Advantages
It is argued that the simple existence of the initiative mechanism acts as a check on the activities of the legislature. This is because legislators are more likely to introduce certain reforms and measures if the initiative mechanism exists, because it is likely that if they do not, an initiative on the issue will be launched. One example is that US researchers have shown that US states that use the initiative process are more likely than those that do not, to have introduced governance reform policies (e.g., term limits, campaign finance controls). Another indication of this is the number of initiatives that are introduced but subsequently withdrawn in Switzerland, because the introduction of the initiative has in itself forced the legislature to address the issue. It is therefore claimed that the initiative process makes legislatures more responsive.
Disadvantages
One often cited disadvantage of citizens’ initiatives is that they result in badly drafted law, since (except in the case of indirect initiatives) the wording of the measure as initially proposed ends up as statute if the measure is passed. It is argued that the failure to use the expertise provided by government lawyers and officials who are familiar with the drafting process leads to laws that can be meaningless or ineffective, or have to be re-drafted, because the individuals or lawyers who draft the measures are not experienced in legislative drafting. Additionally, in some cases, statute created by the initiative process is found to be unconstitutional.
A further disadvantage is the sheer number and complexity of issues that voters are expected to vote on. It is argued that it is impossible for voters to make informed decisions when there are a substantial number of initiatives on the ballot. A related argument is that citizens cannot be expected to make decisions on complex issues that they, unlike elected representatives, do not have the time to learn about. A frequent criticism of citizens’ initiatives is that they are only really accessible to well-resourced organisations and interests, and that the process is therefore hijacked by special interest groups promoting their own interests. Empirical evidence about the success of well-financed interest groups is mixed: some research has suggested that money does not in fact have a major effect on the outcome of citizens’ initiatives, whilst other studies have highlighted the role of money, in particular in defeating initiatives. However, there can be no doubting the importance of professional firms in the initial stage of the initiative process, in particular in terms of signature collection.
A common criticism of citizens’ initiatives (and other forms of direct democracy) is that they enable the "tyranny of the majority." This term refers to the electoral power of majority groups in society being used to restrict or hinder the rights of unpopular minority groups. Critics argue that without the moderating influence of the legislature, legislation may be passed which actively targets the rights of groups within society which are unpopular. However, research undertaken in the US has produced different conclusions about whether initiatives do actually restrict the rights of minorities or not.
Direct Democracy via referendums