Special Interest Trade-Offs: Campaign Finance Reforms and Religious Influence in Politics in Brazil

A growing literature examines campaign finance in developing countries and the impact of reforms to reduce the influence of economic interests in electoral politics. We argue that these reforms can increase the electoral value of other organized actors—those with access to cost-effective mobilizational resources, a local presence, and the ability to coordinate these assets—ultimately benefiting parties aligned with them. We test this argument in Brazil through an analysis of Republicanos, a major Evangelical party supported by the Universal Church of the Kingdom of God. Exploiting variation from a municipal-level reform that imposed stricter campaign spending limits, we show that the reform increased both the electoral entry and success of Republicanos. These findings highlight the political tradeoffs inherent in campaign finance reform: While reducing the sway of economic interests, such reforms may simultaneously empower other influential organizations.