Prout (an acronym for Progressive Utilisation Theory) is a social and economic system first proposed by the eminent Indian philosopher, Shrii Prabhat Ranjan Sarkar (1921-1990). It is arguably the only socio-economic theory to emerge out of the third world that has direct applicability to the developed world.
The primary goal of Prout is to build healthy communities which, like living systems, need to be nurtured and cultivated. An economic system cannot be divorced from the people, the community and the bioregion in which it is embedded. Therefore Prout opposes the neo-liberal agenda of deregulation, privatisation and free trade. These policies bleed wealth from local communities and the already impoverished ‘third world’ into a comparatively few centres of global economic dominance.
Prout advocates a constitutional guarantee that all persons have the right to obtain their minimum requirements of life, in particular food, education, health care, clothing and housing. After that, surplus wealth can be distributed as determined by the community values of the day. Prout also promotes a system of cooperative community budgets to determine the shares of annual aggregate income going to households, government and business.
Per capita GDP is a defective measure of economic progress. It counts every new nuclear missile, tourist casino and cigarette sale as positive growth – as contributing to prosperity. It ignores tremendous disparities in wealth between rich and poor.
Prout recognises that human beings are not just Homo economicus. We have intellectual, emotional, cultural, social and spiritual needs in addition to the economically obvious physical needs. To satisfy these needs requires the management of many kinds of 'subtle' capital in addition to physical and financial capital. Satisfying these diverse needs underlies our productive activity and our community life. A healthy community with a healthy economy requires …
Economic democracy in Prout is achieved through 1. economic decentralisation; 2. a cooperative based economy; and 3. a significant voice for women in economic planning and decision making. Local communities can solve local economic problems more easily because they are closer to the source of the problem and by definition the problems are on a smaller scale. Economic decentralisation also decentralises population and so contributes to sustainable population centres.
Shrii P. R. Sarkar argues for five principles of economic decentralisation:
Prout advocates a monetary system managed by a central bank run as a public utility with numerous cooperative banks providing ordinary people with their banking needs.
Prout supports the development of a balanced economy, in which the agricultural sector, agro- and agrico-industries, manufacturing and the service sectors all develop in balanced proportion. The agricultural and manufacturing sectors of so-called developed countries are being decimated by free trade. This is a worrying trend.
A cooperative economy will encourage a large not-for-profit sector which contributes to the accumulation of social capital. It would also recognise the productive role played by mothers and carers not employed within the formal economy.
In the long term, Prout envisages the establishment of a system of tiered communities from the local to the global level. The lowest level would be the block, a bioregion having about 100,000 inhabitants. At the global level, a world government is essential to solve pressing problems such as global warming and human rights abuses. However a world government cannot be imposed from the top. When local communities around the world have economic security, they will naturally see the advantages of a world administration. Prout promotes the concept of political centralisation and economic decentralisation. This approach can make globalisation work for all .
According to Prout, societies transform themselves through dialectical struggle. The existing order (the thesis) in decay is gradually or rapidly replaced by progressive ideas (the antithesis). The antithesis to capitalism is already emerging. Civil society including community, women’s, workers, indigenous, artists and green organisations all over the world are setting the agenda where large business corporations and governments have failed .
An important lesson learned by political and social activists in recent decades, and arising in particular from women’s experience of social struggle, is that social change requires personal change. Outer change must be accompanied by inner change. Keeping this in mind, Prout encourages three kinds of personal transformation:
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"In economic life there is extreme inequality and exploitation. Although colonialism no longer exists openly in the political and economic sphere, still it persists indirectly, and this should not be tolerated... In this respect you should remember that in economic life, we will have to guarantee the minimum requirements of life to one and all... There cannot be any sort of adjustment as far as this point is concerned. The minimum purchasing requirement must be guaranteed to all. Today these fundamental essentialities are not being guaranteed. Rather, people are being guided by deceptive economic ideas like outdated Marxism, which has proven ineffective in practical life and has not been successfully implemented in any corner of the world. Why do people still believe in such a theory, which has never been proved successful? The time has come for people to make a proper assessment of whether they are being misguided or not." |
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"Human beings have still not been able to form a human society, and have still not learned to move with the spirit of a pilgrim. Although many small groups, motivated by self-interest, work together in particular situations, not even a small fraction of their work is done with a broader social motive. By strict definition, shall we have to declare that each small family unit is a society in itself? If going ahead in mutual adjustment only out of narrow self-interest or momentary self-seeking is called society, then in such a society, no provision can be made for the disabled, the diseased or the helpless, because in most cases nobody can benefit from them in any way... in that case there always remains the possibility of some people getting isolated from the collective. All human beings must attach themselves to others by the common bond of love and march forward hand in hand; then only will I proclaim it a society." |