Economics of Kautiliya Shukra and Brihaspati.pmd

No wonder Kautilya stressed the importance of wealth. From
the treasury obtained with the treasury as its ornament..., with money,
troops… are obtained. Roger Boesche compares Kautilya’s compares
Machiavelli in the following words- Kautilya said something that
Machiavelli would never agree with that- is that a king with money can
conquer an enemy by hiring or purchasing heroic men. (Boesche,
2002: 66)
Because the treasury enables a king to pay soldiers and make
military equipment, the army needs the treasury and the treasury must
be protected by the army, so they will always be interrelated but the
treasury is ultimately more important. For the army is the means of
acquiring and protecting the treasury, the treasury that of treasury and
army because it brings into being all objects, the calamity of the treasury
is more serious. (ibid, 8.1.51-52)
Rajdharmanushasana Parva or the Book on Political Discipline
of Mahabharata deals in material prosperity. It explains that proper use
of wealth is more important than the sacrifice of wealth. Every person
and every part of society should perform its proper functions which
are predetermined by scriptures.
Importance of Agriculture
The economy of Kautilya, Shukra and Brihaspati was a three
sector economy. Among the three pillars of economy they have given
high importance to agriculture, the other two pillars being animal farming
and commerce. Shukra and Kautilya were of the view that cultivable
land is better than mines because mines fill only the treasury while
agricultural production fills both treasury and store houses.
Specialization of agriculture was done with the help of
professionally trained managers of farming and animal husbandry.
Techniques of animal farming, practical and theoretical measures to
raise farmers’ status suggested by Kautilya and Shukra are relevant in
modern agro based economy. A farmer busy in farming activity could
not be arrested by the state. The farmer was protected by the law.
Pricing and marketing of agro products and providing adequate
infrastructure to the agricultural sector are crucial. Evidently as in
other spheres, many of the principles enumerated in Shukra-niti and
Kautiliya Arthashastra are applicable to the modern agricultural sector.
In stark contrast to the emphasis that Kautilya, Shukra and
Brihaspati assigned to rural development, agriculture, and the animal
husbandry, the present status is that these spheres have been neglected
in present economic policies.
Pricing Policy
Kautilya and Shukra are of the view that normal price of goods
should be equal to the cost of production in long run. Market price
fluctuates around this price. They have given a fair discussion on the
price of inputs. According to their evaluation the share of land, labour,
capital and entrepreneur should be 16.67, 41.67, 15, and 10 percent of
total national income. They are in favour of regular national saving and
the rate of this saving should be 16.67 percent. (Gewali, 2011b : 139)
Kautilya envisaged a role for the state to ensure that excessive
price fluctuation to commercial activities did not occur. This view
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