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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follows the price policy explained by Manu. (Manu-smriti,<br />
1991, 8.410-13)<br />
Kautilya showed a highly refined underst<strong>and</strong>ing <strong>of</strong> the law <strong>of</strong><br />
dem<strong>and</strong> <strong>and</strong> supply <strong>and</strong> the influence <strong>of</strong> surpluses that occur due to<br />
imperfections <strong>of</strong> the market. He recommended an interventionist policy<br />
to situation <strong>of</strong> glut in the market. In this context he stated that whenever<br />
there is an excessive supply <strong>of</strong> merch<strong>and</strong>ise The Superintendent <strong>of</strong><br />
Market shall centralize its sale <strong>and</strong> prohibit the sale <strong>of</strong> similar<br />
merch<strong>and</strong>ise elsewhere before the centralized supply is disposed <strong>of</strong><br />
Kautilya realized that the role <strong>of</strong> the state was to ensure that commercial<br />
activities do not violate laws <strong>and</strong> if the state did not establish <strong>and</strong> enforce<br />
codes <strong>of</strong> conduct it would in fact raise transaction costs. The lack <strong>of</strong><br />
trust <strong>and</strong> guarantee <strong>of</strong> quality would diminish commerce <strong>and</strong> increase<br />
search <strong>and</strong> verification costs for agents undertaking commercial<br />
transactions.<br />
From the view point <strong>of</strong> commodity price determination their<br />
views are similar to classical views. At the same time Kautilya <strong>and</strong><br />
Manu have suggested to have a government control on price fluctuation.<br />
Which is similar to socialist view.<br />
Consumer’s Protection<br />
There are many legal provisions for the consumer’s protection<br />
in <strong>Kautiliya</strong> Arthashastra <strong>and</strong> <strong>Shukra</strong>-niti. In K-M economy two<br />
authorities were responsible for consumer’s protection- The<br />
Superintendent <strong>of</strong> Market <strong>and</strong> The Superintendent <strong>of</strong> Commerce.<br />
The consumer buyer is provided safeguards by the law in<br />
ancient economy. The sale or mortgage <strong>of</strong> articles such as timber,<br />
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iron, brilliant stones, tropes, skins, earthenware, threads, fibrous<br />
garments, <strong>and</strong> woolen clothes as superior, although they are really<br />
inferior, was to be punished with a fine.<br />
Adulteration <strong>of</strong> grains, oils, alkalis, salts, scents, <strong>and</strong> medical<br />
articles with similar articles <strong>of</strong> no quality was considered a serious<br />
<strong>of</strong>fense.<br />
It is interesting to note that Kautilya tried to establish guidelines<br />
for pr<strong>of</strong>essional service providers also, including medical practitioners,<br />
weavers, washer-men, boatmen, shipping agents <strong>and</strong> even prostitutes.<br />
System <strong>of</strong> Four Varnas <strong>and</strong> Asharams<br />
Varna <strong>and</strong> Asharam system was the basis <strong>of</strong> economic<br />
progress, personality development <strong>and</strong> social harmony in ancient times.<br />
The word Varna st<strong>and</strong>s for colour <strong>and</strong> Asharam st<strong>and</strong>s for institution.<br />
Initial Varna system was based on the function <strong>and</strong> not on caste. Later<br />
it was converted as caste system .<br />
These Four Varnas are-<br />
1, Brahman or the intelligent class<br />
2. Kshtriya or the warrior class<br />
3. Vaishya or the business class<br />
4. Shudra or the labour class<br />
Intelligent class was responsible for the advancement <strong>of</strong><br />
knowledge <strong>and</strong> regular research for the benefit <strong>of</strong> the society. The<br />
warrior was responsible for the protection <strong>of</strong> the country. Vaishya<br />
was the basis <strong>of</strong> economic system because the developemnt <strong>of</strong><br />
K-G-B sectors was the responsibility <strong>of</strong> this class. The responsiblity<br />
<strong>of</strong> labour class was to serve the country as a whole. All four classes<br />
were like four organs <strong>of</strong> a body <strong>and</strong> therefore complementary to<br />
each other.<br />
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