2004 Proutist Universal 1

Proutist Economic Development

Physical, Mental and Spiritual Resources

Dr. Michael Towsey

Dr. Michael Towsey Proutist Universal

Traditional economics

• Factors of production – land, labor and capital.

• Land and labor are natural resources.

• Capital is constructed by humans.

• But the distinction is not clear.

• Public health is an investment in human capital.

• Environmental health is an investment in labor and resources.

Dr. Michael Towsey Proutist Universal

Different kinds of capital• Ownership of capital – public, private, household.

• Three are interconnected:

– Investment in housing and household appliances improves efficiency in public and private sectors.

– See: Hugh Stretton, Economics – A New Introduction, 1999.

• Traditional: fixed (physical) capital, financial capital, human capital.

private

public household

Dr. Michael Towsey Proutist Universal

PROUT economics

• PROUT distinguishes physical, mental and spiritual capital.

• Define capital as: wealth in potentiality.

• Physical and mental capital easy to understand:

– Eg, investments in health and education.

– benefits for society in the physical and supramundane arenas.

• What is spiritual capital?

Dr. Michael Towsey Proutist Universal

Spiritual capital- an idea whose time has come

• Sarkar first introduced the concept in 1959.

• Not peripheral, not the icing on the cake.

• Not just a concern of wealthy but spiritually bankrupt nations.

• Spiritual capital is core of an economic system.

• Has a micro-economic and macro-economic context.

Dr. Michael Towsey Proutist Universal

Micro-economic approach

• 1980s - The savings and loans scandals.

• 1990s - Enron and other scandals.

• Many books on ethics in business:– Enron – Anatomy of Greed, Brian Cruver, Arrow Books, 2003

– Thin on Top, Bob Garratt, Nicholas-Brealey Publishers, 2003

• The need for ethical auditing.

• Triple bottom line – now quadruple bottom line, even quintuple!

• Prout states it is essential to establish an audit tier of government:– Must prevent conflicts of interest in performing audits for enterprises.

Dr. Michael Towsey Proutist Universal

Micro-economic approach

• Sociologist Paul Wong (Trinity Western University, BC, Canada) – a healthy corporation must be strong in four core areas: – (a) financial capital in terms of investments and profits;

– (b) technological capital in terms of cutting-edge software and hardware;

– (c) human capital in terms of knowledge, expertise, and creativity; and

– (d) social-spiritual capital in terms of ethics, relationships, meaning and purpose.

• “Enron's deficiency in social-spiritual capital proved to be fatal!” – http://www.meaning.ca/articles/print/lessons_from_enron.htm

Dr. Michael Towsey Proutist Universal

Micro-economic approach

• Books on designing a working environment where the human spirit, and therefore business, can thrive: – The Spirited Business, Georgeanne Lamont, published Hodder and

Stoughton, 2002.

– Creative Work, Willis Harman, 1990.

Dr. Michael Towsey Proutist Universal

Macro-economic approach• Definition of community:

– (Latin) To give among each other.– A group of people who do favours for one another.– A group of people who exchange gifts.

• Social Capital – many definitions – an attempt to describe the connectedness of a community.

• Economist, Tim Hazeldine (Professor of Economics, Auckland University):– social capital is the empathy and sympathy in human relationships

and the shared attitudes and goals of a community.

• Sociologist, Robert Putnam:– social capital consists of the “connections among individuals - social

networks and the norms of reciprocity and trustworthiness that arise from them”.

– Bowling Alone, New York, Simon & Schuster, 2000.

Dr. Michael Towsey Proutist Universal

Socio-spiritual capital

• Empathy, sympathy, trustworthiness – these are spiritual qualities.

• Hazeldine says that neo-liberal economics consumes and destroys social capital. Therefore destroys community.

• Just like it wantonly consumes natural resources and destroys the environment.

• Hazel Henderson - information, human capital and social capital are key resources.

Dr. Michael Towsey Proutist Universal

Building socio-spiritual capital in Venezuela

• Perez-Marti – uses the term solidarity.

• Because I hold others in esteem, I do not steal.

• Solidarity includes the desire to serve the people.

• Solidarity builds on solidarity – multiplier effect.

• Can promote solidarity by establishing coops and other equal opportunity programs.