Campaign Finance Reforms in India: Issues and Challenges

ORF Seminar Series
• Insulate Executive from the Legislature: Some panelists, especially
the political leaders, maintained that one way forward was the separation
of Legislature from the Executive. According to them, the policy
paralysis, which has become a major concern in the delivery of adequate
services to the people, could be avoided if the Executive's functions are
separated effectively and in a decisive manner. But this was countered by
some other panelists. To them, while the idea in principle could be
accepted as an effective tool in the short-term, it was not going to solve
the myriad problems with regard to political parties. A striking example
of this is the US where the separation of the Executive and the
Legislature has not solved the problem of campaign finance, which has
been a recurrent theme in all presidential elections in that country. The
debate there has been the pernicious influence of 'only' corporate
funding as opposed to the 'judicious' mix of membership fees and
'limited' State funding. Hence, the separation of the Executive from the
Legislature would not solve the manifold problems and could prove to
dangerous in the long run.
• Make Corporate Funding Transparent and Accountable: The
panelists felt that corporate funding, which has increased over the years
and has been relatively transparent and accountable, was better than
other dubious sources of funding. The electoral trust established by the
Tatas was a model worth emulating, some pointed out. The trust gives
funds to all political parties, recognising their need for finances for
functioning. A similar model could well be adopted by other business
houses. Donating to all political parties on the basis of certain minimum
vote-share or an ascertainment of the popular support derived on
scientific grounds could well be the criterion for donations. According
to the panelists, the need for corporate houses to participate through
donations in the functioning of a representative democracy must be
recognised and such a culture should be suitably nurtured.
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