1) Question: What do we want, increase in per capita income or increase in purchasing capacity?

Answer: According to PROUT, increases in per capita income are not a sufficiently reliable and scientific index to determine the standard and progress of a particular socio-economic unit. Rather, this approach is misleading and deceitful, because it refers to a simple mathematical calculation of total national income divided by total population. This does not give the correct picture of the standard of living of the people of a particular socio-economic unit as the wealth disparity in society is concealed. Per capita income shows the mean and not the variation of income distribution. If inflation is also considered, the reliability of per capita income is further reduced.

Purchasing capacity, on the other hand, is the real index of how people’s economic needs can be met by their income. All PROUT’s plans and programmes in the socio-economic sphere should be aimed at increasing the purchasing capacity of the people. PROUT stresses increasing purchasing capacity and not per capita income.

Per capita income is not a proper indication of the increase in the standard of living of the people because while people may have very high incomes they may not be able to purchase the necessities of life. If the per capita income is low and people have great purchasing capacity they are much better off. So, purchasing capacity and not per capita income is the true measure of economic prosperity. Everyone’s requirements should be within their pecuniary periphery or purchasing capacity.

2) Question: Shall we support the recent cry for more power to the states? What is our policy?

Answer: We support economic decentralization. So, the amount of power which directly concerns economic decentralization should be in the hands of the states or the concerned lower level governments. Otherwise, how can they materialize the economic power that is vested in them by decentralization?

3) Question: What is the difference between agrico-industries and agro-industries?

Answer: Agrico-industries represent a set of pre-harvesting industries. Agrico-industries directly or indirectly promote the rapid qualitative and quantitative growth of agricultural products. Agro-industries comprise those post-harvesting industries which depend on agricultural production.