Proutist Economic Development
Physical, Mental and
Spiritual Resources
Dr. Michael Towsey
 2004 Proutist Universal
1
Traditional economics
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Factors of production – land, labor and capital.
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Land and labor are natural resources.
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Capital is constructed by humans.
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But the distinction is not clear.
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Public health is an investment in human capital.
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Environmental health is an investment in labor and resources.
Dr. Michael Towsey
Proutist Universal
Different kinds of capital
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Ownership of capital – public, private, household.
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Three are interconnected:
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Investment in housing and household appliances improves efficiency in
public and private sectors.
–
See: Hugh Stretton, Economics – A New Introduction, 1999.
private
public
•
household
Traditional: fixed (physical) capital, financial capital, human capital.
Dr. Michael Towsey
Proutist Universal
PROUT economics
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PROUT distinguishes physical, mental and spiritual capital.
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Define capital as: wealth in potentiality.
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Physical and mental capital easy to understand:
•
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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.
Dr. Michael Towsey
Proutist Universal