To say Venezuela was the "envy of Latin America" is an exaggeration. It is a country that has vast oil wealth and little of anything else. It's poorer classes have historically been neglected despite all this wealth, for one it hasn't even achieved full literacy. Historically and in the present as well, there have been other Latin American countries that were and are considerably wealthier and much more developed, particularly those in the Southern Cone.

That being said, what has happened in Venezuela is an unmitigated disaster. The country has squandered the golden opportunity of a decade of record high oil prices and revenue that could have been used to diversify its economy, invest in infrastructure and education and shore up its fiscal position with a sovereign wealth fund... instead all this money has fallen into a black hole of corruption and patronage. Thanks @adsactly for your thoughtful post, it a great insight!!!