Difference between Referendum and Plebiscite

The basic difference between referendum and plebiscite is that one is binding and other is not. Referendum and Plebiscite are two sides of the same coin. At times are used interchangeably, hence creates confusion between the two. 

Lets look at image below :

Both are part of Direct Democracy

Democracy which is rule by the people is broadly of two types :

1. Representative form of democracy

2. Direct form of democracy

It is the direct form of democracy which houses both referendum and plebiscite. Its here where people actively participate in legislative process and even territorial disputes (right to self determination). Need less to say such tools only give more say in a democracy. However, such tools also have some limitations.

Limitations :

In case of referendum, take for example, Brexit, 51.9 % were those who favored for exit of Britain from European Union. This means 48.1 % were those who were in favor of Britain remaining part of EU. This means even a small margin can over ride it. This makes the whole process quantitative process rather than a qualitative one. As will of the people stand divided here. (52 % in favour and 48% against) 

Minorities will suffer, In a democracy will of majority prevails. Its a numbers game. In both referendum and plebiscite Impact of majority will be more than that of minority. 

Outcome of referendum or plebiscite may not be rational or logical outcome. Often masses opinion can be evoked by arousing sentiment or emotions which may have vested interest of leaders or politicians. Rationalism gets ignored.

People can be manipulated or bribed by leaders to favour an outcome that helps them secure their goals. Generally, well informed and well educated people are relatively harder to manipulate.

If a leader has will of the majority (possibly) any arbitrary law can be passed and made to impose on the state and its people. Even if others disapprove of it they have no option but to abide to it.

To conclude,

Difference between referendum and plebiscite is bit in the grey region. But remember referendum is used for enactment purpose while plebiscite is used for eliciting public opinion.