"Prior to the long peace, there’s little question what happens to a country like Venezuela, which is essentially a giant pile of barely guarded wealth: one – or several – of its neighbors would move in, oust the government and seize the territory and its valuable resources (oil, in this case)."

While I don't advocate war and violence, I can't help think that such a hostile takeover of a poorly run country by another better run country can be perceived as creative destruction in capitalism. War is too costly now reassuringly, but the incentive of leaders to keep the country strong, economically as well as militarily, is much less. The fear of being wiped out by a neighbor may have kept leaders in check. Now that fear is gone, and nothing has replaced it yet. The optimist in me hopes that states abandon the pretense of being above markets. The fear we desire in those who run states, the fear that we hope will keep them in check, will be that of losing paying customers, their citizens, to other competitive jurisdictions.