Game over: looking back at two decades of campaign financing by the private sector in Brazil

Abstract

After two decades of elections under the influence of corporations financing campaigns Brazil has banned the private sector from making donations to party organizations and candidates running for political office. Several political players had their share in a reform that culminated in two key decisions in September 2015. The Constitutional Court (STF) has ruled the current legislation allowing corporate donations violates the basic principles of equality guaranteed by the Constitution. The same month a new law was approved by Congress and signed by the President making several changes in the rules for campaign finance, including a ban on donations by companies. All signs indicate Brazil is making a big change in the model of financing politics. Companies have been responsible for 3 out of 4 Real spent in election campaigns in the past. However it is still unclear how political competition in the new era without corporate money will look like. This article looks back at the last two decades, discusses the dynamic of the reform in 2015 and makes an informed guess on the impact of the new rules on parties and elections in Brazil.