Inter-Block and Intra-Block Planning

PROUT advocates a planned economy for the establishment of progressive

socialism. Such an economy, with its quadro-divisional system (that is,
people's economy, general economy, psycho-economy and commercial
economy), aims to achieve all-round development and welfare of the
human society in a progressive manner. PROUT wants to ensure a
balanced economy through a multi-leveled, decentralized system of
planning. It is only through these strategies, through this system of block-
evel planning that poverty in this world will become something of the past.
With the implementation of Prout and block-level planning, poverty will
become an ancient relic seen only in the museums!

by Shrii Prabhat Ranjan Sarkar

Four Guiding Principles of Planning

The leading economists, working in different level planning bodies, should keep
in mind the following basic guiding principles--cost of production, productivity,
purchasing capacity and collective necessity. Let us discuss these points briefly.

Cost of Production
It is a traditional practice in rural economies that the farmers, with their other
family members, work in the fields and produce crops. At the time of fixing the
price of their crops they produce, they do not calculate how much labour was
engaged in the cultivation. They do not pay wages to their family members, nor
do they count the expenses incurred in cultivating their own lands, or the cost of
the machines or tools they use in the fields. So they fail to scientifically calculate
the real cost of the per unit production. Thus they incur losses and perpetually
get low prices.

To determine the cost of the per unit production of agricultural commodities

correctly, this sector of the economy must be reorganised and established on the
same basis as industry through the co-operative system. According to PROUT,
agriculture should be treated as an organised industry. Only then will the per unit
cost of production be scientifically determined and the poverty of the farmers
ended. They will get proper prices, and stability in the agricultural sector will be
achieved.

Another aspect of this point is to follow the principle that every industry must see
that the cost of production of a particular commodity should not exceed its market
value. Every economic unit must be commercially viable.

Productivity
The economy should be organised in such a way that it has its own innate power
to produce more and more. Money should be reinvested, money should be rolling
rather than hoarded, and purchasing capacity and the wealth of society should
be increased.

This principle guides planners in setting up the structure of a PROUT economy in

such a way that first, maximum production can be made according to the
collective need. This means supporting increased production based on a
consumption motive and a full employment policy. As a consequence, purchasing
capacity will increase. Secondly, under-utilization of any productive unit may not
exist. Thirdly, maximum productive capacity of the whole economy can provide
congenial conditions for more investment, more industrialisation, more
employment, increased wealth, increased purchasing capacity, and increased
capital formation in an ever-progressive manner.

If people are guided by the needs and potentialities of their socio-economic unit,
the law of productivity is benign. Products should be developed wherever raw
materials are available.

Purchasing Capacity
Another basic objective of planning is to enhance the purchasing capacity of
each person. PROUT does not support the existing practice of considering the
per capita income as the true index of people's economic standard. Per capital
income is a misleading, deceptive and defective measure of collective wealth
popularised by capitalist economists to fool people and cover their exploitation.
Instead, PROUT advocates that the advancement of the people's economic
standard should be measured on the basis of purchasing capacity.

To increase the purchasing capacity of the people, the following measures must
be ensured: there must be availability of commodities according to the collective
needs; the price levels should remain stable; no inflation should occur; there
should be progressive, periodic increases in wages and salaries; and the
collective wealth should be increased.

In PROUT's economy there will be no limit to purchasing capacity; that is, the
responsibility of planners will be to make purchasing capacity ever-increasing.
The minimum requirements must be guaranteed, and always be increased
according to time, space and person. Thus PROUT's aim is to continuously
increase the purchasing capacity of the people in conjunction with the economic
development of the concerning economic unit.

Collective Necessity
Planners should consider the existing collective needs as well ad the future
needs of the society. Accordingly they should chalk out their developmental
programmes. In India, for example, many industries have been established but
the production of electricity has not been increased. Through lack of proper
planning, power production has lagged behind industrial development. This is
especially evident in Bengal and Bihar. There is a lack of Prama', or proper
equipoise and equi librium, in the development of collective necessities.

Planning Machinery
PROUT's planning machinery will function at the central, state, district and block
levels (and also at the global level after the formation of the World Government).
The block level planning body is the lowest level planning unit in a Proutist
economy. For the decentralisation of economic power, the devolution of planning
is a necessary pre-condition.

The areas of a block as they are currently formed are mostly demarcated on the
basis of political considerations. PROUT does not support such a division. These
present divisions should be reorganized depending upon the following factors--
the physical features of the area (including river valleys, varying climatic
conditions, topography, the nature of the soil, the type of flora and fauna, etc.),
the socio-economic requirements and problems of the people, and the different
physico-psychic aspirations of the people. This scientific and systematic block
demarcation should be the basis for efficient decentralised economic planning.

When planning is prepared for the all-round growth of a single block exclusively,
such an attempt is called intra-block planning. In PROUT's system, each block
will have its own developmental planning, adjusting with the overall planning of a
particular economic zone at its various levels.

Inter-block planning
However, there are problems which spill over the block boundaries and thus
cannot be tackled or solved by one single block, like flood control, river valley
projects, communication systems, higher educational institutions, afforestation
projects, the environmental impact of development, the establishment of key
industries, the erosion of soil, the supply of water, the generation of electricity, the
establishment of an organised market system, etc. These problems cannot be
solved by one block alone, so inter-block planning is necessary. Inter-block
planning is an economic venture into some selected fields to harmonise and
organise socio-economic development in a few adjoining blocks through mutual
coordination and cooperation. In PROUT's system, block level bodies will be
constitutionally recognized.

Take the example of the Punjab and the Cauvery Valley. Will the planning for the
Punjab and the Cauvery Valley be the same? The planning cannot be the same
for three main reasons.

First, the Punjab rivers Jehlam, Chenab, Ravi, Beas and Sutlej are all of
Himalayan origin. The provide a perennial source of water because they are ice-
fed. But the rivers of the Cauvery Valley--Tungabhadra and Cauvery--are of Ghat
origin (Eastern Ghat and Western Ghat). They depend upon seasonal rainfall.
There are two rainy seasons in a year in the Cauvery Valley area, but they are
not a perennial source of water because they are not ice-fed. Thus no hydro-
electricity can be generated from the Cauvery Valley rivers, because of the
uncertainty of water. But hydroelectricity can be generated in the case of the
Punjab rivers because there is a supply of water throughout the year, as in the
case of Bhakhra-Nangal dam. The Punjab rivers maintain their existence with the
help of melted ice.

Secondly, the Cauvery Valley, being nearer the equator, has an extreme climate.
Even the Punjab has an extreme climate but this is due to the different winds
coming from the northwest and the east. The Cauvery Valley does not depend on
any winds.

Thirdly, the central portion of the Cauvery Valley consists of wavy, laterite soil and
is called the Deccan Plateau. There is a small slice of land situated between the
hills and the sea that is alluvial soil and is a plain. Only a small portion of the
Deccan plateau is of alluvial soil. The Punjab is plain. The Deccan peninsula
consists of four coasts--first, the Utkal coast, stretching from the Mahanadi to
Godavari; secondly, the Coromandal Coast, from Godavari to Cape Comerin;
thirdly, the Malabar Coast, from Cape Comerin to Goa; fourthly, the Konkan
Coast, from Goa to Gujrat. These coastal areas are not composed of wavy land.
These coastal areas are known as the granaries of India, whereas in the
Tilangana area in the Deccan plateau there is a chronic shortage of food. In the
Cauvery Valley, the eastern coastal area, the Coromandal area, should chalk out
a developmental programme. The Deccan Plateau can have only palmyra trees
but no coconut trees, whereas the coastal areas can have both.

A proper approach to planning will take into account all the relevant factors
before the developmental programme is implemented.

There are many benefits to block-level planning. Some of these benefits include
the following--it is small enough for the planners to understand all the major and
minor problems of the area; local leadership can come forward to solve the
problems according to their own priorities; planning will be more practical and
effective and will give quick, positive results; local socio-cultural bodies can play
an active role in mobilising human and material resources; the unemployment
problem will be easily solved; the purchasing capacity of village people will be en
hanced; and a base for a balanced economy will be established.

Establishing Prama'
Such a balanced growth will ensure a congenial condition for all the people of the
society. It will provide full security to each and every person of the society since
all their basic needs (food, shelter, clothing, medical care and education) will be
met. This will help maintain Prama'--proper equipoise and equilibrium--in the
physical level by adjusting various sub-triangles in the socio-economic field.
In industry, agriculture, trade, commerce, energy and water supply, capital
investment, production, distribution, supply and demand, etc. there should be a
balance or Prama'. In each and every sub-stratum of the economy, as well as in
inter- strata relationships, Prama' should prevail.

In the physical level Prama' can be established only when the following four
points are achieved. First, the physical demand of the day and the physical
demands of the foreseeable future are to be assessed and organised. Secondly,
the physical supply of the day and the physical supply of the foreseeable future
are to be organised and ensured. Thirdly, there should be maximum utilization of
land. Finally, socio-economic development should occur according to the five
fundamental principles of PROUT.

If these points are correctly followed and implemented in the society, Prama' in
the physical level will surely be established. Then Prama' Riddhi in the psychic
level and Prama' Siddhi in the spiritual level will be easier to attain.