2004 proutist universal 1 proutist economic development psycho-economy dr. michael towsey
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2004 Proutist Universal 1
Proutist Economic Development
Psycho-economy
Dr. Michael Towsey
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Proutist Universal 2
Why do people work?
• Anyone who does anything for anything other than profit, is either a bankrupt or a mad man.– Hon. McKinnon,
Minister in the Australian government, 1975-1982.
WRONG!
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Proutist Universal 3
Why do people work?
• People have many motivations to work.
• Prout recognises physical, psychic and spiritual motivations in work.
• People‘s economy is designed to meet people’s physical needs.
• BUT when physical needs are met, people discover they have psychic and spiritual needs.
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Proutist Universal 4
Psychic & spiritual motivation
• People work very hard to satisfy their psychic and spiritual desires:
– Desire to be best in world – atheletes, sportspersons
– Desire to push limits of human capacity – mountain climber
– Desire to help the sick – nurses, doctors
– Desire to make the world a better place – relief team in Bosnia
– Desire to hear the singing of angels – a musician
– Desire to achieve personal best - everyone
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Proutist Universal 5
Psycho-economics
• Term invented by P.R. Sarkar.
• It refers to one of the four sub-disciplines of economics (the other three are people's economy, commercial economy and general economy)
• Psycho-economy includes the study of the management and utilisation of psychic and spiritual resources.
• The economics of managing psychic and spiritual resources.
• A different kind of economics – no limits to growth.
• Takes over when people‘s economy is functioning well.
• The glamour field of economics in the future.
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Proutist Universal 6
Fundamental principle
• No one likes to stand still or stagnate.
• Everyone wants to develop, grow, expand, explore.
• First grow physically, then intellectually, then spiritually – or simulataneously together.
• Everyone likes to feel that their circumstances are improving.
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Proutist Universal 7
Managing motivation
• A healthy economy will find each person‘s healthy motivation and feed it.
• A scientist might accept a bigger microscope to further his/her research needs instead of a cash pay rise.
• An engineer might accept a journey to an engineering marvel of the world instead of a cash pay rise.
• PRINCIPLE OF PSYCHO-ECONOMICS:
- endeavour to direct incentive income towards investment in human, social, ethical and spiritual capital.
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Proutist Universal 8
The Venezuelan middle class
• Physical needs met.
• Psychic satisfaction more important.
• Cannot put the middle class on hold while fighting poverty.
“The annals of human civilization say that the downfall of a particular government becomes inevitable if it goes against the collective interests of the middle-class people.” - P R Sarkar
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Proutist Universal 9
Tools of Social Analysis
• Three social-economic classes– Poor, Middle Class, Elite
• Three kinds of social power– People Power, Financial Power, Cultural Power
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Proutist Universal 10
Tools of Social Analysis
poor middle class elite
People Power
Financial Power
Cultural Power
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Proutist Universal 11
The power of the people
poor middle class elite
People Power
Financial Power
Cultural Power
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Proutist Universal 12
The power of money
poor middle class elite
People Power
Financial Power
Cultural Power
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Proutist Universal 13
The power of culture
poor middle class elite
People Power
Financial Power
Cultural Power
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Proutist Universal 14
The middle class
• The middle class are conscious of cultural identity, concerned to reproduce culture and capable of critiquing culture.
• All social struggles revolve around cultural change:
- therefore the middle class is a critical factor in social struggle.
• In an advanced stage of social struggle, there is a sharp polarisation between those who want cultural change and those who oppose cultural change.
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Proutist Universal 15
Polarisation in Venezuela
• The Old Culture
– Privilege– Exploitation
• The New Culture
– Social equality– Cooperation
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Proutist Universal 16
Tools of Social Analysis
poor middle class elite
People Power
Financial Power
Cultural Power
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Proutist Universal 17
Social struggle in Venezuela
poor middle class elite
People Power
Financial Power
Cultural Power
for change against change
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Proutist Universal 18
The current strategy
poor middle class elite
People Power
Financial Power
Cultural Power
for change against change
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Proutist Universal 19
Additional strategy
poor middle class elite
People Power
Financial Power
Cultural Power
for change against change
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Proutist Universal 20
The Venezuelan middle class
• Middle class must also feel the benefits of the changes in Venezuela.
• Better if they feel part of the exciting developments.
• They can be the greatest critics of capitalism and the strongest opponents of exploitation.
• Should share in the benefits of increasing prosperity.
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Proutist Universal 21
The Venezuelan middle class
• Proposals:
1. involve middle class in social and economic planning;
2. free up middle class entrepreneurial activity – direct it into cooperatives and small business;
3. there is a battle for the collective mind – must get the positive message out;
4. counter propaganda in private media - produce grass roots media.