The Problem with PROUT
Table of Contents
PROUT stands for Progressive Utilization Theory which is from Indian guru PR Sarkar, founder of Ananda Marga.
Its principles are:
- No individual can accumulate any physical wealth without the clear approval of the collective body.
- There should be maximum utilization and rational distribution of all mundane, supramundane and spiritual potentialities of the universe.
- There should be maximum utilization of physical, metaphysical and spiritual potentialities of unit and collective bodies of human society.
- There should be a proper adjustment amongst these physical, metaphysical, mundane, supramundane and spiritual utilizations.
- The method of utilization should vary in accordance with changes in time, space and person, and the utilization should be of progressive nature.
Its most striking feature is the guarantee of minimum requirements as a realization of those principles.
PROUT influenced Hugo Chavez. However, we do not know whether its policies were implemented by Venezuela.
If PROUT had any influence in Venezuela’s inflation problem, it could be from the misunderstanding of how to guarantee minimum requirements:
“It may be questioned whether it is wise for any government to guarantee the minimum requirements. If the state is to supply cereals, pulses..to all people then naturally the state has to institute some process of control which people may not like.
Hence PROUT’s view is that people should be guaranteed the provision of sufficient purchasing power to meet these requirements. In that case the state need not adopt control measures.
The other disadvantage of guaranteeing the supply of minimum requirements is that if consumable goods are supplied to everyone, people will become lethargic..
I have not said anywhere that society should give plenty of money to everyone; I have only said that the purchasing power.. should be increased.
Chavez’ socialist rule had made Venezuelans lethargic.
They now want the government to guarantee even cheap refrigerators which are not part of the minimum requirements, and now Maduro must satisfy lethargic people by driving the economy down with more controls.
Instead of controls, Chavez & Maduro should have invited more investment:
If production is increased through investment in developmental programmes instead, the purchasing capacity of the people can be increased.. In pure economic terms developmental programmes are those programmes which directly increase national wealth
Unfortunately, PR Sarkara never elaborated on the technical aspects of purchasing power and so it has remained abstract.
If PR Sarkar elaborated on its technical aspects, then PROUT would have instead advocated ’national wealth investment’ alongside minimum requirements.