PROUT

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the Progressive Utilisation Theory

PROUT's concept of Economic Democracy advocates political centralization and economic decentralization.

In Economic Democracy at least 51% of the company is owned by the employees or workers themselves. Large disparities between the incomes of the managers and the workers will therefore not arise. Instead the income of workers will increase according to their workal productivity, thereby progressively reducing the wage gap.

Also, rather than maximizing profit, production will aim at maximizing consumption. That is, economic planning will take a decentralized approach by striving to create production plants that not necessarily produce at the lowest cost, but instead offer ample scope for employment and would make every region economically developped. As a result, the purchasing capacity of the people will rise, which in turn will increase consumption.

In PROUT's political system, voting rights will be granted to only those who are morally established, educated and possess socio-economico-political awareness. PROUT rejects the system of universal suffrage based on age. Apart from being a good person and having a certain level of education, one will have to prove one's interest in and knowledge of politics.

 

For more information on Economic Democracy, one may read the discourse: Economic Democracy by P.R. Sarkar

Also related is the discourse Decentralized Economy 1 by P.R. Sarkar