You miss my point here entirely. Poor third-world countries often have weak central governments, frequent internal violence and unrest, and lack of regulation, including of business, as well as lack of modern infrastructure and lack of a strong education system. I cited Somalia, but you could consider other sub-Saharan African countries, the wealthiest of which, South Africa, still has poverty on a staggering scale, and of course the war-torn Middle East. Most of those countries do have flourishing free enterprise, but it flourishes in a vacuum of proper governmental support and control. A brutal war lord is a classic free enterprise entrepreneur, but not a desirable one.
You go on about my suspect sources for my "top ten" lists, but all such lists, much as they are loved here, are inherently suspect, based as they must be on arbitrary criteria. I cite them here in good part ironically, yet those who respond almost always rise to the bait and never question the wisdom of relying on such things. Here, the standard of living list obviously has more legitimacy than the most socialist countries list, but it makes little sense to complain about the source of either.
But you really reveal yourself with your comment that of the countries on that list, only China is socialist. Your definition of socialist, whatever it is as you don't give it, is as arbitrary as any other. Lists like this nearly always focus on the gross size of the government sector in the economy, and perhaps, for the more sophisticated efforts, income and capital gains tax rates, government social welfare spending, and even the degree of regulatory control over industries that are not fully nationalized. I could have cited data from a more legitimate source than a financial news blog, but it almost certainly wouldn't have been titled "the world's most socialist countries".
But however you define "socialist", the countries with the proportionally largest government sectors, most extensive regulation of private business and legal system generally, highest taxes, and most social welfare spending are often the ones with the highest standard of living. I knew that before I looked at any online top ten lists, and just picked the first two such lists I found regardless of source or legitimacy, which nevertheless predictably supported my point.
You could argue that those countries have those things because their strong private economies make them possible and affordable, and that would be a much better argument than the one you try to make. But it works both ways. Those countries have and maintain over the long term strong private economies because they also have strong public sectors, good infrastructure and education and social welfare systems, and strong legal and regulatory systems to prevent commercial and financial as well as actual raping, looting and pillaging.
You don't have to try to teach me about the efficacy of private free enterprise. China, your shining example of socialism, has plenty of it these days and a rapidly growing economy. Perhaps some day they will look to Canada, Sweden, Netherlands, New Zealand et al. for guidance on improving their standard of living.