Prout is the acronym for the Progressive Utilization Theory, which was first introduced by Indian philosopher, P.R. Sarkar (1922-1990) in 1959. Prout is a balanced economic approach, focusing on meeting basic human needs of food, clothing, shelter, education and medical care, while making efficient utilization of the world’s resources. It strikes a balance among individual initiatives, social and governmental control, sustainability and overall human progress.
Prout strongly recommends eliminating income disparities, because, if someone accumulates too much wealth, it might be at the expense of others. Businesses need to have accountability to the society and the environment. While businesses need to make a profit, profiteering is discouraged. Prout has a unique three-tiered economic model, outlining business ownership and governance structure for the benefit of the society at large. (see details in Economic Democracy section)
The Prout economic model is based on 100% employment. It promises guaranteed employment for every able-bodied individual. It is different from socialism or communism in that it proposes people’s compensation based on their knowledge, skill and abilities. It supports a merit based system. While Prout will guarantee equal educational and other opportunities, it is up to individuals to make the most of those opportunities. In addition to full employment, Prout guarantees basic necessities for all.
Prout will also continuously strive to improve the standard of living for all, and to make the most efficient utilization of the world’s resources for the benefit of all.
Is it possible to achieve these lofty goals while striking these balances? It is possible only if the leadership is in the hands of people who have strong ethical values. According to Prout, only those with true character can be in a position of power; power is to be used for the welfare of the society and the environment and not for personal gain, which is very different from the socio-political structure of today.
PROUT is a new socio-economic paradigm in which the welfare and development of all human beings, as well as non-human beings, in harmony with Nature and natural resources, has a primary value. PROUT is a vision of society in which our highest ethical values are expressed in our economic and social institutions. PROUT deeply examines what society and the economic system may begin to look like when we include the welfare and maximizing the potential of all people, with the full development of natural resources, while utilizing them in harmony with each other, in harmony with the environment and the natural world.
Including a new vision of economic development offered as an alternative to capitalism and communism, PROUT draws parallels from various movements and new, more harmonious, sustainable practices: bio-regionalism, deep ecology, economic decentralization, economic democracy, collaboration and coordination in distribution of resources, cooperative economies, self-reliant community institutions and development. It also offers new insight and perspective on ethical and transparent leadership, and the necessity of local economic sovereignty, and developing purchasing power as a key principle in overcoming and limiting economic and social inequities.
Some of the key ideas of Prout are as follows:
- Social and Economic Justice
- Economic Democracy
- Economic Decentralization
- Regional Self-Sufficiency
- Ethical Leadership
- Coordinated Cooperation
In addition to these key ideas, here are the five fundamental principles of Prout, based on which policies are defined.
Economic Democracy: People need to be empowered to make economic decisions that directly shape their lives and communities. It is a basic right of workers to own and manage their enterprises, free from manipulation or exploitation. Prout advocates a three-tiered economy to accomplish this:
- Locally-owned, small-scale private enterprises: small businesses dealing with non-essential goods and employing few people
- Worker-owned producer and consumer cooperatives: the bulk of the enterprises in the society should be run by cooperatives in which the workers will be the owners and entitled to elect the management of these enterprises
- Publicly-managed key Industries: industries and services affecting the entire economy which are too large to be run by cooperatives should be publicly managed. These may include mineral extraction, transportation, energy production, and mass communications, large manufacturing, etc. Local governments or independent public boards will be responsible for running these industries efficiently so that they may depend on subsidies in case these companies run on loss. This concept differentiates Prout from socialism.
Economic democracy decentralizes decision-making and gives citizens the right to choose how their local economy should be run. Local economies with sustainable agriculture that grows healthy food, renewable “green” industries, credit unions that offer loans to local people are all elements of a vibrant community.
Economic Decentralization: Prosperity in one geographic area cannot be accompanied by poverty in outlying areas. Manufacturing and services should be spread out in the countryside to prevent over-urbanization and to provide economic, educational and cultural opportunities to people wherever they choose to live. Women, people of color, immigrants and other marginalized groups will become key stakeholders in the new economy.
Regional Self-sufficiency: The best way to achieve a balanced economy is for every region to become as self-sufficient as possible in food, medicines, and the other minimum necessities of their population. Barter trade can allow countries and regions to gain resources they lack without the need to go into debt to obtain foreign currency. If a particular state/region does not have all the resources to be economically self-sufficient, then it can combine with other states/regions in the vicinity to create a body that will be able to produce the basic necessities for its population. Trade policies should be formulated with regional self-sufficiency in mind; uncontrolled free-trade cannot be supported.
Ethical Leadership and Governance: The success of economic and political democracy depends on the morality, education and socio-economic consciousness of the general public. From this body of the general public, honest and service minded leaders will emerge. Government funding of elections would ensure fairness for all candidates. The media, managed by cooperatives of journalists, should be required to give equal media coverage to each candidate to present his or her platform and to debate the issues. In this way, voters would be able to compare the stand of each candidate objectively.
Coordinated Cooperation: The foundation of a cooperative system is coordinated cooperation where free human beings with equal rights and mutual respect for each other, work together for the welfare of the others. This differs from subordinated cooperation, where people work individually or collectively but remain under other peoples’ supervision.
The most-asked question about Prout is: “Where has it been put into practice?” Although examples of Prout cooperatives and communities exist in various countries and on every continent, the world will be unable to see how this model can enrich the living standard and quality of life of all until an entire state or country chooses to materialize the whole integrated system.