Economics of Kautiliya Shukra and Brihaspati.pmd
Economics of Kautiliya Shukra and Brihaspati.pmd
Economics of Kautiliya Shukra and Brihaspati.pmd
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Pr<strong>of</strong>it rates were also to be rigidly fixed by the state so as to<br />
avoid uncertainty <strong>and</strong> to prevent traders from pr<strong>of</strong>iteering. The<br />
Superintendent <strong>of</strong> Commerce was to fix a pr<strong>of</strong>it <strong>of</strong> 5 percent over <strong>and</strong><br />
above the fixed price <strong>of</strong> local commodities <strong>and</strong> 10 percent on foreign<br />
produce. Merchants who enhance the price or raise pr<strong>of</strong>it even to the<br />
extent <strong>of</strong> half a Pana more than the above in the sale or purchase <strong>of</strong><br />
commodities shall be punished. (Kautilya's Arthashastra, 1967, 4.2)<br />
Kautilya directs to The Superintendent <strong>of</strong> Commerce to control traders<br />
by taking large pr<strong>of</strong>its because it can harm the consumers. In short,<br />
according to Kautilya <strong>and</strong> <strong>Shukra</strong> shares <strong>of</strong> l<strong>and</strong>, labour, capital <strong>and</strong><br />
entrepreneur are 16.67 percent, 58.33 percent, 15.00 percent, <strong>and</strong><br />
10.00 percent respectively. They were <strong>of</strong> the view that 16.67 percent<br />
regular saving should be gone to state treasury. The table 5.4. presents<br />
the share <strong>of</strong> different factors <strong>of</strong> production fixed by Kautilya <strong>and</strong> <strong>Shukra</strong>.<br />
Table 5.4. Shares <strong>of</strong> Factors <strong>of</strong> Production<br />
Factors <strong>Kautiliya</strong> Arthashastra <strong>Shukra</strong>-niti<br />
L<strong>and</strong> 16.67 percent 16.67 percent<br />
Capital 15.00 percent …<br />
Entrepreneur 10.00 percent …<br />
Labour 58.33 percent …<br />
L<strong>and</strong>, Capital, Entrepreneur … 66.67 percent<br />
Saving … 16.67 percent<br />
Source: Gewali, 2011 b : 139<br />
Conclusion<br />
The analysis above can be summarized as follows-<br />
1. Cost <strong>of</strong> production was the basis <strong>of</strong> long run price determination.<br />
2. In short run market price <strong>and</strong> value <strong>of</strong> the commodity may be<br />
different. The difference depends on availability <strong>and</strong> non-availability<br />
effect.<br />
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3. The share <strong>of</strong> l<strong>and</strong>, labour, capital <strong>and</strong> entrepreneur in the national<br />
income was considered 16.67, 58.33, 15, <strong>and</strong> 10 percent. 16.67<br />
percent <strong>of</strong> National income was considered the subject <strong>of</strong> national<br />
saving.<br />
Notes<br />
1 cfud+ lgu{d+ :yfg+ tyf j[l4If<strong>of</strong>j'ef} .<br />
ljrfo{ ;j{k0<strong>of</strong>gf+ sf/o]Tqmoljqm<strong>of</strong>} ..<br />
k+r/fq] k+r/fq] kIf] kIf] cyjf ut] .<br />
s'jL{t r}if+ k|ToIfdwd{ ;+:yfkg+ g[kM ..<br />
(Compare the value <strong>of</strong> commodities purchased <strong>and</strong> commodities sold,<br />
estimate its loss <strong>of</strong> value <strong>and</strong> then determine the price. The price should<br />
be determined in such a way that both side buyer <strong>and</strong> seller should be<br />
satisfied. After every five nights or in each fortnight prices should be<br />
revised regularly.) Manu-smriti, 1991, 8.410-02)<br />
2 sf/0fflb ;df<strong>of</strong>]ufTkbfy{:t' ej]b\e'lj .<br />
o]g Joo]g ;+l;4:tb\Joo:t:o d"Nosd .. <strong>Shukra</strong>-niti, 2000. 2.146<br />
3 One Pala = 10 dharana <strong>and</strong> one dharana = 10 seeds <strong>of</strong> bean<br />
4 Nisk = Gold coins in Vedic period<br />
5 The price <strong>of</strong> per 10 grams <strong>of</strong> gold is Rs. 32000 <strong>and</strong> silver was Rs. 620<br />
on an average for the year 2010 in Kathm<strong>and</strong>u. Thus the present<br />
proportion <strong>of</strong> these two metals is 1 gold : 52 silver. Gewali, 2011 b: 120<br />
6 k|If]k+ k0olgiklQ+ z'Ns+j[l4djqmod\ .<br />
Jo<strong>of</strong>gG<strong>of</strong>+Zr ;+V<strong>of</strong>o :yfko]b3{d3{ljt\ .. <strong>Kautiliya</strong> Arthashastra, 2003, 4.2.36<br />
7 Euler's Theorem is a mathematical concept expressed in terms <strong>of</strong><br />
derivative. If l<strong>and</strong>, labour <strong>and</strong> capital are paid according to<br />
their contribution the total production will be exhuasted, or<br />
u = f d + f d + f d , where f , f <strong>and</strong> f are marginal productions (shares)<br />
x x y y z z x y z<br />
<strong>of</strong> l<strong>and</strong>, labour <strong>and</strong> captial; d , d <strong>and</strong> d are change in respective factors<br />
x y z<br />
<strong>and</strong> u is total derivative.<br />
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