Arthashastra (अर्थशास्त्रम्)

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History has seen and read several authors of the ancient period but none like Kautalya. A mastermind behind the great work called 'Arthashastra' (अर्थशास्त्रम्) Kautilya, has the recognition of being the most influential political philosopher and guide for Chandragupta Maurya during the 326 B.C., Mauryan era. Kautalya's work is an enema written originally in Sanskrit and he is considered the greatest political thinker and state craftsman Indian civilization has ever produced. The veracity of application to Kautilya's Arthashastra ranges to limitless boundaries of knowledge and learning from medicine to education to philosophy and even to contemporary management sciences. Arthashastra is a moolamantra not only for political governance but also a guptamantra for corporate management governance.The preaching of अर्थशास्त्रम् elevate human thinking to work with sixth sense engaging cognitive, affective and connative domains to keep control over mind, body and self so that institutions can prosper.

While there may be doubts from the very fact as to how his name should be spelt (as Kautalya or Kautilya) to his native place of birth and origin ('Taksasila' in Punjab or Dravidian from South, or a Nampudiri of Kerala or Magadha in South Bihar) to whether he truly scripted the Arthashastram, the world still believes with credible evidences provided by exponents that he is the architect of this monumental work. He was called Kautila because he belonged to Kautalyagotra. Born at 'Canaka' in Punjab as it is believed, he was called Canakya but later baptized to Visnugupts by his parents. Hence the names Kautalya, Canakya and Visnugupta are the resounding names in literature. The Chanakya Neeti is nothing but a political strategy suggesting ways and means to combat any administrative and political eventuality. When the Nanada dynasty was weaning to self destruction there was void in the political climate for a strong administrator to manage the reigns.The political doldrums, foreign invasions, social unrest and mis-governance presented fertile opportunity to Kautalya and he immediately seized it. Not interested in power, position and authority, he found and fermented Chandragupta Maurya to lead the Mauryan empire teaching him all tricks of the trade codified in his treatise Arthashastram, to the extent that the Mauryan dynasty become the uncontested power for several years in history. The treatise covers all social , political. warfare, welfare, law, policy making, economics, finance, and disciplinary aspects of administration that led the Mauryan dynasty to claim a unique political fabric of its own. Kautalya's Arthashasta is a work justifying every type of tactic played craftily so as to offer real life solution to every conceivable hypothetical situation. Single and brahmin, simple yet bold, austere yet opportunist, never forgetting a slight yet scheming, Chanakya was known to achieve his ultimate purpose regardless of the means (referred also as Indian Machiavelli) as he never admitted defeat of purpose due to means unsuited to the end.

Introduction

Please see this link to access the samskrita moolam for Kautilya's Arthashastra

Written nearly 1500 years ago, the relevance of Arthshastra is often re-validated in the present century, one can always say that human beings have always remained the same over generations and their attitude, desire, thinking and behaviour is governed by their surroundings, challenges and opportunities open to them. Some of their native instincts may be nature and ancestoral but lot of it is nurture and environment. States may have been divided, reconfigured, and re-defined but the tenets of maintaining internal peace, managing external attacks, maintaining international relations among states continues to be the same. The statecraft of managing administration, governance and polity (social, economic and political structure) of the current times still borrows its foundation from the ancient tenets. So long as humans and societies are significant Arthashastram will be found relevant to creating ideal states.

The Purusharthas follow dharma artha kama and moksha to be the 4 tenets human beings are expected to follow that is moral behaviour, wealth, worldly pleasure, and salvation. The Arthashastra follows Dharmashastra, which signifies duty, universal order, righteousness of the individual towards oneself, society and ancestors. Similarly the state comprising of the society, ministers ruler, priests and people are governed by morality, ethics, conventional and spiritual law; another manifestation of dharma. Kautilya himself assumed his dharmic responsibility by wandering in disguise for years only to find the boy 'Chandragupta' in the village grounds among cowherd and friends, to fit the royal line. Kautalya was so impressed with the boy that he purchased him for thousand panas immediately and thereon gave him all the dikshas to fit into the role of a perfect king. It was Kautilya's orientation to Rajadharma that until he made Chandragupta the ruler of Magadha, and made it the most powerful dynasty he had sleepless nights, Artha meaning wealth, follows dharma. however in Arthashastram it signifies more than wealth. It talks of wealth of nations, territories, and well being of the individual inhabitants doing various occupations. The state plays a major role in appraising and elevating the material status and well being of its people. Therefore Artha is not as simple to mean money, worldly possession or capital. Rather it means the 'scientific economics' of a state stressing on treasury, revenue, expenditures, state taxes, budgets, accounts and productive output of enterprises which in turn enhance the material status of human society and individuals within it.

Contents

The Arthashastra is a compilation of 15 Adhikaranas (Books), with each adhikararana divided further into 150 Adhyayas (Chapters) which are further subdivided into 180 Prakaranas (Sections), 380 karikas with 6000 shlokas (verses) and 32 syllabic units in all.. The following is a brief account of the composition within various Adhikaranas, Adhyayas and Prakaranas. Arthashastram begins with veneration to two great political thinkers Sukra and Brhaspati and Kautalya makes an honest submission of this so as not to take the credit all unto himself.

Adhikarana Book 1 : Vinayadhikarika

Chapter 1

This adhikarana is one of the most extensive description of the disciple to be cultivated by a Raja. There is explicit mention of various duties of a raja towards education, vriddhas, learned persons etc. Rules regarding varta and dandaniti (punishments) have been codified

Chapter 2

2.1 Prakaranam (Section) 1 : Indication of Sciences, Place of Anviksiki determined

Chapter 3

3.1 Indication of Sciences (Contd.)

Place of Three Vedas Determined

Chapter 4

4.1 Indication of Sciences (Contd.)

Varta and Dandaniti Established

Chapter 5

5.2 Association with the Aged

Chapter 6

6.3 Control of Sense Organs

Abandoning of the Aggregate of Six Enemies

Chapter 7

7.3 Control of Sense Organs (Contd.)

Life of a Saintly King

Chapter 8

8.4 Employment of Ministers

Chapter 9

9.5 Selection of Councillors and Priests

Chapter 10

10.6 Purity and Impurity of Ministers Tested

Chapter 11

11.7 Constitution of Spies

Chapter 12

12.8 Duties Assigned to the Spies

Chapter 13

13.9 Engaging Spies Against One's Officers

Chapter 14

14.10 Winning Over Faction in an Enemy's State

Chapter 15

15.11 Counselling

Chapter 16

16.12 Employment of Messengers

Chapter 17

17.13 Protection of Princes

Chapter 18

18.14 & 18.15 Prince put under Restraint and Treatment of a Restrained Prince

Chapter 19

19. 16 The Royal Duties

Chapter 20

20.17 Duty towards the Harem

Chapter 21

21.18 Self Protection

Adhikaram 2 : 'Adhyakshapracharaha' Authorities

Chapter 22

22.19 Arrangement of Villages

Chapter 23

23.20 Division of Land

Chapter 24.

24.21 Construction of Fort

Chapter 25

25.22 Buildings within the Fort

Chapter 26

26.23 Duties of Treasury Officer

Chapter 27

27.24 Collection of Wealth by the collector

Chapter 28

28.25 Counting of Coins and Maintenance of Accounts

Chapter 29

29.26 Detection of Embezzled Revenue

Chapter 30

30.27 Test of the Conduct of Employees

Chapter 31

31.28 Procedure for Issuing Writs

Chapter 32

32.29 Examination of Gems to be deposited in the Treasury

Chapter 33

33.30 Mining Operations

Chapter 34

34.31 Superintendent in the Office of Goldsmith

Chapter 35

35.32 Goldsmith in the High Road

Chapter 36

36.33 Chief of Store House

Chapter 37

37.34 Authority of Commerce

Chapter 38

38.35 Authority of Forest Producers

Chapter 39

39.36 Authority of the Armoury

Chapter 40

40.37 Authority of Weights and Measures

Chapter 41

41. 38 Measurement of Space and Time

Chapter 42

42.39 Superintendent of Tolls

Chapter 43

43.39 Regulation of Toll Dues

Chapter 44

44.40 Superintendent of Weaving

Chapter 45

45. 41 Superintendent of Agriculture

Chapter 46

46.42 Superintendent of Liquor

Chapter 47

47. 43 Authority of the Slaughter House

Chapter 48

48.44 The Superintendent of Prostitutes

Chapter 49

49.45 The Superintendent of Ships

Chapter 50

50.46 The Superintendent of Cows

Chapter 51

51. 47 The Superintendent of Horses

Chapter 52

52.48 The Superintendent of Elephants

Chapter 53

53.48 The Superintendent of Elephants; Training

Chapter 54

54.49 The Superintendent of Chariots

54.50 The Superintendent of Infantry

54.51 Duties of the Commander-in-chief

Chapter 55

Chapter 57

57.56 The Duty of a City Superintendent

Adhikaranam 3 'Dharmastheeyam' On Laws

Chapter 58

58.57 Forms of Agreement

58.58 Legal Disputes

Chapter 59

59. 59 Concerning the Marriage

Chapter 60

60.59 Concerning the Marriage; Duty of a Wife

Chapter 61

61.59 Concerning the Marriage

Chapter 62

62. 60 Division on Inheritance

Chapter 63

63. 60 Division on Inheritance :Sharing

Chapter 64

64.60 Inheritance :Types of Sons

Chapter 65

65.61 On Building Residences

Chapter 66

61.61 Concerning Houses; Sale of House

Chapter 67

67.61, 67.62 Destruction of Pastures and Infringement of Agreements

Chapter 68

68.63 Recovery of Debts

Chapter 69

69. 64 Concerning Deposits

Chapter 70

70.65 Slaves and Labourers

Chapter 71

71.66 On Slavery; Cooperative Undertaking

Chapter 72

72.67 Rescission of Purchase and Sale

Chapter 73

73. 68 Rescission from Promised Sale

73. 69 Sale from Ownership

73. 70 Ownership of Properties

Chapter 74

74.71 Robbery

Chapter 75

75.72 Defamation

Chapter 76

76. 73 Assault

Chapter 77

77.74 Gambling and Betting

77.75 Miscellaneous Offences

Adhikaram 4 'Kantakashodhanam' Removal of Thorns

Chapter 78

78.76 Protection against Artisans

Chapter 79

79. 77 Protection against Merchants

Chapter 80

80.78 Remedies against Calamities

Chapter 81

81.79 Protection from Spies

Chapter 82

82.80 Exposition of Youths by Ascetic Spies

Chapter  83

83, 81 Arrest of Criminals on Suspicion

Chapter 84

84.82 Examination of Sudden Death

Chapter 85

85.83 Trial and Torture to Obtain Confession

Chapter  86

86.84 Protection of all Government Departments

Chapter 87

87.85 Fine in Leiu of Mutilation of Limbs

Chapter  88

88.86 Death with or without Torture

Chapter  89

89.87 Defilement of Maidens

Chapter  90

90.88 Punishment for Violation of Justice

Adhikaram 5 ' Yogavrittam' The Conduct of Courtiers

Chapter  91

91.89 Awards of Punishment

Chapter  92

92.90 Replenishment of Treasury

Chapter  93

93.91 Maintenance of Servants

Chapter  94

94.92 Conduct of Courtiers

Chapter  95

95.93 Conventional Practices

Chapter 96

96.94 Consolidation of Kingdom

96.95 Absolute Sovereignty

Adhikaranam 6 'The Source of Sovereign States' Mandalayonihi

Chapter  97

97.96 Elements of Sovereignty

Chapter  98

98.97 Concerning Peace and Effort

Adhikaranam 7 Shaadgunyam The Six Fold Policy

Chapter  99

99.98 The Six Fold Policy

99. 99 Deterioration , Stagnation and Progression

Chapter 100

100.100 Nature of Alliance

Chapter 101

100.101 Qualities of Equal, Inferior and Superior Kings

100.102 Alliance by an Inferior King

Chapter 102

102.103 Neutrality after Proclaiming War

102.104 Neutrality after Concluding Peace

102.105 Marching after Proclaiming War

102.106 Marching after Making Peace

102. 107 The March of Combined Powers

Chapter 103

103. 108 March against an Assailable Enemy

103.109 Causing of Dwindling Greed and Disloyalty of Army

103. 110 Considerations in combining Forces

Chapter 104

104.111 March of Combined Powers

104,112 Treaties with or without Definite Terms and Peace with Renegades

Chapter 105

105.113 Peace and War Employing Double Policy

Chapter 106

106.114 Attitude of Assailable Enemy

106.115 Friends that Deserve Help

Chapter 107

107.116 Agreements for Friend, Gold, Territory and Forts

Chapter 108

108.116 Agreements for Peace for Acquisition of Land

Chapter 109

109.116 Agreements for Interminable Agreement

Chapter 110

110.116 Agreements for Undertaking a Work

Chapter 111

111.117 Consideration of an Enemy in the Rear

Chapter 112

112. 118 Recruitment of Lost Power

Chapter 113

113. 119 Peace with a Strong and Provoked Enemy

113. 120 Attitude of a Conquered Enemy

Chapter 114

114.121 Attitude of a Conquered King

Chapter 115

115.122 Making Peace

115.123 Breaking Peace

Chapter 116

116.124 Conduct of Madhyama King

116. 124 Conduct of a Neutral King

116.126 Conduct of Circle of States

Adhikaranam 8 'Vyasanadhikarikam' Concerning Vices and Calamities

Chapter 117

117.127 Calamities of the Elements of Sovereignty

Chapter 118

118. 128 Troubles of the King and his Kingdom

Chapter 119

119.129 The Troubles of Men

Chapter 120

120.130 Molestation

120.131 Obstructions

120.132 Financial Troubles

Chapter 121

121. 133 Troubles of the Army

121. 134 Troubles of a Friend

Adhikaranam 9 ' Abhiyaasyatkarma' Actions of an Invader

Chapter 122

122.135 Knowledge of Power, Place, Time, Strength and Weakness

122. 136 The Time of Invasion

Chapter 123

123. 137 The Time of Recruiting the Army

123.138 The Form of Equipment

123. 139 Work of Arraying a Rival Force

Chapter 124

124. 140 Annoyance in the Rear

124.141 Remedies against Internal and External Trouble

Chapter 125

125. 142 Loss of Men, Wealth and Profit

Chapter 126

126.143 External and Internal Dangers

Chapter 127

127.144 Persons Associated with Traitors and Enemies

Chapter 128

128. 145 Doubts about Wealth and Harm

128.146 Success by Alternative Strategic Means

Adhikaranam 10 ' Sangramikam' Relating to War

Chapter 129

129.147 Encampment

Chapter 130

130.148 March of the Camp

130. 149 Protection of the Army in Troubles

Chapter 131

131.150 Treacherous Fights

131. 151 Encouragement of One's own Army

131.152 Fight between One's own Army and that of the Enemy

Chapter 132

132.153 Battle Fields

132.154 Actions of Infantry, Cavalry, Chariots and Elephants

Chapter 133

133.155 Array of Troupes in Wings, Flanks and Front

133.156 Strong and Weak Troops

133. 157 Battle with Infantry, Cavalry, Chariots and Elephants

Chapter 134

134.158 Array of Army like a Staff, Snake, a Circle or in Detached Order

134.159 Array of Army against that of an Enemy

Adhikaranam 11 'Sangavrittam' The Conduct of Corporations

Chapter 135

135.160 Causes of Dissension

135.161 Secret Punishment

Adhikaranam 12 'Aabaleeyasam' Concerning a Powerful Army

Chapter 136

136.162 Duties of a Messenger

Chapter 137

137.163 Battle of Intrigue

Chapter 138

138.164 Killing of Commander-in-Chief

138.165 Inciting a Circle of States

Chapter 139

139.166 Spies with Weapons, Fire and Poison

139. 167 Destruction of Supply, Stores and Granaries

Chapter 140

140.158 Capture by Secret Means

140.169 Capture by Means of Army

140.170 Complete Victory

Adhikaranam 13 'Durgalabhopaayaha' Means to Capture a Fortress

Chapter 141

141.171 Sowing the Seeds of Dissension

Chapter 142

142.172 Enticement by Secret Contrivances

Chapter 143

143.173 Spies at Work

Chapter 144

144.174 Operation of Siege

144.175 Storming a Fort

Chapter 145

145.176 Restoration of Peace in a Conquered Country

Adhikaranam 14 'Aupanishadhikam' Secret Means

Chapter 146

146.177 Means to Injure an Enemy

Chapter 147

147.178 Delusion with Wonderous Contrivances

Chapter 148

148.178 Delusion with Medicines and Mantras

Chapter 149

149.179 Remedies against the Injuries of One's own Army

Adhikaranam 15 ' Tantrayuktihi' The Plan of a Treatise

Chapter 150

150.180 Division of the Treatise

Arthashastra and Contemporary Management Theories

Glimpses of health and medicine in the mauryan empire Dr. D. V. Subba Reddy, - pp79,

Thus human personality (maharaja) must manifest multi-dimensional adaptive roles at different times by demonstrating extraordinary intuition, self control, vision, accurate prediction, confidence in decisions taken, combating venom attacks etc. Such qualities are no differently to be enumerated by a successful management expert.

The king is a ruler of the kingdom (a corporate leader) and as a decision maker has to be secretive about his war strategies (incubating new product developments) at the same time be offensive and defensive with enemies (corporate rivalry and competition) as the threat perception may be ensuring his survival despite enemy attacks (presence of substitutes and complementary products and disruptive technologies). Such preaching are of the nature of Gupta Mantra.

In economics, industrial organization or industrial economy is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization is not a perfectly competitive model, due to real-world complications such as transaction costs, information asymmetry and inaccessibility (limited), and barriers to entry of new firms which obviously make it an imperfect competition. It analyzes determinants of firm and market organization and behavior as between competition and monopoly, including that of government actions. Government actions are governed by a legal system of the country. Extending the Arthashastra philosophy, be it a nation or modern age business entity, the framework of industry, market or firms is governed by an over-arching legal system.

The central force of a political architecture is its legal system and the king is a protector and preserver of the law but most definitely not its creator which means his power is sanctioned and limited by law. Be the powers vested, the actions of CEOs of companies are governed by the Companies Act , Income Tax Act, SEBI Regulations, and the likes of these. When no confidence motions (equivalent to dethroning a king) are passed against CEOs in the U.S, his kingship is challenged, by the board of directors, for non-performance. These consists of forces that affect the company, customers and profitability much against how it was envisioned. This establishes the temporal sovereignty of the CEO where the Varjasva Takat (Ultimate power) of the power owner is called into question resulting in dethroning the leader. Recent real-life corporate citations are available to corroborate this. This proves the temporal sovereign status of the corporate leader.

Corporate Competition, Competitive Forces and Rivalry While Arthashastra can be considered a bible describing the methodology of supreme governance in a political architecture, such tenets can be applied to corporate governance too. Michael .E. Porter has suggested competition from rival firms to be the biggest force attacking business as much as rival forces have the ability to ruin kingdoms cited in portions of the Arthashastra dossier.(Shamashastry 7/614). In 1979 a professor from Harvard, Michael E. Porter was the first to study Organizational Economics in the context of competition and published his maiden framework ' Porter's Five Forces of Competition' in Harvard Business Review. According to Porter these 5 forces affect the competition within an industry which makes it either attractive or unattractive (vulnerability) in terms of its profitability. The bargaining power of buyers, bargaining power of suppliers, the threat of new entrants and the threat of substitutes are 4 environmental factors that effect competitive rivalry in business. Hence industry attractiveness according to Porter is a function of competing rivalry among firms (Causation) and profitability (Effectuating). Porter's five-forces framework is based on the structure–conduct–performance paradigm in industrial organizational economics. It can be applied to address a diverse range of business challenges such as helping non-profitable businesses become more profitable to helping governments stabilize industries that are in a state of disequilibrium.

The structure–conduct–performance (SCP) paradigm, first published by economists Edward Chamberlin and Joan Robinson in 1933, and developed by Joe S. Bain is a model in Industrial Organization Economics which offers a causal explanation for firm performance through economic conduct on incomplete markets.

According to the structure–conduct–performance paradigm, the market environment has a direct, short-term impact on the market structure. The market structure then has a direct influence on the firm's economic conduct, which in turn affects its market performance. Hence a cause and effect relationship may occur or a reverse effect may occur such that market performance may impact conduct and structure, or conduct may affect the market structure. Also, the external legal or political interventions affect the market framework and by extension, the structure, conduct and performance of the market.

Creating a B-Line Leader/ Corporate Succession Plan /Successor Most corporate houses lack a sound legacy in leadership though the forefathers may have given birth to a legacy. The newer generation and their thought process do not sync with the value systems and organization culture resulting in conflicting views while decision making on matters relating to policy creation, execution, employee-employer relationship, administrative inefficiency and ultimately financial losses. The new blood introduced in the corporate vein obviously lacks expertise, competence and wisdom to learn and earn on whatever has been created, protected and preserved thus far. To enable successive generations to carry out the responsibilities of running a business empire with the same grit, ingenuity, and crafty intelligence demands i. Identifying such a capable body and mind ii. Constant training of such a body and mind, iii Finally creating emotional and psychological immunity to business and personal adversaries so that the mind and body of the individual (SS pp 89/108) is well prepared to take up the associated challenges during one's corporate engagements.

Corporate Vision:

Offensive and Defensive Strategies Corporate aggressive strategies are sometimes surgical and this mostly happens during a disruptive innovation.

Covert and Overt strategies

Brand Building and Immortality A few corporate brands are immortal especially the ones like Lifebuoy, Lipitor, Digene antacid, Dettol, Colgate and likewise. The creation of such brands give a competitive edge to companies irrespective of the new arrival of substitutes or complementary products or new technologies. Such products due to their credible and stable performance, dethrone the status of any competing brand attempting to fragment the consumer base.

New Product Development and Incubation