In the course of the 20th century, Venezuela went from being one of the poorest countries in Latin America to becoming the richest. In 1970, it ranked among the 20 richest countries in the world with a higher per-capita GDP than Spain, Greece and Israel, and only 13 percent lower than the UK.

Venezuela’s reversal of economic fortune started in the 1970s. From 1974 onwards, labor market regulations were tightened to a level that was unprecedented almost anywhere else in the world – let alone Latin America. Increasing state interference in the economy and massive over-regulation led to the situation in the once rich country constantly deteriorating.

But the example of Venezuela shows that when the economic situation worsens, voters may well opt for a supposed solution that makes their situation much worse. Many Venezuelans put their faith in the charismatic socialist leader Hugo Chávez as the savior who would deliver their country from corruption, poverty and economic decline.

Chávez, who was elected president in 1998, had plenty of admirers among left-wing intellectuals and parties in Western countries. Jeremy Corbyn, leader of the British Labour Party from 2015 to 2020, praised Chávez, as........

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