Campaign finance reform – the need is huge and urgent – Part 1

By Mark DaCosta- The campaign leading up to the local government elections (LGE) of June 12, has highlighted numerous systemic shortcomings in Guyana’s electoral machinery. One of the most glaring are serious problems associated with campaign financing. 

In this series of articles, we will examine what all right-thinking Guyanese already know – the People’s Progressive Party (PPP) has, and will continue to take unfair advantage of the lack of campaign-finance regulations to achieve its dictatorial agenda. First, though, one must understand a few basic facts about campaign finance.

Campaign funding is necessary because political campaigns are expensive undertakings. Candidates and their staff have to travel; TV, radio,  and  advertising via other media must be paid for; polling agents may be hired; and various consultants and experts may be engaged. All of those activities cost money. So, no matter the size of the political campaign, it will require finance.

Campaign finance, also called election finance or political donations, refers to the funds raised to promote candidates, political parties, or policy initiatives such as new laws, regulations, and so on. Political parties, charitable organisations, and political action committees (in the United States) are usually used for fundraising for political purposes. “Political finance” is also a popular terminology, and it is used internationally for its comprehensiveness. That is, it takes into account all donations to politicians to which one may assign a value. These include campaign trips, hotel accommodations, etc. Also, the term political finance includes donations to political parties from private sources for day to day administrative purposes, such as hiring staff, renting office space, procuring stationery, etc. So, for purposes of this series of articles, one can lump all those donations together and call it political finance.

In Guyana, most political financing comes from big donations made by local business interests, party supporters overseas, political fundraisers, and big multi-national companies – such as oil companies. Guyanese observers agree that only a small – almost negligible amount comes from small individual donors who are not considered to be wealthy. 

Contrast that situation in Guyana with what happens, for example, in the United States (US), and other developed democracies. In such countries – which are likely to have relatively strong political finance regulations – there may be a more balanced field of political donors. That is, big donors, and small donors may contribute almost equal amounts.

Political and psychological experts believe that in more “advanced” societies, people donate to political interests mainly because they identify with those interests. For example the “values” fostered by the democratic party in the US are far different from those of the republican party. And donors contribute accordingly.

Experts say, too, that political financing may be divided into two categories: private and public. Private financing comes from private donors. On the other hand, public financing is money given by a  government to a political party or candidate for the purpose of political activity. Public financing does not happen in Guyana; all “official” political financing comes from private sources. 

Of course, Guyanese are quite aware – particularly after the last LGE that the ruling PPP, reportedly, made quite extensive use of public resources to promote its political objectives. That matter will be explored later in this series.

In any case, whatever the situation may be, there are people who are in favour of private political financing, and people who oppose the idea.

Supporters of private financing believe that, in addition to avoiding government limitations on speech, private financing fosters civic involvement, ensures that a diversity of views are heard, and prevents government from tilting the scales to favor those in power, or with political influence. On the other hand, critics of private campaign financing claim that it leads to votes being “bought.” Critics say that private financing produces large gaps between different parties in the available money they have to spend on a campaign. Studies have found that political donations give donors significantly greater access to policymakers. 

The LGE of June 12 have shone a spotlight on the issue of political financing. It has emphasised the fact that Guyana’s system is fundamentally broken. As such, something has to be done to fix it.

Part 2 of this series will continue the exploration of this important subject.