The role of political party financing in political competition: The case of Turkey

In modern democratic societies, political parties serve as institutions of both preserving the sustainability of the system and holding the different kinds of masses on a common stage by representing diverse demands. In order to endure as political institutions, parties need substantial financial supports. Traditionally, treasuries? financial aids, private donations and membership payments are the major pecuniary sources of political parties. While treasury?s supports can be seen in the records of both the state and the parties, there is a possibility that a certain amount of private donations could stem from the untraceable sources. Naturally, the information on these kinds of incomes, if there is any, is not shared with the public opinion. This position can be accepted as a sign of the opaqueness of political parties in terms of their incomes and expenditures. Therefore, financing the political parties is seen as a crucial problem to be solved both in Turkey and the rest of the World.The aim of this thesis is to spot the beginning points of the party financing issue, the effectiveness of legal monetary sources in political process, and the determination of covered revenues in the system and analyze the relationship between finance methods and the popular support of the political parties. Solution suggestions are also developed in our study by questionnaires, interviews, and econometric analyses.Key Words: Politics, Democracy, Political Party, Finance, Transparency.