Is There an Alternative to Capitalism?

g the 20th Century, Marxism and capitalism were thespecial public bodies (in unitary political systems). This
contending economic theories and the world wasthree-tiered system of private, cooperative and publicly
almost engulfed by a Third World War due to thisrun enterprises would provide the base for economic
struggle.democracy.
However, the collapse of the Soviet Union and the4. Economic Reorganization (Decentralized Economy,
other communist bloc governments laid the way forBalanced Economy and Regional Economic Self
the triumph of capitalism. But today half of theSufficiency)
world’s population lives on two dollars a day orIf we want to bring about the economic well being of
less, and the developed countries are in an economicall of the people, then we must also make sure that
recession that is reminiscent of the Great Depressionsome geographic areas are not depressed while other
of the 1930s. Once again people are asking, “Isareas are thriving. The best way to do bring about
there an alternative to capitalism?”economic development and prosperity for everyone is
In 1959 P.R. Sarkar, an Indian philosopher, answered thisto decentralize the economy, develop all sectors of
question when he presented the Progressive Utilizationthe economy and to strive for regional economic
Theory (known by the acronym, PROUT). PROUT isself-sufficiency.
an economic theory that addresses the defects ofOne of the biggest reasons for economic imbalance
both capitalism and Marxism and offers the promise ofwithin any particular country is the modern trend of
a new economic order in which the world’surbanization. Usually most manufacturing and many
resources will be distributed in an equitable and rationalother services serving the manufacturing sector are
fashion.situated in cities. The metropolitan areas thrive, and
We can understand PROUT by looking at six essentialpeople in the country side are either unemployed or
features of this new socio-economic system:work in low-wage or subsistence agriculture.
1. Spirituality:The best way to reverse this situation is to place
Both capitalism and Marxism are materialistsome industries, and supporting services and industries
philosophies with a worldview that gives little (in thein rural areas. In this way excessive congestion of
case of capitalism) or no importance to spirituality.urban areas will be avoided and strong regional
PROUT on the other hand is founded on a spiritualcenters will provide employment and services to
outlook. According to Sarkar, the material world is butpreviously neglected rural areas.
an expression of consciousness and humans areEconomic decentralization should also be coupled with
stewards rather than ultimate owners of any physicalbalancing the various sectors of the economy: industry,
wealth. The goal of society is to provide a base fromagriculture and services. In some countries more than
which humans can expand their full mental, physical75% of the people work in agriculture and a small
and spiritual possibilities. This spiritual basis of PROUTminority in industry and services. Underdeveloped
has important implications for the management ofcountries with poor economies are usually structured in
physical resources, for the development of humanthis way. In industrialized countries a huge majority of
resources and for the establishment of properthe population work in industry or in services, and very
government.few people are engaged in agriculture.
When adopt the spiritual world view envisioned byP.R. Sarkar said that a more ideal set-up would have
Sarkar then our relationship with the environment will20% of the population in agriculture, 20% in agro
change. Similarly when we regard other human beingsindustries (producing goods using agricultural produce),
as manifestations of that one Consciousness then our20% in agrico-industries (supplying machinery and tools
relationships with each other will change. Finally, whenfor agriculture) and the rest of population in industry
such a spiritual world view permeates our wholeand services.
society, we will get the kind of service-minded andA society with this kind of economic balance would be
self-less government that is currently lacking in thebetter able to achieve economic self-sufficiency.
world today.Currently “globalization” is the
2. A “Floor and a Ceiling”:buzz-word of the era, and economic self-sufficiency is
Welfare economists have always emphasized thatnot in vogue. But is it really healthy for any country to
the minimum necessities of life should be provided forneglect its agricultural sector and rely on imported
everyone in a properly structured society. Efforts tofood? Similarly should some countries remain with little
make a minimum wage or to provide various kinds ofor no industry and rely on far-away countries for all
welfare systems to help impoverished people are alltheir finished products?
part of this concern.Generally countries which depend solely on agriculture
P.R. Sarkar agreed with some aspects of welfareor which export raw materials like wood and minerals
economics and stated that the minimum necessities ofremain poor while heavily industrialized countries thrive.
life should be guaranteed to all members of society.This is not good for the non-industrialized areas, but it is
However, he recognized that if the society would justalso not healthy for the developed countries as well. In
give people a check at the end of the month, with theirtimes of war or in time of any disruption to
required income, then this would only encouragetransportation, their vital food supplies will be in danger.
laziness. According to Sarkar, the best arrangement isOn top of this, in a world where climate warming and
that society should provide people with the purchasingecological difficulty have become major problems,
power to procure the minimum necessities of life indoes it continue to make sense to rely on centers of
exchange for their labor in a job. Full employmentsupply (for either raw or finished products) that are
providing everyone with the proper amount ofhalfway around the world?
purchasing power thus provides thePROUT recommends that countries in a particular
“floor” of the economic system. No onegeographic region come together and form economic
should be allowed to “live in thezones that have balanced, decentralized and
basement.”self-sufficient economies. Such an arrangement would
Where PROUT breaks new ground is in its attention tobe ecologically advantageous, provide for economic
the “ceiling” of the economic system.security in times of war or unforeseen disruptions of
The poverty of many is tied to the affluence andtransportation, and most importantly would insure that
over-accumulation of a few, and if we really want tono particular country or region will remain in poverty
bring about a harmonious society we need to thinkwhile others thrive.
about putting limits on the amount of physical wealth5. Moral Leadership
that a person can accumulate. In the first principle ofThe various plans for a better organization of the
PROUT it is stated that “no individual should beeconomy and for economic democracy are good in
allowed to accumulate any physical wealth without thetheory, but the problem of materializing these noble
clear permission and approval of the collective body ofideas depends on the quality of the human beings in
society.”our society. If elected and appointed officials are
This concept is sure to evoke howls of protest fromcorrupt then these officials will prevent the
the super-rich, the very rich and even middle classimplementation of policies designed to bring about
people who aspire to wealth. The classic argument ofsocial and economic welfare. For example the social
the wealthy people is that by their effort wealth isequality preached by the Marxists was belied by the
created and this wealth will trickle down to the rest ofreality of corrupt government officials living in luxury
the society. The apologists of laissez faire capitalismwhile the masses remained in poverty.
have been very successful in convincing people thatThe only way out of present economic and political
this is the truth, but the starving, sick and homelessproblems is to elevate the moral standard of our
people of the world have been waiting for a long timesociety. If people are properly educated, conscious of
for the wealth to trickle down, and it doesn’ttheir social and economic responsibilities and moral,
seem to be happening.then democracy can thrive and moral leadership will
3. Economic Democracy:come to the fore. The hope of the future will rest on
In the past century a great deal was said aboutthe shoulders of men and women who will enter public
making the “world safe for democracy.”office with the spirit of service and sacrifice rather
But the “democracy” that was talkedthan for the selfish purpose of lining their own pockets
about was political democracy. In many of theor enhancing their prestige.
impoverished countries of the world, the same onesA proper spiritual outlook coupled with an educational
where people struggle with $2.00 per day, the peoplesystem that is free from political interference and
have the right to vote but they do not have any say infocused on the all around development of human
their economic life. Similarly, even in developedbeings is the best way to bring forth leaders who are
countries a person can vote to decide who will be themoral and work for the good of society.
next president, but he or she usually has no vote in6. Global Governance
deciding economic matters that are very close toAgainst the backdrop of the universe, the earth is a
home, like keeping a job.small planet and human beings have to learn how to
According to PROUT theory, society should belive together in harmony on this small planet. The best
organized in a manner that will empower as manyway to minimize the possibilities of war and to
people as possible. One of the best ways to do this issafeguard the rights of all people is to establish a
reorganize the ownership and operation of economicglobal government. Previous attempts in the 20th
enterprises. Under capitalism the primary business formCentury in this direction, namely the League of Nations
is the corporation. The owners of the shares of aand the United Nations, have not been adequate and it
corporation have all the votes and decide how theis time to move onto a better level of global
enterprise will be run. Those who work in thecoordination.
enterprise have little or no say in the vital economicIn his book Problem of the Day, P.R. Sarkar laid out a
decisions that will affect their lives.concept of world government that should be
The PROUT system would establish the cooperativeachievable in the near future. He advocated the
as the most important business form. Most enterprises,establishment of a bi-chambered world government.
except the very large key industries and very smallOne chamber, the lower house, would have
businesses, would be organized as cooperatives.representation based on population and the other
Those who work in the enterprise will be the ownerschamber, the upper house, would provide equal
and will elect management and will vote in electionsrepresentation for all nations. The upper house will not
governing the running of the enterprise.be able to pass a law unless it has first been passed
In a PROUTist economy the very small enterprisesby the lower chamber, but the upper house will also
with few employees and dealing in non essentialhave the right to reject bills passed by the lower
goods would be privately owned and operated, andchamber. Sarkar envisioned a stage-wise movement
the medium enterprises would be owned andtowards world government.
operated as cooperatives. Large scale key industriesThese are the core economic and political ideas that
(energy, communication, transportation, etc.) would beform the backbone of the Progressive Utilization
publicly managed either by local governments or byTheory.