Is Venezuela a 'Failed State' Because of Socialism?

Probably the reason why you're asking this question is that to most people not in Venezuela, the causes of the crisis are not clear and that's understandable. For you to understand why socialism is at fault, I will have to tell you the whole story. I hope you don’t mind. I'll do my best to explain everything clearly, though I must warn you, I cannot remain unbiased.

Chávez and the Early Stages of Socialism

Let's travel to the year 1999. This is the year when Hugo Rafael Chávez Frías, the man who truly engraved socialism in the fabric of Venezuelan society, was elected president. Before this election, he spent two years in prison after a failed coup, which isn't surprising considering he had been a part of the 422nd Paratrooper Battalion from the Venezuelan Armed Forces, now National Bolivarian Armed Forces. Despite his educational background, Chávez is described as incredibly stupid, but he had a silver tongue that charmed people easily.

Chávez's presidency lasted until his death in 2013. However, it would be a mistake to blame him for the failures that followed. During his tenure, Venezuela was still swimming in the profits of its oil sales, practically eliminating the possibility of economic hardship. It's important to understand that this prosperity gave the illusion that everything was well under Chávez's rule, which was far from the truth. Any idiot can remain in power with practically unlimited money, but a real leader thinks long-term and diversifies the economy to prepare for tougher times. Chávez failed to do this.

Restrictive Economic Policies and Socialism

During this time, Chávez introduced many restrictive economic policies that foreshadowed what was coming. He deeply rooted socialist ideas in the lower classes and portrayed himself as a god, an image that his supporters still hold today. He also politicized the entire armed forces, not only by establishing a culture of worship to "the Revolution" but by putting people loyal to him in positions of power and giving the military benefits and incentives to remain loyal to him. He did the same with all government institutions. This politicization laid the groundwork for the chaos that would follow.

The Seizure of Companies and the Company Massacre

Media organizations began facing a brutal assault under Chávez's successor, Nicolás Maduro. Maduro finished what Chávez had started by running the entire country into the ground. Between the two, over 400 companies were seized, marking the "company massacre." This relentless war on private industry had the goal of seizing and regulating virtually everything. Makro, a nationally famous supermarket chain, was pummeled into the government-owned Bicentenario Agroislea. Agropatria is now in shambles. RCTV, a nationally famous radio station, was seized when it started to criticize the government, even though Chávez claimed RCTV had collaborated in broadcasting a failed 2002 coup attempt, without plausible evidence or a trial.

Government Corruption and Economic Deterioration

The government was already unstable before Chávez's death. My mom had stories of opposition and pro-government protesters clashing on the streets around 2010. Things started to deteriorate in 2012, mainly due to the fall in oil prices and Venezuela's economic dependence on oil. The opposition grew larger, and government repression became increasingly severe.

Maduro's policies led to widespread government corruption, a reduction in foreign investment to abysmal levels, and enormous increases in crime. The quality of the government companies that provided basic services like electricity and water plummeted to the point where they were barely functioning. All of this was exacerbated by the devastating fall of oil prices, combined with the fact that PDVSA, the national oil company, was in shambles after decades of mismanagement.

The Failure of Socialism

Now that you have a clearer picture of the events, let's discuss why socialism is at fault. Socialism requires leaders to instill in poor people the idea that their problems aren't their fault but the fault of the rich. The goal is to seize the means of production and collectivize them. This is what true socialism looks like, and it has failed every time it has been implemented historically. Socialism fails because it regulates what inherently cannot be regulated: the amount of work people do in a society.

For a country to succeed, the free market must follow its course, but not completely unchecked. A controlled environment where both the lower and higher ends of the economic spectrum are avoided is necessary. That's how you build a country. In the case of Venezuela, these principles were ignored, leading to catastrophic results.