KAUTILYA'S AXIOM TO PEACE, POWER AND PROSPERITY - by MAHESH PRABHU

“Kautilya” or “Chanakya” inspires a great many of his admirers even to this day. A legend who played a pivotal role in building a great empire that unified India under a single rule – is often compared with 16th century renaissance author Niccolo Machiavelli. Although it could be considered– Kautilya was a genius way ahead of his time and had a vision beyond the statesmanship of the western world. It becomes evident when we read his version of Artha Shastra.

“Kautilya” or “Chanakya” inspires a great many of his admirers even to this day. A legend who played a pivotal role in building a great empire that unified India under a single rule – is often compared with 16th-century renaissance author Niccolo Machiavelli. Although it could be considered– Kautilya was a genius way ahead of his time and had a vision beyond the statesmanship of the western world. It becomes evident when we read his version of Artha Shastra.

As strange as it may sound Kautilya was not the author of Artha Shastra – he was a compiler, editor and commentator. His version of Artha Shastra was accidentally rediscovered in 1905 by R. Shamsastry who promptly published it in 1909. The first English translation came out in 1915.

Power – a subject which most authors today fail to explain – is meticulously taught in the Artha Sutras. “Lust, anger, greed, infatuation, ego and envy are the six elements if found in those who wield power, will fail to retain it.” Says Kautilya’s Artha Sutras. Also, “The person without these six elements is capable of manipulating power – unlike those who are manipulated by it.”

Yet the translations that are available do not do justice to the work. Perhaps the most influential as well as the engaging section of this magnum opus work is found at the end – Artha Sutras. Strange but true – scholars have failed to translate it effectively. Those who read them without substantial knowledge of Sanskrit or dharmic wisdom find themselves to be naïve.

This is because of the mistranslation of Sanskrit words like Sukha, Dharma, Artha, Rajyam and Indriya Vijayi. The first four axioms, or sutras, are as below:

Sukhasya Moolam Dharmaha 

Dharmasya Moolam Arthaha 

Arthasya Moolam Rajyam 

Rajyasya Moolam Indriyaanaam Vijayaha

When translated subtly they read as below:

Foundation of Happiness is Dharma 

Foundation of Dharma is Artha 

Foundation of Artha is Raajyam 

Foundation of Rajyam is Indriyaanam Vijayam

Unfortunately, since Dharma is oft translated as “religion”, Artha is mistaken to be “money”, Raajyam is mistaken for “state” people often translated it as below:

Foundation of Happiness is Religion 

Foundation of Religion is Money 

Foundation of Money is State

Foundation of State is winning over everyone’s senses

With such translations, their deeper meaning is lost! And as they are the foundation of all the following axioms or Sutras, they are often disregarded.

Such mistranslations happen because all Vedic texts, including Artha Shastra, are looked from the western perspective even by Indian “scholars” and not Vedic perspective – as they should be.

These short Sutras, or axioms, form the most comprehensive formulae to understanding, working with as well as retaining power for the greater good. Interestingly, these sutras can be applied for even destabilizing ruthless rulers. “Ruthlessness in rulers ensures their certain demise.” says Artha Sutras before mentioning, “If a self-restrained individual without qualities of lust, anger, greed, infatuation, ego and envy decides to take on such ruler – he’s bound to win sooner than later.”

Dharma is not a religion. Dharma is anything that is just – not only from an individual perspective but from the perspective of a greater good. Dharma is good Karma or deeds. Artha is wealth – not just money. Rajyam is governance – not state. Indriya Vijayam isn’t winning everyone’s sense – but controlling one’s own senses.

Given these right translations the hidden wisdom becomes clearer:

Foundation of Happiness is Good Deeds 

Foundation of Good Deeds is Wealth. 

Foundation of Wealth is Governance. 

Governance is best administered by those who are self-controlled.

With deeper examination and by revisiting history, the deeper meaning of these axioms is obvious. Interestingly, Kautilya’s Artha Shastra was written around 2^ndCentury BCE. Over 2,000 years before today. The earlier versions of Artha Shastra, which were edited by earlier teachers of Rajaneeti, including Bharadwaja, Vishalaksha, Parashara,  Shukracharya, Manu and Pishuna, are long lost. However, Kautilya first mentioned them, before agreeing or disagreeing with them. Artha Sutras were not invented by Kautilya but rewritten for greater clarity and relevance It means that some of these Sutras could more than 4,000 years old. This is important because modern education has failed to bring in a proper system of teaching politics to aspiring students.

Interestingly, Kautilya’s Artha Shastra was written around 2^nd Century BCE. Over 2,000 years before today. The earlier versions of Artha Shastra, which were edited by earlier teachers of Rajaneeti, including Bharadwaja, Vishalaksha, Parashara, Manu and Pishuna, are long lost. However, Kautilya first mentioned them, before agreeing or disagreeing with them. Artha Sutras were not invented by Kautilya; but rewritten for greater clarity and relevance It means that some of these Sutras could more than 4,000 years old. This is important because modern education has failed to bring in a proper system of teaching politics to the aspiring students.

Most of the colleges and schools on “Political Science” teach political history – at best. Ancient Indian or Vedic people were ahead of times in terms of administration and leadership succession. This is not surprising if we remember that India was once called the “golden dove” owing to its prosperity. This colossal prosperity attracted Islamic maunders, Arab merchants, European trading enterprises and the like to India. If not for its prosperity – there would have been no reason for their fatal attraction to this land. Prosperity seldom happens by itself – it’s a result of efficient governance. And those in the governance across various kingdoms in the subcontinent followed the principles of Artha Sutras.

These Sutras were the fundamental axioms that students of Rajaneeti were made to memorize at a time when lasting instruments of recording words weren’t present. Smriti (memorizing) and Shruti (hearing) were the two ways by which these texts were handed down over generations for centuries.

Because they are ancient – some people question their viability to work in the present-day globalized economic scenario. The question is fair. While there definitely are significant advances in technology in terms of information transmission and reception – fundamentally the quality of people thoughts, desires and actions have remained the same.

There were diseases then – there are diseases now; there were greed and corruption then – it’s there now too. People were violated by ruthless rulers then – so they are now. While the outer quality of life may have improved – the inner sufferings haven’t changed much. In the end, politics is still a game of resilience, strength, patience, persistence and, importantly, power manipulation. These are best taught by the Rajaneeti of Artha Shastra and Artha Sutras in particular.

Because they are ancient – some people question their viability to work in the present-day globalized economic scenario. The question is fair. While there definitely are significant advances in technology in terms of information transmission and reception – fundamentally the quality of people thoughts, desires and actions have remained the same.

With over 500 axioms – many more than the Yoga Sutras of Patanjali – it presents a clear picture as to how happiness is understood, attained and retained through the appropriate application of knowledge and skills to access power and employ it appropriately.

Power – a subject which most authors today fail to explain – is meticulously taught in the Artha Sutras. “Lust, anger, greed, infatuation, ego, and envy are the six elements if found in those who wield power, will fail to retain it.” Says Kautilya’s Artha Sutras. Also, “The person without these six elements is capable of manipulating power – unlike those who are manipulated by it.”

One of the most significant challenges of leadership is putting the right team in place. “The king should only employ those who are second best to him.” says another axiom. “If a king employs someone better than himself, then he must take care to find a counterweight to that person for there will be a threat to his seat of power.” The following axiom declares “The greatest threat to a king is through his own people –  ministers.”Also, “King is as competent as all of his ministers.” And “A king is only stable until his ministers feel insecure in their position.”

These short Sutras, or axioms, form the most comprehensive formulae to understanding, working with as well as retaining power for the greater good. Interestingly, these sutras can be applied for even destabilizing ruthless rulers. “Ruthlessness in rulers ensures their certain demise.” says Artha Sutras before mentioning, “If a self-restrained individual without qualities of lust, anger, greed, infatuation, ego, and envy decides to take on such ruler – he’s bound to win sooner than later.”

On realizing the greater wisdom hidden in these Sutras, a person can feel enlightened about the means and nature of power before applying it for peace and prosperity – not just for himself – but for the world, at large. It, therefore, becomes important that we revisit, learn and propagate this knowledge of Kautilya’s Artha Sutras for the better world we so desire to create.

  

Courtesy: https://www.vedic-management.com/decoding-artha-sutras-kautilyas-axiom-to-peace-power-and-prosperity/

The Kautilya’s Perspective on Wealth: Artha, Vyartha & Anartha - U Mahesh Prabhu

Kautilya advises, “Wealth has only three ends – it’s either spent on deserving people or things, misspent on undeserving people and things or just rots away and falls into the hands of others (deserving or undeserving).” Stagnant wealth is of no utility.

If you want to know about the importance of wealth, ask a pauper; if you want to know the pains of wealth, ask a billionaire. “It’s a pain to earn wealth, causes stress to retain it, and leads to catastrophe when you lose it. Wealth is a sum of pain and gain,” said revered king-turned-hermit, Bhartrihari. True wealth, like all material things, has its own pros and cons. There are not many texts, which explain the nitty-gritty of wealth as much as Vedic scriptures – Kautilya’s Artha Shastra being foremost.

Many consider currency as wealth. But currency is only a legal bill which is worth only in exchange. 

Besides, it has its own geographical limitations. Conventional currencies like dollar, pound sterling, rupees, yen, etc. can be exchanged only in set geographical areas. Crypto-currencies like Bitcoin – that which is valued much greater than US dollar – is mostly useful in online transactions. Currency is nomination of wealth – not wealth itself.

Many consider currency as wealth. But currency is only a legal bill which is worth only in exchange. Besides, it has its own geographical limitations. Conventional currencies like the dollar, pound sterling, rupees, yen, etc. can be exchanged only in set geographical areas. Crypto-currencies like Bitcoin – that which is valued much greater than the US dollar – are mostly useful in online transactions. Currency is the nomination of wealth – not wealth itself. 

So, what is wealth? Wealth is defined, in modern English, as “an abundance of valuable possessions or money” or “a plentiful supply of a particularly desirable thing.” The father of capitalism, Adam Smith, in his book The Wealth of Nations, described wealth as “the annual produce of the land and labor of society”. This “produce” is “that which satisfies human needs and wants of utility.” In popular usage, wealth is understood as an abundance of items of transactional value.

Wealth is defined, in modern English, as “an abundance of valuable possessions or money” or “a plentiful supply of a particular desirable thing.” The father of capitalism, Adam Smith, in his book The Wealth of Nations, described wealth as “the annual produce of the land and labour of society”. This “produce” is “that which satisfies human needs and wants of utility.” In popular usage, wealth is understood as an abundance of items of transactional value.

Kautilya, also known as Chanakya, had a great understanding of wealth. He often termed it Artha. In the Artha Sutras, he suggests “Artha is the root of happiness.” Kautilya’s Artha is not just currency, but also material property and, most importantly, knowledge. “No wealth is greater than the wealth of knowledge,” he argues in his Neeti. That is because “Knowledge explains our being, as well as that which is in our possession (resources) and enables us to use those resources to get that which we want (wealth).” [rml_read_more]

In the second axiom, he says, “the root of wealth is Dharma.” Kautilya’s Dharma is never to be translated as “religion”. Dharma is good conduct. It’s that “which sustains” and that which empowers us to “do good to us as well around us” – our family and society. Anything that hurts any being (humans as well as animals) for no fault of theirs, is Adharma or against Dharma. Therefore, any Artha or wealth gained through the path of Adharma is called Anartha. Anartha, in Sanskrit, also means “disaster”. 

Wealth is useless, when hoarded without any utility to the one who possesses it. Modern economists will agree that hoarded currencies are detrimental to a nation’s economy. For Artha or wealth to be in shape, it must be used in the transaction – either as an investment or expenditure. Kautilya defined hoarded wealth as Vyartha or liability. In Sanskrit, Vyartha also means useless. He advises, “Wealth has only three ends – it’s either spent on deserving people or things, misspent on undeserving people and things or just rots away and falls into the hands of others (deserving or undeserving).” Stagnant wealth is of no utility.  

Wealth is useless when hoarded without any utility to the one who possesses it. Modern economists will agree that hoarded currencies are detrimental to a nation’s economy. For Artha or wealth to be in shape, it must be used in transaction – either as an investment or expenditure. Kautilya defined hoarded wealth as Vyartha or liability. In Sanskrit, Vyartha also means useless. He advises, “Wealth has only three ends – it’s either spent on deserving people or things, misspent on undeserving people and things or just rots away and falls into the hands of others (deserving or undeserving).” Stagnant wealth is of no utility.

When wealth is used for something good, which includes satisfying one’s needs, needs of dependents, helping those who are less fortunate as well as those who are despondent, is Artha. It is important to note that Artha also means “meaningful” in Sanskrit. 

According to Kautilya, the understanding of the ideas and ideals of Artha, Vyartha, and Anartha are key to earning, retaining as well as the rightful dispensation of wealth for one’s own as well as universal welfare. It also helps in establishing peace and prosperity in one’s family, society, the nation as well as the world at large. 

A despicable person bereft of wealth, is often the one who’s bereft of knowledge or Gyaana. Knowledge, one must understand, is not just data or information. Modern educational institutions, often offer courses with the apparent intent to provide knowledge, but only end up providing some form of data or information, and a certificate to that effect. 

If “knowledge” does not help you sustain yourself or those who depend on you, it is not “knowledge”, but data or information. They are subject to change. This does not mean data is useless, rather it is pointless without the knowledge and its application. Knowledge provides us with the ability to interpret data and information and use it to our best advantage. In the absence of knowledge, we suffer. In the absence of knowledge, we are ignorant. In ignorance, there is uncertainty bound with a certain fear. Fear causes mental unrest. Mental instability often makes us take detrimental decisions, causing loss of wealth and even poverty.

If “knowledge” does not help you sustain yourself or those who depend on you, it is not “knowledge”, but data or information. They are subject to change. This does not mean data is useless, rather it is pointless without knowledge and its application. Knowledge provides us with the ability to interpret data and information and use it to our best advantage. In the absence of knowledge, we suffer. In the absence of knowledge, we are ignorant. In ignorance, there is uncertainty bound with certain fear. Fear causes mental unrest. Mental instability often makes us take detrimental decisions, causing loss of wealth and even poverty.

Many governments in the free world, during the early 1900s, gave significant importance to literacy. Their argument was that, with literacy, poverty would end on its own. But, today, with the collapse of financial systems, we see so many literate as well as educated people in the free world living on the streets. Literacy, is a form of data and information; it only helps us to read and write. It fails to empower us to chart a course of action to make the best use of this data and information, for even our own welfare. 

It cannot be called knowledge if you possess information which only makes you uncertain and fearful. Unfortunately, our academic systems are churning out candidates with diplomas, bachelor and master’s degrees, who end up failing to employ themselves! If their knowledge was true, they would have known what to do with it and find a way to employ and provide for themselves and even others. Kautilya’s Artha Sutras explicitly suggests that “an educated person, who cannot find a way to employ oneself, is as good as an uneducated person”. He perhaps implied that an education that does not provide for sustenance is not education at all. 

The current system of education needs to be redesigned to provide knowledge, not redundant data and information. For, according to Kautilya, such “knowledge” is Vyartha – useless – and often results in Anartha – disastrous consequences. 

Kautilya’s axioms on Artha have rarely been wrong. When the global economy collapsed in 2009 – the tremors of which can be felt even to this day – it was not because illiterates were at the helm. Wall Street honchos were Ivy League graduates – they were apparently the “smartest guys in the room”. Somehow, they failed the system, as well as themselves, because they didn’t understand the concept of Artha and did everything that resulted in Anartha. When these grand “leaders” occupied positions of power, their alma maters felicitated them, with awards and honorary doctorates, but when they were put behind bars, there was no course correction or even acknowledgment of failure. The students should have been taught the reasons behind the past students’ fall from grace. The should have learned and taught the ideas and ideals of Artha, Vyartha, and Anartha. 

Mahesh Prabhu

Udupi Mahesh Prabhu is a seasoned investor, internationally published author of over seven books as well as a globally respected media, management and political consultant. He is the founder & Chairman Emeritus of Wyoming US-based multi-million investment and holding firm Vedic Management Group LLC, as well as its international publishing label Vivaswaan. He founded Vedic Management Center in 2016 with Dr David Frawley and continues to be its active founder-director ever since. He was awarded the Fellowship of the Royal Asiatic Society in 2009 and has a bachelor's and master's in business management with a specialization in marketing.

 

Article courtesy: https://www.vedic-management.com/kautilyas-concept-of-wealth-artha-vyartha-and-anartha/

KAUTILYA’S PHILOSOPHY OF FINANCIAL ADMINISTRATION –Dr. Krishna Chandra Jha

 Courtesy: https://episteme.net.in/content/73/3811/attachments/8-KAUTILYAsPHILOSOPHY.pdf

Abstract

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

June 2014

KAUTILYA’S PHILOSOPHY OF
FINANCIAL ADMINISTRATION

–Dr. Krishna Chandra Jha

Assistant Professor Bharat College of Commerce Badlapur(W), MMR, India

Kautilya is known as India‟s most illustrious political economist of all time and his text Arthashastra is a detail source of political and economic administration. In his text, he has discussed about various concepts and ideas which have parallels in modern theory of Economics. It deals extensively with aspects of political, economic and social management and is the oldest book on management in the world. He has mentioned that Krishi (Agricultur), Pashupaalya (Animal husbandry) and Vaanijya (Trade) are three major activities of economy. These three together constitute “Vaartaa” (the word derived from “Vritti” or livelihood). According to Kautilya, the administrator should attend Durga (the fort), Raashtra (the country), Kahni (mines), Setu (irrigation work). Vana (forest), Vraj (herds) and Vanikpatha (trade routes).These major categories of taxes includes different types of fixed taxes, duties, cess and fines. Some of these taxes are known as – Sitaa, Bali, Bhaaga, shulka, Danda, Vaidharana, Mulya, Vyaaji, Atyaya, Klipta under the different officials and their attendants. He has always advocated the appropriate roll of Private sectors & Government sectors in national economy.

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

INTRODUCTION:

June 2014

Kautilya,also known as a Chanakya and Vishnugupta. He was a student and teacher at one of the world‟s oldest and famous higher educational institutes, Takshshila. He was the teacher and prime minister of Chandragupt Maurya, a great emperor of India (Magadh Empire). The Buddhist text Mahaavamsha, Parishishtaparvan of Hemchandra, Kathaasaritsaagar of Somdeva and Mudraaraakshasa of Vishaakhadatta provide some details about the life and achievements of Kautilya.

Kautilya is known as India‟s most illustrious political economist of all time and The Kautileeya Arthashastra is comprehensive text encompassing political and economic administration. In Arthashaastra, Kautilya has talked about various economic concepts and ideas which have parallels in modern theory of Economics. It deals extensively with aspects of political, economic and social management and is the oldest book on management in the world. It was written by Kautilya in 4th century B.C.

Philosophy of Political Economy:
According to Kautilya, “Artha” is the livelihood (Vritti) of men (KA – 15/1/1). It is the individual who is to pursue “Artha” as one of the goals of his life (KA – 1/7/6-7). Therefore, Arthashaastra composed by earlier teachers for acquisition and protection of the earth (K – 1/1/1).
There are three major vocations recognized as providing men with the means of (livelihood), namely:

Krishi (Agriculture) Pashupaalya (Animal husbandry) Vaanijya (Trade)

These three together constitute “Vaartaa” (the word derived from “Vritti” or livelihood). It is said that due to “Vaartaa”, the state receives grains, cattle, money and various kinds of products.1

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

June 2014

Kautilya deals a lot of subjects in Arthashaastra related with different political and economical aspects of life. He provided a detailed analysis of public finance, public expenditure, taxation, investment, free market economy etc.

Public Finance:

Kautilya enumerated 7 main source of revenue. According to him, the administrator should attend Durga (the fort), Raashtra (the country), Kahni (mines), Setu (irrigation work). Vana (forest), Vraj (herds) and Vanikpatha (trade routes).2Further he explained these types of taxes as:

1. Durga (the fort): Custom duties, standardization of weights and measures, yarn, revenue received by the superintendent of passport, the superintendent of market, by the goldsmith, by the group of artisans and artists, by prostitutes, gambling, by the temple superintendent, by the mint master and all types of tax received at the gates and from outsiders constitute this tax.3

2. Raashtra (the country) : Agricultural produce, share, tribute, tax, the trader, the river guard, the ferry, ships, the port, pastures, road cars, land survey and thief catching.4

3. Khani (mines): Gold, silver, diamonds, gems, pearls, conch – shells, metals, salt and ores derived from earth, rocks and liquids.5

4. Setu (irrigation work): Gardens, orchards, vegetable gardens, wet crop fields and sowing of roots.6

5. Vana (forests): Enclosures for beasts, deer parks, forests for produce and elephant- forests.7

6. Vraj (herds): Cows and buffaloes, goats and sheep, donkeys, camel and horses etc.8

7. Vanikpatha (trade routes): the land route and water route constitute the trade routes.9

Krishi (Agriculture):
Agriculture is one of the most important vocations.10 Pasture land should generally make way of agriculture. So, encroachment by pastures on agricultural land should not be tolerated.11 Land which is ready for agriculture should be given to those who are willing to pay the taxes.12 It is

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

June 2014

also added that if the grantees fail to till the fields, these may be taken away from them and given to others or the state may get them tilled by state servants and traders.13 The state is to help settlers with seeds, cattle and even cash, so that the land may be reclaimed. These however are loans to be recovered at the tenant‟s convenience.14

“Sitaadhyaksha” (the superintendent of crown‟s land) keeps the seeds ready and gets the land ploughed and sown by daasas, kaarusukaras and provides them with the services of smiths.15 Works of farmers were controlled by the state under the supervision of “Samaahartaa” (collector) and his assistants.16 The produce brought to the stores through the activities of Sitaadhyaksha is called „Sitaa‟ (produce from crown‟s land).17

Statistics and records about all agricultural and other properties in the villages are to be maintained by “Gopas” and “Sthaanika”, those works under the Samaaharta and are in no way connected with Sitadhyaksha.18 There are clear indications about private ownership of land. The owner of field (the kshetrika) is distinguished from the tenant (upvaasa).19The word „Svaamin‟ used here can hardly be understood to mean “one who is in possession”. Again “Kshetra” that is a field (land) figures among property, the sale of which is governed by certain regulations.20 The sale of land is also referred to for purposes of restricting the transactions to persons of the same category, by tax payers and by grant holders.21 From the sale of land, the state gets sales tax.

The state is also expected to keep a strict watch over the sowings and the harvesting of crops in order that it may not be cheated of its legitimate dues.22 In the time of emergency the state may direct sowings according to its own needs supplying, if necessary the required seeds. A strict watch over the crops as the riper and are harvested is in this case still more necessary.23 Agricultural yields comes to the state in the form of “Sitaa” (the produce of crown‟s lands) and “Bhaga” (1/6th share of produce of the other land). Besides these land taxes, there is the “Udakbhaaga” (a rate for water). The inferior type of land which cannot be used for agriculture are generally used either pastures or forests.24 It is laid down that a separate forest should be planned for each different type of produce.25 The superintendent of pastures (Vivitaadhyaksha) is responsible for laying out grassland. The safety of cattle – grazing in the pastures and the protection of “Caarvaans” (traders) passing through areas under his control.26

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India
Volume 3, Issue 1 June 2014

Pashupaalya (Animal husbandry):
The state is the owner of large herds of cattle and other animals with the superintendent of cattle incharge (Godhyaksha).27 He is to maintain a complete record of each animal in every herds belonging to the state. A record of all animals owned by private individuals is to be maintained by local officials under the supervision of “Samaahartaa”.28 Thus a complete record of the entire cattle wealth in the state is ensured. Cattle are of importance for two reasons. The males are necessary for agriculture and transport, while the females supply milk, which with its products is valuable source of food. These are also useful for the manufacture of leather goods. The text refers to meat as an item of food.
Except for state-owned herds, cattle as such may be supposed to provide little direct income to the state. In times of emergency, what the state demands is a part of the animals themselves, one- tenth of animals owned being so claimed in the case of cattle, one-sixth in the case of goats and other small animals and as much as one-half in the case of Fowls and pigs.29 Two ways in which herds may be got tended are called “Vetnopagrahika” and “Karpratikara” system.30

Vaanijya (Trade):
Provisions of routes for trade purposes are another important activity of state. All trade is to be under state control with the “Panyaadhyaksha” (the superintendent of trade). He is to fix the prices of the various commodities after taking into consideration such factors as investment of capital, interest, duties paid, and rent and so on.31 A profit of 5% on indigenous goods and 10% of foreign goods is to be allowed. Heavy fines being prescribed for exceeding these limits.32 Another officer “Samsthaadhyaksha” (the superintendant of markets) look after the customer‟s interests and see that the traders and artisans do not cheat them by fraud in weighing and measuring or by supplying inferior quality of or different makes of goods. It is also his duty to see that second hand goods (puraanabhaanda) sold in the market is not of stolen property.33 Panyaadhyaksha looks after the state trade.34 Foreign goods are to be sold in different centers. He is also to arrange for the export of goods to foreign lands. He may also investigate the possibility of bartering state goods for those from foreign land.35

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

June 2014

All imported goods are liable to duty (Shulka), which is to be collected at the city – gates under the supervision of the superintendent of custom (Shulkaadhyaksha).36 The list of dutiable articles include particularly everything, from flowers, vegetables etc. on the one hand to diamonds, pearls and other precious stone on the other.37 The rates of excise and custom duties do not differ for a single set of tariffs varying from 1/6th to 1/25th. Foreign imports are to be charged 1/5th of their value as duty.38 Goods which are of great benefit to the state should be allowed to come in duty – free.39

Merchants are required to obtain an entry permit at frontier post where their goods are to be stamped and sealed and where they pay a road - cess (Vartani) for safe passage. Imported goods are required to be sold to native traders at the gate itself at price to be declared beforehand. Weights and measures used in trade are to be manufactured by the “Pautavaadhyaksha” (the superintendent of weights and measures).40 It is to be inspected after every four months.

The incharge of miens (Akaaraadhyaksha) who has to be an expert in Geology and Metallurgy is to make a survey of all regions where mineral deposits are likely to be found and start new mines and renovates old ones.41 All mines are state property. It is stated that a mine costly in its working should be leased out for a fixed share of the output i.e. “Bhaaga” (one type of tax) or for a fixed rent “Prakriyaa”.42 The manufacture of article from gold and silver was under the supervision of “Suvarnaadhyaksha”and the manufacture of article from other than gold and silver was under the supervision of “Lohadhyaksha”, while “Khanyaadhyaksha” is the incharge of the manufacture of articles from precious stones and their sale.43 Mulya(Price), Bhaaga (Share), Vyaaji ( a sort of sale tax), Atyaya (penalty for violation of state monopoly), Shulka (custom / excise duty), Vaidharana (transfer of state rights to private individuals), Danda (fines), Parigha (monopoly tax), Klipta (fixed tax), Rupika (manufacturing charge) constitute the heads of income.44

A number of legal sections connected with trade and industry are also described by the Kautilya. Rules governing the rate of interest, loans with or without mortgage, the recovery of loans and the liability for the loans contracted by the others have been also mentioned in Arthashaastra.45

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

June 2014

Conclusion:
Kautilya advocated limiting the taxation power of the state, having low rates of taxation and maintaining a gradual increase in taxation. He emphasized state control and investment in land and mining etc. Kautilya was a true statesman who bridged the gap between experience and vision. Scholars have drawn the conclusion that it is presuppose economic planning by the state and that therefore we have the next a description of what may be called a planned economy. He thinks that such planning is necessitated by the very circumstances that prevail in India, particularly the factors of climate and nature. Many of the same ideas have been re-stated and re- discovered since his time.
So, it is observed that many postulates of Kautilya‟s philosophy of political economy are also applicable to contemporary times.
References:

1. The Kautileeya Arthashaastra, Ed. R.P.Kangle, Motilal Banarsidass Publishers Pvt. Ltd., New Delhi, 2000,1/4/1

2. Iblid, 2/6/1

3. Iblid, 2/6/2

4. Iblid, 2/6/3

5. Iblid, 2/6/4

6. Iblid, 2/6/5

7. Iblid, 2/6/6

8. The Kautileeya Arthashaastra, 2/6/7

9. Iblid, 2/6/9

10. Iblid, 8/4/37-38

11. Iblid, 8/4/39-40

12. Iblid, 2/1/8

13. Iblid, 2/1/10-11

14. Iblid, 2/1/13-14

15. Iblid, 2/24/1-3

16. Iblid, 5/2/8-13

BCC-ISSN-2278-8794

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal Bharat College of Commerce, Badlapur, MMR, India

Volume 3, Issue 1

17. Iblid, 2/15/2
18. Iblid, 2/35/1-5 19. Iblid, 3/10/8
20. Iblid, 3/9/3
21. Iblid, 3/10/9
22. Iblid, 2/22/11-14 23. Iblid, 5/2/8-13 24. Iblid, 2/2/1
25. Iblid, 2/2/5
26. Iblid, 2/34/6-8 27. Iblid, 2/29/8-11 28. Iblid, 2/35/4
29. Iblid, 5/2/27
30. Iblid, 2/29/4-5 31. Iblid, 4/2/36
32. Iblid, 4/2/28-30 33. Iblid, 4/2/1
34. Iblid, 2/16/1-3 35. Iblid, 2/16/18-24 36. Iblid, 2/21/1-2 37. Iblid, 2/22/4-7 38. Iblid, 2/22/3-8 39. Iblid, 2/21/31 40. Iblid, 2/19/40-42 41. Iblid, 2/12/1
42. Iblid, 2/12/22 43. Iblid, 2/12/27 44. Iblid, 2/12/35-36 45. Iblid, 3/11, 3/12

June 2014