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Why make political finance transparent? Explaining the Group of States against Corruption (GRECO)’s success in reforming national political finance regulation

Published online by Cambridge University Press:  11 June 2018

Valeria Smirnova*
Affiliation:
Faculty of Management, Economics and Social Sciences, University of Cologne, Köln, Germany
*

Abstract

If transparency in political finance is part and parcel of democracy, why do some countries adopt internationally agreed standards to regulate political finance in a more transparent way, while others do not? This paper (a) suggests a theoretical framework to address this question, taking into account international obligations, existing party finance regulation, and demands for greater legitimacy of political institutions; (b) introduces a unique data set of 46 member-countries of the Group of States against Corruption (GRECO) project operated by the Council of Europe; and (c) concludes that unwillingness to pay the high domestic costs of changing national regulation is the prime impediment to compliance with transparency regulation proposed by GRECO. Right-of-centre cabinets are, on average, associated with a poorer level of compliance. Interestingly, compliance with recommendations which reduce the privileges of parliamentary parties does not deviate from the overall pattern.

Type
Research Article
Copyright
© European Consortium for Political Research 2018 

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