Business model of politics

My friend Ajay has an interesting series of articles on the state of Karnataka Politics. As I read them I wonder that probably the core of the problem is because the business model is such - spend a lot of money to get to power and once you get to power you loot the public to get the money back. US solves this problem by ensuring candidates directly raise money through donations or contributions. Other way to solve this problem is by giving promises like free power - but every political party can do it and the one which doesnt is a loser - classic prisoners dilemma problem. Another option India is considering is to let the central government allocate funds to parties to fight elections - dont know how far this will go but does seem to be an interesting idea!