How Does Political Finance Regulation Influence Control of Corruption? Improving Governance in Latin America

In this paper, we address the question of how political finance regulation affects control of corruption in Latin America from a quantitative perspective. We present a Political Finance Regulation Index with panel data from 180 countries over 20 years (1996-2015). This index was developed using the IDEA Political Finance Database, and once created, was applied to assess the relationship between political finance regulation and control of corruption.

In order to do this, we use the equilibrium model of control of corruption developed by Mungiu-Pippidi (2015). We also included judicial independence and public investment, considered as a constraint and an opportunity to corrupt, respectively. Lastly, we use control variables for level of development.

Results show that, in Latin America, increases in political finance regulation are related with a deterioration of control of corruption. This relationship is statistically significant in the panel estimations. Inversely, the negative relationship between regulation and control of corruption becomes positive in countries with high levels of judicial independence. In a similar way, increases in opportunities to corrupt, represented by levels of public investment, have a significant and negative effect in control of corruption.

Most Countries Disrespect Their Own Freedom of Information Laws

A story published by the Associated Press (AP) last week revealed that most countries with Freedom of Access to Information laws do not follow them properly. In a test with over 100 countries with such legislation, more than half failed to provide the requested information and only 14 disclosed the data within the legal deadline.

The study was the first worldwide attempt to verify to what extent these laws are being effectively implemented. During an entire week in January AP journalists sent requests of information about terrorism arrests and convictions to 105 countries and the European Union.

In the small group of governments that processed the requests in a timely manner are, for instance, Guatemala, which sent the documents after 10 days, and Turkey, which needed only a week to reply. Canada and the United States, on the other hand, needed more that six months to provide the information, and in the latter case part of the data was censored. More than 40 countries never acknowledged the request or refused to provide the information on the basis of national security.

The results point out to a trend of countries’ adopting this kind of legislation as a result of pressure or incentives from international organizations, however without any intention of implementing it. In some countries, such as India and Uganda, there have even been cases of political persecution against individuals who tried to make use of right-to-know laws.

Read the full article AP Impact: Right-to-know laws often ignored on hosted.ap.org. More details about the results of the study can be accessed on AP’s Facebook page. The agency is also accepting suggestions for future information requests to be made in the next parts of their Freedom of Information project. The picture shown above is credited to AP.