Venezuela’s collapse did not happen overnight. It was the result of decades of policy choices that concentrated power in the state, weakened institutions and replaced competence with loyalty.
In this episode of SA Explained, Francis Herd and Aakash Bramdeo trace how nationalisation, political patronage and corruption hollowed out Venezuela’s economy. Industries that once functioned efficiently deteriorated as political connections replaced technical expertise. Hyperinflation followed, and millions of ordinary Venezuelans were forced to leave in search of survival.
The discussion draws clear parallels with South Africa’s own debates around state ownership, cadre deployment and economic ideology. While South Africa has not followed Venezuela’s path wholesale, warning signs are visible where institutions are politicised and accountability is diluted.
Importantly, the episode also acknowledges what South Africa has done right. Inflation targeting, an independent judiciary and a robust constitution have acted as safeguards against deeper economic collapse. These protections have prevented the worst outcomes seen in Venezuela and elsewhere.
The lesson is not ideological purity. It is institutional strength. Economies fail when power becomes unaccountable, when competence is secondary to loyalty, and when the state enriches a few at the expense of the many.
Venezuela shows what happens when those guardrails disappear. South Africa’s challenge is ensuring they never do.