Venezuela was the richest country in Latin America before they voted in socialism. Argentina was one of the 10 richest countries in the world in 1900 before they went down the same path. Even Chile voted in Communism in the early 1970s until Augusto Pinochet and the military saved them from themselves.
Argentina and Chile had permanent underclasses and vast wealth concentrated among comparatively few people which is is a repetitive story among South American and Central American countries. US poverty today would have been considered middle class wealth by comparison.
Have not studied Venezuela prior to Chavez so I won’t comment.