2004 Proutist Universal 1 Proutist Economic Development Psycho-economy Dr. Michael Towsey.

2004 Proutist Universal 1

Proutist Economic Development

Psycho-economy

Dr. Michael Towsey

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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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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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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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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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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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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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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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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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Tools of Social Analysis

poor middle class elite

People Power

Financial Power

Cultural Power

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The power of the people

poor middle class elite

People Power

Financial Power

Cultural Power

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The power of money

poor middle class elite

People Power

Financial Power

Cultural Power

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The power of culture

poor middle class elite

People Power

Financial Power

Cultural Power

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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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Polarisation in Venezuela

• The Old Culture

– Privilege– Exploitation

• The New Culture

– Social equality– Cooperation

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Tools of Social Analysis

poor middle class elite

People Power

Financial Power

Cultural Power

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Social struggle in Venezuela

poor middle class elite

People Power

Financial Power

Cultural Power

for change against change

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The current strategy

poor middle class elite

People Power

Financial Power

Cultural Power

for change against change

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Additional strategy

poor middle class elite

People Power

Financial Power

Cultural Power

for change against change

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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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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.