 2004 Proutist Universal 1 Proutist Economic Development Physical, Mental and Spiritual Resources Dr. Michael Towsey

Proutist Universal Traditional economics Factors of production – land, labor and capital. Land and labor are natural resources. Capital is constructed by humans. But the distinction is not clear. Public health is an investment in human capital. Environmental health is an investment in labor and resources.

Dr. Michael TowseyProutist Universal Different kinds of capital Ownership of capital – public, private, household. Three are interconnected: –Investment in housing and household appliances improves efficiency in public and private sectors. –See: Hugh Stretton, Economics – A New Introduction, Traditional: fixed (physical) capital, financial capital, human capital. private publichousehold

Dr. Michael TowseyProutist Universal PROUT economics PROUT distinguishes physical, mental and spiritual capital. Define capital as: wealth in potentiality. Physical and mental capital easy to understand: –Eg, investments in health and education. –benefits for society in the physical and supramundane arenas. What is spiritual capital?

Dr. Michael TowseyProutist Universal Spiritual capital - an idea whose time has come Sarkar first introduced the concept in 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 TowseyProutist 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 TowseyProutist 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!” –

Dr. Michael TowseyProutist 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, –Creative Work, Willis Harman, 1990.

Dr. Michael TowseyProutist 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 TowseyProutist 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 TowseyProutist 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.