In order to have a multi-party system, more than one political party must participate in elections and play a role in government.
A multi-party system allows for opposition to the party, which wins the election. This helps provide the government with different viewpoints on issues.
Additionally, a multiparty system provides voters with a choice of candidates, parties and policies to vote for.
Historically, when a country only has one party, the result has been a dictatorship.
Source: Principles of Democracy - a list of thirteen principles.
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