IMPLEMENTATION OF PROUT
Prout utilizes economic decentralization to build a healthy economy from the bottom up. It establishes socio-economic regions, or samajas, based on common economic potential, cultural similarities, and shared geographical features, and then further divides these regions into smaller planning units, or blocks.
Local residents are empowered to manage local economic planning boards from the block-level upwards in order to develop self-sufficient economies that can meet the current and future needs of their populations. Guided by the principles of economic democracy, blocks and samajas prioritize local enterprises because outside business interests tend to extract wealth from local economies. The objective is to achieve 100% employment by creating jobs for all local residents – i.e. those who merge their socio-economic interests with the interests of the locality in which they live.
Prout’s three-tiered economic structure plays an essential role in decentralizing the economy.
Each samaja develops 1) small, privately-owned businesses, 2) networks of production, distribution, and consumer cooperatives, and 3) state-operated key industries (e.g. electricity, gas, transport). This structure provides opportunity for entrepreneurship and innovation for small businesses while establishing value chains of cooperatives that create ample employment, democratize the workplace, support their communities, and build self-sufficiency in the region. The publicly run key industries support the local economy by offering affordable utilities and raw materials.