A referendum allows citizens to directly vote on specific legislative issues or constitutional amendments, thereby impacting governance significantly. This process enhances democratic participation and provides a mechanism for public opinion to guide political decisions. Referendums can lead to changes in laws or policies, reflecting the electorate's wishes. They can also serve as a tool for political leaders to legitimize controversial issues and promote civic engagement. However, when used excessively, they can also lead to gridlock or polarization, as complex issues may be oversimplified into binary choices.