Forum Post: Economic Democracy and Decentralized Economy as proposed by Progressive Utilization Theory by P.R.Sarkar

Principles of Economic Decentralization

(1) The first principle of decentralized economy is that all the resources in a socio-economic unit should be controlled by the local people. In particular, the resources which are required to produce the minimum requirements must be in local hands, and all the industries based on these resources will have to be controlled entirely by the local people. Local raw materials must be fully utilized to produce all kinds of commodities necessary for the economic development of a socio-economic unit. Local people can be defined as those who have merged their individual socio-economic interests with the interests of the socio-economic unit they live in. Clearly, this concept of ‘local people’ has nothing to do with physical complexion, race, caste, creed, language or birth place.

(2) The second principle of decentralized economy is that production should be based on consumption, not profit. Most countries in the world have adopted economic systems which are profit oriented. In a decentralized economy the commodities produced by a socio-economic unit will be sold in the local market itself. As a result, there will be no uncertainty in the local economy or the economic life of the local population.

The best expression of human sweetness is the cooperative system.

(3) The third principle of decentralized economy is that production and distribution should be organized through cooperatives. At present cooperatives are forced to compete with monopoly capitalists for local markets, and the rights of the local people over their raw materials are not recognized. A decentralized economy will lead to the success of the cooperative system.

(4) The fourth principle of decentralized economy is that the local people must be employed in local economic enterprises. Unless the local people are fully employed in the local economy, unemployment can never be solved. Local people should determine the quantum of minimum requirements and the basic policies connected with their own economic well-being. If this principle is followed, the problem of outside interference in the local economy will not arise at all.

(5) The fifth principle of decentralized economy is that commodities which are not locally produced should be removed from the local markets, since a decentralized economy aims to develop local industries and create employment for the local population. It is essential that the local population utilize the commodities produced in their own area to ensure the prosperity of the local economy.

Requirements for Economic Democracy

(1) The minimum requirements of a particular age – including food, clothing, housing, education and medical treatment – must be guaranteed to all.

(2) Increasing purchasing capacity must be guaranteed to each and every individual. In economic democracy local people will hold economic power. Consequently, local raw materials will be used to promote the economic prosperity of the local people.

(3) The power to make all economic decisions must be placed in the hands of the local people. Economic liberation is the birthright of every individual. To achieve it, economic power must be vested in the local people. In economic democracy the local people will have the power to make all economic decisions, to produce commodities on the basis of collective necessity, and to distribute all agricultural and industrial commodities.

(4) Non-locals seeking to exploit local resources will not be allowed to interfere with the local economy unless they merge their socio-economic and cultural interests with the local community.

By implementing these above four requirements as well as the five principles of economic decentralization, we will achieve economic democracy. Our Motto is: “Economic Democracy for all people and decentralized economic system for all nations”

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