Ensuring transparency and integrity in the financing of political parties and electoral campaigns is crucial to effective policymaking and strong democracies. Financial contributions allow individuals and entities to channel their support to candidates, political parties and particular issues of interest to them. They are also a necessary resource for candidates and parties to run for elections and diffuse ideas and manifestos, facilitating competition and choice in elections and campaigning (OECD, 2020[12]).
However, the financing of political parties can also pose significant risks to the integrity of decision making. If the financing of political parties and electoral campaigns is not adequately regulated, money may become an instrument of undue influence and policy capture. These risks have recently come to the fore in the context of opposition to green initiatives and the securing of mineral rights, and in studies of foreign states’ attempts to manipulate democratic processes in OECD countries (Resimić, 2022[34]; Graham, Daub and Carroll, 2017[35]; Vandewalker and Norden, 2021[36]; Intelligence and Security Committee of Parliament, 2023[37]).
This chapter explores how some of OECD countries’ key mechanisms for managing transparency and integrity in political financing are performing. It shows that:
Anonymous donations remain a serious concern in many OECD countries.
Many political parties do not comply with transparency regulations.
In short, existing political finance regulations and institutions need an upgrade. They were designed to protect democracies in a national context many decades ago and have not evolved to protect against foreign influence and transnational corruption risks.