The National Democratic Institute is a nonprofit, nonpartisan organization working to support and strengthen democratic institutions worldwide through citizen participation, openness and accountability in government.

Political party finance and related corruption pose one of the greatest threats to democratic and economic development worldwide. Corruption in politics, particularly during election periods, compromises a critical asset of democracy: the faith and support of ordinary citizens in the political system. When political parties fail to appeal to voters through the development of party platforms or suffer from weak institutional capacities, they often turn to vote buying as a means of securing support. This in turn creates competitive election spending, driving up the cost of getting elected. As a result of high campaign costs, political parties become increasingly dependent on monied interests or, in the case of incumbents, on the abuse of state resources. Consequently, the basic underlying principles of democracy—such as one person, one vote, and government accountability—are undermined and public confidence in the political process is eroded. In some cases, already limited public funds are diverted for private gain.

Over the past several years, party financing scandals have shaken countries in every region of the world, drawing increased international attention to the problem. In response, government officials and activists have launched public awareness campaigns and introduced legislative initiatives designed to restrict spending or improve disclosure about the sources of party funding and the expenditure of campaign funds. The success of these efforts varies and typically depends on a combination of legislation, enforcement regimes, sustained political will for reform, and public pressure to demand more accountability in politics.

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