Submission To The Select Committee Into The Political Influence Of Donations Assessment Answer

Executive Summary

We appreciate the opportunity to provide feedback to the Select Committee on the Political Influence of Donations as a civil society organisation dedicated to enhancing political transparency and accountability. We want to emphasise the significant influence that political donations can have on political parties' decisions regarding public policy in this submission. We will frame how political gifts can impact the approach-making process, the expected dangers and difficulties related to this impact, and give proposals to relieve the unjustifiable impact of political gifts on open arrangement choices (Abelson, 2018). Political gifts are monetary commitments made by people, partnerships, or different substances to help ideological groups or competitors. Political parties use these donations to fund election campaigns, support party activities, and promote policy initiatives. They are an essential source of funding for political parties. Nonetheless, the job of political gifts in moulding public strategy choices has gone under analysis, as concerns have been raised about the potential for excessive impact and preference in approach-making processes.

Influence of Political Donations on the Public Policy Decisions of Political Parties

Through a variety of channels, political donations can significantly influence political parties' decisions regarding public policy.

1. Through fundraisers, lobbying efforts, and other methods, political donors frequently gain access to politicians and decision-makers. Donors can use this access to advocate for policy positions that align with their interests, either directly or indirectly, and it may lead to preferential treatment in policy-making processes (McMenami, 2020). Contributors who contribute significant measures of cash might be offered more consideration and need in approach conversations, prompting their strategy inclinations to be focused on those of the overall population.
2. Donations provide funding for political campaigns and candidate activities. Parties may become reliant on these funds for their operations if they receive large donations or recurring donations from a single individual or organisation (Ratcliff and Halpin, 2021). Policy decisions may be influenced by the desire to maintain financial support as a result of this financial dependence, which can lead to the perception or reality of debt.
3. Donors frequently make contributions to candidates or political parties whose policy positions are in line with their interests. Ideological groups, thus, might be bound to take on strategic places that line up with the inclinations of their contributors, as they look to keep up with their help and monetary commitments (Casal Bértoa et al. 2014). As a result, policy decisions may place donor interests ahead of the greater public interest.
4. Political donations can likewise be utilised to subsidise battling and promoting endeavours, which can shape popular assessment and impact strategy results. Contributors who add to political races or issue promotion endeavours might anticipate that their strategy inclinations should be reflected in the approach choices of the party they support (McMenami, 2020). When policy decisions are influenced by the need to please donors and secure future funding, this can give the impression of a "quid pro quo."

Why do Groups Give Money to Political Parties

Reason 1: Influence and Access

The desire to obtain influence and access to decision-makers is one of the key reasons for entities to contribute money to political parties and politicians. Donors may believe that their contributions will allow them to influence policy choices and earn favour with political leaders. This can be especially true for large donors who can make significant contributions to political campaigns. Large donors may believe that their contributions are a way for politicians to treat them better or give them special privileges.

According to research, political gifts can offer donors access and influence. According to research, major donors to political campaigns, for example, are more likely to obtain preferential treatment from politicians, such as admission to private events, meetings, or policy debates. This implies that donors' financial donations may be used to gain access to and influence political decision-making processes.

Changes that reduce the likelihood of excessive influence from wealthy donors are essential if we are to address the issue of political access and influence. One idea is to force stronger commitment limitations to restrict how much amount that people, organisations, and different entities might donate. A power imbalance in which a small number of wealthy contributors exert disproportionate influence over the political process would be prevented by this.

Reason 2: Policy and Regulatory Capture

Organisations also donate to political parties and candidates to influence or gain control of laws and regulations in their favour. By securing favourable contracts, exemptions from regulations, grants, or subsidies from the government, donors may attempt to influence policy outcomes in a manner that serves their interests.

Studies have shown that political outcomes can have an effect on strategy results and lead to administrative capture, in which givers' interests are prioritised over the public interest. For instance, studies have demonstrated that industries or interest groups that contribute a significant amount of money to political campaigns are more likely to achieve favourable policy outcomes, such as contract wins or exemptions from government regulations. This suggests that political donations may enable organisations to sway policy decisions in their favour, endangering the integrity of the political process.

Measures that improve transparency and accountability in the political contribution process are essential if the problem of policy and regulatory capture is to be solved. The requirement of full disclosure of all political donations, including their amounts, sources, and purposes, is one suggestion.

Recommendations on how the Political Donations System can be Improved

Recommendation 1: Reduce the amount that can be donated, e.g. limiting it to $1,000

One effective way to improve the integrity of the political donations system is to set lower donation limits, like limiting donations to $1,000 per donor (www.acoss.org.au, 2021). This would assist with decreasing the potential for excessive impact by wealthy donors and guarantee that the political interaction is more comprehensive and agent of the more extensive public interest. The "Center for Responsive Politics" conducted a study that found that states in the USA with lower contribution limits for political donations were less likely to experience instances of "pay-to-play politics," in which donations were exchanged for favours from politicians. Additionally, donation caps have been lowered in some nations. In contrast to Australia's limit of AUD$1000 per donor per fiscal year, individual donations in Canada are limited to CAD$1600 (Lacy-Nichols and Cullerton, 2023). It is anticipated that the political cycle will remain alert, awake, and responsible as a consequence of these lower limits.

Lower donation limits, such as a maximum donation of $1,000 per donor, are supported to improve the integrity of political decision-making.

Recommendation 2: Implement Public Funding of Elections

Utilising public funds to pay for elections is another strategy for enhancing the system's integrity regarding political donations (Lacy-Nichols and Cullerton, 2023). By providing government funding for political campaigns, wealthy donors are less likely to wield undue influence and private donations are reduced.

According to a study by "The Brennan Center for Justice" states with public funding programs for elections had lower levels of corruption, more candidates from diverse backgrounds participated in the elections, and less reliance on private donations (Bannon, NAGRECHA, and DILLER, 2010). This suggests that funding elections by the public can help level the playing field, increase transparency, and lessen the likelihood of political corruption.

It is proposed that public funding be used for elections to improve the integrity of political decision-making. This could include providing political parties with support from the government based on how well they did in elections or how many votes they got. This would help level the playing field, reduce the influence of money in politics, and make politics more open and accountable (Alp.org.au, 2018).

How the Government can Help People to Get more Involved in Policy Making

Measure 1: Collaborating with citizens and civil society organisations to co-design public policies

Executing co-design plans, in which citizens and civil society associations are effectively engaged with the turn of events and detailing of public arrangements, is one successful measure to fortify the citizens and civil society associations in ideological group choices regarding public strategy. For instance, the government of New Zealand has implemented co-design processes, which involve working with citizens and civil society organisations to develop public policies that are responsive to the needs and aspirations of the people (Aasw.asn.au, 2022).

Implementing co-design methods that allow individuals and civil society groups to engage in policy formulation in a meaningful and inclusive manner is advocated to boost their involvement in political party choices affecting public policy.

Measure 2: Making Information and Resources for Citizen Engagement More Accessible

Another way to increase citizens' and civil society organisations' participation in political party policy decisions is to provide easily accessible information and resources that facilitate citizen engagement (Alp.org.au, 2018). This entails ensuring that all residents have free access to and comprehend information regarding policy concepts, decision-making procedures, and participation opportunities. For instance, The “Estonian government” has developed an online platform known as "e-Riigikogu" that makes it simpler to obtain information about legislative proposals, enables citizens to provide feedback and comments, and facilitates public discussion of policy issues (www.acoss.org.au, 2021).

To increase citizens and civil society organisations' participation in political parties' decisions regarding public policy, it is suggested that accessible information and resources that facilitate citizen engagement be made available (Aasw.asn.au, 2022). This might include creating online platforms, assisting civil society organisations with funding and capacity-building, and ensuring that information on policy ideas and opportunities for engagement is simply intelligible and accessible to all citizens.

Conclusion

A strong democracy depends on citizens and organisations of civil society being more involved in political parties' decisions about public policy. Through the political donations regime and public funding of elections, the paper’s recommendations can be used as a starting point for enhancing the integrity of political decision-making. The public's interests must be safeguarded and preserved in the political process, and policymakers must take action and implement reforms that encourage transparency, accountability, and citizen participation. Governments can develop a political system that is more inclusive, democratic, and responsive to the needs of all citizens by collaborating with citizens and organisations of civil society.

References

Aasw.asn.au, 2022, Retrieved from: https://www.aasw.asn.au/social-policy-advocacy/position-papers-and-statements [Retrieved on 15.4.2023]

Abelson, D. E. (2018). Do think tanks matter?: Assessing the impact of public policy institutes. McGill-Queen's Press-MQUP. Retrieved from: https://books.google.com/books?hl=en&lr=&id=KYd7DwAAQBAJ&oi=fnd&pg=PP1&dq=how+political+donations+influence+the+public+policy+decisions+of+political+parties&ots=u6gXJ_4R-W&sig=5VkAXT9kpyc89wZ75D63lndI8DI [Retrieved on 15.4.2023]

Alp.org.au, 2018, Retrieved from: https://www.alp.org.au/media/1539/2018_alp_national_platform_constitution.pdf [Retrieved on 15.4.2023]

Bannon, A., NAGRECHA, M., & DILLER, R. (2010). BRENNAN CENTER FOR JUSTICE. CRIMINAL JUSTICE DEBT: ABarrier TO REENTRY, 12. Retrieved from: https://www.brennancenter.org/sites/default/files/publications/2018_09_JudicialSelection.pdf [Retrieved on 15.4.2023]

Casal Bértoa, F., Molenaar, F., Piccio, D. R., & Rashkova, E. R. (2014). The world upside down: Delegitimising political finance regulation. International Political Science Review, 35(3), 355-375. Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/0192512114523302 [Retrieved on 15.4.2023]

Lacy-Nichols, J., & Cullerton, K. (2023). A proposal for systematic monitoring of the commercial determinants of health: a pilot study assessing the feasibility of monitoring lobbying and political donations in Australia. Globalization and Health, 19(1), 2. Retrieved from: https://link.springer.com/article/10.1186/s12992-022-00900-x [Retrieved on 15.4.2023]

McMenamin, I. (2020). Party identification, the policy space and business donations to political parties. Political Studies, 68(2), 293-310. Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/0032321719841243 [Retrieved on 15.4.2023]

Ratcliff, S., & Halpin, D. (2021). Dark money and opaque politics: making sense of contributions to Australian political parties. Australian Journal of Political Science, 56(4), 335-357. Retrieved from: https://www.tandfonline.com/doi/abs/10.1080/10361146.2021.1935452 [Retrieved on 15.4.2023]

www.acoss.org.au, 2021, Retrieved from: https://www.acoss.org.au/policy-advisors/ [Retrieved on 15.4.2023]       

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