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by raising people‟s standard of living. He devised a comprehensive package of economic policies to stimulate
economic growth.
Kautilyanoted,„‟Hence the king shall be ever active in the management of the economy. The root of wealth is
economic activity and lack of it brings material distress. In the absence of fruitful economic activity, both current
prosperity and future growth are in danger of destruction. A king can achieve the desired objectives and
abundance of riches by undertaking productive economic activity‟‟.22Kautilya envisaged that foreign trade
could increase the economic prosperity of the trading countries.Kautilya believed that the aim of economic
knowledge was to “create and preserve” artha(material well-being). According to
Alfred Marshall, such a role to economic knowledge gave to economics its modern aim of seeking after such
knowledge as may help to raise quality of human life.23Thus, Kautilya applied his economic philosophy not only
for upholding the economic status of the state, but also for managing state activities.
Conclusion
Kautilya reiterated that government could generate good institutions and could stipulate good governance but it
could not instil desire among the people to take advantage of the existing opportunities. He considered that good
policies were designed to create opportunities and fair institutions were needed to utilize those opportunities.
However, elements of good governance are not solely dependent on the function of the government itself, but it
equally hinges on the mutual cooperation, understanding and involvement of the majority of the citizens and
organisations.
References ;
1. Bandopadya,N.C.,Development of Hindu Polity and Political
Theories(MunshiramManoharlal, New Delhi), 1980.
2. Rangarajan, L. N. TherapieArthashastra, trans.; Penguin: New Delhi 1992.
3. Acharya, A. Dialogue and Discovery: In Search of International Relations Theories Beyond the West.
Millennium 2011, 39 (3), 619–637.
4. Sihag, B. S. Kautilya on Institutions, Governance, Knowledge, Ethics and Prosperity. Humanomics
2007, 23 (1), 5–28.
5. “Presented in a Symposium on „Stability and Good Governance” Organized at A. N. Sinha
Institute of Social Studies, Patna on Aug 18, 1998.
6. Arthashastra, Chapter x1x; Bk. 1, p 39.
7. Diwedi, O. P. Common Good and Good Governance: Administrative Theology- Dharma of Public
Officials. Indian J. Public Admin. 1990, 36 (3, Jul–Sept.), 261.
8. Sharma, R. S., Aspects of Political Ideas and Institutions in Ancient India, 11th (Ed); Delhi, 1959, p 62.
9. Aiyangar, K. V. R., Some Aspects of Ancient Indian Polity; Madras University Press: Madras, 1935, pp
53–54.
10. Shamasastry, R.; Kautilya‟s Arthashastra, W. Mission Press, Mysore, 1992, P. 39.
12. Mehta, V. R., Foundations of Indian Political Thought, Manohar, New Delhi, 1992 (reprint 1999), pp
94–95.Dunning, W. A., A History of Political Theories: Ancient and Medieval (New York, 1961), p298.
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