Kautilya's ArthashastraKautilya, also known as Chanakya, is India s most illustrious political economist of all time. He regarded economic activity as the driving force behind the functioning of any political dispensation. In fact, he went to the extent of saying that revenue should take priority over the army because sustaining the army was possible out of a well-managed revenue system.Kautilya advocated limiting the taxation power of the State, having low rates of taxation, maintaining a gradual increase in taxation and most importantly devising a tax structure that ensured compliance. He strongly encouraged foreign trade, basing it on the premise that for a successful trade contract to be established, it had to be beneficial to all. He emphasised State control and investment in land, water and mining. Kautilya was a true statesman who bridged the gap between experience and vision. For Kautilya, good governance was paramount. He suggested built-in checks and balances in systems and procedures for the containment of malpractices. Many postulates of Kautilya s philosophy of political economy are applicable to contemporary times. |
Contents
An Overview 2 Kautilya as an Economist | |
Free Market Economy | |
Conceptualising Good Governance | |
Public Governance | |
Agriculture | |
Foreign Trade | |
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2400 years ago According to Kautilya accountability administration agriculture areas audit benefit Bhagavad Gita centralised Chanakya Chandragupta Maurya Chief Controller collected commercial commodities concept constitutional monarchies corporate governance corruption crops discipline dronas duties economic activity enemies ensure ethical exemptions expenditure export farmers Fascism foreign trade forests important income India India today intellect interest investment irrigation Janapada Kautilya's Arthashastra King King's labour land learning maintain manufacture Maurya Mauryan Empire merchants mines ministers mixed economy modern monarchy Nalanda University Nanda Dynasty officials organic farming organisation panas penalties political practices prescribed principles private sector production profit prosperity protect public finance public sector punishment qualities realised recognised relevant responsible revenue righteousness role ruler rules servants social subjects superintendent Takshasila taxation trade routes transparency treasury treatise unrighteousness various Vedas village virtue ethics wages welfare yoga