Progressive utilization theory

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Progressive utilization theory or PROUT is a socio-economic theory first mentioned in 1959 and fully outlined in 1962 by Indian philosopher and spiritual leader Prabhat Ranjan Sarkar (1921–1990). PROUT is a social system that claims to overcome the limitations of both capitalism and communism.^[1] Among other things, progressive utilization would optimize the use of natural, industrial and human resources, based on cooperative coordination on a wide basis, ranging from local communities to larger regions and nations, and between the people of diverse geographical areas.

PROUT seeks the welfare and happiness of all. The theory is not concerned solely with economics but encompasses the whole of individual and collective existence - physical, educational, social, political, mental, cultural and spiritual - not just for human beings but for all beings.

Five fundamental principles

The founder of PROUT, P.R. Sarkar, summarized PROUT in sixteen numbered samskrta aphorisms (see Chapter 5 of Ananda Sutram). The last five of those aphorisms are commonly referred to as the "Five Fundamental Principles of PROUT". These principles are a hierarchical set of social guideline for Law, Economics, Development, Administration, and Change. The five aphorisms translate into English as follows:

1. There should be no accumulation of wealth without the permission of society.
2. There should be maximum utilization and rational distribution of the crude, subtle, and causal resources.
3. There should be maximum utilization of the physical, mental, and spiritual potentialities of the individual and collective beings.
4. There should be a well-balanced adjustment among the crude, subtle, and causal utilizations.
5. Utilizations vary in accordance with time, space, and form; the utilizations should be progressive.

Cooperatives

Prout’s three-tiered economic structure consists of government-owned key industries (oil industries, wind farms, etc.), worker-owned cooperatives, and privately owned enterprises. Of these three, the cooperative structure—industrial, consumer, agricultural and credit—forms the core feature of the Prout economy.^[2]

Sarkar considers cooperatives the best economic structure for human society,^[3] arguing that if individuality dominates human life, it will "adversely affect the environment, the welfare of different groups and even the continued existence of humanity".^[4]

The Prout cooperative system is based on the principle of coordinated cooperation, where free human beings with equal rights and mutual respect work together for the welfare of all. In a system of subordinated cooperation, on the other hand, people work individually or collectively but are under other peoples’ supervision. According to Sarkar, true coordinated cooperation does not exist in the present capitalist or communist systems.^[5]

According to Sarkar, cooperatives will succeed if they have ethical leadership, strong management, and the people’s whole-hearted acceptance of the cooperative system. Moreover, members must have similar interests, share a common economic structure, and demand similar necessities. Lastly, cooperatives need ready access to suppliers and markets for their goods and services.^[6]

Minimum necessities promised

Prout acknowledges that people have certain needs that must be met in order for them to grow physically, mentally, and spiritually. A Proutist society would seek to meet these needs by ensuring that everyone is working in a way that will meet their basic needs, rather than through hand outs or a trickle-down methodology. If the government of a Proutist region guaranteed 100% employment, and accompanied this with a minimum wage that realistically provided enough funds for the purchase of a suggested minimum amount of each basic necessity, then everyone would be able to purchase their basic necessities. Prout does allow for welfare checks to be distributed to those who are truly unable to work.

Limits to accumulation

Prout believes in providing incentive to provide sufficient motivation to accomplish more. However, Prout also believes there should be a limit to the amount that may be accumulated over time, or earned within a fiscal year.

Block level planning

In a PROUTist system, regions known as blocks would be defined in order to make every region economically self reliant. These blocks would be identified based on common socio-economic situations, raw material availability, geographic conveniences, meteorological tendencies, cultural traits, languages, and other common uniting factors. Districts within these blocks would further group together local practices and availabilities.

The businesses of a Proutist economy would be government run energy facilities, many worker-owned businesses, and occasional micro credits and small businesses.

See also

• Amra Bangalee
• Economic democracy
• Law of Social Cycle
• Single-party state

References

Bibliography

• Batra, Ravi, Progressive Utilization Theory: Prout - An Economic Solution to Poverty in The Third World, Manila: Ananda Marga Publications, 1989.
• Dickstein, Carla. "Prout Worker Cooperatives," Prout Globe, http://www.proutglobe.org/2011/05/the-prout-worker-cooperatives/ 1999.
• Dyer, Bruce. "Why Cooperatives: The New Zealand Context," PROUT Globe, http://www.proutglobe.org/2011/05/why-cooperatives-the-new-zealand-context/ 2000.
• Feldman, Jonathan, Michael, et al. ed., "From Community Economic Development and Ethnic Entrepreneurship to Economic Democracy: The Cooperative Alternative," Umea, Sweden, Partnership for Multiethnic Inclusion: 2002.
• Friedman, Mark L. "Toward an Optimal Level of Income Inequality," PROUT Globe, http://www.proutglobe.org/2011/05/toward-an-optimum-level-of-income-inequality-i/ 2001.
• Inayatullah, Sohail, "Situating Sarkar: Tantra, Macrohistory, and Alternative Futures," Maleny, Australia: Gurukula Press, 1999.
• Inayatullah, Sohail and Fitzgerald, Jennifer, Transcending Boundaries: Prabhat Rainjan Sarkar's Theories of Individual and Social Transformation, Queensland: Gurukula Press, 1999.
• Korten, David C. The Post-Corporate World: Life After Capitalism, San Francisco: Berrett-Koehler Publications, 1999.
• Krtashivananda, Acarya Avt., "Democracy in Practice," PROUT Globe, http://www.proutglobe.org/2011/05/democracy-in-practice/
• Krtashivananda, Acarya Avt., "Individual Liberty and Collective Interest," PROUT Globe, http://www.proutglobe.org/prout/foundations/2011/05/individual-liberty-and-collective-interest/
• Krtashivananda, Acarya Avt. Prout Manifesto, Copenhagen: Proutist Universal Publications, 1988.
• Krtashivananda, Acarya Avt. "The Historical Need for Prout," PROUT Globe, http://www.proutglobe.org/2011/06/the-historical-need-for-prout/
• Kumar, Jayanta, ed., "New Aspects of PROUT," Calcutta: Proutist Universal Publications, 1987.
• Lokesh, M.B. "Prout: And The End of Capitalism and Communism." Proutist Universal Publications. Torino, Italy. 1990.
• Maheshvarananda, Dada, After Capitalism: Prout's Vision for a New World, Wash. D.C.: Proutist Universal Publications, 2003.
• Maheshvarananda, Dada, "The Economy of Social Responsibility and Spirituality: An Interview with Dr. Marcos Arruda," New Renaissance, Vol. 7, No. 3, 1998. pp. 12–14.
• Overland, Trond, "Beyond Collectivism and Individualism: Structural Features of the Prout Economy," World Prout Assembly, http://www.worldproutassembly.org/archives/2005/05/beyond_collecti_1.html
• Overland, Trond, "Prout's Theory of Revolution," PROUT Gobe, http://www.proutglobe.org/2011/05/prout%e2%80%99s-theory-of-revolution/
• Prout Research Institute. "Togo: A Proutist approach For Solving The Problem of Lowered Living Standards, Unemployment, and Rural Poverty," 1991.
• Prout Research Institute. "An Introduction to Block Level Planning: A Manual for PRI Staff," PROUT Globe, http://www.proutglobe.org/wp-content/uploads/2011/08/BLP.pdf 1992.
• Sarkar, Prabhat Ranjan, "Decentralized Economy," World Prout Assembly, http://www.worldproutassembly.org/archives/2007/02/decentralized_e_2.html
• Sarkar, Prabhat Ranjan, "Minimum Requirements and Maximum Amenities," World Prout Assembly, http://www.worldproutassembly.org/archives/2005/04/minimum_require.html
• Sarkar, Prabhat Ranjan, Proutist Economics, Kolkata: Ananda Marga Publications,1992.
• Sarkar, Prabhat Ranjan. Problems of The Day, Kolkata: Ananda Marga Publications, 1968.
• Sarkar, Prabhat Ranjan, "The Four Dimensions of Prout Economies," World Prout Assembly, http://www.worldproutassembly.org/archives/2005/04/the_four_dimens.html
• Shambhushivananda, Acarya Avt. "Prout: Neo-Humanistic Economics." Dharma Verlag Publishing. West Germany, Germany. 1989.
• Tadbhavananda, Acarya Avt. Samaj: A New Dimension in Politics, New Delhi: Proutist Universal Publications, 1987.

External links

• PROUT Globe
• PROUT Films
• Venezuelan Prout Research Institute
• Movement for Economic Democracy
• Prout College
• Prout Institute of Australia
• Proutist Universal
• Prout.org
• PROUTugal - PROUT Portugal
• Proutist Universal Italia (Italian Language)
• On Proutist trade systems