Arthaśāstra and How to Build a Strong State: Lessons from Ancient India

This essay, based on Saikat K Bose’s paper “Historicising the Arthaśāstra: Early Fiscal-Military States in South Asia” published on the ORF website (October 28, 2024), explains how the Arthaśāstra, an ancient Indian guide to ruling, shows a smart way of running a government. The treatise focuses on strong armies, good use of money, and fair management, similar to early European states, while also caring about the people’s welfare.

Introduction – Arthaśāstra

The Arthaśāstra, written by the ancient Indian thinker Kautilya, is a guide on building and ruling a strong state, or kingdom. Written around 300 BCE, this book teaches how a wise ruler can make a safe, wealthy, and fair state. Kautilya’s ideas focus on having a good army, fair taxes, and an organised government. He also says that a strong kingdom cares for its people’s welfare, or well-being.

This approach balances power with kindness, making the state both powerful and fair. Interestingly, these ideas are similar to how early European states developed later on. However, the Arthaśāstra goes beyond just power and military strength, showing that people’s happiness and prosperity are also very important. This essay will explain how Kautilya’s ideas influenced ancient India, compare them to European ideas, and discuss why these teachings still matter today.

Building a Good and Balanced State with the Arthaśāstra

The Arthaśāstra is more than just rules for kings; it is a guide on how to rule by combining power with kindness. At its core, the book says a strong state needs a steady, trained army, fair taxes, and leaders chosen based on skill, not family or wealth. This balanced way of ruling helps make a strong yet caring state, where power does not harm the people’s happiness.

In the Arthaśāstra, Kautilya explains that a successful state must keep the ruler’s strength balanced with the needs and happiness of the citizens. Unlike other ancient books that mostly talk about gaining power, the Arthaśāstra shows how to create a kingdom that helps people live better lives.

Kautilya believed a steady, professional army was essential for the state’s safety and strength. He thought having a trained and disciplined army protected the state from invasions and kept peace within its borders. Ancient records show that kingdoms like Magadh had strong armies that followed this idea and were able to protect and grow their territories.

The Arthaśāstra also talks about a fair taxation system, where taxes are collected without burdening the people too much. This means the state gets enough resources to function, but people are not overtaxed. This balanced tax system allowed the state to grow and be prosperous without causing people to struggle.

Role of Fair and Skilled Leaders

Another key lesson in the Arthaśāstra is the importance of a fair and capable government. Kautilya suggested that leaders should be chosen for their skills and knowledge, not just because they are from a wealthy or powerful family. This idea of picking the best people for important jobs helped build a reliable government that could manage resources well, solve problems, and meet the needs of the people.

Kautilya’s idea of government was meant to last, even if different rulers came and went. He believed a state could only stay strong if it had a stable, well-organised system of leaders who knew how to do their jobs well. This focus on a steady and skilled government was also found in early European states, where governments helped kings and queens protect their lands and serve their people.

Kautilya’s idea of a fair government with skilled leaders allowed the state to be flexible and ready for challenges. This type of government did not depend on just one person, and it was made to keep the state safe and strong over time. By having well-trained officials, the state could make better decisions that benefited everyone, not just the rulers. Kautilya believed that a skilled and organised government could handle problems better and keep the state united and strong during tough times.

Human Well-being and Social Welfare: More Than Just Military Strength

While the Arthaśāstra is famous for its ideas on military strength, it also talks about how important it is to take care of the people. Kautilya believed that a state should not only have a strong army but also happy, healthy, and prosperous people. The Arthaśāstra suggests that the state should invest in things like good roads, schools, and creating job opportunities to make people’s lives better. Kautilya understood that the happiness and well-being of people helped the state grow stronger because healthy, educated people could support the state in many ways.

This balanced approach sets the Arthaśāstra apart from early European states, which often focused mostly on military and taxes without as much care for the well-being of the people. Kautilya’s ideas show that a truly strong state looks after its people by creating opportunities for them to succeed. He believed that if people were happy and healthy, they would be more loyal to the state, work harder, and even help defend it. This approach of balancing power with care for the people shows how forward-thinking Kautilya’s ideas were.

Diplomacy and Relations with Other States: The Mandala Theory

One of the unique ideas in the Arthaśāstra is the “Mandala Theory,” which teaches how to manage relationships with neighbouring states. According to this theory, a king’s state is in a “circle of states,” including allies (friends), enemies, and neutral powers. Kautilya believed that a wise king should not only focus on having a strong military but also on building alliances and friendly relations to keep the state safe. This theory teaches that rulers should form alliances, prepare for conflicts if needed, and carefully choose whom to trust.

Kautilya’s approach to diplomacy was very practical. He suggested that rulers should form friendly relations with nearby states when possible and only use force when absolutely necessary. By building alliances and avoiding unnecessary wars, the state could avoid wasting resources and focus on growth and stability. This approach to diplomacy is similar to what early European states did when they formed alliances to secure their borders without constantly going to war. The Mandala Theory highlights that smart diplomacy is just as important as military power for a state to thrive.

Comparing the Arthaśāstra with European Kingdoms

The Arthaśāstra shares many ideas with European fiscal-military states that existed between the 15th and 18th centuries. Just like Kautilya’s state, these European states focused on creating strong armies, organised governments, and efficient tax systems. Centralised administrations in Europe supported standing armies, which were essential for both defence and expansion. Similarly, Kautilya’s model was built on a disciplined military and well-organised government to maintain the state’s power.

However, one big difference is that while European states mostly focused on building military and financial power, Kautilya also cared deeply about improving the lives of ordinary people. His belief that people’s happiness and prosperity could strengthen the state made the Arthaśāstra different from many European states, where the focus was more on military strength. This unique aspect of Kautilya’s teachings shows that ancient Indian political philosophy included the idea that the state has a duty to care for its people, not just rule over them.

Lasting Influence of the Arthaśāstra

The ideas in the Arthaśāstra continued to shape Indian statecraft long after it was written, especially during the Mauryan Empire, which was known for its prosperity and stability. Many principles from the Arthaśāstra were reportedly applied during the Mauryan period, helping create one of the strongest and most organised empires in ancient India. However, over time, Indian state structures began to shift.

Instead of following Kautilya’s centralised and merit-based model, later states became more fragmented, with local rulers often passing power down through family ties. By the Gupta period, government institutions were often controlled by hereditary rulers, marking a shift from the fair and skilled-based governance that Kautilya had envisioned.

In the modern world, the Arthaśāstra still offers valuable lessons for governance. Kautilya’s ideas about balancing power with welfare, maintaining skilled administration, and promoting diplomacy are useful guidelines for today’s leaders. Especially in countries like India, the Arthaśāstra’s approach to a balanced and fair state, where the well-being of citizens is a priority, offers a model for building a fair and strong nation.

Conclusion

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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH