Direct democracy is significant in contemporary politics as it enhances citizen engagement by allowing individuals to participate directly in decision-making processes. Mechanisms like referendums and initiatives enable voters to influence laws and policies, ensuring their voices are heard. This form of governance promotes accountability and responsiveness among elected officials, as citizens can challenge or support specific measures. However, while it empowers individuals, direct democracy can also raise concerns about the potential for populism and the quality of decisions made without representative deliberation.