"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.