Allende's economic advisors considered nationalization as their solution to revolutionary reforms however, Pinochet considered privatization.

3.1

In this context, discuss the main economic arguments in favour of privatization over nationalisation of companies under the two different leaders in Chile. Justify which policy option one would recommend to a developing country in Africa. (15)

3.2

Critically evaluate the type of economic system under Allende and Pinochet and discuss the advantages and disadvantages of each economic system.