of standards and benchmarks to assess progress on implementing these principles.

The OAS and other organisations active in the region should provide assistance to member states to apply the principles adopted, such as in the form of best practices and model laws, and advice from the OAS Special Rapporteur for Freedom of Expression and other entities.

International party foundations and other organisations should continue to provide training and education for party members and electoral workers, but only in a manner consistent with national laws.

Governments should co-operate to help in tracing the international money trail of illicit political donations through offshore tax havens, money laundering, and organised crime, and co-operate with each other to bring violators to justice. International assistance in training and capacity-building to trace illicit money is needed. Governments should codify these types of co-operation in international agreements. Governments should also amend money laundering legislation to require disclosure of cash transactions over a specific amount.

International agreements such as the OECD Convention Against Bribery and the Inter-American Convention Against Corruption should include corollaries or additional protocols prohibiting the bribery of political parties and candidates, and prohibiting foreign donations when they are illegal in domestic law.

International election observer missions should incorporate political finance as an element to be monitored.

Multilateral lending institutions should include political financing as an element within their rule of law and anti-corruption programmes. Bilateral and multilateral organisations should expand efforts to help election management bodies, political parties, campaign contributors, and election monitors to comply with political finance laws.

ROLES FOR CIVIL SOCIETY AND POLITICAL PARTIES

Businesses should voluntarily adopt codes of conduct to disclose donations where laws do not yet exist requiring them to do so, or to disclose more fully where laws require only narrow disclosure.

Political parties and candidates should voluntarily adopt codes of conduct to fully disclose donations and expenditures where laws do not yet exist requiring disclosure, or to disclose more fully where laws require only narrow disclosure. Civil society organisations can encourage such codes.

The media should voluntarily adopt a code of ethics and norms that guarantees equitable treatment to the parties and candidates in electoral campaigns.

Civil society organisations and media should have independent and critical roles in monitoring campaign finance rules and publicising violations, including monitoring expenditures and media coverage of campaigns, generating information and encouraging public debate.

Watchdog groups should explore the potential to use Access to Information laws to request information on donations and expenditures from political parties and corporations, and to ensure transparency in the use of state resources.

So that the media may support enforcement, expose corruption and produce transparency, libel laws should be amended to follow the principles laid down in the New York Times v. Sullivan case, insult laws should be repealed, and the assault or murder of journalists should be investigated immediately and prosecuted to the fullest extent of the law.

The Carter Center, in collaboration with the Organisation of American States, wishes to thank the Coca-Cola Company for its sponsorship of Financing Democracy in the Americas. Additional support is provided by Americas Gateway Strategy, the Consulate General of Germany, Delta Air Lines, King and Spalding, the Open Society Institute, and the U.S. Agency for International Development.

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