Managing Conflict of Interest - Organisation for Economic Co ...

Tracking corruption in the USA: Politics andelection financingLarry MakinsonFormer Executive Director, Center for Responsive Politics, United StatesOverview of Campaign Financing and US ElectionsIn the United States (US), all federal elections are financedentirely from private contributions, except the presidential election.Candidates receive only a small proportion of campaign funds frompolitical parties and must raise the rest themselves from individualdonors and political action committees, or draw on their own personalwealth. US elections are expensive, and getting more expensiveevery year. Thus, every member of Congress faces a potentialconflict of interest simply by running for public office and raising thefunds it takes to conduct a campaign. For the US House of Representatives,which requires two-year terms, the average incumbentspent USD1.3 million in 2006 to win reelection. Newcomers whowon spent an average of USD1.8 million. In the US Senate, whichrequires six-year terms, costs vary widely, depending on the size ofthe state and the level of competition. The top 10 campaigns costUSD15 million or more on the average. Topping the charts, HillaryClinton spent USD34 million on her most recent senatorial bid, whilethe most expensive campaign in US history was waged in 2000 byJon Corzine, a Democrat from New Jersey, at a cost of USD63 million,most of which came from his own personal wealth.In contrast, presidential primaries and general elections arefinanced—at least partially—by public funds. The money comesfrom a voluntary “USD3 checkoff” on federal income tax returns. Inthe primaries, candidates can receive a maximum of about USD16million in matching funds. However, if they accept these funds, theymust limit their total fund raising to USD40 million. In the generalelection, another USD75 million in federal funds is awarded to themajor party candidates—but if they take it, they may no longeraccept private contributions and can spend only USD50,000 in personalfunds.In 2000, George W. Bush declined the federal matching fundsin the presidential primaries, raising the money privately instead.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific