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

Implementation and Enforcement Tools 135campaign contributors in Washington—an astounding fact when youconsider that Microsoft is a relatively new player on the political scene.Before 1998, the company and its employees gave virtually nothingin terms of political contributions. However, when the Department ofJustice launched an antitrust investigation into the company’s marketingof its popular Windows software, things changed. The companyopened a Washington-based lobbying office, established a politicalaction committee, and soon became one of the most generous politicalcontributors in the country. The move eventually galvanized anentire industry, as computer and Internet companies quickly movedto emulate Microsoft’s political savvy.However, Congress has recently approved ethics and lobbyingreform legislation to increase disclosure and significantly curb specialinterests’ lobbying activities, especially gifts, organized charityevents, and recreational travel. The new legislation requires federallobbyists to disclose political contributions and public officialsto declare earmarking during the appropriations process. Thesereforms also prohibit public officials from accepting free admissionat events held by charities that retain lobbyists and requires thateligible charities—not individuals or other organizations—providereimbursement for transportation and lodging.Conclusions: Democracy or “Dollarocracy”?The data suggest that there is a more than casual link betweencampaign dollars and public officials’ voting records. Special- interestgroups monitor voting records and make contributions accordingly,and public officials court special interests to remain in office. In short,money follows power, and power can be sustained only by moremoney. It is a vicious circle. Such institutional corruption can be moredangerous than individual corruption—even when no laws are broken.While transparency is absolutely essential and recent legislativereforms indicate progress, significant change in election financingand the business of policy making and appropriations is still required.Independent government agencies are needed to monitor electionsand enforce the laws. Civil society and nongovernment organizationsare needed to analyze contribution data and political voting recordsand appropriations. And a vigilant free press is critical to deliver thefacts—and their implications—to the public. If any of those ingredientsare lacking, you may not have the democracy you think you do.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific