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Inter-Block and Intra-Block Planning
PROUT advocates a planned economy for the establishment of progressivesocialism. Such an economy, with its quadro-divisional system (that is,people's economy, general economy, psycho-economy and commercialeconomy), aims to achieve all-round development and welfare of thehuman society in a progressive manner. PROUT wants to ensure abalanced 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 willbecome 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 keepin 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 theprice of their crops they produce, they do not calculate how much labour wasengaged 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 calculatethe real cost of the per unit production. Thus they incur losses and perpetuallyget low prices.To determine the cost of the per unit production of agricultural commoditiescorrectly, this sector of the economy must be reorganised and established on thesame basis as industry through the co-operative system. According to PROUT,agriculture should be treated as an organised industry. Only then will the per unitcost of production be scientifically determined and the poverty of the farmersended. They will get proper prices, and stability in the agricultural sector will beachieved.Another aspect of this point is to follow the principle that every industry must seethat the cost of production of a particular commodity should not exceed its marketvalue. 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 shouldbe increased.This principle guides planners in setting up the structure of a PROUT economy insuch a way that first, maximum production can be made according to thecollective need. This means supporting increased production based on aconsumption motive and a full employment policy. As a consequence, purchasingcapacity will increase. Secondly, under-utilization of any productive unit may notexist. Thirdly, maximum productive capacity of the whole economy can providecongenial conditions for more investment, more industrialisation, moreemployment, increased wealth, increased purchasing capacity, and increasedcapital 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 rawmaterials 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 theper capita income as the true index of people's economic standard. Per capitalincome is a misleading, deceptive and defective measure of collective wealthpopularised by capitalist economists to fool people and cover their exploitation.Instead, PROUT advocates that the advancement of the people's economicstandard should be measured on the basis of purchasing capacity.To increase the purchasing capacity of the people, the following measures mustbe ensured: there must be availability of commodities according to the collectiveneeds; the price levels should remain stable; no inflation should occur; thereshould be progressive, periodic increases in wages and salaries; and thecollective wealth should be increased.In PROUT's economy there will be no limit to purchasing capacity; that is, theresponsibility of planners will be to make purchasing capacity ever-increasing.The minimum requirements must be guaranteed, and always be increasedaccording to time, space and person. Thus PROUT's aim is to continuouslyincrease the purchasing capacity of the people in conjunction with the economicdevelopment of the concerning economic unit.
Collective Necessity
Planners should consider the existing collective needs as well ad the futureneeds of the society. Accordingly they should chalk out their developmentalprogrammes. In India, for example, many industries have been established butthe 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 blocklevels (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 Proutisteconomy. For the decentralisation of economic power, the devolution of planningis a necessary pre-condition.The areas of a block as they are currently formed are mostly demarcated on thebasis of political considerations. PROUT does not support such a division. Thesepresent divisions should be reorganized depending upon the following factors--the physical features of the area (including river valleys, varying climaticconditions, topography, the nature of the soil, the type of flora and fauna, etc.),the socio-economic requirements and problems of the people, and the differentphysico-psychic aspirations of the people. This scientific and systematic blockdemarcation 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 blockwill have its own developmental planning, adjusting with the overall planning of aparticular economic zone at its various levels.
Inter-block planning
However, there are problems which spill over the block boundaries and thuscannot be tackled or solved by one single block, like flood control, river valleyprojects, communication systems, higher educational institutions, afforestationprojects, the environmental impact of development, the establishment of keyindustries, the erosion of soil, the supply of water, the generation of electricity, theestablishment of an organised market system, etc. These problems cannot besolved by one block alone, so inter-block planning is necessary. Inter-blockplanning is an economic venture into some selected fields to harmonise andorganise socio-economic development in a few adjoining blocks through mutualcoordination and cooperation. In PROUT's system, block level bodies will beconstitutionally recognized.Take the example of the Punjab and the Cauvery Valley. Will the planning for thePunjab and the Cauvery Valley be the same? The planning cannot be the samefor 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 Ghatorigin (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
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