The first edition of the Indian Democracy at Work Series, a conference themed ‘Money Power in Politics’, took place on the 9th and 10th January 2020, organized jointly by the Foundation for Democratic Reforms, Bharati Institute of Public Policy (ISB) and University of Hyderabad at the ISB campus, Hyderabad.

The conference explored the rising significance of money in politics, with an eminent speaker panel representing stakeholders from political parties, civil society, academia as well as the media. Some of the prominent speakers included Shri M. Venkaiah Naidu (Honourable Vice-President of India), Shri Ram Madhav (National General Secretary, BJP), Shri Asaduddin Owaisi (Member of Parliament, President, AIMIM), Justice Shri Jasti Chelameswar (Former Judge, Supreme Court) and Shri. Amit Varma (Writer, Journalist and Podcaster). 

The event covered the following major themes: 

1. Party maintenance – Political parties allocate a substantial sum of money to maintain their machinery. Frequently, Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) become involved in overseeing service delivery and the day-to-day operations of local governments. Despite the passage of 28 years since the enactment of the 73rd and 74th constitutional amendments, local governments have not received sufficient autonomy, with most programs remaining under centralized control. During the session on ‘Service Delivery and Decentralisation to Reduce Party Maintenance Costs’, the speakers eloquently discussed the expenses associated with party maintenance and shared their perspectives on how improving service delivery and decentralization could help reduce these costs. The Chair concluded the session by emphasizing that true decentralization is key to breaking the influence of money and political muscle in democratic politics.
2. Political Campaign expenditure  – The sessions on ‘Illegitimate Expenditure in Indian Politics and Ways to Curb It’ and ‘Electoral Reforms to Combat Illegitimate Expenditure’ primarily focused on the major contributor to political spending, the practice of buying votes. In a Parliamentary Executive system, the allure of legislative positions becomes particularly attractive in an economically developing country with dysfunctional governance, exposing ample opportunity for rent-seeking, corruption and misuse of position. Consequently, the issue of vote buying has become widespread amidst increasing desperation to attain power. During the session, different political approaches were discussed, such as the managerial approach which involves competition for power in the political sphere, and the value-based approach which emphasizes constitutional values and bridging societal divides. It was acknowledged that merely enacting new laws and relying on the Election Commission can only accomplish so much. The real challenge lies in creating a political environment that welcomes honest, competent, and public-spirited citizens and promotes their ascent through ethical and rational means. Unlike Western democracies, which evolved over centuries, India is pressed for time. The key objectives are to disincentivize corrupt practices in politics, decentralize power, and enhance transparency in political funding. The sessions also concentrated on practical electoral reforms aimed at curbing illegitimate spending often taking place in different stages of the electoral process. Various methods of forming a government such as Proportional Representation were discussed as potential ways to change incentives and combat the excessive spending by political parties and their members. The session underscored the importance of a clear separation of powers, and one notable proposal was the direct election of Chief Ministers and Mayors. The First-Past-The-Post (FPTP) electoral system received widespread criticism from all the speakers due to its significant shortcomings.
3. Illegitimate vote-buying – The session centered on the investigation titled ‘Evidence of Vote Buying in India and a Comparative Analysis with Other Nations.’ With rising levels of expenditure in politics, particularly related to vote buying, there is a growing need to fully comprehend its extent and develop strategies to combat it. The primary focus of the session was on evaluating the effectiveness of vote buying and exploring potential approaches to liberate the nation from the grip of this systemic corruption. The panelists delivered comprehensive presentations that delved deeply into the issue within the Indian context. These presentations included thorough examinations of the various methods employed to influence voters and secure their support. The session involved an assessment of multiple facets of the diverse studies carried out by the panelists.

The Hyderabad Declaration 2020 marked the culmination of the Conference discussions, which recognised the need for:

• A concerted public awareness campaign about deleterious effects of money power in politics.
• Legal regulation of internal democracy in parties and transparency in political funding.
• Empowered local governments with accountability enabling voters to perceive the link between vote and public good.
• Open conversation about alternative electoral models – Direct Election of the executive and Proportional Representation system.

Overall, the conference served as a platform for open discussion of contemporary Indian challenges, not only critiquing distortions in the current system but also proposing solutions and building consensus for social outcomes.