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Economic Decentralization
COLIN WHITELAW
Rapid Growth in Relocalization
 1 billion people belong to cooperatives
 Cooperatives employ more than 100 million people
 6000 + Community Supported Agriculture projects in

the US. More than a million participants in Japan.
 Registered Transition Movement projects grew from 0 400 between 2005 and 2010)
 More than 2500 alternative currencies operate around
the world.
 Between 1994 and 2000 the number of Farmers Markets
in the USA grew by 63 %. The number today is estimated
at more than 4000.
Dominant Trend is Widening Inequality
 The wealthiest 10% own 89% of the world’s wealth

(Credit Suisse, 2013)
 There are 2.2 billion children in the world. Every
second child lives in poverty (Wikipedia)
 80% of people in the world live in countries where
wealth disparity is increasing (2007 UN Human
Development Report)
 In the first two years of “Recovery” the top 7% of
Americans increased their wealth by 7% while the
remaining 93% saw their wealth decreased by 4%
(Pew Research Center, April 2013)
The Prout Model
 Integrated Decentralization combining:
 Regional

Self-Reliance
 Democratically owned and controlled means of
production
 Effective Controls on Wealth Disparity
 Local Level Economic Planning
 Production for Consumption not Profit
 Holistic Worldview
 World Government
Self-Reliant Socio-Economic Zones
 A healthy balance of industry and agriculture

capable of supplying the basic necessities of life
 Could be many within one country or one
composed of a group of countries
 No Foreign Ownership
 Temporary Protection of Industry
 Free Trade in Areas of Surplus and Deficit
 Barter Where Possible
 Amalgamation Amongst Equal Zones
Benefits of Self-Reliance
 Prosperity Through Balanced Development

 Prosperity Without Exploitation
 World Peace and Economic Stability
 Better use of human and natural resources

 Reduction of Waste
 Cultural and Economic Diversity
Democratic Control of Production

 Key Industries

 Midsize Industries  Small Business
-

Local Government
Cooperatives
Private Enterprise

 Note: No Scope for Large Corporations
Key Industries Under Local Government
Benefits:
 Ability to Locate Industries Where Needed (rather
than where profitable)
 Creates Infrastructure for growth of smaller
industries
 Keeps Industry Responsible to the Local People
 Wealth Remains in the Region
 Adaptability to Local Conditions
 Expands the Commons/Collective Wealth
 Keeps Investments Tied to Real Economy
Cooperative Middle Sector
Benefits:
 Permits Efficiency and Economies of Scale
 Motivates Effort and Ingenuity yet Guards Against
Wealth Disparity
 Security of Employment
 Eliminates Need for Middle Men
 Democratic Working Environment Conducive to
Personal And Spiritual Growth
Small Scale Private Enterprise
Benefits:
 Motivates Effort and Enterprise without posing a
risk to Collective Welfare
Integration of Decentralized Economy
11
Artists and
fashion designers
Textile
cooperatives
Public utilities
produce nylon
and cotton thread

Proutist Universal
Effective Controls on Wealth Disparity
(“Rational Distribution”)
 Constitutional Guarantees for:
 Minimum Requirements of Life
 Employment
 Increasing Purchasing Power
 Collectively Agreed Ceilings on Wealth

 Individual Incentives Only Provided from Surplus

Wealth after meeting the Minimum Requirements
 Incentives linked to Social Value of Work
Benefits of Rational Distribution
 Security and Happiness for All
 Affluent, Well-educated Population Good for





Economy
Higher Productivity
No Unhealthy Speculation
Social Solidarity
Greater Opportunity for Cultural and Spiritual
Growth
Local Level Economic Planning
 Beginning at Small Town and District Level

 No outside interference in Economy
 Coordination with other towns and higher level

jurisdictions
Benefits:
 Proper Knowledge of Local Needs and
Conditions
 Local Accountability
Production for Consumption not Profit
 People before Profit
 No Profit No Loss mode for Public Utilities
 Rational Profit for rest of economy (about 15%)

Benefits:
 Subordinates the economy to the society
not vice versa
 Better utilization of resources
 Prevents Concentration of Wealth
 Rapidly increases General Prosperity
 Discourages Greed
Holistic Worldview and Consciousness
 Strong Sense of Interconnectedness
 Motivates Inclusive and Benevolent Behaviour
 Utilizes untapped Psychic and Spiritual Resources
 Satisfies Desire for Happiness on higher levels

relieving pressure on scarce material resources
 A kind of Decentralization 
World Government
 Fair play requires a strong referee

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Prout e a Economia Descentralizada - Colin Whitelaw

  • 2. Rapid Growth in Relocalization  1 billion people belong to cooperatives  Cooperatives employ more than 100 million people  6000 + Community Supported Agriculture projects in the US. More than a million participants in Japan.  Registered Transition Movement projects grew from 0 400 between 2005 and 2010)  More than 2500 alternative currencies operate around the world.  Between 1994 and 2000 the number of Farmers Markets in the USA grew by 63 %. The number today is estimated at more than 4000.
  • 3. Dominant Trend is Widening Inequality  The wealthiest 10% own 89% of the world’s wealth (Credit Suisse, 2013)  There are 2.2 billion children in the world. Every second child lives in poverty (Wikipedia)  80% of people in the world live in countries where wealth disparity is increasing (2007 UN Human Development Report)  In the first two years of “Recovery” the top 7% of Americans increased their wealth by 7% while the remaining 93% saw their wealth decreased by 4% (Pew Research Center, April 2013)
  • 4. The Prout Model  Integrated Decentralization combining:  Regional Self-Reliance  Democratically owned and controlled means of production  Effective Controls on Wealth Disparity  Local Level Economic Planning  Production for Consumption not Profit  Holistic Worldview  World Government
  • 5. Self-Reliant Socio-Economic Zones  A healthy balance of industry and agriculture capable of supplying the basic necessities of life  Could be many within one country or one composed of a group of countries  No Foreign Ownership  Temporary Protection of Industry  Free Trade in Areas of Surplus and Deficit  Barter Where Possible  Amalgamation Amongst Equal Zones
  • 6. Benefits of Self-Reliance  Prosperity Through Balanced Development  Prosperity Without Exploitation  World Peace and Economic Stability  Better use of human and natural resources  Reduction of Waste  Cultural and Economic Diversity
  • 7. Democratic Control of Production  Key Industries  Midsize Industries  Small Business - Local Government Cooperatives Private Enterprise  Note: No Scope for Large Corporations
  • 8. Key Industries Under Local Government Benefits:  Ability to Locate Industries Where Needed (rather than where profitable)  Creates Infrastructure for growth of smaller industries  Keeps Industry Responsible to the Local People  Wealth Remains in the Region  Adaptability to Local Conditions  Expands the Commons/Collective Wealth  Keeps Investments Tied to Real Economy
  • 9. Cooperative Middle Sector Benefits:  Permits Efficiency and Economies of Scale  Motivates Effort and Ingenuity yet Guards Against Wealth Disparity  Security of Employment  Eliminates Need for Middle Men  Democratic Working Environment Conducive to Personal And Spiritual Growth
  • 10. Small Scale Private Enterprise Benefits:  Motivates Effort and Enterprise without posing a risk to Collective Welfare
  • 11. Integration of Decentralized Economy 11 Artists and fashion designers Textile cooperatives Public utilities produce nylon and cotton thread Proutist Universal
  • 12. Effective Controls on Wealth Disparity (“Rational Distribution”)  Constitutional Guarantees for:  Minimum Requirements of Life  Employment  Increasing Purchasing Power  Collectively Agreed Ceilings on Wealth  Individual Incentives Only Provided from Surplus Wealth after meeting the Minimum Requirements  Incentives linked to Social Value of Work
  • 13. Benefits of Rational Distribution  Security and Happiness for All  Affluent, Well-educated Population Good for     Economy Higher Productivity No Unhealthy Speculation Social Solidarity Greater Opportunity for Cultural and Spiritual Growth
  • 14. Local Level Economic Planning  Beginning at Small Town and District Level  No outside interference in Economy  Coordination with other towns and higher level jurisdictions Benefits:  Proper Knowledge of Local Needs and Conditions  Local Accountability
  • 15. Production for Consumption not Profit  People before Profit  No Profit No Loss mode for Public Utilities  Rational Profit for rest of economy (about 15%) Benefits:  Subordinates the economy to the society not vice versa  Better utilization of resources  Prevents Concentration of Wealth  Rapidly increases General Prosperity  Discourages Greed
  • 16. Holistic Worldview and Consciousness  Strong Sense of Interconnectedness  Motivates Inclusive and Benevolent Behaviour  Utilizes untapped Psychic and Spiritual Resources  Satisfies Desire for Happiness on higher levels relieving pressure on scarce material resources  A kind of Decentralization 
  • 17. World Government  Fair play requires a strong referee