On Friday night, Liberal Party Deputy Leader Michael Ignatieff spoke at a dinner in Toronto held to raise money to help pay down the debt incurred during his oh-so-close run for the Liberal leadership. This line in his speech jumped out:
In 2006, we ran a national leadership campaign in the world’s second largest democracy—by geographic size—for a little over 2 million dollars, and we did it with a wider base of donors than any other candidate. What we spent over eight months, Barak Obama spends in a single day.
The campaign finance reforms initiated first by Prime Minister Jean Chrétien and then improved upon by Prime Minister Stephen Harper prove that it is possible to have a vibrant and democratic political culture, in which free speech rights are preserved, without the distorting effects of “Big Money” in the life of the state.
A Conservative cabinet minister told me over a drink late last week that he heartily concurs with these reforms: “If you were to go to Calgary and meet with the CEOs of a dozen big oil companies and you knew that each of them had given your campaign $100,000, you don't think that would make a difference? Any one who tells you it wouldn't is lying.”
An interesting thing is, that in the United States there is a donation limit. For primary campaigns the individual limit is $2,300.
For the general election, individuals may donate another $2,300 to the elections fund, and $2,300 to a compliance fund (this fund helps the campaign cover legal and accounting expenses related to complying with the electoral law)
Contributions from corporations, unions, government contractors, national banks, and foreign nationals without permanent residency status are prohibited. Once more, the law requires donators to list their employer and occupation, so it is even more transparent than in Canada where enterprising journalists have to search for corporate patterns of donations.
What really makes the money difference in the United States, is that the candidates have lists of everyone that is a registered partisan. To register as a partisan requires no fee, and is most commonly accomplished by showing your partisan affiliation on your tax form.
This enables you to vote in the primary election and gives your affiliation and contact info to the political party in question.
The value of this data in being able to generate huge amounts of donations is paramount. The data helps you fill the stadium size crowds you see in the US of A. For nominal fees, there are large data companies that take these lists, and correlate them to data on the individual voters back many cycles, so you can narrow cast direct mail to the voter on their particular issue.
Huh? More transparent than Canada? Enterprising journalists here can search all they want for “corporate patterns of donations” cuz they're banned. Period. Associations, corporations, unions — you name it — may not contribute to leadership races, local candidates, parties, nothin'. All the U.S. has is a non-resident restriction? How's that workin' out?
Well, that was true in the past, it is not true now. Corporations may not make donations. Period.
As for patterns of donations, I am pointing towards Apotex in Canada, where the executives donated personally all towards one candidate. In the USA, to find this out would not have require sleuthing, as all the corporate names would be listed next to the individuals.
On the McCain site, you must certify this statement which is there according to federal law:
(1) This contribution is made from my own funds and will not be reimbursed by any other person or entity; (2) This contribution is not made from the treasury funds of a corporation, labor union, or national bank; (3) I am a U.S. citizen or lawfully admitted permanent U.S. resident; (4) I am not personally a federal-government contractor (employees of government contractors may contribute); and (5) I agree that my contribution will be designated according to the description at the bottom of this page.
Under US law only individuals may contribute to candidates, and third parties through Political Action Committees can only advertise up to 60 days prior to election day. Effectively, the United States has similar controls on third party advertising as we do in Canada.