Key industries are large scale industries and should be managed and owned by the immediate or local government . Medium-scale industries are best run by co-operatives, and small-scale industries can be run by private enterprise .
Key industries should function on a “no profit, no loss” principle .
Such things as power, transportation, communication, schools, colleges and hospitals should run by key industries so that the cost of production is minimized and the purchasing capacity of the people is increased .
Normally only very large-scale key industries should be under state control, and these industries should be centralized instead of decentralized .
There are some special types of key industries which can conveniently function as either small-scale industries or medium-scale cooperative industries. If some key industries are structured in this way, they must be under state control. Care should be taken to ensure that they are properly organized and widespread. Such key industries should never be controlled by capitalists, otherwise the interests of the people will be partially if not fully ignored. Moreover, if they are left in the hands of capitalists, many different kinds of problems will arise .
In order to keep labour relations congenial within key industries, a bonus system of work and piece work payments should be adopted. The harder and better the people work, the more profit they will get .
1. “PROUT divides the industrial structure into three parts – key industries managed by the immediate or local government, cooperatives and private enterprises. This system will eliminate confusion regarding whether or not a particular industry should be managed privately or by the governnment, and will avoid duplication between the government and private enterprise.” – Sarkar, Prabhat, June 1979, Calcutta, Prout in a Nutshell Part 13, Some Specialities of Prout’s Economic System, Industrial Development
2. “PROUT advocates a three-tiered industrial structure which includes key industries managed by the immediate government, cooperatives, and privately owned enterprises. Key industries will function on a “no profit, no loss” principle. General economy includes the organization of the industrial structure and the coordination of economic planning at all levels to ensure collective welfare.
These four parts of the economy should be integrated and adjusted according to Neo-Humanistic principles to ensure the maximum utilization and rational distribution of all resources, and to harmonize human progress with all creation.” – Sarkar, Prabhat, 5 June 1986, Calcutta, Prout in a Nutshell Part 12, Quadri-Dimensional Economy, General Economy
3. “There are some special types of key industries which can conveniently function as either small-scale industries or medium-scale cooperative industries. If some key industries are structured in this way, they must be under state control. Care should be taken to ensure that they are properly organized and widespread. Such key industries should never be controlled by capitalists, otherwise the interests of the people will be partially if not fully ignored. Moreover, if they are left in the hands of capitalists, many different kinds of problems will arise. Normally only very large-scale key industries should be under state control, and these industries should be centralized instead of decentralized. But industries which cannot be readily decentralized today may be decentralized in the future due to changing circumstances. At that time the decentralization of key industries must be implemented.” – Sarkar, Prabhat, 6 November 1988, Calcutta, Prout in a Nutshell Part 16, Decentralized Economy – 2
4. “The permanent solution lies in the large scale implementation of the cooperative system and the socialisation of land, industries, trade and commerce. Key industries should be large scale industries. These key industries should be managed and owned by the immediate government, and in order to keep labour relations congenial, a bonus system of work and piece work payments should be adopted. The harder and better the people work, the more profit they will get.“…
…”In order to safeguard the interests of these cooperatives in the field of industry, it has to be emphasised that key industries should be run by the government so that there will not be any occasion for a tool down and the consequent closure of subsidiary industries in the cooperative sector.” – Sarkar, Prabhat, July 1961, Ranchi, Prout in a Nutshell Part 15, Talks on Prout, LABOUR DISPUTES
5. “If a particular country or district is highly industrialized, that will not help in uplifting or changing the economic standard of other parts of the world or country. Hence industry should be decentralized, but key industries should be centralized. For example, the spinning industry should be centralized, and around it there should be a weaving industry run on [the basis of] decentralization principles. Even in areas where the climate is extreme, industries such as spinning can be established through artificial vaporization. This will help to create a self-supporting economic unit, which is badly needed. The area of self-supporting economic units will increase with the increase of transportation facilities. One day this world will become one economic unit. A day may come when the whole of the planetary world will become one economic unit.
Large-scale and small-scale industries should remain side by side. Key industries should be managed by the immediate government, because it is not possible to run them efficiently on a cooperative basis due to their complexities and hugeness. Small-scale industries should run on a cooperative basis, and the small industries which cannot be managed by cooperatives should be left to private enterprise. Thus: (1) small businesses should be left to individuals; (2) big industries should be owned by the immediate government; and (3) the industries in between the big and small industries should be run on a cooperative basis.
The central government should not control large-scale industries because this may hamper the interests of local people. Where there is a federal system of government, these industries should be controlled by the immediate government, and where there is unitary government, they should be managed by local bodies.” - Sarkar, Prabhat, 19 October 1959, Prout in a Nutshell Part 4, Jamalpur, Discourses on Prout, 3
6. “The industrial system must also be reorganized according to the principles of decentralized economy. If a certain part of a country is over-industrialized, it will impede the economic progress of other regions. Economic decentralization will not allow such a situation to arise. In a decentralized economy, key industries, medium-scale industries and small-scale industries will be managed by different groups of people. In a centralized economy – whether capitalist or communist – these industries are usually managed as either private companies or state enterprises. Most key industries should be managed by the local government but they should be guided by the principle of “no profit, no loss”. Most medium-scale industries should be managed as cooperatives, but they should not be guided by monopoly production and profit. The cooperative sector will be the main sector of the economy. Cooperatives are the best means to organize local people independently, guarantee their livelihood and enable them to control their economic welfare. Most small-scale and cottage industries will be in the hands of individual owners. Small-scale industries should be confined mainly to the production of non-essential commodities such as luxury items. Though privately owned, they must maintain adjustment with the cooperative sector to ensure a balanced economy.“…
…”The local administration will also have to arrange for the supply of sufficient power to facilitate industrial production. Every region in a socio-economic unit must strive to be self-sufficient in power generation. The local administration will have to supply locally generated power such as solar energy, thermal energy, bio-gas, hydroelectricity, nuclear energy, pneumatic energy, electromagnetic energy and tidal power, or any other power which is easily available locally. The generation of power is a key industry which should be run on a no profit, no loss basis so that the cost of production is minimized and the purchasing capacity of the people is increased. For example, if batteries are produced through cottage industries, power should be supplied on a no profit, no loss basis, but the battery producers will be able to sell their batteries at a rational profit. Here the power that is used to manufacture the batteries is not an industrial commodity but a raw material. The power for such things as transportation, communication, schools, colleges and hospitals should also be supplied on a no profit, no loss basis to maintain social dynamism. The immediate government or the state government will have to take the responsibility to supply power as a key industry.
All kinds of industrial activities from key industries to cottage industries should be organized with the cooperation of the local population.” – Sarkar, Prabhat, 16 March 1982, Calcutta, Prout in a Nutshell Part 21, Decentralized Economy – 1, Economic Transformation