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Progressive Utilization Theory or PROUT is a socio-economical theory developed in 1959 by Indian philosopher Prabhat Rainjan Sarkar (1921-1990). PROUT is a philosophy that claims to synthesize the physical, mental and spiritual dimensions of human nature, and posits itself to be an alternative to capitalist and communist socio-economic paradigms.

Prout is not concerned solely with economics but encompasses the whole of human individual and collective existence - physical, educational, social, political, mental, cultural and spiritual - within the paradigm of "integrated growth". The cardinal values of Prout are those of neo-humanism, a philosophy which aims to take into consideration the good and happiness of all living beings; plants, animals and humans.

The Five Fundamental Principles

The author of the theory summarized it in sixteen Sanskrit verses, five of which are regarded as the most fundamental. The first principle is a challenge to basic capitalist notions.

1) No individual should be allowed to accumulate any physical wealth without the clear permission or approval of the collective body.

The most important point to recognise is that ownership lies with the collectivity. The individual has a right to usage only. Society shall have the right to determine to what extent private ownership is accepted. The over accumulation of wealth by one individual is the scarcity of wealth of others. The right to accumulate wealth without limit cannot be accepted. In the economic sphere individual liberty must be in harmony with the collective interest. Note that this refutes the basic notions of both capitalism and communism. Capitalism allows unlimited liberty for accumulation while Communism prescribes uniform salaries for all regardless of merit and labour. Absolute uniformity of wealth is an unhelpful delusion. This principle also implies that the very notion of ownership may vary considerably according to the collective psychology. Obviously various notions in this regard have existed in the past. Note that no particular mechanism for determining ownership is specified. The notion of collective ownership implies a democratic approach to the utilization of resources - economic democracy.

2) There should be maximum utilization and rational distribution of all mundane, supra-mundane, and spiritual potentialities of the universe.

Here lies the philosophical basis for the guarantee of the basic necessities - in the form of meaningful employment generates adequate purchasing power. Certainly different opinions will exist upon what is considered rational. Rational distribution includes the recognition of special needs and abilities. The inclusion of supramundane and spiritual resources within the fold of maximum utilization and rational distribution acknowledges more subtle layers of existence than the economics today which is based on outdated science. In the future these potentialities will also be utilized for the collective benefit. The utilization of the subtlest resources will require research into all aspects of the universe and the nature of existence itself.

3) There should be maximum utilization of the physical, metaphysical, and spiritual potentialities of the unit and collective bodies of human society.

The second principle refers to the utilization of the objective world, both crude and subtle, while the third principle refers specifically to the utilization of human potentials. The physical, intellectual and spiritual potentialities should be expressed in a constructive way and effort should be made for all-round development. The strengths of each should be utilized according to their particular unique character. Those with outstanding abilities should be given maximum scope and additional effort is to be made for the development of the innate potential of the common mass. In order to develop the potentialities of all existential fear must be removed by the guarantee of the minimum requirements of life. Only then can people at large have the mental ease needed for psychic and spiritual growth. Free and ample educational opportunities must be made available to all. There should also be opportunities in the workplace for the development of new skills and expertise. The development of the collective mind is based on the sum and interactions of the individual constituent minds. Special effort should be made to include factors in the educational system that will help ensure the development of the collective mind such as socio-economic consciousness, ethical conduct, service mindedness, social awareness and spirituality.

4) There should be a proper adjustment amongst these physical, metaphysical, mundane, supramundane and spiritual utilizations.

This principle asserts that the previous two principles must be applied in a balanced and integrated way. Otherwise the society will get disturbed and may be degraded, even ultimately leading to degeneration. Purchasing power is the best method of meeting people's needs on the physical level. Routine handouts encourage dependency and are destructive to initiative. People's role in society should be determined in a balanced way. Employment should draw on people's inherent talents and interests. At present intellectual and artistic skills are comparatively rare compared to physical skills. Spiritual awareness is yet rarer still. Following a sensible policy society should require comparatively less mundane service from those whose mental and spiritual faculties can benefit the society. Ideally the leaders of society are to be developed intellectually and spiritually and physically.

5) The method of utilization should vary in accordance with the changes in time, place, and person, and the utilization should be of a progressive nature.

The fifth principle clarifies that new and better ideas must be continually implemented. An anti-technological attitude is certainly antithetical to human development. Similarly a dogmatic or materialistic attitude is also unhealthy. Some may argue that the environmental impact of technology is such that it will eventually destroy our ecological balance but it can also be argued this state of affairs is the result of misguided use of technology.

Key principles

Basic necessities should be guaranteed to all in society, including food, shelter, clothing, education and health care. Sufficient purchasing power must also be guaranteed for all. Other key principles are economic democracy, moral leadership, individual freedom, cultural diversity, women's rights, world governance.