How is Venezuela a socialist economy and Norway isn't?

[Alfred001]

Venezuela, whose economy is in shambles, is often quoted as an example of a socialist economy and of the unworkability of socialism, however, from what I understand, the country DOES allow private enterprise, it's just that the state controls the commanding heights of the economy, the utilities and the big oil reserves.

However, from what I understand, the same is true in Norway, which I think is doing quite well.

On the other hand the Index of Economic Freedom has Norway as the 23rd freest economy, while Venezuela is beating out only North Korea.

So what's the difference between these two?

PS

Here's an article on the Norwegian economy if anyone's interested:

https://www.economist.com/news/special-report/21570842-oil-makes-norway-different-rest-region-only-up-point-rich

Edited March 13, 2018 by Alfred001

[Enthalpy]

Private enterprises do exist in Venezuela. Some differences are qualitative, others quantitative:

- The Venezuelan government announced that it wanted a socialist economy, and renamed many organisations accordingly.
- The country exports only oil, which is fully controlled by the armed forces and the government.
- Access to foreign currencies, import, export... are fully controlled by the gov.
- Something (I ignore what) prevents the Venezuelan economic actors from taking initiative and filling the needs of the country. Everyone would want meat, but to breed rabbits it needs a governmental initiative.

An other difference with Norway is the extent of corruption. Mean reports can be read about that. Experience tells this is not linked with socialism, but does put an economy down quite efficiently.

Edited April 14, 2018 by Enthalpy