Money plays an important role in electoral processes in all countries. Without money, it is difficult for political parties in most countries to reach out to and inform citizens about their manifestos or to motivate people to register and get out to vote. 

Money only becomes problematic when costs for nomination fees and campaigning are high or escalating (which limits participation to wealthier individuals and organizations), when access to campaign financing by marginalized groups (including women, youth, persons with disabilities) is disproportionally difficult due to cultural and social barriers, when there are no legal frameworks or mechanisms in place to control donations and expenditures of political parties and candidates, and when corruption is infiltrating political parties. In these cases, money creates an uneven playing field and electoral process. 

Recognizing that political activities often require (considerable) financing, many countries have introduced state subsidies to level the playing field and encourage political pluralism. Earmarking state subsidies for specific activities and/or target groups is not new and has been used in several countries to promote the representation of underrepresented groups in political institutions. A small number of countries, including Ireland and Kenya, have drafted legislation requiring parties to use part of their funding to increase youth political representation. To ensure political parties respect regulations on the use of state subsidies, it is important to have mechanisms in place to (a) verify expenditures and activities implemented by political parties and (b) financially sanction those parties that do not comply with the regulations. 

In Kenya, according to Article 26.1 of the Political Parties Act 2011, at least 30 per cent of direct public funding provided should be used for “promoting the representation in Parliament and in the county assemblies of women, persons with disabilities, youth, ethnic and other minorities and marginalized communities.”[i] 

In Ireland, in accordance with Section 18 of the Electoral Act, 1997 (as amended), “The funding received is also deemed to include provision in respect of expenditure by qualified parties in relation to the promotion of participation by women and young persons in political activity. Public funding cannot be applied to, or be used to recoup, election or referendum expenses.”[ii] 

The political sphere in most countries continues to be dominated by wealthy and powerful individuals and groups. High and often escalating costs often limit opportunities for young people with relatively less influence or financial means, regardless of how eager they are to run for office. Proper regulations for donations and campaign expenditures should be put in place to ensure that young people from all segments in society (women, indigenous peoples, minorities, etc.) have access to funding for electoral campaigns. Otherwise, power and access remain concentrated among those from wealthy backgrounds and/or established political families. 

Weak legislation in terms of donations and spending of political parties is only one of several potential obstacles. In some countries, state and government resources are systematically used during campaign periods for the advantage of incumbents. It goes without saying that this weakens the position of opposition candidates and young people who are not associated with incumbent governments or candidates. 

Despite strong political finance regulations, many countries lack mechanisms to enforce legislation by collecting, scrutinizing, and disclosing financial reports and to address violations. In the absence of mechanisms to investigate political parties’ donations and expenditures and hold political parties accountable, it is unlikely that political parties will be penalized for not complying with the rules. Yet despite this rather obvious correlation, about 25 per cent of the countries for which data was available during research for a 2012 report lacked regulations obliging any agency to examine financial reports or to investigate potential political finance violations.[iii]