A Brief Introduction to PROUT, Progressive Utilization

During the 20th Century, Marxism and capitalism were the contending economic theories and the world was almost engulfed by a Third World War due to the struggles between them.   

Yet, the collapse of the Soviet Union and the other communist bloc governments laid the way for the triumph of capitalism.  Today, however, half of the world’s population lives on two dollars a day or less, and the developed countries are in an economic recession reminiscent of the Great Depression of the 1930s.  Once again, people are asking, “Is there an alternative to capitalism?”

In 1959, Prabhat Ranjan Sarkar, an Indian philosopher and historian, answered this question when he presented the Progressive Utilization Theory (known by the acronym, PROUT).  PROUT is an economic theory addressing the defects of both capitalism and Marxism, offering the promise of a new economic order in which the world’s resources are distributed in an equitable and rational manner, anchored in homeostasis of society en whole.

Explore more Praise for PROUT http://bit.ly/PraiseForPROUT

We can understand PROUT by looking at six essential features of this new progressively designed socio-economic system:

1. Spirituality:  Both capitalism and Marxism are materialist philosophies with a worldview that gives little (in the case of capitalism) or no importance to spirituality.  PROUT, on the other hand, is founded on a spiritual outlook -- of the Universe as a singularity and all life as a diversity of its experiential expression.  According to Sarkar, the material world is but an expression of consciousness and humans are stewards rather than ultimate owners of any physical wealth.  The goal of society is to provide a base from which humans can expand their full mental, physical and spiritual possibilities.  This spiritual basis of PROUT has important implications for the management of physical resources, for the development of human resources and for the establishment of proper governance.

Adopting such an inclusive worldview envisioned by Sarkar, our relationship with the environment will change.  Similarly, when we regard other beings as manifestations of that one Consciousness, our relationships with each other will change. When such a transpersonal worldview permeates our whole society, we will derive the kind of service-minded and selfless government that is currently lacking in the world today.

2. A “Floor and a Ceiling”:  Welfare economists have always emphasized that the minimum necessities of life should be provided for everyone in a properly structured society.  Efforts to make a minimum wage or to provide various kinds of welfare systems to help impoverished people are all part of such concerns.

P R Sarkar agreed with some aspects of welfare economics, stating that the minimum necessities of life should be guaranteed to all members of society.  However, he recognised that if society would just give people a check at the end of the month, with their required income, then this would only encourage laziness.  According to Sarkar, the best arrangement is that society should provide people with the purchasing power to procure the minimum necessities of life in exchange for their labor.  Full employment providing everyone with the proper amount of purchasing power thus provides the “floor” of the economic system.  No one should be allowed to “live in the basement”.

Where PROUT breaks new ground is in its attention to the “ceiling” of the economic system.  The poverty of many is tied to the affluence and over-accumulation of a few, and if we really want to bring about a harmonious society we need to think about putting limits on the amount of physical wealth a person can accumulate.  

In the first principle of PROUT, it is stated that “no individual should be allowed to accumulate any physical wealth without the clear permission and approval of the collective body of society”.

The splattering of Reaganomics "for the people"

This concept is sure to evoke howls of protest from the super-rich, the very rich and even middle class people aspiring to wealth.  The classic argument of wealthy people is that by their effort, wealth is created and this wealth will trickle down to the rest of society. Apologists of laissez faire capitalism have been very successful in convincing people that this is the truth, but the starving, sick and homeless people of the world have been waiting for a long time for the wealth to trickle down, and it does not seem to be happening.

Sooner or later, we will come to our senses and realize that the over-accumulation of wealth in the hands of a few is not in the best of interest of society as a whole and this principle of PROUT, curbing excessive accumulation, will surely be put into practice around the world.

3. Economic Democracy:  In the past century, a great deal was said about making the “world safe for democracy”.  But, the “democracy” that was talked about was political democracy.  In many of the impoverished countries of the world, the same ones where people struggle with $2.00 per day, the people have the right to vote but they do not have any say in their economic life.  Similarly, even in developed countries a person can vote to decide who will be the next president, but he or she usually has no vote in deciding economic matters that are very close to home, such as keeping a job.

According to PROUT theory, society should be organised in a manner that will empower as many people as possible.  One of the best ways to do this is reorganize the ownership and operation of economic enterprises.  Under capitalism, the primary business form is the corporation.  The owners of the shares of a corporation have all the votes and decide how the enterprise will be run.  Those who work in the enterprise have little or no say in the vital economic decisions affecting their lives.   

PROUT's system establishes co-operatives as the most meaningful business form.  Most enterprises, except the very large key industries and very small businesses, would be organised as co-operatives, particularly those enterprises engaged in producing basic necessities of life.  Those who work in the enterprise will be the owners and will elect management and will vote in elections governing the running of the enterprise.  

In a PROUTist economy, the very small enterprises with a few employees and dealing in nonessential goods could be privately owned and operated, and the medium enterprises would be owned and operated as co-operatives.  Large-scale key industries (energy, communication, transportation, etc.) would be publicly managed either by local governments or by special public bodies (in unitary political systems).  This three-tiered system of private, cooperative and publicly run enterprises would provide the base for economic democracy.

4. Economic Reorganization (Decentralized Economy, Balanced Economy and Regional Economic Self Sufficiency)

If we want to bring about the economic well being of all of the people, then we must also make sure that some geographic areas are not depressed while other areas are thriving.  The best way to bring about economic development and prosperity for everyone is to decentralize the economy, develop all sectors of the economy and to strive for regional economic self-sufficiency.

One of the biggest reasons for economic imbalance within any particular country is the modern trend of urbanization.  Usually most manufacturing and many other services serving the manufacturing sector are situated in cities.  The metropolitan areas thrive, and people in the countryside are either unemployed or work in low-wage or subsistence agriculture.

The best way to reverse this situation is to place some industries, and supporting services and industries in rural areas.  In this way, excessive congestion of urban areas will be avoided and strong regional centers will provide employment and services to previously neglected rural areas.

Economic decentralization should also be coupled with balancing the various sectors of the economy:  industry, agriculture and services.  In some countries, more than 75% of the people work in agriculture and a small minority in industry and services.  Underdeveloped countries with poor economies are usually structured in this way.  In industrialized countries a huge majority of the population work in industry or in services, and very few people are engaged in agriculture.

Sarkar said that a more ideal set-up would have approximately 20% of the population in agriculture, 20% in agro industries (producing goods using agricultural produce), 20% in agrico-industries (supplying machinery and tools for agriculture) and the rest of population in industry and services.

A society with this kind of economic balance would be better able to achieve economic self-sufficiency.  Currently “globalization” is the buzz-word of the era, and economic self-sufficiency is not in vogue.  But, is it really healthy for any country to neglect its agricultural sector and rely on imported food?  Similarly, should some countries remain with little or no industry and rely on far-away countries for all their finished products?

Generally, countries which depend solely on agriculture or which export raw materials like wood and minerals remain poor while heavily industrialized countries thrive.  This is not good for the non-industrialized areas, but it is also not healthy for the developed countries as well.  In times of war or in time of any disruption to transportation, their vital food supplies will be in danger.  

On top of this, in a world where climate-warming and ecological difficulty have become major problems, does it continue to make sense to rely on centers of supply (for either raw or finished products) that are halfway around the world?  

We all lend a hand for the welfare of
community and society

PROUT recommends that countries in a particular geographic region come together and form economic zones that have balanced, decentralized and self-sufficient economies.  Such an arrangement would be ecologically advantageous, provide for economic security in times of war or unforeseen disruptions of transportation, and most importantly would ensure that no particular country or region will remain in poverty while others thrive.

5. Moral Leadership

The various plans for a better organisation of the economy and for economic democracy are good in theory, though the problem of materializing these noble ideas depends on the quality of the human beings of our society.  If elected and appointed, corrupt officials will prevent the implementation of policies designed to bring about social and economic wellbeing for all.  For example, the social equality preached by the Marxists was belied by the reality of corrupt government officials living in luxury while the masses remained in poverty, and all too often, operating as a monopolistic organized crime syndicate of state.

The only way out of present economic and political problems is to elevate the moral standard of our society.  If people are properly educated, conscious of their social and economic responsibilities and morally fortuitous, then democracy can thrive and moral leadership will come to the fore.  The hope of the future will rest on the shoulders of men and women who will enter public office with the spirit of service and sacrifice rather than for the selfish purpose of lining their own, and others' pockets or enhancing their prestige.   
A proper spiritual outlook coupled with an educational system that is free from political interference and focused on the all-around development of human beings is the best way to bring forth leaders who are morally fortuitous and working for the wellbeing of society.

6. Global Governance

Against the backdrop of the universe, the earth is a small planet and human beings find it necessary to learn how to live together in harmony on this small planet.  The best way to minimise the possibilities of war and to safeguard the rights of all people is to establish a global governance based upon universal principles.  Previous attempts in the 20th Century in this direction, namely the League of Nations and the United Nations, have not been adequate and it is time to move onto a better threshold of global coordination.

In his book, Problem of the Day, P R Sarkar laid out a concept of world government that should be achievable in the near future.  He advocated the establishment of a bi-chambered world government.  One chamber, the lower house, would have representation  based on population and the other chamber, the upper house, would provide equal representation for all nations.  The upper house will not be able to pass a law unless it has first been passed by the lower chamber, but the upper house will also have the right to reject bills passed by the lower chamber.

Sarkar envisioned a stage-wise movement towards world government.  In the first phase, the world body would only be able to frame laws and administration would be in the hands of governments of the individual countries, as a confederation.  In a later stage, the world government would also have administrative authority and a world militia at its disposal.  In the past, world government was considered a utopian dream, but in the near future, it will become a necessity.  Today, larger countries with various states or provinces do not experience any of their various states or provinces going to war against each other due to the practical implementation of centricity while accommodating and flourishing the sanctity of each and ever dominion within their borders.  Such a threshold of excellence in government can also occur on global realms in a progressive manner.  


These are the core economic and political ideas that form the backbone of the Progressive Utilization Theory.  In the years ahead, they are sure to be the pillar of efforts to solve the thorniest problems that confront humanity today.  

This article redacted from an original appearance here.

Political Democracy can and will be fortuitous when Economic Democracy is established.   Explore this and other articles covering alternative economics, ethical leadership, economic democracy, and a society without the weal and woe of social and economic vicissitudes HERE   How does PROUT compare or contrast with capitalism or communism?  Explore the answers HERE What are essential ingredients assuring progressive sustainability bereft of the vicissitudes of economic or political predation, privation or disparity?  Learn more HERE   http://gplus.to/ProgressiveSustainability

Progressive Non-Reactionary Solutions and FREE Download

Today, human life is thrown into myriad tumults ranging from job security, food security, survivability and even the next meal for oneself and one's family.  Struggle seems to be a factor of life for all living beings, while circumstances -- whether caused, seemingly, by nature, or as a consequence of willful or unwitting results of human endeavors -- while some of that struggle seems exceedingly inequitably distributed and perpetrated through unconscionable [anti-]rationales, ideologies, treaties and laws perpetuating the compromise of others' livelihood and lives.  If each person was a cell in the body of humanity or of Earth itself, the current stasis would be very unhealthy, indeed an unsustainable stasis, a body riddled with a viciously malignant carcinoma.  


A proper homeostasis for humanity and for Earth at large is imperative for life on Earth to survive.  Many geophysical changes we are witnessing today are a force of nature, whereas some of these changes and many other changes are due to unbridled human morbidification of our planet and life upon it -- a gravely serious concern.  


Knowing what and how such concerning matters are happening are imperative for solving such calamitous events from happening, and bringing about shared participation in problem-solving will be an imperative part of solving what humanity faces today.  Rather than complex and unwieldy, the principles of reclaiming our planetary and personal homeostasis are quite simple, pervade the wellbeing of all and the planet as a whole.  Such involves both our dispositions towards each other and the rational utilization and distribution of all resources of self, society and the planet as a whole, with respect for all life forms, not just ourselves.  


PROUT offers fundamental principles that could just as easily describe homeostasis for our body and mind as it does for economic and political remediations that are not reactionary, rather they are homeostatic, optimally homeostatic for all life, well reflected in economic and socio-political realms of life.  Reactionary ideologies often reflect, though in cosmetically contrarian ways, the very same problems they may claim to move against.  


While Marx may, or may not, have been a humanitarian in search of solutions, his complaints about life as he knew them were legitimate in many ways, his reactionism constituted much misery for hundreds of millions of people over several decades.   Yet today, Marxism continues to constitute the bulk of people's efforts in fighting non-communist exploitation, in the hope that somewhere inside it may lead to a solution, despite that following Marxism strictly is both more materialistic than capitalism and denatures humanity further with its denial of subtler realms of human evolution and expression.  See PROUT Compared. 


To concisely illustrate the architecture of PROUT's solutions, we've created a free download of an alternative economic and political paradigm, as if people and all life matters, for your exploration and inclusion in discussions for remedial action in your environment and community which you can download HERE.  

Capitalism in Three Spheres

Capitalism in Three Spheres

While trying to fight against any sort of exploitation, first we must have a clear understanding of the nature of the exploitation.  Today human society is subjected to ruthless exploitation by contemporary capitalists.  Capitalist exploitation has brought humanity to the brink of disaster by spreading its exploitative tentacles into every aspect of human life.

According to PROUT, capitalist exploitation is perpetuated in three spheres – the physical sphere, which we are well aware of, and the intellectual and spiritual spheres.  Each of these types of capitalist exploitation is equally dangerous.

To solve the problem of capitalist exploitation in the physical sphere, we will have to ensure that the movement of money does not become restricted or immobile in the hands of a few capitalists.  The present economic system should be thoroughly transformed, and a comprehensive and completely new economic system should be built in its place.  In this new system money will not be restricted or immobile in the hands of a few capitalists.  The more the optimum mobility of money is kept unrestricted, the more it will strengthen and invigorate the socio-economic life of the collective body.



Intellectual Capitalism

In the psychic sphere there is a noticeable lack of motivation and effort on the part of intelligent and educated people at present to properly utilize their acquired knowledge for the collective welfare.  This is the psychology of an apathetic and elitist class who do not like to move from their privileged position to work for the welfare of the common people.  This psychology gives rise to a special type of intellectual capitalism.

Intellectual capitalism causes several pressing problems in society.  First, the literacy skills of a large part of the population are not developed.  Secondly, the socio-economic consciousness of the indigenous people is not encouraged.  Thirdly, unhealthy inferiority complexes and fear complexes influence the minds of the people so that they are kept psychically weak.  Fourthly, the intellectual and moral development of human beings is hindered, so intellectual backwardness and irrationality become rampant in society.  Finally, narrow sentiments like geo-sentiment and socio-sentiment start exerting a destructive influence on society.  Consequently, intellectual exploitation, dogmatic theories and doctrines, and religious superstition and rituals become widespread.

Intellectual inertia has assumed dangerous proportions.  Taking advantage of this intellectual stagnancy, rapacious capitalists deviously spread a subtle web of exploitation and suck the vitality of society.  Through this process capitalists are able to perpetuate their insidious rule of exploitation.

People have been loudly protesting against capitalism for a long time, and on numerous occasions have launched agitations against capitalist exploitation.  Remaining vigilant about people’s dissatisfaction with the capitalist system, capitalists have continually changed their methods of exploitation.  For instance, they have bought off disgruntled intellectuals and used them as tools of exploitation in their economic schemes.

Capitalism has always adapted to changing circumstances.  Thus we see that in different periods there have been different forms of capitalist exploitation such as feudalism, laissez-faire capitalism, imperialism, colonialism, neo-colonialism, mixed economy, multinational corporations, etc.  Today even communism, which was once a deadly weapon against capitalist exploitation, has become a blunt and obsolete tool.

Psycho-economic exploitation is the latest form of dangerous and all-devouring capitalist exploitation.  It is a special type of exploitation which first weakens and paralyses people psychologically in various ways, and then exploits them economically.  Some of the methods of psycho-economic exploitation include:

the suppression of the indigenous language and culture of local people;

the extensive propagation of pseudo-culture, exemplified by pornographic literature which debases people’s mind and particularly undermines the vitality of the youth;

the imposition of numerous restrictions on women, forcing them to be economically dependent on men;

an unpsychological education system with frequent political interference by vested interests;

the negation of dharma in the name of secularism;

the balkanization of society into numerous castes and groups;

the damaging of society by the use of unnatural and harmful methods of birth control;

placing the control of different mass media, such as newspapers, radio and television, in the hands of capitalists. 

Both intellectual exploitation and psycho-economic exploitation are great dangers to the human race today.

To counteract this threat, powerful popular sentiments will have to be generated immediately for the liberation of intellect.  For this, the first requisite factor is that intellectuals must keep their intellects pure and unblemished.  Casting aside all their inertia and prejudices, intellectuals will have to mix with the common people and engage themselves in their welfare.  They will have to assist the common people in their development and extend their support to all anti-exploitation movements.  This approach will help to root out exploitation, stabilize the structure of society and expand the intellectual standard of the common people.  Human society will move forward to a brilliant future with rapid steps.



Spiritual Capitalism

Besides the physical and intellectual spheres, capitalism also exists in the spiritual realm.  Some people neglect their family and society and go to caves in the mountains and perform arduous penance to fulfil their longing for spiritual emancipation.  Because of their selfishness, they keep spiritual knowledge to themselves and do not bother to arouse spiritual awareness in individual and collective life.  This is capitalism in the spiritual sphere.  It is ultravires to the very spirit of spiritual practices, which is:

Self-realization and service to humanity.

To a spiritualist, everything – right from the Creator down to a small blade of grass – is the manifestation of Supreme Consciousness.  The state of equanimity is one of the main characteristics of spirituality.  Without attaining this quality, one cannot establish oneselves in the supreme state, and one’s movement towards Supreme Consciousness will be hindered at every step.  In ancient times many people found themselves in this tragic predicament.

Genuine spiritual practice is the birthright of all people.  In all spheres of collective life – economic, political, social, etc. – a scientific and rational outlook is essential.  The inculcation of cardinal human values is an urgent necessity.  This is the demand of the age.  Because such higher values are lacking in social life, there are many incongruities and confusions in society.

Today there is an urgent need for an all-round spiritual revolution in individual and collective life under the leadership of a group of accomplished and idealistic leaders.  These leaders should be endowed with spiritual power, and their ideology should be based on the solid rock of spirituality.  Such highly qualified leaders are called sadvipras.  They will ensure social progress in all countries in all ages.

All genuine spiritualists will have to adjust with the level of the dusty earth inspired by the spontaneous love of their hearts.  They will have to share the wealth of their developed intellects with others to lighten the sorrows and sufferings of humanity.  Through their guidance and leadership, human thinking will take a new turn and move along an entirely new path.  The latent spiritual power in human beings will be awakened.  Through their effort and inspiration, the new people of a new generation will be armed with a bold new optimism and vision of the future, and march forward triumphantly.  

Explore this and other articles covering alternative economics, ethical leadership, economic democracy, and a society without the weal and woe of social and economic vicissitudes HERE

How does PROUT compare or contrast with capitalism or communism?  Explore the answers HERE

Political Dimension of PROUT: Partyless, Compartmental Democracy

Political democracy, as it is practiced in the world today, has a record of mixed success, and has failed to solve certain existential problems due to the absence of economic democracy.  Loftily defined as "Government of the people, for the people, and by the people," political democracy is simply majority rule.  And when vested interests are able to influence voters and politicians, whether by coercion, propaganda, bribery or clever manipulation of the media, it is easy to see that the real interests of even the majority are not always served.  Similarly, under the influence of clever speeches and poor education, unqualified or corrupt leaders may be elected.  While running the risk of underestimating people's power of self governance, it is important to realize that majority decision making is not free of blemishes, especially when politicians are bought and corporate media leaves voters poorly educated regarding the issues.

PROUT recognizes that certain prerequisites are necessary for a successful political democracy.  Political candidates must be ethical, educated, and socially conscious.  Voters must also demand ethical behavior of their leaders and have the requisite education and socio-economic consciousness to make rational decisions.  Thus a high standard of impartial education is necessary to ensure that democracy is successful. 

Presently money, intra-party status, and media portrayal have more to do with the success or failure of a candidate at the polls than does his or her position on issues and standard of behavior.  In many countries, votes are bought and sold openly and corruption is the rule rather than the exception.  It is often impossible for moral people to even dent the realm of politics.  In the so-called developed countries, the situation is only little better, as financial and political control of the mass media and poor socio-economic consciousness prevail.

A further problem with the present system of political democracy is that as candidates are dependent upon campaign contributions from the wealthy, in most instances, they end up catering to the demands of those influential sections of society.  This means that the decisions taken by the leaders in a "democratic" country do not necessarily reflect the best interests of society as a whole.  Political leaders are forced to serve powerful corporate interest groups, even immoral hypocrites, who have tremendous financial influence.  They are unable to maintain their offices if they cross such people.  And due to continual pressure to canvass for funding, the role of money in politics is paramount. 

The system of political parties seems also to have significant defects.  Candidate qualifications, personal integrity, and the spirit of social service play secondary roles to party status and seniority.  Candidates are forced to abide by party policies and cannot effectively combat elections without party endorsement.  In this way, political parties are also controlled by monied interests.  For these reasons, PROUT advocates a system of partyless democracy. 

Under PROUT's system, independent political candidates would be required to state their platform policies in black-and-white.  Failure to implement such programs could result in termination from office so as to prevent politicians from making empty promises for the sake of an election.  A partyless system is of paramount importance for lessening corruption.  Of course, it is natural that like minded people will associate and work together out of common interest.  Indeed, it would be impossible to enact any positive measures independently.  Yet, it is clear that the current formality of party affiliation has significant drawbacks.  A more balanced approach without the formalities of party name and the necessity of party endorsement may alleviate such problems. 

So, in addition to economic democracy, PROUT advocates a democratic political system with certain modifications.  PROUT favors the three branch system of Executive, Legislative, and Judicial with the addition of an independent Financial or Public Exchequer department.  This is an important addition that would monitor federal spending and publicize the strengths and weaknesses of government programs.  This department would keep the accounts of the other three departments.  All of these departments should function independently.

It should also be stressed that there should be no political involvement in economic affairs by the central governments, as the economic system is to be decentralized.  Local governments would be responsible for the running of certain key industries, but for this purpose, independent managers would be hired.  Key industries would not be run by politicians, whose skills are much different. 

[Be sure to review Basic Design Principles and other links to your right.] 

Economic Democracy

The viral growth of the Occupy Movement, and the public support of it, is testament to the tremendous dissatisfaction with the inequities and abuses of contemporary global capitalism.  Meta-corporations and large financial institutions have corrupted democracy in the United States and many other countries.  In response, there is a wide spectrum of progressive forces struggling to rescue our political democracy; however, reform of extant political structures is not enough.  

Economic Democracy is not a reactionary paradigm, it is embedded in a long-term effort to project economic democracy as the common demand of a mass movement to replace corporate plutocracy, providing a progressively adaptive and optimizing socio-economic and political paradigm.  Economic democracy provides the new economic vision and practice required by populist elements who now understand that an alternative economic paradigm is required, one congruous with and operative of universal principles, respecting the sovereignty of each person and community.  

Economic Democracy 

By Prabhat Rainjan Sarkar, Founder of PROUT

Nature has been kind enough to provide abundant natural resources to every region of this earth, but she has not given the guidelines on how to distribute these resources among the members of society.  This duty has been left to the discretion and intelligence of human beings.

Those who are guided by dishonesty, selfishness and mean-mindedness misappropriate these resources and utilize them for their individual or group interests rather than for the welfare of the whole society. 

The mundane resources are limited, but human longings are limitless, hence for all the members of society to live in peace and prosperity, human beings have to adopt a system which ensures the maximum utilization and rational distribution of all resource.  For this, human beings will have to establish themselves in morality and then create a congenial environment for morality to flourish. 

Economic decentralization means production for consumption, not production for profit.  Economic decentralization is not possible under capitalism because capitalist production always tries to maximize profit. 

Capitalists invariably produce at the lowest costs and sell at the highest profits.  They prefer centralized production, which leads to regional economic disparity and imbalances in the distribution of the population.  On the other hand, in the decentralized economy of PROUT, production is for consumption, and the minimum requirements of life will be guaranteed to all.  All regions will get ample scope to develop their economic potentiality, so the problems of a floating population or over-crowding in urban centers will not arise. 

Unless a country attains optimum development in industry and other sectors of the economy, it is impossible for it to be highly developed.  If more than 30% to 45% of a country's population is engaged in agriculture, there will be excessive pressure on the land.  Such a country cannot become highly developed, nor can there be balanced, decentralized development in all sectors of the economy.  India is a classic example of this.  About 75% of India's population is dependent on agriculture for its livelihood. 

Trickle-down Economics Explained!

In some democratic countries like Canada, Australia, etc., a large percentage of the population is engaged in agriculture, and although these countries are regarded as agriculturally developed, they depend on other industrially developed countries because they themselves are industrially undeveloped.  For instance, Canada has traditionally been dependent on the U.S.A. and Australia on Britain. 

As far as India is concerned, as long as around 75% of the population is engaged in agriculture, the unbearable economic plight of the people will continue.  Any country confronted with such circumstances will find it very difficult to meet its domestic and international responsibilities.  The purchasing power of the people will keep decreasing while economic disparity will go on increasing.  The social, economic and political environment of the whole country will degenerate.  India is a clear example of all these evils. 

Thus, economic decentralization does not mean that the majority of the population will be dependent on agriculture for their livelihood or that the other sectors of the economy remain undeveloped.  Rather, each sector of the economy must strive for maximum development, and all sectors must strive for maximum decentralization. 

In all the democratic countries of the world, economic power is concentrated in the hands of a few individuals and groups.  In liberal democracies* (laisser faire), economic power is controlled by a handful of capitalists, while in socialist countries, economic power is concentrated in a small group of party leaders.  In both cases, a handful of people -- the number can be easily counted on the fingertips-- manipulates the economic welfare of the entire society.  When economic power is vested in the hands of the people, then the supremacy of this group of leaders will be terminated, and political parties will be destroyed forever. 

People will have to opt for either political democracy or economic democracy.  That is, they will have to choose a socio-economic system based on either a centralized economy or a decentralized economy.  Which one will they select? 

1.PROUT guarantees the minimum requirements of life which include at least food, shelter, clothing, education and medical care. The minimum necessities of life are guaranteed by providing full employment and assuring that the basic necessities are easily affordable and available with good quality. Any surplus wealth is then distributed among the meritorious and those with special needs.

2.Increased Purchasing capacity is achieved by assuring that the essential requirements of life are available and affordable for all. To achieve this there must be a continual increase in production through research and development and the appropriate use of progressive scientific ideas.

3.Decentralised planning assures that decisions for the local economy are made locally and not by bureaucrats or politicians who don’t have strong ties to the area. A balanced economy will be part of this planning so that agriculture, industry and white-collar work are appropriately developed.

4.PROUT advocates a three-tier economic system. This is made up of privately-owned small businesses, co-operatively-owned medium to large businesses, and government-run large key industries that run on a no-profit, no-loss basis.

5.Cooperatives are central to PROUT’s economic system and are the basis of economic democracy.

6.PROUT aims to create decentralised economic areas that are as far as possible self- sufficient. All businesses will be locally-owned, so there is no room for multi-nationals or outside exploitation of an area.

7. These six points create economic democracy, which gives local people control over their economic lives and assures their basic necessities. Society is then encouraged to pursue more non-material, creative, intellectual and spiritual forms of enjoyment which will ultimately lead society to real progress and happiness in every realm of life.

* liberal democracy (laisser faire) defined:
   1. An economic doctrine that opposes governmental
regulation of or interference in commerce beyond the minimum
necessary for a free-enterprise system to operate according
to its own economic laws.    2. Noninterference in the
affairs of others.

  Requirements for Economic Democracy

Political Democracy can and will be fortuitous when Economic Democracy is established.   Explore this and other articles covering alternative economics, ethical leadership, economic democracy, and a society without the weal and woe of social and economic vicissitudes HERE   How does PROUT compare or contrast with capitalism or communism?  Explore the answers HERE What are essential ingredients assuring progressive sustainability bereft of the vicissitudes of economic or political predation, privation or disparity?  Learn more HERE