World Movement for Democracy
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WORKSHOP REPORTS: Political Parties and Finance

Making Effective Transitions to Democratic Representative Parties
Organizers:
Centre for Policy Studies – South Africa
Carlos Mena, United Nations Development Programme – Chile
Moderator:
Chris Landsberg – South Africa
Rapporteur:
Graeme de Bruyn – South Africa
Presenter:
Raymond Suttner – South Africa

The workshop was organized within the context of the numerous challenges related to liberation movements as governors that are posed and experienced in many countries, but particularly in the Southern African Development Community (SADC) region. The workshop took an overview of political party systems that operate in industrialized, post-industrialized, and information technology societies, and concluded that all political parties should have a project or national program that informs their existence. The SADC region is particularly relevant because many liberation movements have created the conditions for transitions to democracy and new means of democratic consolidation.

Challenges:
  • What strategies help liberation movements turned political parties to adopt democratic and pluralist governance models and intra-party organization?
  • How can ideological anomalies within parties and their leaderships be addressed?
Observations:
  • The workshop addressed problems that liberation movements face in transitioning to conventionally-defined political parties, which are perceived as the true purveyors of democracy. Participants discussed how to unlock and interpret the shifts from liberation movements in opposition to those in government. There was a strong sense that within societies with liberation movements much of the dominant premise of governance can be externally engineered.
  • Every political party, whether a liberation movement or not, goes through the following three stages: factionalism, polarization, and institutionalization. In their early stages, political parties are factions with no significant representation of social forces; it is only when they develop clear programs and policies that they are able to integrate and represent such broader forces. Regardless of what they are called, liberation movements and political parties face three main challenges: legitimacy, integration, and the institutionalization of democracy. The means for meeting such challenges apply equally to political parties and liberation movements.
  • The workshop also confronted the fact there should not be confusion between a political party’s dominance and a general understanding of democracy, which must be seen clearly within the context of a given country.
  • The workshop participants were also challenged to distinguish between empirical evidence and dogmas that have taken root in some democracies, such as, among others, that to be legitimate liberation movements must make the transition to political parties and that rules and criteria for democratic consolidation must be standardized.
Recommendations:
  • The donor community, civil society, and research institutions should continue their support for liberation movements regardless of whether they are in power.
  • Political parties should be secularized.
  • Opposition parties should have clear programs, not just a capacity to irritate the official party in government.
  • The capacity and institutions of a liberation movement should be developed to counterbalance government.
How to Strengthen Internal Party Democracy
Organizers:
Electoral Institute of Southern Africa – South Africa
Netherlands Institute for Multi-Party Democracy – The Netherlands
Moderators:
Claude Kabemba – South Africa
Etweda Cooper – Liberia
Rapporteur:
Ivaneta Dobichina – Bulgaria
Presenters:
Khabele Matlosa – Lesotho
Alvaro Pinto Scholtbach – The Netherlands
Kayode Fayemi – Ghana

There was a general consensus at the workshop that the strengthening of internal party democracy is a crucial prerequisite for democratic development in various countries.

Challenges:
  • In many of the countries that were discussed at the workshop the democratic process is evolving at the national level, but internal party democratic practices are still lacking.
  • In many African, Latin American, and East European countries there has been a shift from leader-driven politics to political parties-based politics, while in Western Europe the tendency has been in the opposite direction.
  • Many African, Latin American, and Eastern European political parties discriminate against women in elections, and in many cases external monitoring systems concerning women’s involvement in parties and candidate selection mechanisms is not enforceable.
  • The historical background to the creation of political parties often influence the way they work, and in many cases the process of renewing parties in post-totalitarian countries is constrained by this historical burden.
  • Primary elections are good for establishing the democratic credentials of a party and often allow for accountability and inclusiveness; however, they can also create tensions and conflict within the party structures themselves.
  • Political parties increasingly suffer from a crisis of representation, often losing links with the public.
Recommendations:
  • There should be a checks-and-balances system within the leadership of a party.
  • Parties should learn to manage frictions by creating a healthy environment for internal debates and creating mechanisms for solving internal conflicts.
  • Participation in primary elections should be limited to party members.
  • The creation of groups within parties representing different categories (women, youth, etc.) does not contribute to strengthening the representation of people in those categories in decision-making processes.
  • Legislated quotas and sanctions are not recommended, but in some cases could be the solution for strengthening internal party democracy and enhancing representation.
  • Parties should improve their internal means of communication and members should take part in decision-making and policy-making processes; when possible, the Internet should be used as an important tool for achieving this.
Political Parties and Money: Lessons Learned in Compliance
Organizers:
National Democratic Institute for International Affairs – USA
Netherlands Institute for Multi-Party Democracy – The Netherlands
Moderators:
Alvaro Pinto Scholtbach – The Netherlands
Rapporteur:
Victoria Canavor – USA
Presenters:
Bi-Khim Hsiao – Taiwan
Nii Noi Dowouna – Ghana
Maurits Hassankhan – Suriname
Buranaj Smutharaks – Thailand

Challenges:
This workshop examined a grave threat to economic growth, democracy, and stability: political corruption. With case study presentations by political party leaders from Ghana, Suriname, Taiwan, Thailand, and the Netherlands, the workshop fostered thinking about the links between finance, political parties, and corruption. Diverse participants shared lessons learned from regulating money in politics and explored the primary challenges for parties in complying with these regulations. Representatives of party institutes and foundations, donor organizations, government institutions, and academia actively took part in the discussion. Participants agreed that, given their critical role in a healthy political system, political parties must be included in the growing coalition of actors actively engaged in measures to combat corruption. Participants noted that there is no one package of reforms to apply in every situation; real differences exist among countries in terms of their electoral frameworks, political landscapes, social environments, and stages of democratic development.

Recommendations:
There was consensus that in tackling the problems of corruption, it is necessary to focus on both the external political environment and the internal operations of political parties.

External Political Environment
  • Make existing and proposed regulations as clear and practical as possible.
  • Give adequate resources and sufficient authority to independent bodies that monitor and enforce legal regulations.
  • Introduce limited public funding, forcing greater financial transparency and accountability, and leveling the playing field.
  • Create deterrence through more stringent penalties for engaging in corrupt practices.
  • Ensure an independent media free of political interference.
  • Ban parties from engaging in commercial activities.
Internal Party Operations
  • Develop more transparent decision-making processes within parties—particularly with respect to leadership and candidate selection—to prevent undue influence by vested interests or wealthy benefactors.
  • Require party members to pay fees, thereby broadening party ownership and diminishing the undue influence of party leadership.
  • Adopt a common approach to the challenges of political patronage and vote buying within the system by agreeing and adhering to a code of conduct.
  • Political parties should become more engaged in efforts by civil society organizations to tackle issues of corruption; conversely, civil society actors should be more open to working with political parties.
  • Political parties should work jointly with civil society to raise public awareness of corruption and the role that various actors play.
Political Finance Reporting and Monitoring
Organizer:
International Foundation for Election Systems – USA
Moderator:
Michael Pinto-Duschinsky – UK
Rapporteur:
Menachem Hofnung – Israel
Presenters:
Gene Ward – USA
John Makumbe – Zimbabwe
Marcin Walecki – Poland

Four main topics were discussed in the workshop, as follows:
  • The legal framework of political funding
  • Monitoring political money
  • Direct and indirect funding of political activity
  • Role of civil society organizations in monitoring campaigns and ongoing political finance.
Observations:

Political Funding
During their discussion of Money in Politics Handbook, developed by USAID, the participants agreed that money plays a positive role in politics, because it is needed to facilitate recognition of candidates and parties and ultimately to convince people to cast their votes in support of a candidate or party. But they also agreed that money can play a negative role; the one who has more money wins most of the time.

There was also a presentation on ways to control the money flow in politics. Maintaining a database of political finance, such as a database used by the International Foundation for Election Systems (IFES), can be of great help in tracing sources of money in many countries.

Disclosure
Differences between developed and non-developed countries emerged on this issue. Participants from developed countries emphasized the importance of disclosure rules and regulations; it has been argued that without disclosure there is no effective way to control the flow of money. However, participants from developing countries raised doubts as to the applicability of disclosure requirements; strict disclosure may intimidate people from contributing to opposition parties and thus prove to be counterproductive.

While all agreed on the importance of disclosure, it was clear to the participants that there are practical problems in enforcing disclosure in developed countries.

Civil Society and Funding
In his presentation at the workshop, John Makumbe of Zimbabwe addressed the ways in which civil society organizations can be effective in monitoring elections. NGOs lack a toolkit for what they should look for in trying to monitor elections, and they also lack knowledge of what to look for while monitoring campaigns in foreign countries. However, NGOs can build professional alliances with other organizations in monitoring campaigns and thus share with others the lessons learned from experience and practice.

Participants expressed the need for a toolkit for monitoring, as well as the need to train civil society organizations to be active in monitoring political funding.

Monitoring
While discussing the various existing methods of monitoring, several participants raised specific concerns within their respective countries. It was therefore agreed that a network of activists who work in the area of political finance should be formed.