Mongolia has made progress on administrative simplification and transparency, but its Communist legacy has proven difficult to shake. As popular demand for good governance continues to grow, there is some untapped potential for increased e-government and e-participation. Given that the evolution of the judiciary will be slow, following the Estonian/Georgian model and reducing resources that are susceptible to corruption by legislative and administrative reforms remains the best way forward. This implies that a far broader effort is needed than the limited work of the agencies currently dedicated to fighting corruption – with more transparency of public expenditures being a good place to start.
The Stefan Batory Foundation, in cooperation with other seven NGOs*, has launched the website www.politicalfinance.org, devoted to analysing the regulation systems of campaign and political party financing in 7 countries: Armenia, Czech Republic, Estonia, Georgia, Moldova, Mongolia and Poland.
The website is the result of a research project initiated in February 2012, whose goal was to examine political finance regulation in each country from the perspective of the mechanisms protecting policy-making against undue influence of interest groups. In addition to preparing the seven individual country reports, the project also conducted a comparative analysis of the different systems and highlighted advantages and disadvantages of each one, emphasising arrangements that can be seen as best practice.
The country reports are published on the website and cover the specific features of each regulatory system, including an assessment of the effectiveness of adopted solutions, case studies and policy recommendations. In addition to the country-specific recommendations, three common recommendations for the participating countries have been developed: (a) to increase availability of information on donors and original invoices and receipts on party expenditures; (b) to strengthen the role of public institutions responsible for the oversight of party financing; and (c) to provide long-term financing of political parties from the public budget. The analysis and recommendations are published in English and Russian language versions.
A more detailed analysis of the country reports allows for a closer overview of how the regulatory systems differ from country to country and the particularly weaknesses that each country’s system presents. The Armenia country report shows, for instance, how the lack of sanctions to false financial reports by political parties or illegal donations to election funds negatively affects the political finance environment in the country. In Estonia, the possibility of cash donations severely hinders transparency regarding the funds that political parties and campaigns receive. In Georgia, differently than in other of the selected countries, the country report emphasises issues related to the unequal application of electoral laws to different parties, which jeopardises the fairness of political competition and the electoral process. Apart from specific issues that each country faces, there are common obstacles to more integrity and equity in political finance in some of the countries, such as the need for restrictions on private or corporate donations, and for increased transparency and detail in the disclosure of donations and expenditures.
The participants to the project hope that the initiative will stimulate further discussion on the need for reforms in the political party financing sector and further advocacy efforts. In the long term, this initiative aims to determine positive changes in the financing of political parties and to contribute to improving transparency in this field as well as to prevent corruption.
*The other organisations contributing to this project are: Stefan Batory Foundation (Poland); Stanczyk Institute of Civic Thought Foundation (Poland); Institute for Development and Social Initiatives (IDIS) “Viitorul” (Moldova); Georgian Young Lawyers’ Association (GYLA) (Georgia); Transparency International Anti-Corruption Centre (Armenia); Transparency International Czech Republic; Transparency International Estonia; and Open Society Forum (Mongolia).