2004 proutist universal 1 proutist economic development the world’s no. 1 problem? poverty dr....
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2004 Proutist Universal 1
Proutist Economic Development
The World’s No. 1 Problem?Poverty
Dr. Michael Towsey
Dr. Michael Towsey Proutist Universal 2
Poverty
Country Poverty Level
Kenya 50%
Venezuela 47%
India 25%
USA 13%
China 10%
New Zealand 0%
Source: CIA World Factbook
Dr. Michael Towsey Proutist Universal 3
Three promises for Venuzela – Chavez 1998
• To break the puntofijismo system
– oligarchic 2 party political system
• To end corruption
– in all areas of the social body
• To alleviate poverty
– which is a social disparity
Dr. Michael Towsey Proutist Universal 4
Disparity due to poverty
• There must be a ceaseless fight against poverty
• Poverty is:
– a common enemy
– the result of a defective social structure
– the root cause of many crimes
Dr. Michael Towsey Proutist Universal 5
Causes of poverty
1. Low rate of savings and investment
2. Low education
3. High population
- but China vs USA
4. Corruption
- Marcos in Philippines
- Suharto in Indonesia
5. Colonial heritage
6. Neo-colonialism
– regulations imposed by WTO and IMF
Dr. Michael Towsey Proutist Universal 6
Prout perspective on poverty
Layers of poverty
• Global level:
– Third World vs USA, Europe
• National level:
– rural poverty vs cities
• Local level:
– slums, ghettos vs elite suburbs
Dr. Michael Towsey Proutist Universal 7
Global - Neo-colonialism
Current system is an extension of colonialism - for the last several hundred years wealth has been sucked from the periphery to the centres of empires.
Dr. Michael Towsey Proutist Universal 8
National - Rural poverty & flight to the cities
Dr. Michael Towsey Proutist Universal 9
Local - Sydney suburban "poverty"
Dr. Michael Towsey Proutist Universal 10
Common factors in poverty
• The bleeding of wealth
– wastage or removal of wealth from a locality so that it is impossible to maintain the capital base required for further development
• Three kinds of capital
– Physical capital = natural, fixed, financial (requires rational distribution and maximum utilization)
– Human capital = deficiency due to low spending on education
– Social capital = lost due to community decay and corruption
• Poverty and wealth concentration for the few, go hand in hand
Dr. Michael Towsey Proutist Universal 11
Wealth Concentration in South America
• New Zealand 1986 – 4.7
• New Zealand 2000 – 6.6
• Norway 2002 – 5.3
Graph from New Internationalist, May 2003
Income ratios
richest 10% housholds poorest 10% households (disposable income)
Dr. Michael Towsey Proutist Universal 12
Wealth concentration – derives from imperialism
Roman Empire
Military plunder
Tributes, taxes
Slavery
British Empire
Military plunder – Lord Clive in India
Forced trading - cotton & textiles
No attention to needs of local people
American (USA) Empire
Capture democratic institutions
Establish unelected institutions – WTO, IMF
Voluntary trade – commodities & bonds (profit motive rather than consumer interests)
Dr. Michael Towsey Proutist Universal 13
Recent books on empires
• British Imperialism 1688-2000, Peter J. Cain & Tony Hopkins (2nd ed)
– decline is due to resource wars - similar to USA today
• Late Victorian Holocausts, Mike Davis (2001)
– 3rd world is creation of colonialism and climate
• When Corporations Rule the World, David Korten (2001)
– the trend to corporate empires and their techniques
Dr. Michael Towsey Proutist Universal 14
To end poverty
• At local level:
– halt the bleeding of wealth from local communities
– attend to community solidarity and ethical leadership at all levels
• At national level:
– attend to trade and capital flows at all levels
– attend to education standards at all levels
• At global level:
– move from economic disparity to economic parity
– wealth of the world is the common patrimony of all
– requires rational distribution and maximum utilization
Dr. Michael Towsey Proutist Universal 15
Campaign against poverty
Three steps:
1. arouse an anti-exploitation sentiment - each and every person should be convinced that the entire wealth of the world is the common patrimony of all
2. each and every person should be guaranteed the minimum necessities of life by providing everyone with sufficient purchasing capacity
3. simultaneously, the wealth of the country / socio-economic zone should also be increased to meet the demands of the people
Dr. Michael Towsey Proutist Universal 16
Goal is economic parity
• With the eradication of socio-economic disparity:
– the collective wealth of society will increase progressively; and
– society will become bountiful.
• The goal is to achieve economic parity around the world.
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