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It would be interesting to link this to Hayek's historical experience in the Habsburg Empire and the in democratic Austria/Vienna.

He clearly preferred the far from completely liberal Habsburg rule (but which had a kind of rule of law system) to the popular democracy of the interwar period. A democratic system that collapsed into fascism.

Erwin,

I think that experience was probably (it would have to be, right?) extremely influential on Hayek's thought in dealing with these issues.

Pete

Wasn't Pinochet the first dictator to ever voluntarily relinquish power following a plebiscite which he called asking voters to extend his rule and in which his request was defeated?

This would clearly place him in the Hayek's system #2.

If Pinochet wasn't the first to act in this way, what others have done so?

From one of the papers: "Huneeus explains that the 1988 plebiscite that Pinochet allowed to take place was intended to return him to power with a democratic stamp of approval. When the election unexpectedly went against him, Pinochet sought to havethe results altered but was prevented from doing so by senior officers in the Chilean Navy."

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