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In Blow to Big Money, Brazil Bans Corporate Donations to Parties, Election Campaigns

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http://thewire.in/2015/09/21/in-blo...onations-to-parties-election-campaigns-11187/

Sao Paulo: To kick out Big Money from politics is a tough job. Only a few countries have managed to curb corporate interference in politics and policy making. But now Brazil, an emerging economy like India, has banned corporate funding of all political campaigns – from municipal to federal elections. In a landmark judgment on Thursday, the Brazilian Supreme Court declared null and void the article of the Elections Act which allowed corporate donations to political parties and candidates. In an 8-3 verdict, the Supreme Court said that such donations were “unconstitutional” because “it is for citizens to elect their government, not the companies”.

Amid a corruption scandal that has shaken the country’s political class, the highest court has sent a clear message to the country: business houses have no right to participate in the electoral process. As of today, big corporations are the biggest campaign financiers in this country. In the last general elections in 2014, almost 95% of donations for election campaigns came from big companies. The rest came from individual donors.

With this verdict, the Brazilian law which allowed corporations to donate up to 2% of their gross revenue each year to political parties and candidates has now been consigned to the dustbin. Though individuals can still make donations, it has to be done under legislative oversight. The ban is likely to come into force next year when Brazil holds municipal elections.

Though the verdict was not unanimous, the judges were scathing in their criticism of the role money plays in politics. Making a case for curbing donations to election campaigns, Justice Celso de Mello said the “Constitution does not tolerate the abuse of economic power.” Another judge, Justice Carmen Lucia who also voted against the continuation of private funding, said because of corporate donations the candidates end up “representing the interests of companies and not that of citizens”. Defending the political process as per the country’s Constitution, Justice Rosa Weber said the “influence of economic power turns the elections into a political game of marked cards, which makes the voter a puppet.”

The judgment has come as a shocker to some of Brazil’s opposition parties with close ties to big corporations. Not surprisingly, it has stunned some of the country’s leading politicians and business groups into silence.
 
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