Digital Donations: A Revolutionary Step Towards Transparent Politics and Curbing Corruption in Elections

While scrolling through Facebook yesterday, my attention was caught by a post from a political candidate seeking campaign funds by sharing their bank's QR code on their wall. Seeing that post, the barrage of negative comments, and the sarcasm labeling it a 'digital begging bowl,' I felt compelled to write this piece without holding back.

Elections in Nepal appear to have transformed from a mere battle of ideas, principles, and agendas into an expensive and high-risk investment exercise. It has become so costly and extravagant that candidates with ordinary financial backgrounds dare not contest. If we account for the invisible dealings—from tea stalls to banquets in big hotels, and from flag-waving cadres to the distribution of money to buy votes—contesting an election for a typical candidate is akin to staking their entire fortune. Where does this river of millions flow from? Only by delving into this can we uncover the true face of institutionalized corruption in Nepal.

• Investment of Self-Interest is the Root of Policy Corruption

In reality, the main source of this expenditure is vested interest groups, crony capitalists, and power brokers from centers of influence. After winning elections and reaching positions of power or influence over state policies and laws by accepting donations or material support, these leaders feel obligated to repay their masters. We have seen numerous instances in the past where, under the guise of power, leaders forget public interest and manipulate laws to benefit those vested interest groups, thereby recouping their electoral investment through various contracts and other means. This very trend has deeply entrenched policy corruption in Nepal.

• Policy Corruption and the Capture of Politics

In political science, this is termed State Capture or policy corruption. In simpler terms, it is the capture of state power by vested interest groups. All the major scandals heard in Nepal so far—whether it is the grabbing of government land or various manipulations like granting tax exemptions based on influence—the root of all these lies in the very donations received during elections. Consequently, politics seems to have shifted from serving the nation to becoming a business of investing money to reap returns many times over.

However, amidst this murky political landscape, a hopeful sight has begun to emerge. As elections draw near, some candidates who believe in new thinking and alternative politics are seen openly soliciting transparent support from the general public by carrying QR codes or displaying their bank accounts and QR codes on social media. Even if some of us mock or criticize this as 'digital begging,' it can actually be viewed as a modern and revolutionary step to fundamentally change the opaque, absurd, and expensive electoral style of years past. In reality, in a democracy, how a candidate raises the necessary financial resources to contest an election profoundly influences the policy decisions they make after being elected and their overall conduct.

Therefore, collecting small donations publicly is a historic and essential step for the genuine purification of the democratic process, ensuring candidates remain independent from the financial pressure of crony capitalists or vested interest groups. Although essential measures are often not implemented in the context of Nepal, where the 'Jhole' (sycophantic) culture and blind devotion leading to unnecessary deification are more dominant than citizen culture, both before and after elections. In fact, this attempt at transformation is not just about securing finances; it can be said to be a struggle to wrest politics from the hands of investors and hand it over to the voters.

• Public Ownership and Leader Accountability

When money is concentrated in the fists of a few in politics, power also remains under their control. But this nascent practice of digital donations presents a strong possibility that the key to power will gradually shift into the hands of the public. Citizens who contribute amounts like 50, 100, 1000 rupees or any sum through digital donations are not just giving money; they are establishing their civic ownership over the candidate. Voters who contribute from their hard-earned money possess the moral courage and standing to look the candidate in the eye and ask questions tomorrow.

Successful democratic practices worldwide confirm this. In 2008, Barack Obama challenged the financial dominance of large corporate houses by raising small contributions from millions of supporters. Similarly, Donald Trump widely utilized small dollar donations and online fundraising, reshaping the traditional style of fundraising.

Young leaders like Jaurane Mamdani in New York won elections primarily relying on small donors and public matching fund systems after adopting a policy of not accepting corporate donations, which is considered an example of grassroots politics in America. In various European countries, this kind of transparent fundraising is promoted to curb the influence of rent-seeking groups (those seeking policy benefits) and eradicate corruption. In neighboring India too, the Aam Aadmi Party attempted to lay the foundation for transparent politics through digital donations in its early days.

• Digital Transparency and Control of Black Money

The greatest strength of fundraising through digital means is the clear digital footprint it creates. Since cash donations received in envelopes or bags have no official record, the risk of black money and illegal financial sources easily entering politics always remains high. However, money deposited directly into a bank account via digital means has a clear bank statement. This lays bare who gave money, how much, and when, as clearly as a mirror.

The funds collected this way do not disappear, which automatically narrows the path for policy corruption. Nevertheless, this method is considered fully successful and logical only when candidates publicly disclose a detailed account of the total funds received and their expenditures after the election. A trend where money is collected digitally but spent opaquely cannot bring about real transformation. Therefore, only the practice of making full details public will greatly help establish politics as a dignified and responsible service.

• Legal Implementation and International Image

Digital donation is not just a new experiment; it is also the effective implementation of existing laws. The Political Parties Act, 2073, and the Election Code mandate that donations exceeding 25,000 must be received through banks and must be transparent; digital means can make this fully easy and transparent. If candidates establish the practice of publicly sharing their bank statements of collected funds, it will provide significant technical support to the Election Commission in verifying candidates' expenditure details and maintaining financial transparency. This will help make the Commission's regulatory role more objective and transparent. Nepal is also a signatory to the United Nations Convention against Corruption. Therefore, soliciting donations publicly and making every single transaction clear is also the practical implementation of our international commitment.

• Arrival of New Leadership and Ease of Entry

Elections have become so expensive and unnatural that politics has turned into a club for the wealthy, where the bitter reality is that middle-class and honest youths are forced to step aside, lacking the courage to contest for leadership. In such a situation, small contributions from the public through digital donations can gradually weaken the syndicate of wealth power prevailing in politics.

This could create an environment where qualified and visionary individuals no longer have to drop out of the race for leadership simply because they lack money. In reality, only when politics runs on the small support of the people, rather than the strength of money, will genuine leaders who understand the suffering of society rise to leadership, marking the beginning of change. However, the Election Commission and the central bank must maintain strict vigilance to prevent risks such as foreign funding or money laundering that may arise in this process. If the identity of donors and the limits on amounts are managed systematically, this system appears set to become a milestone for the political purification of Nepal.

• Challenges of Digital Donations and Security Concerns

As promising as this practice of digital donation is, its security challenges are equally serious. To make it a reliable system, and not just a technical application, attention must be paid to a few fundamental aspects:

The first main challenge is source identification. When small amounts come from many sources, it can be difficult to ascertain the real origin. In some cases, there is a risk of money laundering by sending large amounts of illegal funds, or black money, through many mobile numbers or digital wallets in small installments. The second challenge is the lack of monitoring. Our Election Commission currently lacks both the technical capacity and the skilled manpower to track such digital transactions in real-time. In such a situation, the possibility of foreign influence through the misuse of technology cannot be ruled out.

The most important aspect is transparency and accountability. If a candidate raises donations but fails to publicly disclose the official audit and expenditure details after the election, this could usher in a new kind of financial malpractice in politics. Therefore, for this system to succeed, candidates must show the honesty to publish their bank statements themselves, and state bodies must develop technology-friendly monitoring mechanisms.

• Respect for Public Support and the Path to Good Governance

Those who label digital support as begging are perhaps overlooking the terrifying aspect of invisible transactions in politics, where asking for support openly from the public and promising to work for them is morally and honorably superior to secretly accepting crores from someone's pocket and jeopardizing the nation's future. When a candidate raises campaign funds through small contributions from their voters and well-wishers, they are not compelled to do any undue favors for any vested interest group later on. Funds collected this way save the candidate from being held hostage by patrons, middlemen, and brokers, ensuring they remain an independent, self-respecting representative who never compromises the interests of their people and remains perpetually indebted and accountable to the public mandate.