Selectorate Theory and the relationship between Capitalism & socialism
... the reason why Venenzuela turned the way it did was BECAUSE it had oil. it's called the resource curse. Fledgling dictatorships like to use faux and idealistic notions of democracy & socialism to appease their population while they systematically take their rights away. they use the money from oil to pay the military & police to brutally suppress the slightest hint of rebellion. This is all explained in detail in the book "the dictator's handbook: why bad behavior is almost always good politics", it's a good read. CGP grey made a summary video called "the rules for rulers" . Leaders that don't have natural resources like oil, gold, natural gas, etc., will not have the revenue to forcefully keep themselves in power. Their only option for revenue that is left is for them to rely on taxation. since capitalism is a more effective method at revenue production, it is a better option for fledgling democracies. However this doesn't mean that ...