Incentives Under Socialism and Capitalism ("Socialism Kills")
Regarding oil production in Venezuela, where the state owns the facilities:
While no system of economic organisation will be immune to getting the incentives and deterrents wrong (see Macondo), socialist systems are particularly bad at it, as is reflected in a long, ignoble list of terrible events. Operations in socialist economies are especially compromised by competing priorities made explicit to Operations staff by politicized management. In capitalist economies, organisations thrive by producing benefits for a diverse group of stakeholders. If an Operations person sees a corroded flange and intervenes to shut down production and make the situation safe, they can expect to be recognised and rewarded by private organisations in a capitalist system. In contrast, in socialist economies, there is a single stakeholder – the state – and the incentives are mal-adjusted by highly politicized filters. If the same worker, with the same expertise, is in the same situation with a corroded flange in a socialist economy, they will need to very carefully think whether they will be rewarded for intervening or punished for sabotaging production for the people.
All emphasis mine. (I think this is the first time I've quoted from an article *comment*.) Via Socialism Kills, Venezuela Edition | Via Meadia.