Pay to play
Definition
An arrangement where a business or individual makes political contributions to an official or party to win, or keep, a government contract, license, or appointment, whether or not an explicit quid pro quo can be proven.
Why it matters
Pay-to-play corrupts government purchasing by rewarding political generosity rather than the best price or service, and it is hard to prosecute because the contribution and the contract award are rarely linked by a written agreement. Most reforms instead ban or limit contributions from anyone doing or seeking government business.
Seen in the wild
The SEC's Rule 206(4)-5, adopted in 2010 after cases of investment advisers securing state pension-fund business through campaign contributions, imposes a two-year "time-out" barring an adviser from being paid to manage government money after contributing to an official who can influence the pension's advisor selection.1