Financing Internal Party Races in Non-Majoritarian Political Systems: Lessons from the Israeli Experience

Five decades after the initial introduction of public funding of national campaigns, corruption is still prevalent in modern democracies. Although state subsidies are granted to political parties in the majority of elective democracies, intraparty races among candidates remain under-financed and only loosely regulated. While in majoritarian systems, especially presidential systems such as that of the United States, internal party races are conceived as part of the electoral process, not much is known about the finance of parliamentary races in mixed or PR electoral systems. Unclear regulation, lack of proper funding, and the absence of nonpartisan oversight of internal party races force candidates to seek financial support from dubious sources regardless of possible future consequences. The Israeli experience shows that if politicians find themselves in an electoral setting that places limits only on some forms of fundraising and spending that are available to challengers in the same race while leaving other forms uncontrolled, temptations to cross the lines or turn a blind eye are almost irresistible. Taking into account the realities of political competition is the first step in any future regulation of financing internal party races.