The evolution of party systems impacts governance by shaping political stability, representation, and policy-making. Changing party dynamics, such as the emergence of third parties, can disrupt traditional voting patterns and influence legislative agendas. A multi-party system, for instance, may encourage coalitions, fostering collaboration and compromise but potentially leading to fragmentation and indecision. Conversely, a dominant-party system can lead to streamlined governance yet risks stagnation and lack of representation for minority views. Ultimately, the structure of party systems critically influences how political power is exercised and the responsiveness of governance to citizens' needs.