Book Review : Arthashastra, The Science Of Wealth

 

BOOK REVIEW : ARTHASHASTRA – THE SCIENCE OF WEALTH

Thomas R Trautmann

 

This is a book that deals with a subject long-overdue for attention, both in my reading as well as in the national consciousness. I cant say National Reading Habits, for reading is not a habit in the modern world – anything but. So, National Consciousness it has to be. We, the modern educated individuals, regard Western Treatises on Commerce & Economics as the gold standard; no problems with that. But we should also be aware of the highly advanced concepts listed in our ancient literature – I refer specifically to the Arthashastra of Kautilya. Sadly, we are not conversant, living in a world as we are that idolizes western thought, and discounts local practices and writings.

 

Those of you who are looking for inspiration or confirmation that western economic theories originated in the Arthashastra – don’t pick this one up. But if you are curious about the Arthashastra, and what it mentions regarding commercial enterprise in those days, and how things were managed in the ancient economy, will find it a highly rewarding exercise. Point being, approach this topic with an open mind, a questioning attitude, and willingness to learn. Do not go into it in comparison mode, or wanting to prove our superiority or otherwise.

 

That does not mean that The Arthashastra and Economics are not related – Modern Economic concepts, more than a few, can be easily traced in it. The problem of comparison is that the Modern Systems are now far too complex, widespread and deal with a much wider range of aspects simply due to the nature of the underlying technology, social, cultural, legal and business changes that have happened in the intervening 2300 years. Meaning, don’t try to compare the incomparable.

 

THE BOOK AND ITS REVIEW

The is divided into 5 chapters – The Introduction {The Science Of Wealth}, Kingdoms, Goods, Workplaces and Markets, with a 6^th Concluding chapter. That list itself should suffice to indicate the scope of this particular short take on the Arthashastra, as well as give a reasonable indication of the content. In each chapter, the author goes into the salient points of the topic in concern in nice succinct format, making it a pleasure to read, easy to assimilate and fast to go through.

 

Arthashastra is defined as the science of kingship, the business of running a state – particularly a kingdom. That said, there is a lot to learn from this seminal works, and it should be required reading in the MBA programmes of the nation. In its breadth and scope, it deals with both Economics as well as politics – confirming the modern thought that is now gaining traction of Economics and Politics being intersecting sciences. Specifically, it deals with the what who how where when of earning money – the pursuit of livelihood. But it goes beyond – dealing with the production, the humans engaged in it as well as its view on a larger kingdom {or state-level} outlook.

 

The key takeaways of this tome are too many to list in a book review; I can at best pick out two or three. Firstly, this book establishes the deep tradition of writing treatises on trade etc in Ancient India, as it identifies the precursors to the Arthashastra, and how they influenced or were included in the original ancient text. For this, as evidence, it quotes from the Arthashastra text itself. If anyone has to compare, then do compare the tradition of original top-notch conceptually deep writing in India of thousands of years ago, to now – the current scenario. Where are we in comparison? Are we really creating any content in any field to compare to our much-praised ancient traditions?

 

Second, the emphasis on doing right, ethics, and dharma in the the Arthashastra deserves a special mention, and the importance of righteousness, the controls in place to ensure it etc. This is key, as this emphasis on doing the right thing is missing in Modern Economics, which takes a birds eye view, whereas in the Arthashastra, Dharma & Doing Right is highly sought after and emphasized. The primacy of Dharma over Artha also finds its reflection in the societal aspects of Business.

 

Third, it details in depth the life of ancient India, and the methods, processes, controls, production / facotories, farming, etc in those days. The level of detailing is absolutely amazing – I can think of any number of even Modern Organisations that don’t go this practical, and indepth. It gives a superb look at the Kingdom’s structure, relationships between power and wealth, the various merchant guilds in operation. It goes into control mechanisms, weights measures etc, and how to ensure quality. Again – few companies do this now. It also gives in detail punishments, tactics to ensure quality. All in all, a book that gives an excellent primer look at one of the most vital treatises on Economics ever written!