Later, oil prices were very high for a long time. This has always been favorable conditions for Venezuela, an oil-producing country. Venezuela itself even experienced a gasoline panic, which shows how bad Venezuela’s economy is.
Chavez declared to implement a socialist policy. He did the same, nationalizing the company. Lack of understanding of the specific economic policies implemented by Chavez. General socialist countries will implement a mandatory single public economy. The development of a private economy is not allowed. In addition, the socialist economy generally exercises comprehensive control over the field of circulation, does not allow the existence of private trading companies and enterprises, and implements unified state pricing of commodities. Because of the strict management of the economy, and the state-owned enterprises are not aiming at making profits, the economy has no vitality, serious waste, and low efficiency. Severe shortage has become its inevitable feature. Distribution by the government has become the most important way of commodity circulation. Currency is no longer the only voucher to obtain goods.
After Chavez came to power, the proportion of government control of social wealth has increased significantly. The concentrated use of a large amount of wealth by the government can easily lead to a lot of waste and corruption.
Therefore, Venezuela’s economy is stagnant under Chavez’s rule, and there should be a lot of waste and corruption. The final result everyone has seen: economic collapse. The reason for this result lies in the implementation of a public-owned planned economy that deprives and violates private rights. It is this kind of economic system that China implemented before reform and opening up.