Chairman, Priyadarshni Academy
Written in Sanskrit, Arthashastra remains unique in the entire panoply of Indian literature because of its unabashed advocacy of practical economics and real politic. Kautilya's philosophy is based on the principles of "sam, dam, dand, bhed" (persuasion, temptation, punishment, and division) as various, different, and sequential means to achieve an end. I admire Kautilya's focused approach to achieve a goal using any means that are sequenced pragmatically.
Kautilya's Arthashastra is a masterpiece, particularly if viewed in the context of the time when the book was written. He seems to have had an encyclopedic knowledge about different aspects of governing a monarchy such as: administration, revenue, taxation, law, diplomacy, business and trade, coinage, agriculture and land tenure, labour, people and the society, etc.
The moment I started reading the revered works of Kautilya, also called Chanakya, advisor to King Chandragupta Maurya, the most powerful King in India in 300 BC, I was convinced that Kautilya's teachings are full of apt solutions to India's current problems.
I strongly believe that India can draw important lessons and norms from Arthashastra's rich heritage. Although the book was written over 2400 years ago, its precepts about social, political, and economic structure of an ideal state are relevant even today. Perhaps even more so!
Chanakya dreamt of an India that:
• Has a self-sufficient economy
• Provides equal opportunities to all
• Develops and efficiently manages land (the most valuable source)
• Has minimal taxes, collected in the least painful way
I am specially enamored by Kautilya's visionary thinking when he states, "A King must collect taxes like a honeybee," enough to sustain the state, but not too much to destroy. This is what is of utmost relevance to the Indian taxation environment today.
To me, Kautilya's work can be best described as a treatise on corporate culture and spirituality, though the word 'corporate' was not in vogue at that time. Corporate Social Responsibility (CSR) which implies that companies contribute towards the welfare of society, has become the buzzword today not only in India, but the world over. In my view, the principle of CSR is rooted in Kautilya's Arthashastra and his teachings.
Not only had Kautilya thought about CSR, 2400 years ago, he had also contemplated about the best ways of dealing with environmental issues. Water management, preserving forests, and nurturing land as valuable resource, all form part of his treatise. Kautilya set down a fundamental truth – "Society undergoes constant change, leaving behind those who say 'no' to change." In other words, "parivartan hi sansaar ka niyam hai." In today's coalitional and factional politics, there are many who say 'no', not because what is proposed is bad for the country, but because it may harm their own political career.
Chanakya Niti or diplomacy is legendary all over India, and is practised in many areas like defence, strategy formation, and foreign relations. In Chanakya Niti, the focus is on how governments should govern. I am amazed to find that in the areas of public governance, superintendents were appointed in sectors like:
• Mines, gold, trade
• Weights and measures, yarns and textiles
• Forest produce, armoury
• Agriculture and shipping
On head-hunting, Kautilya wisely said, "Avoid persons who are angry, greedy, proud, and fearful." He stressed, "Spiritual development is paramount for internal strength and character of the individual, material pleasures and achievements come second." "Whatever action is taken should be result-oriented," we are not following these rules today. If results are not achievable, the concerned personnel should be punished or penalised.
Kautilya's thoughts also find reverberations in Sadhu Vaswani's philosophy, "Reward of service is more service. When you give, you are being blessed. Those who give results will be rewarded." On the role of Dhanis-Vyaparis (wealthy traders) in society, he recommended that they contribute to the digging of wells, providing dispensaries, balwadis, community development work during earthquakes, flood, etc.
Karma yoga (dedication to work), Dhyana yoga (contemplation), and Bhakti yoga (faith) need to be integrated into our lives so that this may increase the profits made by corporations, which may be converted for the larger good of the people.
Kautilya opined that the "King has no individuality of his own. He is for the people and of the people." This is similar to the Gandhian philosophy that assets are to be held by managers as trustees for their constituents. We also find this perspective reflected in the Bhoomidaan Movement initiated by Vinoba Bhaveji.
At this stage, I would like to mention that Sri Sri Ravishankar, founder of The Art of Living Foundation, spoke on "Role of Holistic Science in Corporate Management" at the IMC's 4th India Calling 2004 – Asia Pacific Business Summit at Singapore. Hearing Sri Sri Ravi Shankar, I got reminded of Kautilya's thoughts.
In the same vein, Smt. Indu Jain, Charperson, Times of India Group and Bennet, Coleman & Co. Ltd. spoke about CSR and what defines CSR.
It is Philanthrophy?
Charity?
Social Obligation or Duty?
Community Development?
Building Roads, Community Halls, Schools?
Providing facilities for clean drinking water, sanitation?
Adopting a village?
Environment Protection?
Trees should not be indiscriminately cut. Deforestation is a crime.
In short, CSR was differently but eloquently explained by Kautilya. Thus, CSR is not a recent Western phenomenon. It is certainly not new to India – it has been a part of our culture for thousands of years.
In modern times, Tatas and Birlas, followed by quite a few corporates, have been giving back to society through CSR.
I sincerely believe that many of the problems that India faces today can be tackled with the help of the meticulous suggestions made by Kautilya with respect to the country's political and economic administration.
Arthashastra provides a comprehensive analysis of political administration, defence matters, agricultural operations and governance matters, amongst other issues.
Even though Kautilya called his treatise as the Arthashastra, it is an all-ecompassing document covering a much larger spectrum of human activity. It provided a full account of how a monarchic state should be organised, defended from the external threats and attacks and how it should be consolidated in order to have a central unified regime. While doing so, Kautilya's Arthashastra provided a very detailed account of public finance, agruculture, trade, selection of officers and ministers and governance of the state, etc.
The bureaucracy whom Chanakya envisaged in his Arthashastra continued to be a model for kingdoms established later on. The Arthashastra provides the norms for an efficient and well functioning bureaucracy. This again is of utmost relevance to India at present.
I would like to state that Kautilya's Arthashastra has been compiled in the context of ancient Indian culture. It is necessary to comprehend the then prevailing environment in order to correctly grasp the teachings of such a magnum opus.
The beauty of this great work lies in the fact that it provides very useful and practical analysis, which would be valid and relevant for all the times to come. It is amazing that Kautilya, who lived some two thousand four hundred years ago, had such a vision and foresight that is so universal in character. Though the political, social and economic milieu, existing then and now are vastly different in many ways, Kautilya's teachings were relevant then and are found more relevant in the modern context too.
I am proud to say that I initiated the project and it has provided me with an immense satisfaction and pride of carrying wider the insights and teachings of such a famous and all times great "The Kautilya's Arthashastra".
With Kautilya as his Minister, Chandra Gupta Maurya presided over what was described as the initiation of golden age of India. By imbibing Chanakya's teachings, I am sure we may usher in another golden age for India in the near future.
We should take out the best from Kautilya's Arthashastra which is suitable for contemporary India.
This book has made a sincere attempt to comprehend the spirit of Kautilya's thoughts, understand Kautilya's message, and includes references on the relevance of his teachings for the management of governments and modern Indian businesses.
I am confident that this work would be found useful by readers from all walks of life and, what is more, as a result of this work, Kautilya's economic principles would find suitable applications in the management of various organisations.
I recommend this study to all economic players so that they may derive practical inspirations to solve the nation's most pressing problems.