Financing democracy in Japan: The allocation and consequences of government subsidies to political parties

In 1994, the Japanese Diet implemented a system of public assistance for political parties which many hoped would encourage party-centred rather than candidate-centred campaigns. This study examines some of the consequences of this system for party organizations and politicians. Using data culled from official subsidy and campaign finance reports, two empirical questions are addressed: first, how has the advent of the subsidy affected the funds available to national party organizations and to individual politicians? Second, what are the factors that shape the allocation of the subsidy from national party organizations to party branches? It is argued that the subsidy has made it easier for party organizations to access funds but that the amounts of subsidies received by individual politicians are generally too small to alleviate much of their fund-raising pressures. In addition, party leaders have allocated the subsidy largely by following a principle of equality.