This idea came to me while I was thinking of alternative ways that politics and constitutions could evolve. Basically, the executive would be chosen by non-democratic means -- a hereditary monarchy, or an elective (by a subset of the population, a la Venice or Poland) monarchy, or something similar. It also wouldn't have a group of elected representatives with authority to pass laws. Instead, any new laws would require a national referendum to pass.
A law is a complex thing. Who compiles and edits the proposals for the referendum? Who makes the decision to submit proposals to referendum?
There would probably also need to be a mechanism whereby any proposal which can gather a certain number of signatures has to be put to a referendum, to stop the executive just stonewalling popular ideas indefinitely by refusing to put them up for a vote.
Why "need"? Stonewalling could very well be the goal, not a bug.
My question is, how would government and politics function in such a state? Since it would be harder to pass laws, there would probably be fewer of them, which frankly might not be a bad thing. Would party politics exist in a recognisable form? And what sort of country would be produced?
Referendums have been a known option since late 18th century.
Avoiding parliamentary scrutiny by sticking to existing laws, keeping taxes low and constant and therefore arguing that the executive has the sufficient mandate is a tactics used at least since 16th century. Using alternative and less troublesome options to legitimize new laws and taxes is also a known tactic. For example, Spain got rid of Cortes in 17th century by negotiating with the cities represented in the Cortes separately.
Napoleon I held 4 referenda (Ist in February 1800 established Consulate and, effectively, abolished elections for good. On official results, 46% turnout, 0,06% against. IInd, May 1802, made Bonaparte First Consul for life, 50% turnout, 0,24% against. IIIrd, June 1804, made him Emperor, about 50% turnout, 0,07% against. IVth, April 1815, allowed elections, 22% turnout, 0,33% against). Napoleon III held 3 referenda (Ist, 18 days after violent coup making him dictator, approved the coup with 82% turnout, 5% against. IInd, 11 months later, made him emperor with 80% turnout, 3% against. IIIrd, May 1870, approved liberal reforms with 81% turnout, 17% against).
But Napoleon I did pass a lot of laws between his referenda. They were made by Tribunat and Corps Legislatif... which were not elected by people. There were elections... as far as the national list. Which was about 6000 men. Then...
Of the Conservative Senate.
20. It chooses from this list the legislators, the tribunes, the consuls, the judges of cassation, and the commissioners of accounts.
The Legislative Body and Tribunat were thus not elected by people - if opponents of Napoleon got elected in National List, that gave them no functions, and with 6000 people in National List and just 400 members between Tribunat and Legislative Body, the Senate did not need to appoint opposition members. Well, as long as 400 government supporters remained in the 6000 of national list.