Pros and Cons of Referendum as a Decision Mechanism - Essay Example

Advantages and disadvantages of referendum as a decision Mechanism Introduction Referendum refers a vote where the entire populations participate in an electoral process to pass or reject a particular policy. Whereby, electorates may be given the rights to participate in a direct democracy and exercise their democratic rights as defined in the constitution (Lader and Lader, 2006). Citizens may exercise their democratic rights by accept or rejecting a particular legislation that has been proposed by their parliamentarians. This means that when majority number of electorates accepts a particular policy it becomes a law in such a situation, new constitution may be establish and this may allows democracy to prevail. The two common types of referendum include; obligatory and facultative referendums. Obligatory referendum emerges when electorate’s votes have the right and responsibility to vote for a particular policy as may be defined by the constitution (Dovi, 2011). The outcomes of electorate’s votes in a referendum are legally binding. On the other hand, facultative referendum involves a vote by certain groups such as parliamentarians, electorates, executives and electorates. Normally, facultative referendum may be carried out in order to make amendments in some sections of the constitution. Facultative referendum may be carried out if certain provisions within a constitution require some amendment (Local Direct Democracy in Europe, 2011). Whereby, citizens might be required to give their opinion by participating in a referendum. In above connection, the outcome of a referendum represents the voice of majority because all citizens participate collectively in a decision making process (Republic of Moldova, 1999). However, the outcomes of a referendum may not always represent a true voice of the electorates because of some political influence before and during the referendum. Whereby, some politicians ay influence electorate’s decisions by manipulating them to accept or reject a particular legislation for their own personal gains (Tierney, 2012). Normally, politicians act as agents while the electorates/ citizens act like the principal. Therefore, the agents have the obligation to act at the best interest of their principle in order to ensure that there is proper agency relationship. This means that conflict of interest may occur when politicians tend to pursue their own personal interest at the expense of their citizens. For instance, politicians may pass those bills that suit their needs at the expense of the electorates (Schiller, 2011). In above connection, referendum may be involved in organization decision making where shareholders should be consulted by directors prior any major amendments are made in the company. In such a situation, director’s act as agents while on the other hand, shareholders act as the principals (Douma and Schreuder, 2008). Therefore, management team should consult owners of the company/ electorates prior enforcing any constitutional amendment in an organization. This gives shareholders/ electorates an opportunity to participate in a referendum to exercise their right defined in a constitution (Schiller.2011). Therefore, this study aims to investigate the advantages and disadvantages of a referendum in as a decision mechanism to solve the principal agent problem in political representation. Advantages of the referendum as a decision mechanism to solve the principal agent problem in political representation The advantages of a referendum are numerous especially to the participants because referendum helps to solve agency problem that may be established by the political representatives acting on behalf of the entire population (Tierney, 2012). Theories have been put forth to explain the nature of agency relationship. The two common agency theories include; positive agency theory and principle agent’s theory. Positive agency theory had put forth the effects of contracts to nature of participants’ behavior. Additionally, positive theory does not incorporate mathematical models to explain this concept. On the contrary, principle agent theory explains how a reward structure can be established in an organization and therefore, mathematical models are incorporated in this concept. The two theories provide fundamental basis of analyzing and understanding the advantages and disadvantages of a referendum. Therefore, among the benefits of referendum include; it provides electorates with an opportunity to participate in an electoral process by empowering them to enforce policies that suit their needs (Tierney, 2012). This helps towards eliminate agency problems that could occurred if the mandate of making policy was on the left the hands of a few political representatives. In above connection, referendum promotes democratic process by ensuring that the entire population in a particular country participates in policy making process. This helps to solve principle agent’s problems because it denies constituency representative an opportunity of enforcing their own political agendas at the expense of those people they represent (Great Britain and Great Britain, 2010). In addition, referendum out comes tend top be more accurate and legitimate as compared to decisions arrived by political representatives. This is because citizens take into account each and every issue that may affect their future lives and therefore, referendum outcomes represent the actual voice of citizens rather than the voice of political representatives (Tierney, 2012). This helps to eliminates illegitimate decisions that could have been made by minority representatives if referendum was not in place. Additionally, referendum promotes a feeling of self responsibility among the electorates because entire population feels accountable to implement policies that they have made rather than policies made by political representatives. This is because the entire population feels that they own the policies. Additionally, referendum eliminates political misrepresentation because the outcomes of a referendum represent the preference of majority citizens (Tierney, 2012). Therefore, more accurate decisions may be made because citizens take their time to analyze each proposed issue prior accepting or rejecting it. Connectively, most of the decisions made by political representatives may be vogue and inaccurate because most of the parliamentarians lack adequate time to take into consideration all issues prior any implementations are made. This means that having a referendum in place such problems may not occur because citizens tend to be more careful on decisions they make unlike their political representatives. Additionally, referendum provides a way for addressing social problems that could not have been addressed by political representatives (Bosco, Joseph and Harvey 1999) Disadvantages of referendum as a decision mechanism to solve the principal agent problem in political representation However despite having numerous advantages, referendum has some disadvantages. Among those disadvantages include: Lack of expert experience among the citizens on matters pertaining democracy may result to inaccurate judgment on democratic policy issue (Shapiro, 2009). This is because information asymmetry exist between the electorates and there political representatives. Additionally, some political representatives tend to have more expert knowledge than their fellow members. This may causes information asymmetry among political representatives and therefore the more informed political representatives may convince their fellow representative to implement a particular policy that might favor their constituencies at the expense of other constituencies. In above connection, referendum provides citizens with two definite choices (YES or NO). This tends to deny citizens opportunity of evaluating issues more comprehensively to understand the possible results for any decision made (Great Britain and Great Britain, 2010). Referendums tend to overlook on minority on the rights and interest of minority groups this is because referendum is based on majority policy especially in a state that has been dominated by tribal and ethnic politics. This means that tribes with majority electorates may implement issues that favor the interest of their community groups at the expense of minority groups. Connectively, the interest of majority groups may be hijacked by well informed minority representatives who may persuade the electorates to vote a policy that may not favors citizens in other constituencies (Local Referendums, 1998). Referendum tends to limit the powers of political representatives by giving electorates the powers of making policy via a referendum. Additionally, referendum resuls comes might be illegitimate and inaccurate because executives have powers of determining the time when democracy will be held. This in turn may cause manipulation of some majority groups and this may cause policies that favor some few minority representatives to win in a referendum. Additionally, conducting a referendum is a tedious process that not only consumes time but also consumes financial resources that could have been used to promote economic growth. This is because the entire population must be consulted before making any legislation (Great Britain and Great Britain, 2010). In above connection referendum incorporate some element of risk because of different opinions held by electorates in different constituencies/ municipalities. This may cause may cause serious problems especially during planning and projects execution (Local Referendums, 1998). Summary/Conclusion Referendum entails active participation of electorates in passing or rejecting a particular policy. Whereby, when such policy has been accepted by the electorates it becomes a law and this may result to a new constitution within a country or in an organization. Two types of referendum have been discussed as well as theories referendum to conceptualize the advantages and disadvantages of a referendum as a decision mechanism in solving the principal agent problem in political representation. Among the advantages include; referendum empowers citizens to make their own policies rather than relying on their political representatives who may tend to make decisions that are based on their own personal interest, referendum outcomes tend to be more accurate rather than decisions made by the political representatives among other advantages as discussed. On the contrary, the study as put forth disadvantages of a referendum such as it lack of expert experience among the electorates may make them enforce policies that may affect their lives negatively. Additionally, referendum tends to over look on the rights of minority groups because it is based on the principle of majority. The study has further put forth more disadvantages as discussed. Reference List Bosco, Joseph, and Harvey J. Feldman (1991). Constitutional Reform and the Future of the Republic of China. Armonk, NY u.a: Sharpe. Douma, S. W., and Schreuder, H. (2008). Economic approaches to organizations. Harlow: Financial Times Prentice Hall. Dovi, Suzanne. (2011 Oct, 17) "Political Representation", The Stanford Encyclopedia of Philosophy (winter 2011 Edition), Edward N.Zalta (ed.).Retrieved: http on 17th April 2013. Lader, C., and Lader, C. (2006). How to prepare for the AP, advanced placement exam: U.S. government & politics. Hauppauge, N.Y: Barrons. Local Referendums (1998). Report; Prepared for the 10th Conference of European Ministers Responsible for Local Government, the Hague, 15-16 September 1993. Strasbourg: Council of Europe. Local Direct Democracy in Europe (2011). Wiesbaden: VS Verlag für Sozialwissenschaften, 2011. Internet resource. Great Britain and Great Britain. (2010). Referendums in the United Kingdom: 12th report of session 2009-10: report with evidence. London: Stationery Office. Republic of Moldova. (1999): Local Elections: May 23, 1999. Chisinău, Schiller. Theo (2011). Local Direct Democracy in Europe. Wiesbaden: VS Verlag für Sozialwissenschaften, 2011. Internet resource. Shapiro, I. (2009). Political representation. Cambridge, UK: Cambridge University Press. Tierney, S. (2012). Constitutional Referendums The Theory and Practice of Republican Deliberation. Oxford, OUP Oxford. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=1132297. Read More