It’s Not “Special,” It’s Socialism
Originally Posted on the Adam Smith Institute’s Blog
I still remember my childhood trips to Venezuela and long what I left behind. Caracas was a vibrant city, filled with nice restaurants, busy malls, and close to gorgeous beaches. Weekends on Venezuela’s main vacation island — Margarita — were identical to days at upscale resorts in Florida or the Carribean. It was metropolitan and very wealthy nation — not far off from some of our Western democracies.
During the period I visited — throughout the early 2000s — Chavez’s welfare reforms won him reelection and the poor, as well as Labour politicians, worshipped him. The working class flocked to his rallies and faithfully turned out to vote. Poverty rates went down and support soared, but one thing was clear — the center could not hold much longer. Not as Chavez’s nationalized industries shrank oil production and national revenue dropped.
Throughout his time as president, Chavez had some key victories for his socialist cause. For one thing, he succeeded in banning term limits on his presidency. Though not an explicitly socialist policy, it broadened his reach to promote his brand of Chavismo — a wholly socialist vision. As for the poor, Chavez indeed decreased poverty rates and raised literacy and health statistics among the poor. And he did so by…
