"Kautilya's Arthshastra" aTreasure hunt

Arthashastra is about materialistic aspects of the world, particularly with reference to wealth. The literal translation of the word “Arthashastra” means the science of wealth. It is codification of the methods of governance with the objective of creating wealth for the kingdom. Arthashastra emphasized that unless state has sound financial foundation, it is difficult to run the affairs of the state successfully. Today we refer to market capitalisation.

To relate Arthashastra with the global organizations of today is like a treasure hunt. References are for the state and its activities. However, with change in perspective with times, the guidelines are applicable to the global multinationals or the organizations of today. As mentioned by Mr. Ajit Dasgupta in his book “History of Indian Economic Thought’, the economy described and commended by the Arthashastra was completely dominated by the state. The government was not only merely tax gatherer, but also agriculturist cowherd, road builder, cattle-breeder, miner, forester, manufacturer and merchant. Private economic activity other than crop production was only residual and even then subject to strict government regulation and control.

The reason why Kautilya’s Arthashstra has to be interpreted in the context of today’s reference is it is a treasure of wisdom. The deeper you go as far as meaning of the fifteen books that form the core of his philosophy are concerned, they can be directly related to the basics of management. When we look at management philosophy of US based companies, they have reference of the work culture and  social framework that exists in that country. Japanese Management techniques draw from Japanese culture. It is quite clear from Kautilya’s Arthashastra that the references are from Indian culture and Indian Social environment.

Indian ethos in Management stands out because of its reference to philosophical and religious texts. Bhagwad Gita, a reference religious text for every Indian explains very clearly how an individual should behave and act while in search for eternal happiness. It covers references to Dharma and Moksha that are two of the major objectives for individual to live life. Artha and Kama are other two objectives that deal with materialistic aspects of the world. Kautilya’s Arthashastra emphasizes the behavioural aspect of an individual when he is trying to achieve the objective, artha and kama. Arya Chanakya while covering artha and kama, has developed a complete structure in the framework of kingdom. With replacement from kingdom to organization, the guidelines become applicable to the subject of Management.

If you get interested in the topic, do read next post that will cover a comparative picture.

Management practices from Indian scriptures

Relevance of Chanakya

The world of Management is full of different theories based on academic research and practical success achieved by various companies in the western world since 18^th century. With the changing context, post financial meltdown in the western part of the world, innovative approaches are being developed and practiced for sustainable and profitable growth. Basic principles remain at the core for any new practice. However, value and knowledge based management practices from the eastern part of the world are standing out.

On going through the pages of historical references, we find that Arya Chanakya in his treatise on political economics. Kautilya’s Arthashastra has unfolded pearls of wisdom about managing a kingdom. He was a mentor and a guide who had a very clear vision.  He was a force who drove Mauryan Emperor to expand his empire to the breadth and width of pre’47 India. If we change the context from King and his empire to CEO and global conglomerate of business in the flat world of today, the principles are directly applicable. Arya Chanakya was not only an Advisor to Chandragupta Maurya but he was a visionary leader responsible for developing Strategies that succeeded in terms of building a sustainable empire against the threats from foreign aggression. While developing concept of a village as the smallest unit for de-centralized control and empowerment, he has applied the basic principles of management and Inclusive Philosophy in the year 300 B.C.

When global economy is suffering due to major recession that was caused because of deviated priorities of developed economies, we find references in the political treatise of Arya Chanakya about principles of governance that have to be followed by the king and the team of his ministers that would help in sustainable growth. The principles are universal and are applicable even today in the field of management apart from politics. We find that Arya Chanakya was an apostle for management strategies. He has identified seven pillars for a stable kingdom. If we relate those seven pillars by translating them into seven elements that can strengthen the growth oriented sustainable organization, we have a treasure of management wisdom.

The applications of his principles and philosophy that we find amongst successful global companies, give us the confidence that a research based study supported with cases, can bring clarity on the subject of “Indian Management”.

Many attempts have been made to understand and share the basic principles elaborated in “Political Economic’ and Chanakya Niti propounded by Arya Chanakya. However, there has not been an attempt to relate it to business world of today to bring clarity and help in application for business management.

After 2000 years, Arya Chanakya shines as a great management thinker and a strategist who practiced the principles and then wrote them in codified form. “Political Economics” present the essence for knowledge based successful management that is expected to prevail in 21^st century. 


In the next post you will be able to get the overview of the treasure hunt that we will follow through this series of articles.