The electoral system plays a crucial role in the development of a country's party system. Systems like first-past-the-post typically favor a two-party system, as smaller parties struggle to gain representation. Conversely, proportional representation encourages multiple parties to thrive, as seats correlate closely with the percentage of votes received. The system influences party behavior, policy positions, and voter engagement. For instance, a multi-party system can motivate coalition-building, while a dominant two-party system may lead to political polarization, where the two major parties increasingly cater to their respective bases, often neglecting moderate constituents.