In addition to chalbersma's generic answer, I'll add that Venezuela's decision to nationalize oil production is a huge part of the problem, being ran by a government monopoly they did not have to upgrade and improve their infrastructure so it crumbled and became stagnant over time because they didn't have to compete (this happens with any program ran by the government). Instead they took the money and wasted it away in unproductive social programs to buy votes, the population became lazy and non-industrious and this coupled with corruption and heavy government interference in every market lead to a practically monoculture economy. Thus with the lowering of the oil prices this trigged the destruction of their entire economy.

This is in opposition to well-ran semi-socialist countries like Norway, where the state owns half of the oil production and the rest of is ran by the private sector, this allows for checks and balances in the way the market is ran and competition. These nortern european countries are often misrespresented as socialist paradises while in reality they are very laissez-faire when it comes to business, comparable to the US or Canada in that respect. They just have a different approach with taxes where they have very heavy taxes/redistribution to fuel a lot more social programs. This is very, very different from a real socialist system where the means of production are a lot more in the hands of the state, like Venezuela.

Note that countries like Norway and Sweden are currently losing tremendous grounds, the wealth brought by previous more capitalist system is what allowed them to socialize and have very big governments but this always leads to a decline in productivity and they've had to slash a lot of programs and they will have to continue doing so, this is the difference between well ran countries that listen to economists and shitty ones that elect a semi-dictator bus driver and let him do whatever he wants.

I'm not saying nortern european countries have the best system by the way, I'm a libertarian.