The concept of a referendum-based system of government is fairly simple and self-explanatory: constitutional amendments, government policies and the like are all subject to a referendum by the people. The Swiss
have implemented this system successfully for years (since 1865), and I don't see why it couldn't work in any other country, including Canada and America.
One cannot argue against a referendum government without deriding the idea of the democratic process as whole, because referendum government is the purest and most direct form of democracy. It is a system where the focus becomes the issues, not the individuals. It is system which encourages involvement with the government and politics from the citizens, and discourages apathy and conformity.
Leo Strauss and Plato both believed that a representative government is merely a thinly veiled means of maintaining an oligarchy. There are many events throughout the history of representative government, in its many forms, that one could point to as proof of this.
There is a reason the Swiss rarely get involved in war. There is a reason their health care and educational systems are among the best in the world. It is because the people decide when and where they will go to war. It is because the people decide where their tax dollars are best spent. It is because the people decide. ALL of the people.
More on Swiss History.