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The Nexus of Money and Political Legitimacy: A Comparative Analysis of Democracies and Non-Democracies

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  • Venkat Ram Reddy Ganuthula
  • Krishna Kumar Balaraman

Abstract

This article examines the complex relationship between money and political legitimacy in democracies (United States, Germany, India) and nondemocracies (China, Russia), using published empirical evidence to explore how financial resources influence governance. In democracies, US campaign finance, German party funding, and Indias electoral bonds amplify elite influence, openly eroding public trust by skewing policy toward wealthy interests. In nondemocracies, Chinas state enterprise patronage and Russias oligarch suppression strengthen legitimacy, yet hide vulnerabilities revealed by anticorruption campaigns and power struggles. The analysis argues that moneys corrosive impact is widespread but varies: democracies face evident legitimacy crises, while nondemocracies conceal underlying fragility. These findings highlight the need for reforms: increased transparency in democracies and wider power bases in nondemocracies, to mitigate moneys distorting effect on political authority.

Suggested Citation

  • Venkat Ram Reddy Ganuthula & Krishna Kumar Balaraman, 2025. "The Nexus of Money and Political Legitimacy: A Comparative Analysis of Democracies and Non-Democracies," Papers 2505.09128, arXiv.org.
    • Handle: RePEc:arx:papers:2505.09128
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    4. Gurvich, Evsey & Prilepskiy, Ilya, 2015. "The impact of financial sanctions on the Russian economy," Russian Journal of Economics, Elsevier, vol. 1(4), pages 359-385.
    5. McMenamin, Iain, 2013. "If Money Talks, What Does it Say?: Corruption and Business Financing of Political Parties," OUP Catalogue, Oxford University Press, number 9780199665709, Decembrie.
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