The establishment of the party was announced by Petar Gošev [mk] in April 1993 after he left the Social Democratic Union, which he had previously headed.
A founding assembly was held on 27 June, and the party had three MPs going into the 1994 elections; Gošev, Mihail Panovski and Risto Jovanov.
The elections saw the party run on a platform of lower taxes and a privatisation voucher scheme.
Despite its protestations, the DP was accused of violating a ban on campaigning in the 48 hours prior to election day by putting up posters in Kumanovo, and was subsequently fined 25,000 denars.
However, the alliance received less than 1% of the vote in both rounds and failed to win a seat.