Trade and Commerce

(PROUT Globe) – PROUT aims at developing any potential in a balanced, progressive way. While providing for the needs of all, it always looks towards the maximum development and enhancement of local human and natural resources. In the area of trade this means that wherever the potential to produce exists it must prevail over easy import, especially in the area of essential consumer goods.

Useful link: The Observatory of Economic Complexity, a leading visualization engine for international trade data.

The distribution of essential commodities, such as staple food, housing material, medicines etc., should be handled only by consumer co-operatives, and not by various intermediate profiteers. Barter should be the preferred basis for trade between the various self-sufficient socio-economic regions. Essential commodities should be entirely tax free.

"The main aim of a PROUT economy is to increase the purchasing power of the people."

Income tax should be abolished, and instead taxes should be levied at the starting point of production. If income tax is abolished and excise duty on excisable commodities is increased by only ten percent, there will be no loss of government revenue. When there is no income tax, nobody will try to accumulate black money. All money will be white money. As a result there will be economic solidarity, an increase in trade and commerce, more investment, more employment and an improvement in the position of foreign exchange.

The banking system should also be managed by co-operatives, and the immediate government or the local government should control the central or federal government bank. Banks should work hand-in-hand with local industrial enterprise and not devote themselves to profiteering.

The main aim of PROUT's productive economy is to increase the purchasing power of the people. In this system it will be easy to control price levels through the co-operative system and decentralization at all levels.

Manufactured goods should be imported only if no potential exists to produce the goods in the local area. Import of ready-made goods means that local capital is being transferred out. Drainage of capital is always detrimental to the economic growth of a socio-economic unit, therefore unnecessary import should always be discouraged.

Barter agreements should be arranged between trading units so that no net loss occurs to either of the trading partners. Barter agreements in foreign trade are especially beneficial for those socio-economic units which have very few commodities to sell but a large number of commodities to buy, and their saleable commodities, though few in number, are large in quantity. Thus, where there is a plentiful supply of local raw materials, industries can be developed for local demand according to local consumption, and if applicable the surplus may be exported. The availability of raw materials will ensure the long-term viability of local industries.

Copyright PROUT Globe 2011

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