Citizen participation is generally considered crucial to ensuring that policies effectively address public needs. But there is a long-running debate over how far such participation should go. This article focuses on one of the most far-reaching forms of citizen participation in public policy making– direct legislation– and asks to what extent it can bring about good governance outcomes in the political, economic and social spheres. Focusing on the case of Switzerland, where direct legislation is established and frequent, the article draws on existing studies to discuss long-term impacts of citizen participation in public policy-making. The evidence shows that, in the Swiss case, direct legislation contributed to consensual politics, a favourable environment for economic development, as well as high citizen satisfaction. The conclusion discusses to what extent these findings generalise beyond the Swiss case.