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. He also refers to theories of other authors and well known schools of the Pre-Kautilyan era in the field of economics and politics which have formed the foundation for the compendium Arthashastram. All the previous works were not so exhaustive, authoritative or deep in content hence were superseded by the Arthashastram.
Adhikarana 1 : Vinayadhikarika
Book 1 - On Discipline
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