Socialism is inherently a crony capitalist system. Basically a true socialist state is a uni-corporate entity. It is a monopoly (more or less) of goods and services (and most importantly force) where the cronies control the means of production. The Soviet Union for instance was basically one giant, very poorly run corporation which killed (often literally) any competitors which challenged it.
To a lesser extent we see a similar situation in Venezuela. Home to the largest petroleum reserves in the New World Venezuela should be thriving. But it is not because the state refuses to let competition and free prices do their thing. As such the country has headed into a downward spiral taking the people with it. That oil prices are collapsing doesn’t help matters.
Borrowing costs are surging as oil prices fall and a shortage of dollars makes it harder for the government to meet its citizens’ basic needs. The economy is so badly managed that per-capita gross domestic product is 2 percent below 1970 levels, the professors wrote in a column published yesterday by Project Syndicate. A decade of currency controls has made dollars scarce in the country with the world’s biggest oil reserves, causing shortages of everything from deodorant to airplane tickets.