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Section 7. Political institutes, processes and technologies
DOI: http://dx.doi.org/10.20534/EJLPS-17-1-40-42
Stashuk Galyna, Vasyl Stus Donetsk National University Department of Political Science, Phd student E-mail: [email protected]
Public Financing of Political Parties: Introduction in Ukrainian and Polish Experience
Abstract: The methods of financing of political parties implemented in Poland and Ukraine have been considered in the article. The common and different characteristics of financing political parties' activities in these countries have been analyzed. Besides, the author has focused on the investigation of all advantages and positive effects from the implementation of anti-corruption measures in Ukraine, the results of which would enhance financial transparency and accountability and responsibility of the politicians.
Keywords: public financing, political party, political corruption, transparency, accountability.
Political parties have always been one of the core Let us begin with the characteristics of financing subjects of investigation in political science, because political parties implemented in the Polish legislature.
party as an association of active citizenship is an intermediary between the population and public authorities in democratic countries. In Ukraine, as a country that is still under a huge transformation process, it is extremely important to promote the development of one of the main political institutions — political parties, and secure its development in not quantitative, but qualitative aspects. Due to the fact, that Ukraine and the countries of Central and Eastern Europe, one of which is Poland, have largely similar political past (processes), the experience of successful implementation of the democracy establishments in the EU countries is highly important for Ukraine to learn and borrow the EU positive experiences.
Therefore, the purpose of this article is to define, compare and characterize common and different features in the funding of parties in Poland and Ukraine. Moreover, it is aimed to review the forms of public funding of political parties which have been introduced in Ukraine.
The requirement for transparency of financing of political activities is clearly defined in the Constitution of the Republic ofPoland accepted in 1997. In addition, a separate section titled "Finances and Financing of Political Parties" defining the possible sources of the financing and the main mechanisms of controlling, has been singled out in the Law from June 27, 1997. The modern system of financing political parties in Poland has been functioning since 2001. Incomes and expenses ofthe parties has been regulated by the Law "On Elections to the Sejm and Senate of the Republic of Poland" from April 12, 2001 and the Law "On the Political Parties" from 1997 with some extensive innovation added in 2001 [1].
Subventions from the state budget have been determined as the main source of financing political parties. For receiving state financing are eligible the parties, which received leastwise 3% of all valid votes at the national elections to the Sejm, and at least 6% in a case of the coalition. It is worth noting that not only the parliamentary parties are eligible to receive
Public Financing of Political Parties: Introduction in Ukrainian and Polish Experience
the state financing, as the threshold for the Sejm in Poland is fixed at 5% for the political parties and 8% for the electoral blocs. However, other ways offinanc-ing are significantly limited. The parties have been completely forbidden to receive financing from other legal entities, and a limit on the amount of membership fees, donations and inheritance from individuals has been set. The maximum annual amount of donations from individuals to a party's election fund cannot exceed 15 minimum salaries [2].
The system of budget financing of the political parties in Poland slightly varied in 2002-2003, but this primarily concerned the size of state donations. Due to the economic crisis in the country, the amount of state financing from the budget was reduced for two years [1].
An important point in the process of regulation of political parties' financing is supervision and control over incomes and expenses from the parties' budget. The system of control over financing political parties can be divided into two levels. The first one, of formal character, is carried out by specially created agencies. This primarily is the National Electoral Commission, the Supreme Chamber of Control, the Central Anticorruption Bureau and the Public Procurement Office [2]. The parties that received state financing are obliged to submit an annual report about the use of funds to the National Electoral Commission, which successively deals with authentication of the received data. It is worth noting that the reports must be published at the web-site of the National Electoral Commission for ensuring transparency [3].
Informal monitoring is executed mostly by nongovernment organizations. The most known of them are the Institute of Public Affairs and the Stefan Ba-tory Foundation. The present system of financing political parties in Poland has existed since 2001. Although it is not perfect, still it quite efficiently struggles with the disclosures of political corruption in the country [2].
The budgetary financing of political parties and the limitation of contributions in support of the parties by individuals and legal entities was introduced in Ukraine in 2016.
On October 8, 2015, the Supreme Rada (Parliament) of Ukraine passed the Law of Ukraine "On
Amendments to Certain Legislative Acts of Ukraine on Preventing and Counteracting Political Corruption" [4]. Primarily the Law was passed for creating conditions for the beginning of state financing of political parties, the consequence of which would be the change of priorities in the parties' functioning. They would work for the voters and at the expense of the voters.
Two variants of direct financing of the statutory and electoral activities of the parties have been introduced in Ukraine. Let us consider them in detail.
The budgetary financing of the parties that overcame the 5% threshold was started in July 2016. Such financing will be continued till the next parliamentary elections under the condition of strict and proper financial reporting of those political parties [4].
After the next parliamentary elections to the Supreme Rada, the provision on financing the statutory activities of all the political parties which have overcome the 2% electoral threshold will be enforced [4]. Furthermore, a party will be eligible for reimbursement of the expenses related to financing their electoral campaign during the elections of the people's deputies of Ukraine, if at the last regular or extraordinary elections such a party participated in the distribution of the seats.
This means that after the upcoming parliamentary elections to the Supreme Rada, in Ukraine as in Poland, not only the parliamentary parties will be financed, but also those which have overcome the established minimum amount of electoral votes.
Ukraine has set a limit for receiving financing from legal entities by political parties, but this financing is not completely prohibited as it is in Poland. The established limit in Ukraine for funding a political party by legal entities cannot exceed the amount of eight hundred minimum salaries, nor exceed the amount of four hundred minimum salaries from the individuals [4].
In accordance with the European, including Polish, experience, a mandatory public reporting ofpolit-ical parties about its property, incomes, expenses and financial liabilities on the official web-site of the National Anticorruption Agency has been introduced.
The combination ofthese two requirements significantly complicates the shadow financing by one person or institution in substantial amounts, since all incomes
of the political party will be monitored and the financial capacity ofthe persons or institutions executing the contributions to the political parties will be audited.
Analysis of the financial reports is carried out by the Central Electoral Commission and the National Anticorruption Agency. The quality functioning adjustment of the latter institution as the main controlling authority has just been started.
The legislature of Ukraine, likewise Poland, on public state financing of political parties and control over incomes and expenses from their budget meets most standards known in the legislatures of European countries and the recommendations of GRECO [5]. Nevertheless, the Ukrainian legislature requires completion in the provisions on financing the electoral campaign. Besides, the expected positive impact of the innovations primarily depends on particularly developed and implemented mechanisms of accountability and responsibility, and the efficiency in the work of the regulatory authorities.
Under the condition of full implementation of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Preventing and Counteracting Political Corruption" from October 8, 2015, positive impacts in the sphere of overcoming political corruption could be expected, namely:
- reducing the process of lobbying business interests;
- increasing transparency and control over the financial activities of politicians and political parties;
- creating the conditions for more equal electoral campaign;
- increasing the level of responsibility and punishment for failure in complying with the legislature.
One of the possible negative consequences of the state public financing of the statutory activities and electoral campaigns of political parties is support of the maj or political parties which previously received seats in the Parliament.
References:
1. Janusz Zawadzki System finansowania partii w Polsce - praktyka i kierunki rozwoju. Available at: URL:
http://www.ue.katowice.pl/fileadmin/_migrated/content_ uploads/20_J. Zawadzki_System_finan-
sowania_partii_politycznych... pdf
2. Finansowanie partii politycznych w Polsce - czy i jakie zmiany? Jaroslaw Zbierane. Available at: http://www.batory.org.pl/upload/files/Programy% 20operacyjne/PolicyPaper_Finansowanie%20 partii.pdf
3. Subwencje z budzetu panstwa dla partii politycznych. Jawnosc i kontrola. Red. J. Zbieranek. ISP, -Warszawa - 2008.
4. Zakon Ukrainu 'Pro vnesennya zmin do deyakyh zakonodavchyh aktiv Ukrainu shhodo zapobigannya i protydiji politychnij korupciji' vid 08 zhovtnya - 2015 r.//Vidomosti Verhovnoji Rady Ukrainu. - 2015.
5. Jevropejskyj dosvid derzhavnogo finansuvannya politychnyh partij: vysnovky dlya Ukrainy//Anali-tychna zapyska. Available at: http://old.niss.gov.ua/monitor/juni08/9.htm (accessed 15 March 2016)
