errr, i think this has been tried before -- like Italy beginning in the 1920s and Germany in the 1930s. in each case, a socialist party decided it could be more effective by modifying the typical nationalization of industry and allowing a bit more decentralization and profit to non-state owned companies, all the while maintaining control of the industry by regulations and oversight boards...
i think it is called fascism.
it is not by accident or coincidence that fidel castro's role model and hero when he was a university student was -- benito mussolini
You are right, of course. Chavez' mentor was Norberto Ceresole, who was openly fascist, had no use for democratic niceties, thought the idea of democracy was juvenile.
The Latin American version or translation to this type of authoritarian rule is called caudillismo. The caudillo or strong man that exploits its people's fear of liberty - it's easier to let somebody guide them than to be free and think for themselves.