PROUT
the Progressive Utilisation Theory
PROUT includes several characteristics that set it apart from other economic theories.
These are:
- The minimum requirements of life will be guaranteed to all. Everyone has a right to food, clothing, accommodation, medical treatment and education.
- No one will be allowed to accumulate exessive wealth without the approval of the collective body.
- Once the basic requirements have been met, maximum amenities should be offered to the common people in an ever increasing fashion.
- Special amenities are to be offeren to people of special calibre and merit as incentives for further service to and development of society.
- The above points ensure that neither excessive accumulation of private wealth nor poverty occur.
- The increase in purchasing capacity is the controlling factor in PROUT's economic system. Guaranteed purchasing capacity is a fundamental human right.
- The industrial structure of PROUT is divided into three parts:
key or large scale industries, managed by the immediate or local government;
medium-scale industries, managed by cooperatives;
and small-scale industries, managed by private enterprises.
- Cooperatives are the primary medium for the production and distribution of commodities.
- Production will be for consumption, not for profit. This approach will check inflation.
- Decentralization of economic planning to benefit the masses rather than individuals.
Socio economic units will funcion as its base. These units will be formed according to factors such as common economic problems; uniform economic potentialities; ethnic similarities; common geographical features; and people’s sentimental legacy.
- Economic planning is to be based on four fundamental factors – the cost of production, productivity, purchasing capacity and collective necessity. Other related factors include natural resources, geographical features, climate, river systems, transportation, industrial potentialities, cultural heritage and social conditions.
- Barter, rather than money, is the basis for trade between self-sufficient economic units.
- Money must be backed by bullion (i.e. gold) and must be kept rolling. The more it changed hands, the greater is its economic value.
- There will be no speculative markets as these aim at profit making and may lead to the collapse of the financial system they operate in.
- Prama' (dynamic equilibrium and equipoise) is to be established in the physical, psychic and spiritual spheres of life.
One may also read: Some Specialities of PROUT's Economic System by P.R. Sarkar