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An analysis of the operation of the party system in Chile in recent years is presented with an outline of the evolution of the electoral system & concluded with the implications of the operation of that electoral system for policy development within Chile's democracy. Chile's 5 major political parties can be connected to class based electoral support--in the mining districts & the industrial areas of the larger cities for the Communist Party; support from the Wc for the Socialists; Uc support for the National Party; primarily Mc support for the 2 parties at the political center of Chilean politics, the Christian Democrats & the Radicals. Landmarks in legislation governing Chile's electoral system came in 1925, with the institution of the d'Hont system with its joint list characteristic; in 1948 with the outlawing of the Communist Party; in 1949 with women's suffrage; in 1958 with the reinstatement of the Communist Party. The record of Chilean democracy has both equalitarian & elitist aspects. It is equalitarian in that the procedural norms of democracy are carefully observed, but the links betweeen the citizenry & the policy-making process through the political party system are weak. The electoral system with its alternating presidential congressional elections weakens the effectiveness of the president elected because he usally has to deal with a Congress elected under policies differing from his own. Therefore, the overall pattern of Chilean politics makes it difficult to develop policies to deal with important probelms, particulary where longer-term policy consistency is needed. Characteristics of Chilean democracy that have been obstacles to political reforms are the complexity of political structures, diverse powers of a large bureaucracy & of Congress to check a president, the persistency of the multiparty system, & elitist bias. 2 Tables, 2 Figures. S. Coler.