ARTHASHASTRA: ITS RELEVANCE IN CONTEMPORARY

ADMINISTRATION- FIRST DRAFT

Project work submitted to

Tamil Nadu National Law School

by

AISHWARYA R GEDDADA
BA0150004

Under the guidance of

Mrs. Deepa Manickam

TAMIL NADU NATIONAL LAW SCHOOL

SEPTEMBER 2017
2017 Aishwarya R Geddada. All rights reserved.

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 CONTENTS (Tentative)

ABSTRACT.
INTRODUCTION...
RESEARCH QUESTIONS.
CHAPTERS.

CHAPTER I: Introduction

General overview
Historical background of the author and the text ......

Importance of the text

CHAPTER II: Dissection of the Arthasastra

Analysis of the text ..

Relation of the text to concepts in Administrative Law.

CHAPTER III: Relevance in contemporary administration:

Similarities between the text and modern

Administrative Law in India ...

Arthasastra versus contemporary statecraft

Implementation of Arthasastra in contemporary
Administrative Law.
CHAPTER IV: Conclusion
Critical comments and conclusion..

BIBLIOGRAPHY

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 ABSTRACT

Kautilyas Arthasastra, in its most fundamental form is considered to be a treatise on

statecraft. The book is divided into 15 Adhikaranas or sections and about 180 Prakaranas
and consists of 6000 slokas or hymns/ verses1. In a way, the Arthasastra is a practical manual
of instructions to kings on how to rule their kingdom successfully. When it comes to an in-
depth understanding of the Mauryan history, there is no better source than Kautilyas
Arthasastra to look to. Despite being an ancient text that is a treasure trove of strategic
thinking, the significance of this text has been downplayed all through history. Ignorance and
a lack of understanding of regional languages and also the absence of Sanskrit can be
attributed to the underwhelming response to the Arthasastra.

Kautilya Chanakya was of Brahmanical birth and true to his background, was well read and
was a well-read professor in the University of Takshila. He was a practical idealist and
endeavoured to find realistic solutions of different problems facing the country. He took a
coordinated view of the entire life of human beings dealing with political, social, cultural and
economic aspects of a state.

Through this paper, the researcher seeks to enumerate on the relevant provisions in the
Arthasastra, connect it to the contemporary Administrative Law in India, compare the two
and finally identify gaps or blanks in the present system that can be sufficiently addressed by
the teachings of the great king maker in his treatise.

Keywords: Welfare, administration, state, governance, punishment

1
http://hinduonline.co/DigitalLibrary/SmallBooks/ArthashastraofChanakyaEng.pdf. Accessed on 24.09.2017.

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 ARTHASHASTRA: ITS RELEVANCE IN CONTEMPORARY
ADMINISTRATION- FIRST DRAFT
INTRODUCTION:
Even though India and Indians never forgot the Arthsashtra, the study and practical
applications of the book lost its importance since the British rule. Professor Shamashastray
rediscovered the book in 1905 and wrote its first English translation2. Ever since then, only
two more translations that are in English have been written.
Chanakya was a very learned scholar at the Takshashila University, an ancient Hindu
university, located in present in Pakistan, and the acharya of Chandragupta Maurya. He had
mastery over political science, economics, accounting, and governance, and he was the
driving force behind the creation of the Maurya dynasty3. Apart from Arthashastra, Kautilya
wrote several other books such as Chanakya-Sutras (Rules of Science) and Chanakya-
Rajanitisastra (Science of Government Policies)4. He is Indias most illustrious political
economist of all time. He was a true statesman who bridged the gap between experience and
vision. For him, good governance was paramount. He was well-versed with the
characteristics of bureaucrats and statesmen and laid down rules to prevent misuse of power.
He explained that no amount of rules and regulations or auditing can prevent unethical
behaviour and that character-building and action-oriented ethical values were essential. He
explains the necessity of having strong government finances and an able army.
The Arthsashtra, written by Kautilya is an ancient treatise dealing with the governance of a
country. Arthasastra is a very famous treatise on ancient India and was written around 300
B.C. The book deals with economics, administration, political ideas, ecology and various
other topics.
The discussion in Arthashastra is as relevant today as it was in Kautilyas time. It states that
the moral duty of the king is to increase prosperity, ensure judicial fairness, and provide
national security. The book also describes duties of other key positions in the government
such as Police chief, Chief Justice, Treasurer, Defense minister, Commerce Minister and
others. The Arhashastra predates any similar body of work from the Greek, Roman or
Chinese civilizations and is the source of many modern practices such as double-entry book
keeping method, audits, etc.

2
Dr. Renu Tanwar, An Analytical Study of the Relevance of Arthshastra in Modern India, IOSR-JEF, Sept.
2014, 30. 32-35.
3
L.N. RANGARAJAN, Kautilya:The Arthasastra, (14th Ed. 2000).
4
Ibid

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The Arthshastra equates political governance with economic governance. The end is
economic governance while political governance is the means. But as economic objectives
are not realized in the absence of political ones, then political governance becomes an end
and economic governance the means. 'The end justifies the means', this is supposed to be the
basis of Kautilyan philosophy. Political power and material wealth are the means and ends of
governance. And good governance - political or economic - depends upon justifying the ends
and means as the socio, economic and political conditions.

RESEARCH QUESTIONS:
1. What is Arthasashtra? Why is it touted to be of importance even several centuries
after it creation?
2. Whether there are any similarities to the current administrative system and the
administrative system prescribed in the Arthasashtra? If yes, what are they and to
what degree are the two similar?
3. Whether principles laid down in the Arthasashtra hold relevance in Contemporary
Administrative Law? If yes, how has it been implemented in todays administration?
4. Does the Arthsashtra provide better ideas on administration than its contemporary
counterpart? If so, can it be feasibly incorporated or replace the existing system/
practice?

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CHAPTER I: Introduction

ABOUT ITS AUTHOR- Kautilya Chanakya

Kautilya Chanakya, otherwise called Vishnu gupta or Narendra, is one of the best figures of
intelligence and information in Indian history. Chanakya was the counsel and Prime Minister
of Sovereign Chandragupta Maurya and served under him and his child, Emperor Bindusara5.

Chanakya was an exceptionally learned researcher at the Takshashila College, an antiquated

Hindu college, and the acharya of Chandragupta Maurya. He had authority over political
science, financial aspects, accounting practices, and administration, and he was the main
impetus behind the making of the Mauryan dynasty6.

Popularly, Kautilya is compared with Machiavelli in terms of his savage and deceptive
behaviour. However this is far from the truth of who he really is. One of his most popular
works, the Arthasastra, is a guide to the administration of state in a very pragmatic way. He
is, till today, considered to be the pioneer in strategic thinking during times of war and also
when it comes to running a vast Empire successfully.

The ideas expressed by Kautilya in the Arthashastra are completely practical and devoid of
any sentiments, whatsoever. Kautliya openly writes about controversial topics such as
assassinations, when to kill family members, how to manage secret agents, when it is useful
to violate treaties and when to spy on ministers etc7.

HISTORICAL BACKGROUND OF THE ARTHASASTRA:

All said and done, the real test of utility of any treatise is not just its completeness or just the
logic behind it, but also the demonstration of its practical application in real life situations
with enduring success. The Arthasastra was written at a time when the Indian sub-continent
was divided into numerous pocket-sized and mutually hostile states. Therefore it was a pre-
requisite for the ruler to not only successfully protect his kingdom and his subjects but also
deal with cold hearted kings and extend their existing territory.

5
L.N. RANGARAJAN, Kautilya:The Arthasastra, (14th Ed. 2000).
6
P.K. GAUTAM, One Hundred Years of Kautilyas Arthasastra, IDSA, 20, (2nd Ed. 2013).
7
Ibid

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Under Kautilya the Mauryan Empire attained growth with stability with the help of a strong
administration and efficient fiscal management as laid down in the Arthasastra8. Kautilya was
the organizing genius behind the autocratic centralized state that Ashoka inherited and
expanded. Mauryan political system as depicted by Kautilya reached a very high level of
structural differentiation and cultural secularization as in its traditional orientations and
attitudes gave way to more dynamic decision-making processes. India attained political unity
for the first time under the Mauryas.
In the pre- Mauryan age, there was no centralised administration. Historically, Chandragupta
Maurya was the first Indian king who established his rule over an extended India, an India
greater than even British India, the boundaries of which lay beyond the frontiers of modern
India along the borders of Persia9.
Taking into account the slowness of land and sea travel more than two millennia ago,
administering such a vast area was the equivalent to ruling the entire globe today.
Chandragupta succeeded in joining the valleys of the Indus and the land of Five Rivers with
the eastern valleys of the Ganges and the Yamuna, as well as by uniting Northern India with
the South, beyond the barriers of the Vindhyas, under the umbrella of one paramount
sovereign10.Chandragupta was the first Indian king to enter the stage of world history.
Chandraguptas rise, at least as told in Buddhist and Jain chronicles, is very much linked to
the ambition and skills of Kautilya. According to these sources, and the text of Arthasastra
itself, Kautilya appears to have been the political and administrative genius behind the rise of
the Mauryan empire, the creator of the system that Ashoka inherited and built upon11. The
credit of this magnificent success goes mainly to the materialistic conception of policy of
polity of Kautilya. The Mauryan dynasty ruled successfully for 136 years. According to
renowned historian Vincent Smith Chandragupta Mauryas government was the most
efficient government that India had12.
India throughout the fourth and third centuries B.C. was arguably the richest and most
powerful economy on earth. The Arthasastra endured the test of time and it has since
withstood the test of credibility13.

8
P.K. GAUTAM, One Hundred Years of Kautilyas Arthasastra, IDSA, 20, (2nd Ed. 2013).
9
http://www.idsa.in/system/files/monograph20.pdf. (Accessed on 28.09.2017)
10
L.N. RANGARAJAN, Kautilya:The Arthasastra, (14th Ed. 2000).
11
P.K. GAUTAM, One Hundred Years of Kautilyas Arthasastra, IDSA, 20, (2nd Ed. 2013).
12
http://usiofindia.org/Article/?pub=Journal&pubno=608&ano=2953. (Accessed on 28.09.2017).
13
Ibid

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IMPORTANCE OF ARTHASASTRA:

The tradition of studying and analysing economic problems and forming economic policies in
modem times is based on the guidelines put forward by Western thinkers. Therefore at times
it seems that western solutions are not working for eastern world. The solution of problems
always depends on the socio-economic structure of a society. Hence the need to erect a
tradition of studying and analyzing economic problems and forming economic policies based
on the guidelines forwarded by eastern philosophers or thinkers. In this context Kautilyas
Arthasastra is the correct starting point. Kautilyas approach to various problems was very
scientific, rational and practical.

CHAPTER II: Dissection of the Arthasastra

The Arthasastra has been divided as follows:

The first five books deal with administration.

The next eight focus on foreign affairs and defence and,
The last two books shed some light on miscellaneous/ sundry issues.

The following are the fifteen Adhikaranas mentioned in the Arthasastra 14:

Book I, "Concerning Discipline"

Book II, "The Duties of Government Superintendents"
Book III, "Concerning Law"
Book IV, "The Removal of Thorns"
Book V, "The Conduct of Courtiers"
Book VI: "The Source of Sovereign States"
Book VII, "The End of the Six-Fold Policy"
Book VIII: "Concerning Vices and Calamities "
Book IX, "The Work of an Invader"
Book X, "Relating to War"
Book XI, "The Conduct of Corporations"
Book XII, "Concerning a Powerful Enemy"
Book XIII, "Strategic Means to Capture a Fortress"
Book XIV, "Secret Means"

14
http://hinduonline.co/DigitalLibrary/SmallBooks/ArthashastraofChanakyaEng.pdf. (Accessed on 24.09.2017).

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Book XV, "The Plan of a Treatise"

Since the project deals with Arthasastra and its contemporary relevance to the administration
of the state, the project will elucidate on the first five books, which deal with administration
of the state. The researcher will further dissect and analyse the relevant provisions of the
Arthasastra at a later stage.

CHAPTER III: Relevance in contemporary administration

Picking on Kautilya's four-pronged approach to public finance and state planning, which was
actually economics, monetarism and much more, based on dharma, artha, kama and moksha,
scholars agree that understanding human welfare was the cornerstone of Arthshastra, which
set forth theories of state craft and monetarism and also a code of civil and criminal law still
relevant today15.

Economic ideas of Kautilya in Arthshastra

That a perfect balance has to be maintained between State management and people's welfare
is the essence of Kautilya's Arthshastra. He defined Economics as the most important aspect
as it provides the basis for human existence and survival. He believed in public welfare
because when his work gave a strong focus on the wealth, effectiveness and wellbeing of the
king, his actual objective was not to benefit the king but to benefit the people.

Welfare State
Arthsashtra lays the conceptual foundation for making India the first welfare state. He
advocates welfare in all spheres. He did not talk only about human welfare but paid attention
to animal welfare also. He was of the opinion that in the happiness of his (the kings) subjects
lays the kings happiness, in their welfare lays his welfare. He advocates the protection of
livelihood, of the weaker section, consumer protection and even the welfare of prisoners also.
The Kings dharma is to be just, fair and liberal in protecting his people. His attitude to his
people should be like attitude of a father towards his children. Kautilya defined the ideal ruler
as one who is ever active in promoting the welfare of the people and who endears himself by
enriching the public and doing good to them.16

15
MICHAEL LIEBIG & SAURABH MISHRA, The Arthasastra in a Transcultural Perspective: Comparing
Kauilya with Sun-Zi, Nizam al-Mulk, Barani and Machiavell, IDSA, 245 (1st Ed. 2017).
16
Dr. Renu Tanwar, An Analytical Study of the Relevance of Arthshastra in Modern India, IOSR-JEF, Sept.
2014, 30. 32-35.

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Good Governance
Governance generally encompasses all aspects of the way a country is governed, including its
economic policies and regulatory framework. Kautilya had immense knowledge about
various aspects of governance such as taxation, diplomacy, trade, business, administration
etc. It is said that he had a fair knowledge of medicine and astrology as well17. He takes a
holistic approach to governance and explains several areas critical to the functioning of a
country in depth. Kautilya understood the importance of good governance in promoting
public welfare. Accordingly he set up a meticulous system of rules and regulations, law and
judiciary and property rights. There is an elaborate mention of law of contract and revocation
on the side of commercial law18. Spying was an important element of this scheme. Kautilya
suggests that good governance should avoid extreme decisions and extreme actions. Soft
actions (Sam, Dam) and harsh actions (Dand, Bhed) should be taken accordingly.
To him attainment of good governance requires that the objectives of the state are fulfilled
and realized. This is possible through properly organized and guided administration. He
suggests that good governance should avoid extreme decisions and actions. Decisions should
be taken according to the situation.
According to Kautilya, to ensure good governance there must be a properly guided public
administration, where the ruler should surrender his likes and dislikes in the interest of his
subjects, and the personnel running the Government should be responsive and responsible.
Kautilya further emphasized that for citizen friendly good governance there should be
uniformity in the administrative practices as well as competent ministers and officials
possessing qualities of leadership, accountability, intellect, energy, good moral conduct, and
physical fitness, capable of taking prompt decision: righteousness, evidence, history of the
case, and the prevalent law, shall conquer the earth.
The researcher will elaborate on further concepts in subsequent drafts.

17
P.K. GAUTAM, One Hundred Years of Kautilyas Arthasastra, IDSA, 20, (2nd Ed. 2013).
18
Aseem Prakash, State and Statecraft in Kautilya's Arthasastra, PTPC, 2015.

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 BIBLIOGRAPHY

Books:

1. MICHAEL LIEBIG & SAURABH MISHRA, The Arthasastra in a Transcultural

Perspective: Comparing Kauilya with Sun-Zi, Nizam al-Mulk, Barani and
Machiavell, IDSA (1st Ed. 2017).

2. L.N. RANGARAJAN, Kautilya:The Arthasastra, (14th Ed. 2000).

3. R.SHAMASASTRY, Kautilyas Arthasastra: The Way of Financial Management and

Economic Governance, Kindle Edition (1st Ed. 2016).
4. P.K. GAUTAM, One Hundred Years of Kautilyas Arthasastra, IDSA, 20, (2nd Ed.
2013).
5. H.W.R WADE & C.F.FORSYTH, Administrative Law, (11th ed., 2012).
6. S. P. SATHE, Administrative Law (7th ed., 2004).
7. C.K. TAKWANI, Lectures On Administrative Law (5th ed., 2014).

Articles:

1. Dr. Renu Tanwar, An Analytical Study of the Relevance of Arthshastra in Modern

India, IOSR-JEF, Sept. 2014, 30. 32-35
2. Aseem Prakash, State and Statecraft in Kautilya's Arthasastra, PTPC, 2015.
3. Vaidya, Summary on Kautilyas Arthashastra: Its Contemporary Relevance, IMC,
2004, 24, 25-28.

Online sources:
1. http://hinduonline.co/DigitalLibrary/SmallBooks/ArthashastraofChanakyaEng.pdf.
(Accessed on 24.09.2017).
2. http://usiofindia.org/Article/?pub=Journal&pubno=608&ano=2953. (Accessed on
28.09.2017).
3. http://www.idsa.in/system/files/monograph20.pdf. (Accessed on 28.09.2017)

11