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133-471: PROUT has not been implemented in any part of the world, though there are a number of books and articles on the subject. In 1959, Sarkar started to develop the ideas of Prout. In 1961, the theory was formally outlined in his book Ananda Sutram , published under his spiritual name Shrii Shrii Ánandamúrti. A number of organizations have been created for the promotion and dissemination of Prout, such as Proutist Universal, Prout Globe, Prout Institute, etc. Since

266-481: A sadvipra ; and that this is accomplished by someone who remains fixed on the "supreme" consciousness through transformative personal practices and engaging in the politics of social liberation as a form of service work . By 1959, Sarkar had developed the socio-economic Progressive Utilization Theory (Prout). In 1961, the theory was formally outlined in his book Ananda Sutram , published under his spiritual name Shrii Shrii Ánandamúrti. In 1968, Sarkar founded

399-489: A financial infrastructure of money and investment that makes possible credit and debt , entrepreneurship , commodification , voluntary exchange , wage labor , production of commodities and services , and a strong emphasis on innovation and economic growth . In a market economy , decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets —whereas prices and

532-440: A no profit - no loss basis as these are resources held on trust for the public. Decentralized industry run by cooperatives would provide people's minimum necessities and other amenities of life. The majority of economic transactions would be through producers' and consumers' cooperatives . Incentives for people serving society would be funded via surpluses. A small business sector would also operate providing goods and services on

665-479: A Spiritual or Neo-Humanism bringing in spiritual, economic, social scientific, ecological, and moral themes to create a long term view of human progress; progress is the evolution of consciousness and movement directed toward the well-being of everyone. Basing his philosophy on love and respect for all things and the central human ideals of freedom, equality, and justice, Sarkar proposed that the physical, mental, and spiritual realms of humanity all need to be addressed in

798-477: A broader and expanding money-based economy. The system put pressure on both landlords and tenants to increase the productivity of agriculture to make profit; the weakened coercive power of the aristocracy to extract peasant surpluses encouraged them to try better methods, and the tenants also had incentive to improve their methods in order to flourish in a competitive labor market . Terms of rent for land were becoming subject to economic market forces rather than to

931-544: A close analysis of the two systems, Prout's propounder argues that these philosophies are "anti-human“ in the sense that they encourage people to relentlessly pursue material attainment, like name, fame, etc. Another criticism of neo-liberalism and capitalism in general is the centralization of economic power in the hands of the rich leads to the exploitation of the masses and ultimately to the degeneration of society. Prout claims that both capitalism and communism have been built on shaky foundations, and identifies weaknesses to

1064-439: A concept of progress as a society that transcends material and technological development. Moving along the lines of the triple bottom line that analyzes the social, environmental and financial output of a given enterprise, Prout advocates a measure of progress that encompasses the qualities of what could be termed a " fourth bottom line ", characterized by the incorporation of a transcendental dimension of human life that focuses on

1197-419: A decentralized economy. Prout takes account of Sarkar's law of social cycle. It sees the social order as consisting of four classes of people that cyclically dominate society: shudras (workers), kshatriyas (warriors), vipras (intellectuals) and vaishyas (acquisitors). However, Prout does not seek the abolition of these four classes, as it sees them as "... not merely as a power configuration, but as

1330-433: A few criteria that Sarkar outlined in order to build a working and cohesive socio-economic unit. Similar to bioregions , their purpose is to facilitate cooperative development, moving towards a decentralized economy, where these units are economically independent and self-reliant. Though still guided by national and federal guidelines and laws, they should prepare its own economic plan. Aiming to achieve maximum efficiency in

1463-580: A formal property system where ownership and transactions are clearly recorded. According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the inclosure acts in England and similar legislation elsewhere were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to

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1596-607: A healthy economy. In summary, Proutist thought considers that planning allows the market to protect its stakeholders from the meanderings of neo-liberal economics where profit-motive speaks highest. However, he stresses that a planning committee at a national level should only outline the broader aspects of economic development, leaving the details to be resolved by planning bodies at a local level where problems are best understood and more easily dealt with. (see diseconomies of scale ). Consequently, this kind of top-down planning will leave communities, enterprises and ultimately workers with

1729-418: A hopeful and preferable futurist vision for the world." —Thomas Lombardo on Sarkar's philosophy. Sarkar's teachings on spiritual philosophy are a synthesis of Vedic and Tantric philosophies. He considered himself to be "an incorrigible optimist" in his thinking. Sarkar described the universe as a result of macropsychic conation – the entire universe exists within the cosmic mind, which itself

1862-423: A large middle class were good for democracy. He also argued that a market economy provided a substitute for government control of the economy, which reduces the risks of tyranny and authoritarianism. In his book The Road to Serfdom (1944), Friedrich Hayek (1899–1992) asserted that the free-market understanding of economic freedom as present in capitalism is a requisite of political freedom . He argued that

1995-505: A large number of sellers nor to a market in final equilibrium . Competition is widespread throughout the market process . It is a condition where "buyers tend to compete with other buyers, and sellers tend to compete with other sellers". In offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on

2128-619: A less protectionist policy, with the 1846 repeal of the Corn Laws and the 1849 repeal of the Navigation Acts . Britain reduced tariffs and quotas , in line with David Ricardo's advocacy of free trade . Broader processes of globalization carried capitalism across the world. By the beginning of the nineteenth century, a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization. Late in

2261-461: A market has to be rational and equitable, so that the allocation of a good maximizes the physical, mental, and spiritual development of all people. There must always be a baseline distribution that intends to guarantee food, clothing, shelter, education, and medical care (what the theory regards as minimum requirements for humans). Prout advocates a three-tiered approach to industrial organization . Key industries and public utilities would operate on

2394-405: A more individualized basis. At the political level, Prout discourages nationalism , though nation-states would form a world government in the form of a confederation. There would be a world constitution and a bill of rights for human being, and for ensuring the biological diversity and security of animals and plants. Locally governed self-sufficient socio-economic units or zones would support

2527-567: A point where a new market system is required. He heavily critiqued communism, indicating that one of the reasons the USSRs experiment with communism did not work, causing the eventual implosion of their political structure, is that the Soviet central planning committees ( Gosplan ) had too much economic decision and cohesion power in the federation (see Marxism–Leninism ). Nonetheless, Sarkar observed aspects of market planning that help to create and sustain

2660-465: A result of the Industrial Revolution. The accumulation of capital is the primary mechanism through which capitalist economies promote economic growth . However, it is a characteristic of such economies that they experience a business cycle of economic growth followed by recessions. The term "capitalist", meaning an owner of capital , appears earlier than the term "capitalism" and dates to

2793-564: A safe environment for investment and capitalism. Similarly, Suharto 's authoritarian reign and extirpation of the Communist Party of Indonesia allowed for the expansion of capitalism in Indonesia . The term "capitalism" in its modern sense is often attributed to Karl Marx . In his Das Kapital , Marx analyzed the " capitalist mode of production " using a method of understanding today known as Marxism . However, Marx himself rarely used

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2926-426: A significant level of freedom to decide their own economic future (see decentralized planning ). Prout also claims that the nationalization of enterprises is inefficient due to the larger costs and amount of bureaucracy necessary to keep state-controlled industries running. Yet, there are some industries that should be nationalized, operating on a "no-profit, no-loss" principle. Concerning wealth distribution among

3059-678: A small scale for centuries in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labor. Simple commodity exchange and consequently simple commodity production, which is the initial basis for the growth of capital from trade, have a very long history. During the Islamic Golden Age , Arabs promulgated capitalist economic policies such as free trade and banking. Their use of Indo-Arabic numerals facilitated bookkeeping . These innovations migrated to Europe through trade partners in cities such as Venice and Pisa. Italian mathematicians traveled

3192-516: A social system cannot be said to have existed before that date". England began a large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). A systematic and coherent explanation of balance of trade was made public through Thomas Mun 's argument England's Treasure by Forraign Trade, or the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in

3325-399: A society where material motivation to work is absent, the willingness to strive for financial success and to thrive in the creative development of industry and society will be lost in its citizens. Therefore, this theory argues for the implementation of a policy allowing the most meritorious in society to receive added perks for the added benefits they bring to society. It is thus theorized that

3458-467: A state of deep peace and happiness." From a Maslownian perspective, Prout defends the need to meet physical and mental needs before being able to engage in a journey to find that transcendental nature of the world. The five fundamental principles stem from this idea that society needs to provide for the basic necessities of all human beings so that they can engage in this journey of self-discovery and achieve true progress. Fundamentally, progress in society

3591-431: A vast legacy, including over 250 books written on a wide variety of topics. Many of this books are compilations or collections of speeches given by him during spiritual or social meetings. He is primarily known as the spiritual teacher behind Ananda Marga , but Sarkar wrote over 1500 pages on his socio-politico-economic Progressive Utilization Theory (PROUT), with several thousand more pages dedicated to linguistics and

3724-460: A vision of the future. A new social order – a "moral society" – is needed for the future, emphasizing cooperation over competition, collective welfare over profit, and transcendent ideals over self-interest. And finally, as a common theme that runs through many works, the idea of the New (or Second) Enlightenment, reflecting an ethical, psychological, and social transformation in humanity, has been proposed as

3857-437: A way of knowing the world, as a paradigm, episteme or deep structure if you will." It considers that any person can be worker, warrior, intellectual or acquisitive minded. Prout sees the four classes as connected to cyclic processes across time. That when a class of people struggle and rise to power they cause a revolution in the physical and mental world. To prevent any social class from clinging to political power and exploiting

3990-566: A worldview based on inter-connectedness of all beings. Sarkar was born during the full moon of the Indian month of Vaeshakh ( Buddha Purnima ), on 21 May 1921 (at 6:07 in the morning) to Lakshmi Narayan Sarkar, a homoeopathic doctor and Abharani Devi in the small town of Jamalpur , Bihar. His family hailed from Bamunpara (Brahmanpara), Burdwan District in West Bengal. In 1939, Sarkar left Jamalpur for Kolkata to attend Vidyasagar College of

4123-416: Is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Some of Friedman's views were shared by John Maynard Keynes , who believed that capitalism was vital for freedom to survive and thrive. Freedom House , an American think-tank that conducts international research on, and advocates for, democracy, political freedom and human rights , has argued that "there

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4256-619: Is a high and statistically significant correlation between the level of political freedom as measured by Freedom House and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey ". In Capital in the Twenty-First Century (2013), Thomas Piketty of the Paris School of Economics asserted that inequality is the inevitable consequence of economic growth in a capitalist economy and

4389-476: Is an accepted version of this page Capitalism is an economic system based on the private ownership of the means of production and their operation for profit . The defining characteristics of capitalism include private property, capital accumulation , competitive markets , price systems , recognition of property rights , self-interest , economic freedom , meritocracy , work ethic , consumer sovereignty , economic efficiency , profit motive ,

4522-569: Is governed by stable economic laws of its own. In the English language , the term "capitalism" first appears, according to the Oxford English Dictionary (OED), in 1854, in the novel The Newcomes by novelist William Makepeace Thackeray , where the word meant "having ownership of capital". Also according to the OED, Carl Adolph Douai , a German American socialist and abolitionist , used

4655-468: Is no competition. A monopoly occurs when a firm has exclusivity over a market. Hence, the firm can engage in rent seeking behaviors such as limiting output and raising prices because it has no fear of competition. Governments have implemented legislation for the purpose of preventing the creation of monopolies and cartels. In 1890, the Sherman Antitrust Act became the first legislation passed by

4788-422: Is no profit in making an article, it is a sign that the labor and capital devoted to its production are misdirected: the value of the resources that must be used up in making the article is greater than the value of the article itself". Socialist theorists note that, unlike mercantilists, capitalists accumulate their profits while expecting their profit rates to remain the same. This causes problems as earnings in

4921-465: Is not enough to free society from exploitation and what it considers extreme income inequality. As Roar Bjonnes , a known Proutist, states, "Unless we have deeper structural change – what we refer to as economic-systems change – we will never be able to solve such global and systemic problems as the environmental and inequality crises. History has demonstrated that political democracy is not enough." Prout, therefore, advocates an economic democracy where

5054-401: Is representative of all aspects of the varnas —that is, the leader engaged in service, who is courageous, who uses the intellect for the benefits of others, and who has innovative/entrepreneurial skills—the cycle can become an upward spiral. Sarkar's concept of karma samnyasa refers to the principle that a yogi becomes a person with all-round development and a balanced mind, that he called

5187-405: Is the effort through which communities engage in the fulfillment of human needs, with the goal of achieving a transcendental existence. As a goal, transcendence will offer a fourth bottom line which ideally would propel human society into a more peaceful, inclusive and all-round more progressive existence. Prout is a relatively unknown theory. Ravi Batra was one of the first economists that used

5320-546: Is the first expression of consciousness coming under the bondage of its own nature. He described the cosmological flow as being from limitless consciousness to limited consciousness and back to limitless consciousness, attained by meditation. According to Sarkar's philosophy the individual mind is composed of five layers called Kosas : Sarkar's "biopsychology" reimagined the traditional tantric belief in chakras ("wheels") as being due to interactions of subtle energies through nerve plexuses . He believed this connected

5453-582: Is to say the appropriation of capital by some to the exclusion of others") and Pierre-Joseph Proudhon in 1861 ("Economic and social regime in which capital, the source of income, does not generally belong to those who make it work through their labor"). Karl Marx frequently referred to the " capital " and to the "capitalist mode of production" in Das Kapital (1867). Marx did not use the form capitalism but instead used capital , capitalist and capitalist mode of production , which appear frequently. Due to

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5586-530: The Vipra ( intellectual ), Kshatriya ( warrior ), Vaishya (acquisitor) and Shudra ( labourer ). Varna , in Sarkar's perspective, however is more than just a psychological trait but rather an archetype , approximately to Michel Foucault 's notion of epistemes , which are broader frameworks of knowledge defining what is true and real . Sarkar clarified that Varna is not the same as Hindu idea of "caste". He

5719-598: The University of Calcutta . Sarkar had to quit his studies to support his family after the death of his father; from 1944 until the early 1950s, Sarkar worked as an accountant at the Indian railways headquarters in Jamalpur, Bihar. He taught the techniques of Yoga and Tantra meditation to a select number of his colleagues and gradually more people were drawn to the spiritual practices he taught. In 1955, Sarkar founded Ananda Marga (

5852-740: The World Bank and the IMF ), large institutional investors and a well-funded banking system . A significant managerial class has emerged and decides on a significant proportion of investments and other decisions. A different future than that envisioned by Marx has started to emerge—explored and described by Anthony Crosland in the United Kingdom in his 1956 book The Future of Socialism and by John Kenneth Galbraith in North America in his 1958 book The Affluent Society , 90 years after Marx's research on

5985-512: The endocrine glands of the neuroendocrine system with a psychic part of the body. The philosophy of Ananda Marga considers the human body as composed of the same five fundamental factors as the rest of the universe as explained in Brahmachakra . Every factor is said to be distributed throughout the body, but governed by a chakra , substations of the mind which control their own assigned areas. The biopsychology of Ananda Marga expands

6118-410: The neoliberal global economy would have been impossible without the fall of communism . Harvard Kennedy School economist Dani Rodrik distinguishes between three historical variants of capitalism: The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of adult-male suffrage in 19th-century Britain occurred along with

6251-548: The optimising the use of natural , industrial and human resources on a sustainable basis for the entire ecosystem . The theory claims to overcome the limitations of both capitalism and communism. It is inline with Sarkar's social theory of the Law of Social Cycle. The theory aims to encompass the whole of individual and collective existence for all beings, including physical, educational, social, political, mental, cultural and spiritual . In 1982, Sarkar extended his writings on

6384-472: The transatlantic cable , the radiotelephone , the steamship and railways allowed goods and information to move around the world to an unprecedented degree. In the United States, the term "capitalist" primarily referred to powerful businessmen until the 1920s due to widespread societal skepticism and criticism of capitalism and its most ardent supporters. Contemporary capitalist societies developed in

6517-420: The universe as a manifestation of consciousness coming under the bondage of its own nature, resulting in creation. His spiritual and social philosophies embraced diversity as the law of nature; a result of Singular Consciousness expressing itself in numerous forms. Sarkar advocated for the welfare of humans and the planet through his socio-economic philosophy of PROUT , which is rooted in the idea of Neohumanism,

6650-504: The "highest and most valuable treasure of humanity". In Sarkar's view, Neohumanism leads to the liberation of human intellect from the constraints of imposed dogma and the principle of selfish pleasure and psychic complexes helping to bridge the gap between the inner and outer worlds. In his series of discourses Talks on Prout , given in Ranchi in July 1961, Sarkar makes a distinction between

6783-422: The 1620s and published in 1664. European merchants , backed by state controls, subsidies and monopolies , made most of their profits by buying and selling goods. In the words of Francis Bacon , the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of

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6916-459: The 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production , characterized by factory work and a complex division of labor . Through the process of globalization , capitalism spread across the world in the 19th and 20th centuries, especially before World War I and after the end of the Cold War. During the 19th century, capitalism

7049-629: The 18th-century decisively shaped globalization. After the First and Second Opium Wars (1839–60) and the completion of the British conquest of India by 1858, vast populations of Asia became consumers of European exports. Europeans colonized areas of sub-Saharan Africa and the Pacific islands. Colonisation by Europeans, notably of sub-Saharan Africa, yielded valuable natural resources such as rubber , diamonds and coal and helped fuel trade and investment between

7182-557: The 1980s a number of cooperative communities have been established across the world by Ananda Marga in an attempt to provide ideal models for the society outlined in Prout. Prout proposes a socioeconomic system that is an advancement on capitalism and, what Prout sees as "the largely outdated" system of communism . Under the system, resources would be collective property from which usufructuary rights are carved out for use by individuals or groups of individuals. Distribution of goods in

7315-402: The 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy as its dominant form in the industrialized Western world. Industrialization allowed cheap production of household items using economies of scale , while rapid population growth created sustained demand for commodities. The imperialism of

7448-647: The Bengali language. He founded Ananda Marga ( the Path of Bliss ) in 1955 as a spiritual and social organisation that continues to offer instruction in meditation and yoga . and runs numerous social service and disaster relief projects throughout the world. Sarkar developed his system of spiritual practice as a synthesis of Vedic and Tantric philosophies. He denounced religious dogmas, casteism, materialism and capitalism, considering all of these as impediments to social harmony, progress and spiritual growth. He described

7581-514: The European imperial powers, their colonies and the United States: The inhabitant of London could order by telephone, sipping his morning tea, the various products of the whole earth, and reasonably expect their early delivery upon his doorstep. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. What an extraordinary episode in

7714-620: The Greek "paidéia" to the Latin "humanitas", that is to human beings capable of distinguishably mastering the arts, rhetoric, and philosophy), then Sarkar offers a new point of view, with a large universalistic explanation: "the culture of the whole human race is one, but marked by different local manifestations [...] it is the same, but varying in expression." (Sarkar, P.R., 1987) Although Sarkar spent only seventeen years of his life working full-time for his organisations (1966–1971 and 1978–1990), he left behind

7847-564: The Mediterranean talking to Arab traders and returned to popularize the use of Indo-Arabic numerals in Europe. The economic foundations of the feudal agricultural system began to shift substantially in 16th-century England as the manorial system had broken down and land began to become concentrated in the hands of fewer landlords with increasingly large estates. Instead of a serf -based system of labor, workers were increasingly employed as part of

7980-421: The Path of Bliss ), a socio-spiritual movement with a two-part mission that Sarkar stated as "self-realization and service to all" with a spiritual practice that synthesized Vedic and Tantric philosophies. Sarkar's ideas are collected in the series of books called "Subháśita Samgraha", which form part of the philosophical scriptures of Ananda Marga ideology. During the latter part of his life, his main residence

8113-542: The Theory of Microvita in 1986. In his Theory of Microvita, Sarkar "believed that the atoms and the subatomic particles throughout the boundless universe are imbued with life." In 1982 Sarkar started composing songs. In eight years, until the date of his death, He completed the composition of 5018 songs in multiple languages. His collection of songs is called Prabhat Samgiita ("Songs of the New Dawn"). Capitalism This

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8246-520: The United Kingdom (1979–1990). Public and political interest began shifting away from the so-called collectivist concerns of Keynes's managed capitalism to a focus on individual choice , called "remarketized capitalism". The end of the Cold War and the dissolution of the Soviet Union allowed for capitalism to become a truly global system in a way not seen since before World War I . The development of

8379-493: The United States Congress to limit monopolies. Wage labor, usually referred to as paid work, paid employment, or paid labor, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labor power under a formal or informal employment contract . These transactions usually occur in a labor market where wages or salaries are market-determined . In exchange for

8512-532: The West from 1950 to the present and this type of system continues throughout the world—relevant examples started in the United States after the 1950s , France after the 1960s , Spain after the 1970s , Poland after 2015 , and others. At this stage most capitalist markets are considered developed and characterized by developed private and public markets for equity and debt, a high standard of living (as characterized by

8645-472: The above-mentioned traits. This "law" possibly connects to the earlier cyclical historical ideas of Sri Aurobindo , with a focus on the psychology of human development , as well as Ibn Khaldun , among other macrohistorians ideas about cycles. However, along with a cyclical dimension—the rise and fall of ages—Sarkar's theory exhibits a correspondent linear dimension , in that economic and technological " progress " are considered critical in terms of meeting

8778-557: The ashrams. In 1971, Sarkar was imprisoned in India for the alleged murder of Ananda Marga members. On 1 April, after recovering his health, Sarkar began fasting in support of a demand for an inquest into his poisoning. That demand was never met. So he continued his fast for the next five years, four months, and two days, until 2 August 1978 when he was released from jail after having been acquitted of all charges. In 1979, Sarkar took two world tours to meet disciples in various countries around

8911-521: The basic, though ever changing, needs—food, housing, clothing, health and education. Sarkar developed both Ánanda Márga and the Progressive Utilization Theory as practical means to encourage harmony and co-operation to help society escape this proposed cycle. Sarkar argues that once the social cycle is understood and sadvipras evolved, then the periods of exploitation can be largely reduced, if not eliminated. With leadership that

9044-523: The business of a third party by offering the most favourable terms". It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency . Smith and other classical economists before Antoine Augustine Cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to

9177-423: The changing material conditions of life. Ultimately, for Sarkar, true progress has to prioritise development in the spiritual dimension. Spirituality for Sarkar is defined as the individual realising the "true self". In addition to yogic meditational practices and purity of thought and deed, Sarkar attached great importance to selfless social service as a means of liberation . Sarkar considered it necessary for

9310-558: The collective singing of a few Prabhat Samgiita (or "Songs of the New Dawn", composed by P. R. Sarkar himself) followed by Baba Nam Kevalam kiirtan , then the mantra called Samgacchadvam . The mantra Nityam Shuddham marks the end of the collective meditation, then the spiritual gathering will end with the Guru Puja mantra . The concept of Varna describes four main socio-psychological types, whereby human psychological and physical endowment and social motivations are expressed:

9443-411: The communist's motto of from each according to his ability, to each according to his needs cannot work in the real world. Prout proposes instead a minimum and maximum wage, roughly attributed according to the value the work of each person brings to society. We see examples of attempts in this direction in companies like Mondragon or Whole Foods . Regarding neo-liberalism, Sarkar throws a new light to

9576-519: The community. From a Neohumanist perspective, all people are free to choose where they wish to live, as long as they merge their economic interests with the ones of the local people. A socio-economic unit, or samaja in Sanskrit , is the Proutist materialization of the collective effort to create a strong and resilient local community , built on strong feelings of solidarity and self-identity . There are

9709-412: The concept of Adam Smith's invisible hand , where individual producers acting self-interest benefit the community as a whole. Prout claims that, unchecked, societies economic elite will disrupt the just circulation of material wealth within society. The market will then require regulatory measures so as to create a functional economic system. In relation to democracy, Prout argues that political democracy

9842-415: The concept of the seven basic chakras and in general, mainly considers: "Microvita" is plural for "Microvitum" and literally means "possessing or with micro-life". He believed that microvita are smaller and subtler than physical atoms and subatomic particles , and in the psychic realm contribute to "pure consciousness". Sarkar claimed that they would be recognised by conventional science. Sarkar gave

9975-587: The cult of love for all created beings of this universe." Neohumanism is said to prefer existential value over utility value for all living beings. Sarkar's Neohumanism places great emphasis on rationality and encourages what he calls a "protospiritual mentality," a process of continually recognising each object with which we come in contact, externally or internally, as a manifestation of the Supreme Consciousness (Brahma). According to Sarkar, rationality helps to give rise to devotion, which he consider to be

10108-654: The decision-making power for the economic future of a community is given to its inhabitants. Economic democracy is not a new term, but Sarkar reinvents it by setting four requirements for what he considers a successful one. The first and foremost requirement is guaranteeing the minimum requirements of life to all members of society. Secondly, and following one of the five fundamental principles, Prout argues that there should be an increasing purchasing capacity for each individual, stating that local people will have to hold economic power over their socio-economic region. Still, on this regard, Sarkar theorizes that, unlike capitalism , where

10241-578: The development of capitalism. Private property rights are not absolute, as in many countries the state has the power to seize private property, typically for public use, under the powers of eminent domain . In capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix : price, product, distribution and promotion. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure

10374-754: The development of industrial capitalism and representative democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them. However, according to some authors in the 20th-century, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies and single-party states . Democratic peace theory asserts that democracies seldom fight other democracies, but others suggest this may be because of political similarity or stability, rather than because they are "democratic" or "capitalist". Critics argue that though economic growth under capitalism has led to democracy, it may not do so in

10507-523: The development of the region and not merely for export. In summary, Prout advocates a decentralized economy where self-sufficient economic zones are created and organized according to a set of predetermined conditions (see socio-economic units). Prout claims this requirement does not express xenophobic feelings, it solely claims to be the realization that there should not be a constant outflow of local capital, where natural resources are explored by foreign investment companies that extract assets and money out of

10640-634: The distribution of goods and services are mainly determined by competition in goods and services markets. Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism , anarcho-capitalism , state capitalism , and welfare capitalism . Different forms of capitalism feature varying degrees of free markets , public ownership , obstacles to free competition, and state-sanctioned social policies . The degree of competition in markets and

10773-457: The economic progress of man was that age which came to an end in August 1914. From the 1870s to the early 1920s, the global financial system was mainly tied to the gold standard . The United Kingdom first formally adopted this standard in 1821. Soon to follow were Canada in 1853, Newfoundland in 1865, the United States and Germany ( de jure ) in 1873. New technologies, such as the telegraph ,

10906-399: The era of merchant capitalism and mercantilism as the origin of modern capitalism, although Karl Polanyi argued that the hallmark of capitalism is the establishment of generalized markets for what he called the "fictitious commodities", i.e. land, labor and money. Accordingly, he argued that "not until 1834 was a competitive labor market established in England, hence industrial capitalism as

11039-484: The expense of another state. During the Industrial Revolution , industrialists replaced merchants as a dominant factor in the capitalist system and effected the decline of the traditional handicraft skills of artisans , guilds and journeymen . Industrial capitalism marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and

11172-440: The expression itself is culture. Therefore it is a mistake to readjust boundaries on the basis of language and culture. Indian culture and the culture of the world are one and the same." The philosophy of Sarkar reinterprets the general concept of culture by inserting it into a new universalistic outlook. As described by Antonello Maggipinto: If the term "culture" is usually referred to the original meaning of this word (i.e. from

11305-626: The five fundamental principles of Prout. These five principles are deemed to be fundamental because it would be difficult to get a clear understanding of Prout without comprehending the underlying concepts of these principles, the interrelationship of the principles, and their respective areas of application. The five aphorisms from Ananda Sutram translate into English as follows: An initial glimpse of these five principles first appeared in Sarkar's earlier work, Idea and Ideology . As far as Prout's values and goals differ from those of capitalism and communism , so does its economic structure . Following

11438-486: The focus on economic democracy and co-operatives. Some political parties support the progressive utilization theory. They are: Prabhat Ranjan Sarkar Prabhat Ranjan Sarkar (21 May 1921 – 21 October 1990), also known by his spiritual name Shrii Shrii Ánandamúrti (Ánanda Múrti = "Bliss Embodiment"), and known as Bábá ("Father") to his disciples, was a spiritual guru , philosopher, social reformer, linguist, author and composer of 5,018 songs mostly in

11571-522: The following: In free market and laissez-faire forms of capitalism, markets are used most extensively with minimal or no regulation over the pricing mechanism. In mixed economies, which are almost universal today, markets continue to play a dominant role, but they are regulated to some extent by the state in order to correct market failures , promote social welfare , conserve natural resources , fund defense and public safety or other rationale. In state capitalist systems, markets are relied upon

11704-471: The future as authoritarian régimes have been able to manage economic growth using some of capitalism's competitive principles without making concessions to greater political freedom . Political scientists Torben Iversen and David Soskice see democracy and capitalism as mutually supportive. Robert Dahl argued in On Democracy that capitalism was beneficial for democracy because economic growth and

11837-475: The idea that if all participants focus on their own goals, society's well-being will be water under the bridge, Smith maintains that despite the concerns of intellectuals, "global trends will hardly be altered if they refrain from pursuing their personal ends." He insisted that the actions of a few participants cannot alter the course of society. Instead, Smith maintained that they should focus on personal progress instead and that this will result in overall growth to

11970-487: The ideas of Prout in his bestseller The Great Depression of 1990 . In time, the theory attracted attention of people like Johan Galtung , founder of the UN Institute for Peace studies who claimed that "Sarkar’s theory is far superior to Adam Smith’s or that of Marx ." According to a description by Terry Irving and Rowan Cahill , Prout "envisages a decentralised, community-based world economy of self-sufficiency for

12103-528: The integrated development of the body, mind and spirit. This fourth bottom line will allow society in general and individuals in particular to develop an expanded sense of identity, allowing for a neohumanist will of inclusion, creating a society where material gains are not the summum bonum of life and allowing space to be created for people to work together in a symbiotic movement that primes for individual and collective welfare through social, cultural, as well as technological development. Prout acknowledges that

12236-492: The intuitional theory of Microvita in 1986. A central point in Sarkar's philosophy is the concept of Sadhana . He described Sadhana as a practice for "the transformation of fearful love into fearless love". For Sarkar, Sandhana was concretized by the practice of meditation. He recommended to his disciples the daily practice of individual meditation and the weekly practice of collective meditation. These weekly meetings of his disciples, called Dharma Chakras, are preceded by

12369-688: The least corrupt, operates largely under a one-party rule. Furthermore, it does not vigorously defend freedom of expression as evidenced by its government-regulated press , and its penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People's Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet 's rule in Chile led to economic growth and high levels of inequality by using authoritarian means to create

12502-406: The least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. Adherents of the capitalist theory believe that competition leads to innovation and more affordable prices. Monopolies or cartels can develop, especially if there

12635-403: The market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression . In his view, transactions in a market economy are voluntary and the wide diversity that voluntary activity permits

12768-428: The market, competing for the attention and exchange resources of buyers. Competition results from scarcity , as it is not possible to satisfy all conceivable human wants, and occurs as people try to meet the criteria being used to determine allocation. In the works of Adam Smith, the idea of capitalism is made possible through competition which creates growth. Although capitalism had not entered mainstream economics at

12901-434: The mid-17th century. "Capitalism" is derived from capital , which evolved from capitale , a late Latin word based on caput , meaning "head"—which is also the origin of " chattel " and " cattle " in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries to refer to funds, stock of merchandise, sum of money or money carrying interest. By 1283, it

13034-424: The money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer. A wage laborer is a person whose primary means of income is from the selling of their labor in this way. The profit motive , in the theory of capitalism, is the desire to earn income in the form of profit. Stated differently,

13167-455: The only aspect of human life that seems to be subject to no change over time is its transcendental nature, the "supra-emotional values" intrinsic to the human mind and which exacerbate human multilateral existence. "The deepest truths of life are an eternal fountain of inspiration. Spiritual, transpersonal development is a process of expanding one's consciousness to link with the Infinite, to reach

13300-455: The order of dominance within the social order. The Prout theory is inline with Sarkar's Neohumanism philosophy. The philosophy is a reinterpretation of humanism integrating the idea of unity of all life. In it all living beings belong to a universal family deserving equal care and respect. In 1962, Prout was formally outlined in sixteen aphorisms (see Chapter 5 of Ananda Sutram ). The last five aphorisms (5:12-16) are commonly referred to as

13433-486: The organisation "Proutist Block of India" (PBI), to further the ideals of his theory through political and social action. The PBI was soon superseded by "Proutist Universal" (PU), which primarily consists of five federations (students, intellectuals, farmers, labour, and youth). A Prout economy is cooperative and decentralised . Its focus is collective welfare rather than to profit , without neglecting individuals and their merits . "Progressive utilization" refers to

13566-417: The others, a "spiritual elite" sadvipras (etymologically sad – true, vipra – intellectual) would determine who will hold political leadership. Prout theorises that the first sadvipras would come from disgruntled middle-class intellectuals and warriors. Sadvipras would be organized into executive , legislative , and judicial boards which would be governed by a Supreme Board. They would be responsible for

13699-453: The poor; economic democracy; small business; and limits on the accumulation of wealth." Sohail Inayatullah stated that the philosophy "attempts to balance the need for societies to create wealth and grow with the requirements for distribution." David Skrbina characterized Prout as a "model of social development... which advocates a 'small is beautiful' approach to society." Economics instructor Mark Friedman places Sarkar's economic thought in

13832-403: The population, Sarkar argues for an "optimal inequality" where the wage gap between the richer strata of society is substantially subsided. Richard Freeman , a Harvard economist, points out income inequality comes from the monopoly of power and other activities with "negative consequences" in terms of social development. Nonetheless, Prout is not in favour of total income equality, claiming that in

13965-475: The previous stage of mercantilism, invested capital in the East India Companies and other colonies, seeking a return on investment . In the mid-18th century a group of economic theorists, led by David Hume (1711–1776) and Adam Smith (1723–1790), challenged fundamental mercantilist doctrines—such as the belief that the world's wealth remained constant and that a state could only increase its wealth at

14098-589: The previous stagnant system of custom and feudal obligation. The economic doctrine prevailing from the 16th to the 18th centuries is commonly called mercantilism . This period, the Age of Discovery , was associated with the geographic exploration of foreign lands by merchant traders, especially from England and the Low Countries . Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist methods. Most scholars consider

14231-440: The production and distribution of goods are mainly decided by market competition, in a Proutistic society it should be based on necessity. The third requirement of economic democracy is the decentralization of power, giving the freedom to make economic decisions to its stakeholders. That can be accomplished by adopting a worker-owned cooperative system and by the use of local resources (raw materials and other natural resources) for

14364-491: The reason for a business's existence is to turn a profit. The profit motive functions according to rational choice theory , or the theory that individuals tend to pursue what is in their own best interests. Accordingly, businesses seek to benefit themselves and/or their shareholders by maximizing profit. In capitalist theoretics, the profit motive is said to ensure that resources are being allocated efficiently. For instance, Austrian economist Henry Hazlitt explains: "If there

14497-435: The rest of society do not increase in the same proportion. The relationship between the state , its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary Peruvian economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in

14630-517: The resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built. States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law. Nonetheless, it often comes under fire for its style of government which, though democratic and consistently one of

14763-608: The role of intervention and regulation , as well as the scope of state ownership, vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning . Capitalism in its modern form emerged from agrarianism in England , as well as mercantilist practices by European countries between

14896-478: The routine of work tasks; and eventually established the domination of the capitalist mode of production . Industrial Britain eventually abandoned the protectionist policy formerly prescribed by mercantilism. In the 19th century, Richard Cobden (1804–1865) and John Bright (1811–1889), who based their beliefs on the Manchester School , initiated a movement to lower tariffs . In the 1840s Britain adopted

15029-562: The social arrangements to support the inner development of human beings and rejected both capitalism and communism as appropriate social structures for humanity to move forward to the golden age of a balanced way of life sustaining all-round progress. A serious problem with capitalism was according to Sarkar the concentration of wealth in a few hands and stoppages in the rolling of money which he considered root causes of recessions , even depressions . A spiritual way of life, however, would in no way be divorced from creating structures that help meet

15162-624: The soil; the regulation of prices...". After the period of the proto-industrialization , the British East India Company and the Dutch East India Company , after massive contributions from the Mughal Bengal , inaugurated an expansive era of commerce and trade. These companies were characterized by their colonial and expansionary powers given to them by nation-states. During this era, merchants, who had traded under

15295-440: The state of capitalism in 1867. The postwar boom ended in the late 1960s and early 1970s and the economic situation grew worse with the rise of stagflation . Monetarism , a modification of Keynesianism that is more compatible with laissez-faire analyses, gained increasing prominence in the capitalist world, especially under the years in office of Ronald Reagan in the United States (1981–1989) and of Margaret Thatcher in

15428-458: The study of languages ; Sarkar's writings on linguistics included, among other works, Shabda Cayanika ("A Collection of Words"), an unfinished, twenty-six volume dictated encyclopaedia on the Bengali language . Beyond this, he wrote books on sociology, agriculture, history, literature, education, medicine, cosmology , and philosophy, also notably founding the philosophy of Neohumanism in 1982 and

15561-481: The subject of human society with the introduction of his new theory of Neohumanism . If humanism tends to contemplate only humans in a human-centric view, Neohumanism, according to Sarkar's theory, is instead the elevation of humanism to universalism . Sarkar said "When the underlying spirit of humanism is extended to everything, animate and inanimate, in this universe – I have designated this as "Neohumanism". This Neohumanism will elevate humanism to universalism,

15694-420: The term "capitalism" by many authors as "mainly rhetorical, functioning less as an actual concept than as a gesture toward the need for a concept". Scholars who are uncritical of capitalism rarely actually use the term "capitalism". Some doubt that the term "capitalism" possesses valid scientific dignity, and it is generally not discussed in mainstream economics , with economist Daron Acemoglu suggesting that

15827-418: The term "capitalism" should be abandoned entirely. Consequently, understanding of the concept of capitalism tends to be heavily influenced by opponents of capitalism and by the followers and critics of Karl Marx. Capitalism, in its modern form, can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance , in city-states like Florence . Capital has existed incipiently on

15960-525: The term "capitalism" while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels . In the 20th century, defenders of the capitalist system often replaced the term "capitalism" with phrases such as free enterprise and private enterprise and replaced "capitalist" with rentier and investor in reaction to the negative connotations associated with capitalism. In general, capitalism as an economic system and mode of production can be summarized by

16093-512: The term "private capitalism" in 1863. There is no universally agreed upon definition of capitalism; it is unclear whether or not capitalism characterizes an entire society, a specific type of social order, or crucial components or elements of a society. Societies officially founded in opposition to capitalism (such as the Soviet Union ) have sometimes been argued to actually exhibit characteristics of capitalism. Nancy Fraser describes usage of

16226-461: The term in his first work, What is Property? (1840), to refer to the owners of capital. Benjamin Disraeli used the term in his 1845 work Sybil . Alexander Hamilton used "capitalist" in his Report of Manufactures presented to the United States Congress in 1791. The initial use of the term "capitalism" in its modern sense is attributed to Louis Blanc in 1850 ("What I call 'capitalism' that

16359-408: The terms "culture" and "customs". According to Sarkar "culture... is the collective name for different expressions of life..." but "...all of society has the same culture. There are local variations in the mode or state of cultural expression, but the expression is universal... These local variations are called customs... Thus local modes of expression bearing local or group specialities are customs, but

16492-414: The time of Smith, it is vital to the construction of his ideal society. One of the foundational blocks of capitalism is competition. Smith believed that a prosperous society is one where "everyone should be free to enter and leave the market and change trades as often as he pleases." He believed that the freedom to act in one's self-interest is essential for the success of a capitalist society. In response to

16625-481: The tradition of Monsignor John A. Ryan , E. F. Schumacher and Herman Daly in Sarkar's incorporation of spiritual values into economic goals. It has been characterized as a form of "progressive socialism" as well as a "socialist theory". Hans Despain noted, in Monthly Review , that there are similarities between Prout and the theories of David Schweickart , Gar Alperovitz and Richard D. Wolff . Particularly

16758-928: The utilization of local resources, they propose to make trade across borders more balanced and mutually beneficial. From Prout's perspective, a progressive society cannot solely be measured by the wealth of a nation or its GDP levels. Prout recognizes the benefits of material progress, but deems them insufficient indicators of the development of human society. It argues that even though progress as its interpreted by society today has its advantages, there are negative side effects that, if unchecked, bring more harm than good. Ronald Logan, author of A new Paradigm of Development, reminds its readers that even though auto and air traffic enables us to travel at increasing speeds, bringing great convenience to travelers and commuters, it also brings air pollution, noise pollution, traffic congestion, accidental deaths, alienation from nature, etc. Presented with this quasi-paradoxical situation, Prout offers

16891-628: The well-being of individuals lies in the development of the collective, and that the collective depends on the development of individuals. Therefore, in order to understand how a progressive society is to be achieved, Sarkar tries to analyze what it means for a human being to grow and develop. He concludes that physical and psychic development render little progress for a human being as they are subject to deterioration and decay. There are multifarious diseases that affect our body and mind, and even if we stay free of them, eventually time will turn all our physical and mental faculties of no use. Sarkar argues that

17024-410: The word being coined by socialist critics of capitalism, economist and historian Robert Hessen stated that the term "capitalism" itself is a term of disparagement and a misnomer for economic individualism . Bernard Harcourt agrees with the statement that the term is a misnomer, adding that it misleadingly suggests that there is such a thing as " capital " that inherently functions in certain ways and

17157-799: The world, including Switzerland, Germany, France, Scandinavia, the Middle East, Philippines, Thailand, Taiwan, Jamaica and Venezuela. He was barred from entering the US by the State Department , so instead he met his American disciples in Jamaica in 1979. Just before he died on 21 October 1990 from a heart attack, he founded Ananda Marga Gurukula on 7 September 1990, an educational network to preserve and develop his legacy through research, teaching and service. "Critical of profit-motivated capitalism, hedonistic materialism, and religious dogma, Prabhat Ranjan Sarkar developed

17290-416: Was an ardent advocate of building a casteless society, in which everyone gets equal opportunities to fulfil their highest human potential based on their physical, psychological and spiritual strengths. To materialize this, Sarkar propounded Prout. Sarkar's "Law of Social Cycle" applies these traits in a theory of historical evolution , where ages rise and fall in terms of ruling elites representing one of

17423-533: Was in Lake Gardens in Kolkata , West Bengal. He also spent much time, especially early on, in the all-round development community he founded based on his PROUT theory at Anandanagar. Ananda Marga opened regional offices in various countries, including the US in 1969; by 1973, he bad established approximately 100 local centres teaching yogic and social philosophies, with several thousand members, some living communally in

17556-553: Was largely unregulated by the state, but became more regulated in the post– World War II period through Keynesianism , followed by a return of more unregulated capitalism starting in the 1980s through neoliberalism . The existence of market economies has been observed under many forms of government and across a vast array of historical periods , geographical locations , and cultural contexts. The modern industrial capitalist societies that exist today developed in Western Europe as

17689-759: Was used in the sense of the capital assets of a trading firm and was often interchanged with other words—wealth, money, funds, goods, assets, property and so on. The Hollantse ( German : holländische ) Mercurius uses "capitalists" in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, four years before its first recorded English usage by Arthur Young in his work Travels in France (1792). In his Principles of Political Economy and Taxation (1817), David Ricardo referred to "the capitalist" many times. English poet Samuel Taylor Coleridge used "capitalist" in his work Table Talk (1823). Pierre-Joseph Proudhon used

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