Referendums can enhance democratic processes by allowing citizens to vote directly on specific issues, providing a mechanism for public involvement and legitimacy. They can empower voters to decide contentious matters, such as constitutional amendments or policy changes, thereby enhancing political engagement. However, referendums can also hinder democracy if used manipulatively, as they may oversimplify complex political issues or be influenced by misinformation. The outcomes can lead to polarized opinions and significant political division. Ultimately, the effectiveness of referendums in advancing democracy depends on the context in which they are implemented and the public's informed decision-making.