Transparency in political financing is critical in preventing corruption and promoting fair elections. Article 7.3 of the UN Convention Against Corruption (UNCAC) calls for states to implement measures that enhance transparency in the funding of candidacies for public office, as well as, where applicable, in political party financing.

Despite this, the Electoral Integrity Project ranks campaign finance transparency as the lowest indicator of electoral integrity, highlighting a pressing global issue.

A recent UNCAC Coalition Asia-Pacific Regional Meeting addressed political finance transparency and the challenges currently facing the region.

Challenges to Political Finance Integrity

Corruption in political financing poses a serious threat to democracy. It undermines electoral integrity and skews justice in favor of powerful stakeholders.

Jorge Valladares Molleda, Political Integrity Lead at Transparency International (TI), identified six global challenges related to political finance integrity:

1. Lack of Transparency: Insufficient provisions and practices, including inadequate bookkeeping, reporting, and disclosure obligations for political parties and candidates.
2. Infiltration of Illicit Flows: Politics is increasingly vulnerable to illicit funding sources such as anonymous donations, foreign contributions, online campaigns, and cryptocurrencies.
3. Uneven Playing Field: Unregulated self-funding, unrestricted donations, unchecked expenditures, and inadequate public funding create significant advantages for wealthier candidates.
4. Financial Barriers for Women: High campaign costs limit women’s participation in elections, impacting gender equity in political representation.
5. Abuse of Incumbency: Incumbents misuse state resources, policies, and media for electoral gain, giving them an unfair advantage.
6. Insufficient Oversight: Weak mandates, inadequate resources, and limited coordination among oversight institutions hinder effective regulation and accountability.

Regional Perspective

Mukhtar Ali, Executive Director at the Centre for Peace and Development Initiatives (CPDI), highlighted specific regional patterns impacting political finance integrity in Asia-Pacific:

• Lack of Transparency: In India, nearly 60% of national political party funding comes from unknown sources, according to the Association for Democratic Reforms (ADR).
• Reliance on Business Contributions: Many candidates rely on funding from business owners who expect favorable treatment in return, often receiving undue advantages in procurement and public contracts.
• Uncapped Party Funding: Political parties in the region generally operate with minimal funding restrictions. Where caps exist, enforcement is weak, allowing large, unregulated donations to influence campaigns.
• Use of Public Resources: Incumbent politicians frequently utilize state resources in campaigns, giving them an undue advantage and raising fairness concerns.
• Exclusion of Marginalized Groups: High campaign costs exclude disadvantaged groups, especially women and minorities, from participating in elections.
• Limited Oversight: Weak oversight capabilities reduce incentives for political parties to secure funding through transparent, legal means.