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Why political donations are vital for democracy

By Graham Young - posted Thursday, 18 September 2014


As anyone who has donated to a church, surf club, charity or community organisation knows, Australians routinely give sometimes quite large sums altruistically.

Why should donors to political parties be any different?

Some fear the rich are getting influence they shouldn't, but while money can buy you a certain amount of attention, the people who get the most influence are those who donate their time and intellect to the cause.

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$10,000 might buy you a seat at dinner next to the prime minister for two hours, but careful social grooming over decades can buy you instant access, even at midnight.

Influence comes from a variety of sources. It can be social or family ties, access to the media, celebrity, perceived importance because of wealth, or geographical proximity, like living next door.

Most influence comes with a cost, it's just that the time poor, and the less influential, meet that cost through dollars and cents.

In any group larger than two that influence will be unevenly shared. That is just a fact of life – it can't be excluded from our democratic practice. And in fact democracy is all about how we regularise the exercise of influence and resolve its conflicts. Influence is what democracy is about.

Proponents of fundraising restrictions most often come from the left. They fear the right has better access to corporate donations.

This may be true, but not necessarily a handicap.

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Barack Obama showed corporates didn't matter that much raising $1.1 billion in 2012 mostly from small donors at an average of $65.89 per donation.

There are also many more third party campaigners on the left from trade unions through NGOs to community organisations.

So having corporate support isn't that important.

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An edited version of this article was published in the Australian Financial Review.



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About the Author

Graham Young is chief editor and the publisher of On Line Opinion. He is executive director of the Australian Institute for Progress, an Australian think tank based in Brisbane, and the publisher of On Line Opinion.

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