Political party finance is one of the key factors in efforts to enhance internal party democratisation. Whilst money alone is not enough, it is through funding that political parties can function in accordance with their primary role as intermediary actors linking the state with its citizens within a democratic political system. Generally speaking, there are three sources of funding for political parties: membership fees, donations, and state subsidies, more commonly known as political party financial assistance (banpol). These three sources of funding have varying degrees of influence on internal party democracy.
Membership fees are a source of funding drawn from the personal funds of members, officials, and even members who hold seats in executive or legislative representative bodies. Membership fees play a significant role in ensuring that the party’s ‘ownership’ or sovereignty remains in the hands of its members. In this regard, members’ active participation in every party decision-making process is given the highest priority. For example, in carrying out its political recruitment functions, a political party will provide opportunities for member participation, such as conventions or primary elections, to determine who the party will nominate in the general election. This ensures that the aspect of internal party democratisation within the political recruitment process is upheld.
Read more in the book
‘Digital-Based Financial Management of Political Parties (E-Banpol) for Accountability and Transparency’
