What is socialism and how it turned Venezuela into a living hell under Nicholas Maduro

Socialism is an ideology where the state or community owns the means of production instead of private individuals. It aims for equitable distribution of wealth but often involves heavy central planning.

Under the "Bolivarian Revolution," the government nationalised over 1,000 firms across the oil, agriculture, and banking sectors. This shift crushed private investment and led to a sharp drop in domestic production.

Despite holding 17 per cent of global oil reserves, Venezuela’s output plummeted from 3.5 million barrels per day to around 1.1 million. Mismanagement and lack of investment turned the petro-state into a decaying economy.

To fund deficits, the central bank printed massive amounts of currency. Annual inflation peaked at an estimated 130,060 per cent in 2018 (official) with some analysts citing even higher rates. While the country technically exited hyperinflation in 2022, inflation remains the highest in the world.

Strict price controls meant private factories could not profit, leading to severe shortages of food and medicine. Citizens were often forced to stand in lines for hours to buy basic goods like flour or milk.

In what was once a prosperous nation, over 80 per cent of Venezuelans now live in poverty. UN reports indicate that 53 per cent are in extreme poverty, unable to afford basic daily nutrition.

The economic collapse has left roughly 7.6 million people in need of urgent humanitarian assistance. One in four individuals in the country requires help with food, health services, or protection.

Driven by hunger and lack of rights, approximately 7.7 million people have fled Venezuela since 2014. This represents one of the largest displacement crises in the history of the Western Hemisphere.