Transformative economics
Encyclopedia
Transformative economics is an alternative theory of socio-economics.
Transformative economics was derived from Progressive Utilization Theory (PROUT) — a social philosophy developed by India
n philosopher Prabhat Ranjan Sarkar
in 1959.
Proponents of this theory view traditional capitalism
as a system that treats humanity
as an input (labour) and cost
(wages), with the result being the accumulation of capital
. Transformative economics attempts to reverse this and make the outputs of the economic system work for humanity, by placing environmental and local community needs at the foundation of economics.
Transformative economics was derived from Progressive Utilization Theory (PROUT) — a social philosophy developed by India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n philosopher Prabhat Ranjan Sarkar
Prabhat Ranjan Sarkar
Prabhat Ranjan Sarkar , also known by his spiritual name, Shrii Shrii Anandamurti , was an Indian philosopher, author, social revolutionary, poet, composer and linguist...
in 1959.
Proponents of this theory view traditional capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
as a system that treats humanity
Human nature
Human nature refers to the distinguishing characteristics, including ways of thinking, feeling and acting, that humans tend to have naturally....
as an input (labour) and cost
Cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...
(wages), with the result being the accumulation of capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
. Transformative economics attempts to reverse this and make the outputs of the economic system work for humanity, by placing environmental and local community needs at the foundation of economics.