By Shriraksha Mohan
Originally published as a Student Paper in Local and Global Regional Economies, Wright State University, Dayton, Ohio, USA
Introduction
Climate change, exacerbated by a warming planet, is a serious threat humanity faces in current times. We are already living in the midst of irreversible change to the global climate, and are experiencing its disastrous consequences. Developing resilience to socio-economic impacts of climate-related events has become a major concern for all national governments, international bodies, and grassroots organizations. This is a profound problem, which demands coordinated efforts to arrive at solutions. Climate sciences have concluded that all the natural ecosystems of the planet are interconnected. With respect to climate change, there are no isolated systems. It is evident that the ecological imbalances in one part of the planet lead to disruption of ecological balance in another part of the planet, eventually. Human economic activities, collectively, have resulted in deforestation, and extraction of the earth’s resources at a rate that far exceeds the regenerative capacity of earth’s natural ecological systems. Progress and survival of human civilization, and the health of our planet are dependent on one another.
The intersectional nature of the ecological, social, and economic crises generated by climate change, affecting all aspects of life, presents an opportunity in this crisis. An opportunity has presented itself to reevaluate the growth model of a centralized capitalist economic system. In this extractive system, powered by fossil fuels, greed for excessive profits and the hegemony of multinational corporations have resulted in ecological collapse and socio-economic inequality. A reevaluation of this crisis-generating economic system has fostered several movements all over the world, which are advocating for a transition to decentralized, ecologically sustainable, local economies to enable justice-based climate change adaption. This paper discusses several such movements in an attempt to meet the demands of climate movements with the immense potential of economic democracy movements to guide justice-based climate change adaptation.
Progressive Utilization Theory or PROUT, an alternative socio-economic model, is evaluated in some depth for its potential to enable planet-centered and people-centered transformation of the economy. A framework for Just Transition created by Climate Justice Alliance resonates with the vision of PROUT, and it identifies “meaningful work” as an instrument to achieve justice-based climate change adaptation for all. Economic policy proposals such as government job guarantee programs to create green jobs for environmental remediation, and democratization and decommodification of work, are presented as the means to engender the micro-outcomes of ecological regeneration and socio-economy equity. All these movements and policy proposals converge at the point of empowering communities and people at the grassroots level to develop resilience to face the unpredictability of climate change, and encourage creation of self-sufficient local economies in every region of the planet. This strategy for climate change adaptation aligns with the fundamental requirement of Economic Democracy, which emphasizes placing economic decision-making power in the hands of local people to enable them to become independent and responsible stewards of their local natural resources, and collective economic future.
Understanding Climate Change Adaptation in the context of Economic Growth
In recent times, almost every year has set a new temperature record for being the hottest year on record. Yet, global greenhouse gas (GHG) emission, the most significant contributor to global warming, is rapidly increasing. Annual carbon dioxide emissions have increased from 25GtCO2 (Gigatons of carbon dioxide) in the year 2000 to over 35GtCO2 during 2012-2018, and continues to increase as a result of industrial activities, which are heavily reliant on fossil fuels. Increase in the concentration of CO2 in the atmosphere, resulting in a warmer planet, has accelerated the rate at which Arctic and Antarctic ice melts. Excessive freshwater released into seas due to the melting of ice has a disruptive effect on ocean currents. This has led to climate catastrophes like intense storms and unprecedented amount of rainfall and floods in certain regions, while other regions suffer from severe droughts. Lives and livelihoods of people have been disrupted.
Dramatic increase in forest fire incidents across the globe have been a recurring phenomenon as the temperature of the planet continues to rise. The Intergovernmental Panel on Climate Change (IPCC) reports identify 1.5 degree Celsius as a limit for temperature rise, beyond which various types of thresholds within natural ecosystems are breached. The consequences of such breaches are not yet sufficiently understood by climate scientists. IPCC reports insist that the pathways required to limit global temperature rise to 1.5 degree Celsius demands a far-reaching and rapid transformation in energy, land use, urban infrastructure, transportation, and industrial systems. In other words, climate change adaptation and mitigation of climate-related catastrophes demand a paradigm shift in the ways we think about organizing our society and the economy.1 Economic growth, defined in terms of unlimited growth of material wealth and its consumption, is the main driver of increased industrial and commercial activities, and therefore, the principal cause of climate change.
Economic growth in developed countries is characterized by material overconsumption. On the other hand, in many mid-income and low-income countries, economic growth barely satisfies the basic consumption needs of the growing population. Climate change is identified as the primary cause of biodiversity loss, as economic growth relies on biophysical inputs from nature and natural processes. Externalities involved in economic activities degrade natural systems, and also impact human wellbeing when rivers, land and air become polluted as a result of these activities. The human cost paid for the output of economic activities also takes the form of excessive extraction of human labor to satisfy the hyperconsumerist lifestyles of a few.
Economic growth must be placed within biophysical, ecological, social and ethical contexts. Perpetual economic growth, as advanced by dominant macroeconomic policies, cannot be supported by the finite biophysical resources of the planet. However, imposing strict limits on economic growth for the sake of conservation of natural ecosystems and mitigating climate catastrophes is not an ideal policy measure for poorer and developing countries. In developing economies, poverty, lack of basic necessities, and economic insecurity may unravel the social fabric much before climate-related crises and ecosystem collapse can disrupt their livelihoods. Climate change adaptation and ecological restoration should take place without compromising the living standards of people in developing nations and vulnerable communities. They have already been excluded from enjoying the benefits of economic growth in an unjust system that has failed to provide them with equal opportunities for upward economic mobility. A balanced economic development paradigm that can create prosperity and security for all is the ideal step forward in the process of climate change adaptation.
Merging Climate Movements with Economic Democracy Movements
Countries least responsible for emission of GHGs since the industrial revolution are now bearing a disproportionate amount of burden of climate catastrophes, with inadequate capacity to respond to climate change. There is a dire need to embed climate justice in the process of climate change adaptation. Climate change resilience and adaptation frameworks based on equity and ethics are garnering attention within the climate change community. Climate action movements have been directing their effort towards achieving climate justice for underserved communities, which are disproportionately affected by climate change. Distributive justice, in terms of limiting excessive consumption of planet’s finite resources by the planet’s biggest polluters and extending support to developing countries to secure their economic needs, is one response to climate change.
At the same time, advocating for legislation to end the era of economic development driven by excessive extraction of fossil fuels has also gained prominence. Creating self-sufficient local economies is another response to climate change. Communities are better equipped to become resilient to climate shocks when they are empowered to manage their local resources and the economy, without economic plans being thrust upon them by external corporations. An economy which is designed by the local people to serve the needs of the local population becomes crucial for climate adaptation and restoring communities in times of unpredictable natural disasters.
Climate change can be considered an umbrella crisis that covers the social, economic, political, and ecological implications of unpredictable weather events as a result of a rapidly warming planet. Science-based and data-driven policies for determination of environmental limits of material growth, rapid adoption of renewable energy, rational utilization and distribution of the planet’s finite resources, economic democracy, and ethical transition frameworks for socio-economic equity should work synergistically for enabling climate change adaptation.2
Climate science and academic research have drawn attention to the intersectional nature of climate change, biodiversity loss, resource depletion and economic inequity. Therefore, it is necessary to take a holistic view of this situation to find integrated solutions to interconnected problems. Since the current paradigms of economic development has led the planet to brink of destruction, the solution to climate change and concomitant ecological, socio-political and economic crises needs to be addressed by replacing the economic system that has generated these crises. There is a growing recognition of immediate need for local climate action supported by global structures for a just transition to an economy that operates within planetary boundaries.
PROUT – An Integrated Systems Change Movement
Climate change underscores the need for a comprehensive socio-economic development paradigm that has the potential to enable transition to a system based on justice, sustainability, and equitable economic growth. The Progressive Utilization Theory, or PROUT, is one such holistic socio-economic system that serves as a viable alternative to replace crisis-generating models of economic growth. PROUT is a comprehensive socio-economic system developed by the Indian philosopher, writer, and spiritual teacher Prabhat Ranjan Sarkar from 1959 to 1990.
As a human-centered and planet-centered model of economic growth, PROUT is based on the philosophy of Neohumanism, a broad worldview characterized by an ever-expanding sense of inclusion, compassion, and camaraderie, transcending national, cultural, linguistic boundaries, and species barriers. Embracing a universal worldview, such as Neohumanism, initiates the mental shift necessary to implement climate justice-based solutions to transform the current economy into a sustainable model of growth that benefits all, and not just a few.3
PROUT is, in equal parts, a socio-economic vision and a movement, which intends to create socio-economic awareness among the masses by promoting an anti-exploitation sentiment. Human flourishing and care for the planet are both central to the PROUT socio-economic system. PROUT advocates for structuring the economy according to the principles of economic democracy and economic decentralization to maximally empower local people to make their own needs-based, ecologically-sound economic plans for their region, and manage their natural and human resources within an economic framework that is free of exploitation.
Transformative Movement Building
PROUT Research Institute, located in Marshall, North Carolina, is a non-profit organization dedicated to researching, developing policies, and advocating for implementation of the socio-economic system, PROUT – Progressive Utilization Theory. Between August 1st and August 6th, 2024, a group of PROUT advocates, representatives from cooperatives, and local permaculture practitioners gathered for an Economic Democracy Training with the PROUT Research Institute. As the inaugural in-person program, this training offered workshops on studying the principles and application of PROUT, as a way to achieve economic systems change.
The training was a diverse program that included educational sessions on principles of economic democracy and decentralized economy in PROUT, a design charette to practice implementing these principles, field trips to local cooperatives and ecovillages, and group exercises, complete with yoga and meditation sessions to help activists develop an inner clarity and balance. This economic democracy training attempted to forge relationships with like-minded activists and organizations invested in promoting self-sufficient economic systems, because there is a dire need for building a critical mass of advocates for community-led systems change.
The Industrial Commons, a local community-owned manufacturing cooperative, presented a workshop on governance, management, and decision-making processes in a cooperative. A tour with another cooperative ecosystem, Poder Emma in Asheville, North Carolina, showed how communities can come together to ward off gentrification, and secure accessible housing and most other needs through a cooperative economic model. Another workshop on the history and development of cooperative movements in the USA provided insights into the interconnected nature of social justice and economic self-reliance movements.
As an attendee and facilitator in this training, I was exposed to the potential PROUT and similar economic systems change movements have for addressing the global problem of climate change adaptation through robust local action. A thorough understanding of the theoretical concepts of PROUT provides an ideological framework for climate action movements advocating for environmental protection alongside justice-based climate adaptation. PROUT, as a holistic, integrated socio-economic vision, can guide the principles and values to organize movements for policy demands at the grassroots level, where climate action can have the most impact. Equally important, in a PROUT model, is the presence of a global body or authority that can facilitate coordination of local climate initiatives, and can ensure that the rights of minorities, and nature are protected during the process of climate change adaptation.
Annotated bibliographies for articles, books, and other resources on PROUT, in this next section, suggest pathways for embarking on bold climate action rooted in radical economic systems change, and explore the feasibility of applying PROUT principles to serve the goal of climate change adaptation with social, economic and ecological justice embedded in the process.
Introduction to PROUT – Annotated Bibliographies
1. Sarkar, P. R. (1993). Discourses on PROUT. Ananda Marga Publications.4
In this series of lectures, Prabhat Ranjan Sarkar lays down the foundational principles of Progressive Utilization Theory (PROUT) and suggests ways to organize the society, economy, and political system according to PROUT principles. At the very outset, the author introduces a broad vision of “Cosmic Inheritance”. In other words, Sarkar emphasizes that all beings of the universe have common rights to acquire and progressively utilize the resources of universe. With this vision, rational distribution of resources becomes a necessity. Everyone is entitled to their due share of resources without depriving others of their share of the common resources. Encompassed in this universal ideal are the moral values, that guide the organization of human society and economy.
Sarkar uses the vantage point of universalism and equal rights to advocate for self-supporting, decentralized, and balanced economic growth for the collective welfare. Such progressive economies free people from mundane worries, and promote the flourishing of their intellectual and spiritual potentialities. In PROUT, there is an integration of social justice, environmental justice, community rights, and radical restructuring of political and economic systems. PROUT’s integrated perspective is useful for my analysis of climate change adaptation through the lens of integrated economic systems change. This series of articles provided the much-needed preliminary information to further explore and understand PROUT.
2. Maheshvarananda D., Branch M. (2010): The Progressive Utilization Theory (PROUT): alternative economic and spiritual model for the welfare of all. Working USA 13, pp. 31–40.5
Maheshvarananda and Branch discuss Progressive Utilization Theory (PROUT) as a socio-economic alternative to both capitalism and communism in this article. The authors introduce the readers to key socio-economic concepts of PROUT – limits on wealth accumulation, optimal utilization and rational distribution of the planet’s resources, guaranteed minimum necessities of life for all through full employment, right to jobs, a three-tiered economic structure, balanced economic growth, sustainable agriculture, food sovereignty, and economic democracy. The article also touches upon the non-dogmatic, spiritual, and ecological worldview in PROUT and Neohumanism, which recognizes the interconnectedness of all life forms and natural processes of the planet. Progress within a PROUT model of economy is identified as balanced physical, mental, and spiritual progress of all. Unconstrained material progress alone, stressing the limits of the planet’s natural resources, is not encouraged in PROUT.
The goal of a PROUT is to create ideal socio-economic conditions for everyone to have equal opportunities to reach their highest potential. There are skill-based and merit-based incentives for individual initiative, and at the same time, restraints on greed-based accumulation of wealth by a few at the cost of excluding others from the benefits of economic growth. By the end of this paper, the authors suggest an evaluative policy framework based on the concepts of PROUT and Neohumanism to achieve a balance between individual interests and collective progress.
Climate change adaptation pathways should include policies to constantly achieve a dynamic balance between economic growth to satisfy the needs of a burgeoning world population, and protection of the planet as stress on nature’s finite resources increase with population growth. The ideas introduced in this paper on PROUT are useful to critique existing policy frameworks for climate change adaptation. The authors offer suggestions for integrated development policies, which can be adapted appropriately to suit the needs of a region and its people.
PROUT on Economic Democracy, Decentralized Economy, and Economic Progress
3. Sarkar, P. R. (1992). Proutist Economics – Discourses on Economic Liberation. Ananda Marga Publications.6
The book, Proutist Economics, is a collection of articles that makes the study of economic theories in PROUT accessible to all, and provides practical guidelines to plan an economy that elevates the living standards of the under-privileged sections of the society. Some of the Proutist economics concepts of relevance to this paper from the book are Economic Democracy, Decentralized Economy, Socio-Economic Groupifications, Cooperatives, and Block-level Planning. Each of these concepts, when implemented as policy measures, have positive outcomes for strengthening local economies, nurturing self-reliant communities, improving the purchasing capacity of the local people, satisfying basic needs, and promoting all-round progress – physical, mental, and spiritual progress.
Economic systems change involves shifting the centers of economic power from a centralized, global level to a decentralized, local level of planning to ensure the best outcomes for both people and the planet. From this point of view PROUT’s requirements of economic democracy are important as they place an emphasis on empowering local people to make local economic decisions without interference from external capitalist forces. Enhanced purchasing capacity to enable people to secure minimum necessities of life is a crucial requirement in PROUT’s economic democracy theory, and this is enshrined as a right in the constitution. Purchasing capacity is also assured through easy availability of goods and services in a local market thorough stable prices, reliable production and distribution mechanisms, and progressive increase in wages. Since purchasing capacity is enshrined as a fundamental right, policies are put in place to safeguard this right of the people.
Principles of Economic Decentralization involve translating the requirements of Economic Democracy into policies for creation of self-reliant local economies. These policies are designed to ensure local people’s control of local resources, consumption-based production of commodities to satisfy everyone’s basic needs without a profit motive, and creation of local cooperatives which create local jobs. These cooperatives thrive in local markets which are safeguarded from external competition and corporate monopolies. Block-level planning, i.e. planning at the basic grassroots level, transform these policies into economic plans for the region. Local people, who have the most intimate knowledge of the natural resources and human potential of a region, are the planners of the economy.
In Prout, socio-economic units are determined for planning and execution of the requirements of economic democracy, and they are further divided into blocks. Socio-economic units are based on common economic problems and uniform economic potentialities. In order to bind communities together with a shared identity and enable them to work together, sentimental legacy in the form of language and traditions, and ethnic similarities are taken into account to form socio-economic units. Natural factors like geography, river systems, and raw materials determine the boundaries of socio-economic units.
There is a distinction made between political units and socio-economic units. One political unit may contain multiple socio-economic units within its boundaries, and one socio-economic unit may spread across different political units. However, for the sake of efficient local economic planning, there is a strict adherence to the above-mentioned factors to determine the regions under a socio-economic unit. Sarkar insists that political concerns should not influence economic planning, and political units must develop policies to coordinate with each other to fully support economic empowerment of socio-economic units within their jurisdiction. When local communities are maximally empowered through constitutional rights, proper economic planning, and supportive economic policies to guarantee a stable economic future, communities become equipped with the resources they need to weather the effects of climate change, when climate catastrophes strike a socio-economic region. Sustainable use of natural resources also becomes a focal point, because of one of the principles of economic decentralization – “production for consumption, not for profits”. Therefore, as the rights of communities and nature are secured in a PROUT system, PROUT holds the promise for a justice-based transformation of the economy, while enabling climate change adaptation.
4. Batra, R. (1980). PROUT: The Alternative to Capitalism and Marxism. University Press of America, Inc.7
Ravi Batra introduces PROUT in this book as a practical theory with guiding principles for administration of the society and economy. In contrast to the dominant theories of Capitalism and Marxism based on materialism and self-interest, PROUT sees excessive self-interest and matter-oriented growth as the root cause of economic disparity and degradation of the environment. Another distinguishing feature of PROUT is an emphasis on community ownership of most of the resources of a region, as opposed to state ownership in Communism and private ownership supported by Capitalism.
Batra categorically states that the neoliberal concept of private property, which has enabled unrestricted wealth accumulation, as the cause of economic disparity. This allows some nations and people to live extravagant lives, while vast majority of humanity struggles to even rise above poverty level of existence. State control of resources, on the other hand, led to concentration of power with dictators and unleashed brutalities on the people of communist countries. PROUT strives to strike a balance between these two extreme approaches to ownership of resources.
In PROUT, the term progress is defined as advancement in the intellectual and spiritual spheres of existence, with the help of material progress in the form of scientific advancement and easy availability of requirements for a comfortable life. This definition of progress is supportive of humans’ psychological needs, as material excess fails to fulfill a deeper human need for inner peace, meaning, and
purpose in life. The void created by excessive material progress, bereft of spiritual and intellectual development, is evident from the mental health crisis plaguing several materialistically developed parts of the world.
Redefining progress in non-material terms has a profound influence on the way we think about organizing our economies and measuring growth. Infinite material growth within the finite boundaries of the planet’s material resources is the myth of capitalism, and is ecologically unsustainable. Therefore, PROUT’s perspective on progress of non-material nature has the potential to enrich people’s living experience, without causing ecological overshoot. This perspective on progress is very relevant to discussions of climate change adaptation in an ecological context.
To translate some of these PROUT ideas to reality, PROUT proposes its own economic system to balance individual needs with social welfare. This book introduces the readers to a three-tiered economic system in PROUT. The three tiers include the public sectors, cooperatives, and small-scale private industries. The public sector, also known as key industries, is run by the immediate state governments on a “no profit no loss” basis. This sector is involved in creation of goods and services, like raw materials for industry, infrastructure, transportation, communication, etc., that have large scale impacts on a population. Cooperatives produce and distribute most essential commodities. Small-scale private industry is restricted to non-essential and luxury sector of the economy.
This three-tiered delineation of economic enterprises ensures a balance between private, community, and state control of the economy in such a way, that it does not create inherent economic disparity in society. Reduction in resource disparity and the vast wealth gap between rich and poor communities is critical to inclusive climate change adaptation. Private industries in a capitalist system, whose purpose is maximizing profit, have a notorious record of being the biggest polluters of the environment through their carbon emissions, and labeling the ill-effects of their activities as “externalities”. A smaller private industry, restricted to non-essential goods and services in a PROUT system, may have climate-friendly outcomes.
PROUT on Environmental Justice
5. Bjonnes R., Hargreaves C. (2016): Growing A New Economy: Beyond Crisis Capitalism and Environmental Destruction. InnerWorld Publications.8
This well-researched book draws the reader’s attention to an economy that is beset with financial and environmental troubles. The authors offer a critical analysis of the current economy, a historical perspective of how the current economic conditions developed, and challenge the narratives of socialist and green capitalism movements. In chapter 9, Green Capitalism: Why it is not as Green as They Say, the authors argue greening capitalist initiatives, like markets for carbon credits, are dubious solutions to fix the climate. Green Capitalism’s quick fixes to environmental destruction allow polluting nations and businesses to purchase permits to pollute the environment even more, while poor nations offset this damage by limiting their own economic growth. None of the big polluters promise to fully cut their carbon emissions. Rather, they try to offset the carbon they emit by making developing nations commit their natural resources to carbon offsetting and carbon sequestering projects. Economic disparity and injustice are inherent to capitalism. Therefore, it also makes green capitalism’s growth model inherently unjust, and furthers economic disparities between the “haves” and the “have nots”. Corporate green capitalism also takes the form of pushing so-called green and sustainable products into consumer markets. Green capitalism does not address hyperconsumerism, which is the primary cause of resource depletion and biodiversity loss. The ethical basis of green capitalism is as flawed as capitalism.
In the fourth part of the book, Economic Solutions for People and Planet, the authors present solutions beyond greening of capitalism. The solutions are rooted in the principles of Progressive Utilization Theory (PROUT). Structural change in organizing the economy, as presented by the authors, are based on transformative ideas such as inherent rights of nature, limits on individual wealth accumulation, rational distribution and optimal utilization of resources, fair trade – not free trade, to allow poorer countries to grow their economy in a non-exploitative economic environment. They make policy suggestions to implement the requirements of economic democracy and decentralized economy to facilitate balanced economic growth. Climate change adaptation for poorer economies is dependent on non- exploitative forms of trade and commerce. Economic democracy, rights of nature, and economic decentralization policies are essential for climate justice – justice for people and all species of the planet.
6. Towsey M. (2010): Water and Land Management. Understanding Prout – Essays on Sustainability and Transformation, Volume 1. Proutist Universal, Australia.9 Microsoft Word – WaterAndLandManagement_v3.1.doc (proutglobe.org)
In this essay Michael Towsey lays out a well-reasoned argument for a holistic approach to land and water management. He argues that water resources and land resources cannot be managed in isolation. He relies on block-level planning, a key feature of economic planning in PROUT, to place land and water management within the social and economic context of a planning region. A block, within the PROUT framework, is understood as a unit of local economic planning or local governance, which is small enough to give the planners intimacy of knowledge of the area’s natural resources, and a thorough understanding of socio-economic requirements, problems, and aspirations of the people in a particular block.
Towsey walks the readers through a history of water management, privatization of water resources, and how privatization has led to demand-driven management of water. This is influenced by neoliberal thinking of allowing the free-market price mechanism to bring the demand and supply of water to an equilibrium. This is in contrast to PROUT’s vision of water being a public commodity, which should be guaranteed to all as a basic necessity of life and be managed in the best interest of the local community. Water is a limiting factor for human settlements on land, industrial growth, and agriculture. Land without adequate water resources cannot support human activities. The author provides examples of agricultural practices in Australia to drive home the point of interconnection of land management and water management, and its environmental consequences. Towsey posits block- level planning as the most suitable strategy to manage land and water.
Clearing forests for industrial agriculture leads to deforestation, which contributes to global warming, climate change, and droughts. Diverting most of the potable water for industrial use has catastrophic ecological and social consequences. Topography, geography, rainfall patterns, and weather of a region affect the availability of water. Given these considerations, PROUT’s principle of block-level planning becomes crucial for sustainable management of forests, wetlands, agricultural lands, and natural aquifers of a region, while fulfilling the demand for water consumption. Policies must be in place to set constraints on extraction of natural resources to promote natural ecosystem processes, such as cycling of water, cycling of nutrients, air purification, and protection of natural habitats of species. This requires planning of economic activities in harmony with nature and human needs. Some policy suggestions made in this essay include incentivizing integrated farming practices, widespread afforestation programs, permaculture, rainwater harvesting, agroforestry, and public ownership of water. These measures not only have climate-friendly outcomes, but also promote local water security.
PROUT on Cooperatives, Employment, and Agricultural Revolution
7. Maheshvarananda D. (2012): After Capitalism: Economic Democracy in Action. InnerWorld Publications.10
Based on Progressive Utilization Theory, this book, published in the aftermath of the Great Recession and in conjunction with the Occupy Wallstreet Movement, offers a compelling vision to create an economic future based on cooperation rather than competition, with solidarity, thriving local economies, ecological balance, and spiritual values. In this book, Dada Maheshvarananda, after having introduced the readers to key PROUT ideas of universal spirituality, guaranteed minimum requirements, guarantee of employment, and economy democracy, delves into a discussion of cooperatives, agrarian evolution and environmental protection. Restructuring the economy and employment to adopt a worker-owned cooperative model becomes particularly relevant to arriving at just climate change adaptation models, in which local people as worker-owners and worker-managers make decisions about utilization of resources in their bioregion or socio-economic region. The author presents case studies of success of the cooperative model.
In Chapter 5, Cooperatives for a Better World, the author introduces the PROUT concept of “coordinated cooperation”, which forms the psychological basis for organizing the economy around cooperative model of production and distribution. This is a form of cooperation in which free human beings with equal rights and mutual respect work together to achieve common goals, to fulfill common needs, and enjoy mutual benefits. This is in stark contrast to “subordinated cooperation” that underpins the hierarchical structures of traditional and capitalist institutions.
The members or workers of a co-op own the co-op. They own the shares of the co-op, which are not publicly traded, so that the co-op is not exposed to influences of external capital. Workers who have a direct stake in the co-op constitute the decision-making body of the co-op. One worker or one member gets one vote. Members of the co-op take a personal interest in the success of the co-op, as this determines their economic future. PROUT encourages a cooperative model in all sectors of the economy – agriculture, production and distribution of most goods and services, banking, housing, construction, etc. There are numerous economic, social, and environmental benefits of organizing a local economy in accordance with a cooperative model. The most important benefit is empowerment of people and communities through job security. Job security establishes stable household incomes, which play a crucial role in climate change adaptation of families.
In Chapter 6, An Agrarian Revolution and Environmental Protection, the threat of corporate agriculture to environment, biodiversity, and food security is discussed in detail. This discussion underscores the need to reform agriculture based on principles of sustainability, and to recognizes food as a basic human right. One of PROUT’s explicit goals is to restore a dynamic balance to the natural world and human civilization. PROUT principles must be adapted dynamically to evolving circumstances in a rational manner for collective wellbeing. PROUT recognizes that balance in the natural world can be restored through agricultural revolution.
A simple idea of producing food for the needs of local population, and not for export, naturally complies with a bioregion’s ecological limits, and at the same time, promotes food sovereignty of the local people. PROUT advocates for optimal and sustainable utilization of land through cooperative agriculture and farming practices like mixed cropping, supplementary cropping and crop rotation. As production of food is a key economic activity with pervasive impact on land, water, and climate, agricultural revolution is the need of the hour.
PROUT Policies on Climate Change
8. Global Prout Policy Parliament (2011): Global Climate Change Policy Statement11
Policy Statement on Climate Change — PROUT Institute
GPPP: Global Climate Change Policy Statement | Prout Globe
Global Prout Policy Parliament (GPPP)’s global climate change policy is based on a thorough understanding of the complexities of climate change as evidenced by physical sciences and social responses to climate catastrophes. This climate policy statement acknowledges the abundance of scientific opinions that identify human-produced greenhouse gases as the major cause of present climate change, while it also recognizes naturally occurring earth’s changes impact the climate. Breach of certain tipping points in natural ecosystems, as a result of climate change, has the potential to increase the occurrences of unanticipated climate phenomenon. This can have a profound negative impact on both human and non-human lifeforms on the planet. Human misery arises due to destabilized living conditions, disrupted economies, and social inequities. Non-human impact of climate change takes the form of habitat loss, and mass extinction of species in vulnerable habitats.
Climate change does not affect nations individually. Nations acting with self-interest alone, cannot solve this global crisis. It is also clear that profit-oriented corporations are ineffective in addressing climate change through their unreliable technofixes, such as biochar production, carbon capture and carbon sequestration mechanisms12, or by geoengineering the climate. Academics and researchers support the need to look beyond technological fixes to address climate change. GPPP’s policy paper makes an appeal to cede authority in the matters of climate change to a global body, which can act in the best interest of humanity and planet.
This policy proposal supports a balance between local climate action and global cooperation. At the local level, grassroots wisdom and initiatives must be adopted. At a global level, efforts must be made to demand compliance to reduction of greenhouse gases. Technological and social solutions for climate change must be evaluated holistically by a global body of eminent scientists and ethical leaders. A few other policy suggestions include stringent regulation of corporations, which have investments in fossil fuels, and monitoring climate policies of nations by the global body in the interest of ensuring favorable climate outcomes. A strong push for economic decentralization, and local production creates a balanced economy, in which creation of greenhouse gas is greatly reduced. GPPP’s climate policy statement is a comprehensive approach to resolving the climate crisis, as it offers economic, social, geopolitical, and environmental solutions to climate change.
9. Inayatullah S. (2017): Prout in Power: Policy Solutions that reframe our futures. Proutist Bloc India Publications.13
This book situates PROUT or Progressive Utilization Theory as the alternative political-economy based on spiritual values, recognition of interconnectedness of all life processes, and structural changes through cooperative organization of the economy. The author presents PROUT principles as policies themselves, while providing a theoretical comparison between PROUT and various other macro perspectives. With his extensive academic and research background in futures studies, Inayatullah makes use of the challenges of the present to suggest policies for a future based on PROUT. The policy suggestions based on PROUT should be guided by Neohumanism for inclusive and all-round progress.
In the chapter, Prout Policy on Climate Change, the author discusses climate change as a leadership issue from a PROUT perspective, while also recognizing the ecological and social challenges involved. Policy suggestions for climate change adaptation include cooperative global governance in the interest of the planet, regulatory structures to move humanity away from carbon technologies, adoption of plant-based diets, policies to advance local energy self-reliance of communities, and safeguarding the rights of those who have been disadvantaged in the capitalist system. The author suggests that a global police force to deal with carbon crimes may become necessary, given the seriousness of climate change. The magnitude of the climate crisis may lead to emergence of a new kind of leadership, which favors global cooperation over global dominance of nations.
Furthermore, there are policy suggestions made in this book to strengthen healthcare systems, financial institutions, educational institutions, food systems, and develop spiritually-oriented economics to create a buffer against shocks from drastic changes to the climate in the near future. The means to achieve resilience to climate change is economic democracy. The author is optimistic about the emergence better futures through adoption of such policies.
Climate Justice Alliance
Climate Justice Alliance (CJA) is a climate movement which has been uniting community-based, frontline organizations since 2013 in the fight against extractive systems of production and consumption, and political oppression. Mobilizing people and organizations to create a Just Transition in the process of climate change adaptation is one of CJA’s main goals. CJA defines Just Transition as a set of principles, processes, and practices to shift power from an extractive economy to regenerative, resilient and equitable economies. At the core of CJA’s Just Transition framework is work to build healthy local economies through cooperation, mutual care, ecological care, and deep democracy. There is an emphasis on approaching production and consumption cycles holistically and in a waste-free manner. Values of CJA’s Just Transition framework resonate with the vision of integrated socio-economic change espoused by PROUT.14
CJA defines extractive economy as the unjustified extraction of nature, of labor, of culture, and of communities. The roots of CJA also lies in civil rights movement. This environmental justice movement grew out of a response to the system of environmental racism, in which low-income communities of color were disproportionately impacted by the negative effects of pollution and industrial practices that led to environmental degradation. Several mainstream environmental justice movements have failed to address the racism involved in climate crisis. CJA differs from such movements by focusing on bottom-up organizing around communities that are neglected by mainstream movements, but are bearing the brunt of climate change the most.
Just Transition initiatives of CJA speak about the necessity for energy democracy, land rights, transformation of transportation to expand public transit, food sovereignty, peaceful resolution of conflict as opposed to military violence, zero waste, and ecosystem restoration. Redistribution of resources and power to local communities are identified as necessary to achieve Just Transition in the process of climate change adaptation. There is an inherent understanding within the Just Transition framework that transition looks different in different places, while core principles of basic rights and dignity for all remain unchanged.
The wisdom of local traditions and ways of life that support the core principles of Just Transition should be embraced, and should lead the process of Just Transition. In an extractive capitalist economy, communities have been forced to give up their local culture and traditions for the sake of economic survival. Cultures that held land, animals, and nature as sacred have been uprooted. Just Transition creates inclusionary spaces for traditions and cultures that value ecological basis of our collective well-being. This process also demands reparation for stolen lands and destroyed ecosystems under the oppression of capitalism, colonialism, patriarchy, genocide, and slavery.
CJA’s Just Transition framework advocates for deep democracy similar to economic democracy. Workers and communities must have full control over decisions that affect their daily lives. The process of regaining control involves re-localization and democratization of production and consumption by advancing local food systems, local clean energy, and small-scale production that are ecologically sustainable and build vibrant economies. There is a keen understanding of intersectionality of all issues within this framework. Therefore, local, regional, national, and international solidarity is required to achieve the goal of shifting political and economic power from an extractive economy to a regenerative economy.
Just Transition places importance on “meaningful work” to make the shift, from an extractive economy to a regenerative economy. Meaningful work is essential for the development of human potential, and resilient communities. Meaningful work creates opportunities for people to learn, grow, and develop their capacities. This requires democratic governance of workplaces. Through meaningful work, people can transform their communities and environment. People can define their role within their communities as producers, consumers, and in relation with each other as they work to build a community together. This also fosters a process of self-determination, and identity as a community of people, who work for and work with each other. For climate change adaptation, self-determination and empowerment through meaningful work act as effective tools to realize a new world order, in which every community has the inherent resilience, resources, and skills for crafting climate solutions that are not dependent on extractive economic hegemony. The work of building regenerative local economies results in building climate change resilience.
A Case for Job Guarantee
Job Guarantee policies of governments make good public sector jobs available for those, who are able and willing to work. Job Guarantee schemes should work in a democratic, and inclusive manner to tackle both unemployment and precarious employment, with the goal of eliminating poverty-wages, and poor labor standards. In her book entitled, The Case for a Job Guarantee, economist Pavlina Tcherneva lays out a plan for creating on-demand public sector jobs as a means to ensure stable wages and strictly regulated labor standards, to meaningfully address the problem of unemployment. Tcherneva advocates for a Job Guarantee policy by the government, which serves as a better macroeconomic stabilizer, rather than maintaining a certain unnatural rate of unemployment to control inflation and stabilize the economy. She also draws a vision of Green Job Guarantee to connect public sector employment programs, and the current climate change crisis of planetary proportion.
Studies show the negative effects of unemployment on human wellbeing in terms of increased rates of death by despair, physical illnesses, depression and anxiety among those who remain involuntarily unemployed. Job loss leads to loss of income and disruption of livelihood for the affected families. Unemployment is expensive. Degradation of workers’ skills during the period of unemployment makes them unproductive to hold jobs in the future. The social, ecological, and economic costs of resorting to concepts such as, NAIRU (Non-Accelerating Inflation Rate of Unemployment), are very high. Therefore, in her convincing argument for job guarantee policies, Tcherneva rejects the need to maintain a certain rate of unemployment to control inflation.
Job guarantee, on the other hand, will ensure continued employment and training, which are crucial to maintaining a productive labor force. A public option for good jobs not only mitigates the social and economic costs, but also provides a price support mechanism for minimum wages by enforcing a strict wage floor, thus, euthanizing below poverty-wage jobs. Improved wages result in increased purchasing power, increased consumption and overall growth of the economy. There is an unexplored potential for using Job Guarantee schemes for creating climate-friendly green jobs, which can tackle the dual challenge of climate change adaptation and unemployment.
Tcherneva argues that climate policy is, essentially, social and economic policy, because there is a need for embedding social and economic justice into any kind of climate adaptation response, and vice versa. Fixing the root cause of climate change requires work. Environment-friendly activities which are not solely driven by profit motives, and those which are undermined by the current economy, are in need of a labor force with specific skillsets. This includes activities like rejuvenation of soil and water sources, afforestation, regenerative farming, ecological restoration, upkeep of communities devastated by climate disasters, development of green technologies for transition from fossil fuels to renewable sources of energy, etc. Job Guarantee programs can be designed to offer skills training for jobs aimed at equitable climate adaptation, and to correct some of the imbalances in the current economic system.15
Essential features of a Job Guarantee Program
Job Guarantee (JG) proposal envisions a democratic process implemented in a decentralized manner to create guaranteed public sector employment. Such a program should be voluntary and inclusive. JG policies should make meaningful work available to everyone, who is able and willing to work, irrespective of their gender, race, color, creed, and labor market status. While the funding for such programs could be made available by a central authority, like the Department of Labor in the USA, design and administration must be decentralized to effectively implement the JG proposal. Local economic conditions, local requirements, and skills available locally to fulfill these requirements should be taken into consideration for the success of JG programs. Therefore, local municipalities, non-profits, social enterprises, and cooperatives at the grassroots level are best suited to analyze local needs and create jobs according to the needs of a region.
In the context of ongoing issues of environmental degradation, discrimination, and wide wealth disparities, JG policies should be based on care for the environment, care for the community, and care for the people. This approach is drastically different from organizing the economy around neoliberal values of GDP growth, profit maximization, material consumption, and unregulated free market system. The idea of organizing the economy and social institutions around the life-sustaining activity of care, by recognizing the vulnerability of people and the planet to climate catastrophes, is crucial to the process of climate adaptation. John Maynard Keynes’ concept of “Socialization of Investment”, and Thorstein Veblen’s insights into creating economies for the provisioning of the life process are relevant to formulating policies for JG. This helps economists and policy makers shift their focus towards investing public funds to design JG programs that can serve the best interest of the society and the planet. In the JG framework, organizing the economy around care and caring, for the social reproduction of life processes, takes precedence. This provides an excellent opportunity for creating meaningful employment, and using it as a means to enable just climate change adaptation of communities.16
Work: Democratization, Decommodification and Environmental Remediation
During the years of the COVID-19 pandemic, while some of us had the privilege to quarantine and safeguard our health, others were on the frontline performing the essential labor of caring for the sick, producing the food we eat, stocking away the shelves at grocery stores, delivering food and medicines, and collecting our garbage. These “essential workers” basically kept life going in uncertain times, and made it possible for others to quarantine and shelter in place. Quarantined men and women also fulfilled their duties as “work from home” employees for the companies in which they worked and provided for their families. This shows us that work is essential for social reproduction, the process of recreating life as we know it, day after day, for orderly functioning of the society. The unpredictability of climate-related events has ushered in an era of uncertainty. The climate crisis is an opportunity to transform the nature of work, while serving the purpose of adjusting to uncertainties. In this process, we need to reorganize our economy around care for people and care for the planet, to face the mounting challenges of climate catastrophes.
In the aftermath of COVID-19, the book, Democratize Work: The Case For Reorganizing The Economy17, which is a collection of essays from several social scientists and academics, was published. The writers, all women, lent their voices to a collective movement of rethinking how we organize work, and the economy through meaningful work. The writers make an argument for mobilizing the collective strength of labor to create an inclusive and just society by focusing on three guiding principles for restructuring work: Democratization of work, Decommodification of labor, and Environmental Remediation. Each essay provides an insight into the transformative power of workers making most decisions about work, treating workers with human dignity, and commitment to environmental protection. Amid growing inequalities along gender, class, and race lines in an extractivist economy, with implications for democracy and the environment, this is the right time for a just transition to a new social and economic order by restructuring work.
Democratizing work aims to share power between employers and employees, shifting the center of power from private owners and shareholders to workers, who have a more direct stake in the company. One necessary step to shift the balance of power is to decrease the wage gap between the highest paid and lowest paid employees. Democratizing work involves protecting employees from abuse, especially in informal work arrangements of the gig economy that make regulation difficult. Employees must not merely be present on decision-making boards, but they must also play an active role in influencing strategic decisions through their voices and votes. In Europe, many countries have laws to grant workers representation on their organizations’ boards. The goal is to reduce the monopolization of decision-making power by executives and shareholders.
Decommodification of work refers to not treating work as a commodity. Market mechanisms alone should not be allowed to decide the value of work. Work is not a commodity that should be subjected to the guiding principle of profitability. The COVID-19 pandemic has revealed that the work of “essential workers” continued to be essential and life-sustaining in a time of uncertainty, irrespective of how profitable or not their work was in the so-called free market. The notion of “fictious commodities” introduced by Karl Polanyi becomes relevant in this context.
Karl Polanyi argued that a market system, which is predominantly based on regulating demand and supply for profit, has treated everything associated with life and nature as a commodity that is up for sale. Labor is associated with human life process. Life and labor cannot be separated. Land is a part of nature in which society and civilization are embedded. Money is simply a token of exchange and purchasing power. It is not produced like other commodities for its own inherent value.
Commodification and commercialization of these elements of nature and life processes make them subordinate to markets and prices. This subordination is based on a fictional idea that nature, life, and social processes can be commodified. Labor is commodified through differential wages based on demand and supply. This is the Polanyian notion of “fictitious commodities”.18 Decommodifying work means protecting work from becoming a fictious commodity. Necessary measures must be put in place to preserve work from the onslaughts of market mechanism of demand and supply regulation through wages. Healthcare, childcare, sanitation work, ecological preservation, production of food, etc., are some of the sectors of the economy in which work must be guaranteed through stable wages. This means that people have access to work, and also have the dignity works brings. One way to achieve decommodification of work is by creating job guarantee programs. Article 23 of the Universal Declaration of Human Rights enshrines the basic human right to employment and free choice of employment, under favorable working conditions. Democratization and Decommodification of work go hand-in-hand. Worker-ownership through a cooperative model offers a viable pathway for democratization and decommodification of work.
Environmental remediation demands accountability and responsibility for economic transition, from environmental destruction models to environmental regeneration models. Businesses, governments, economic enterprises, and companies must be compelled through strict laws to decarbonize their industrial processes and technologies. Decarbonization cannot be achieved without creating new jobs that require new skills in the decarbonized sectors of the economy. Decarbonization can also not be achieved at the cost of unemployment, which induces negative macroeconomic outcomes. Decarbonization and Decommodification are mutually dependent.
Decommodification of labor offers a buffer against loss of employment. Skills training and jobs must be guaranteed to those, who may lose their job during the process of transition to greener economies. This transition should also protect workers’ rights. A transition of this nature is most successful when it is led by democratically governed organizations, in which the voices of those who invest labor, are valued on par with the voices of those who invest capital. The transition to an ecologically-friendly and a humane economic system succeeds through the confluence of all the three guiding principles to restructure work: democratize, decommodify, and decarbonize.
Conclusion
There is an alignment among all the movements and policy proposals discussed in this paper on the immediate need for socio-economic and cultural empowerment of people at the basic level of economic organization, like workplaces, bioregions, and local economies, to accomplish the goal of justice-based climate change adaptation. Given numerous parallels and a resonance between economic systems change movements such as the Progressive Utilization Theory (PROUT), climate justice movements, Job Guarantee proposals, and the call for democratizing work, the table below summarizes the ways in which these movements can converge to transform the economy and the nature of work, and through this, enable environmental remediation and justice-based climate change adaptation.
Guiding Principles for Restructuring Work | How can the systems change vision of Prout serve this goal? | Outcomes for justice-based climate change adaptation |
Democratization | Economic Democracy, local people make local economic decisions and plans. Guarantee of basic minimum requirements of life through purchasing capacity. Purchasing Capacity, enshrined as constitutional right, enhances the bargaining power to the people. The psychology of “Coordinated Cooperation” tilts the balance of power in favor of workers. No one is forced to cooperate under conditions of subordination. | Efficient, waste-free planning based on grassroots knowledge and local expertise. Ability to respond better to climate-related uncertainties with adequate resources. Demand for fairer policies and laws that protect human and environmental rights. Worker empowerment leads to dismantling the exploitative hierarchies within capitalism. This could facilitate equitable distribution of wealth and power. |
Decommodification | Economic Decentralization, local control of local resources. Production for consumption, not for profit. Local consumption and needs drive the economy. Block-level planning for collective socio-economic development. Local cooperatives produce and distribute essential commodities, and create most jobs in a region. Three-tiered economy, in which key industries are run on a “no profit, no loss” basis, as publicly owned services. e.g. transportation, power, water management, communication, afforestation, flood control, etc. | Communities are shielded from external capitalist exploitation. Responsible management of local natural resources and labor as profit motive is absent. Job guarantee, stable income, inherent readiness to adapt to climate change catastrophes. In a cooperative model of worker-ownership, workers tend to be treated with dignity. Decommodification of basic services ensures job security in these important sectors of the economy, and could assist with quicker transition to ecologically sustainable, greener economies. |
Environmental Remediation | Cosmic Inheritance forms the psychological basis for the organization of economy. Acknowledgement of the rights of nature. Neohumanist worldview helps us recognize the inherent value of all human and nonhuman beings of the universe. A reasonable limit on individual accumulation of material wealth is one of PROUT’s fundamental principles. In the PROUT model of development, there are ample opportunities for intellectual and spiritual progress for all | A paradigm shift of values. Shift of values influences economic policies and institutions. A shift, from privatization and extraction to the progressive utilization of natural resources as “commons” , for the wellbeing of people and the planet. Sustainable material growth to create an economy that works for everyone within the planetary boundaries, and without risking ecological overshoot. |
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