In September 1987 P.R. Sarkar instructed that all his discourses on PROUT, an acronym for Progressive Utilization Theory, be compiled and published as one series, which he called PROUT in a Nutshell. In October 1991 the last part of the first edition of the series, Part 21, was published in English.

With the completion of this work, the publishers began re-editing and retranslating the discourses in PROUT in a Nutshell. Our intention is to present selected discourses on specific topics in separate volumes, and to publish the discourses in the second edition of PROUT in a Nutshell in chronological order according to the author’s original wish.

All of P.R. Sarkar’s discourses on economics from PROUT in a Nutshell have been re-edited or retranslated for this book. The name Proutist Economics – Discourses on Economic Liberation was selected as the title because we felt it most aptly conveyed the author’s unique economic vision. The essential characteristic of the author’s economic system is that it must free human beings from mundane problems so that all will have increasing opportunities for intellectual and spiritual liberation.

Shortly before his departure the author observed, “Economics today is a theoretical extravaganza. It should be made more practical.” He was of the view that economics must be a precise, practical science and should be properly developed for the welfare of all.

The author was most concerned with the plight of the downtrodden mass, and devoted much time to guiding Proutists from various parts of northeastern India in how best to raise the standard of living of the local people. In one of his encouraging messages to a group of economists who were working to elevate the standard of living of the poor, he commented, “For every noble deed I always extend my support. In your attempt for the economic emancipation of humanity, my full support is there.”

It was the author’s practice to deliver extempore discourses on a vast range of subjects, including economics, to his disciples. he would often deliver discourses on a particular subject over several days or weeks to different groups of people. Such discourses have been compiled and edited into a single discourse, and dated in this book from the first occasion the author spoke on the subject.

The publishers have arranged the discourses in this edition into six parts. The discourses in each part are generally arranged in chronological order.

Part One deals with the key principles for economic liberation. It sets out the essential principles of PROUT’s economic system.

Part Two provides a brief critique of capitalism and communism, the dominant materialist theories in the world today.

Part Three demonstrates how rural development should be structured for collective welfare. It stresses the need for coordinated cooperation in agricultural production.

Part Four sets out the conditions necessary to raise the standard of local people through economic decentralization.

Part Five outlines some policies that can be immediately adopted to alleviate the suffering of downtrodden people.

Part Six, some thirty percent of the book, includes a detailed discussion of some case studies from northeastern India, and provides numerous practical examples of how to elevate the economic standard of the millions of poor people living in this region.

Most of the discourses in this book were originally given in either Bengali or English, and in several cases, both languages simultaneously. The following discourses were given in Bengali and retranslated for this edition: “The Principles of PROUT”, “Some Specialities of PROUT’s Economic System”, “Keep Money Rolling”, “Capitalism in Three Spheres”, “Economic Depressions”, “Agrarian Revolution”, “Farmer’s Cooperatives”, “Decentralized Economy – 2”, “East Wet Theory”, “Population Growth and Control” and “Developmental Programmes”. “Dynamic Equilibrium and Equipoise” and all the discourses in Part Six and were also given in Bengali and re-edited for this book.

The following discourses were compiled from the original English: “Minimum Requirements and Maximum Amenities”, “Economic Dynamics”, “Feudalism and the Zamindary System”, “Elevating Backward Classes” and “Multi-Purpose Development Schemes”. Most of “Questions and Answers on Economics” was also given in English.

Some chapters are divided by a short line into sections which were given in either Bengali or English. For example, the first section of both “Principles of Balanced Economy” and “Cooperative Production” was given in Bengali and retranslated for this edition, and the second section was given in English. The first two sections of “Defects of Communism” were given in Bengali and also retranslated for this edition, and the third section was given in English.

Several discourses were compiled in English from the original English and Bengali. These discourses, which have been re-edited for this edition, include: “Socio-Economic Groupifications”, “Quadri-Dimensional Economy”, “Cooperatives”, “Integrated Farming”, “Water Conservation”, “Block-Level Planning”, “Decentralized Economy – 1” and “Economic Democracy”. The chapter “Developmental Planning” was also compiled in English from discourses given in several languages during the author’s November and December 1979 tour of India to demonstrate the practical application of the theory of socio-economic groupifications.

In several cases unpublished points given by the author have been incorporated into some of the re-edited discourses.

Finally, square brackets [   ] in the text are used to indicate editorial insertions. Round brackets (   ) indicate a word or idea originally given by the author.