Economics of Kautiliya Shukra and Brihaspati.pmd

The system of four stages of personal life was mingled with
Varna system. Ashram system was a social technique constructed for
the personailty developemnt of an individual. The Gurukul system of
education was the foundation of these stages. These stages are as follows-
1. Brahmacharya or the stage of learning
2. Grihastha or the household life
3. Vanaprastha or the retired life
4. Samnyas or the wandering ascetic.
For socio-economic progress Kautilya, Shukra and Brihaspti
supported Varnasharam system strogly. According to Kautilya the ruler
who manages this systm, rules successfully. This is the basis of social
welfare. (Kautiliya Arthashastram,2009, 1.3, 3.1)
Tri-varga Balance
Ancient thinkers have propounded the general equilibrium
theory which was known as Trivarga-sewa or Tri-varga Balance, that
is, the balance of three divisions. Actually it is an example of general
equilibrium. In modern times the general equilibrium theory expalained
with the help of Edgeworth box is the economic general equilibrium
theory only. It is not a 'general' equilibrium of life.
Tri-varga Balance Theory explains the unique equilibrium of
the three divisions or goals of life, three divisions being, dharma- the
right conduct, artha- wealth, and kam- pleasure. Thus, Tri-varga
Balance may be called as D-A-K equilibrum.
They have suggested to make ingenious balancing among
these three. This ideal point was known as Tri-varga Sewa. This
word has been mentioned repeatedly and clearly by the ancient
thinkers. L R Smith calls this balance as Hindu equilibrium. (Smith,
2006: 58-63) According to him this Hindu equilibrium was the basis of
social, political and economic action in those times.
Dharma as described in oriental economics has two
characteristics- purity in action and general welfare in the goal.
According to this view purity denotes purity in earning and spending
both. General welfare means the situation when one’s action for his/
her welfare supports the welfare of others. In technical terms it may
be called Pareto optimality.
Artha as economic resource has two main characteristicsscarcity,
and utility. Resources are useful to satisfy our wants, therefore,
we need it. But resources we need not only scarce but they have
alternative uses. It means the degree of scarcity is very high. Due to
these characteristics we are forced to economize available resources
while satisfying our wants.
Kam means desire to satisfy wants. It becomes pleasure if
satisfied. Desires are not only unlimited, they are competitive also.
From competitive and unlimited wants it is very hard to select and
satisfy wants. Since, their intensity is not the same, it becomes easier
to select some important wants and put them in priority. Thus, we
start from most intense wants. This maximizes our satisfaction.
If we take any two out of the three divisions there will be
three separate equilibrium positions- equilibrium of dharma and artha,
equilibrium of artha and kam and equilibrium of kam and dharma.
The equilibrium of dharma and artha determines the best
individual economic action in social life. The equilibrium of dharma
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