Arthashastra has many
implications :
PUBLIC GOVERNANCE:
Universal protection of human rights; laws that are implemented in a non-
discriminatory manner; an efficient, impartial, and quick judicial system;
transparent public agencies and official decision-making; accountability for
decisions made about public issues and resources by public officials;
participation and inclusion of all citizens in debating public policies and
choices is summed up as good governance as per experts.A responsive governance
not only means formal institutions, systems and channels of democracy but also
with the processes and culture of non formal
inclusiveness and participation.
Kautilya believed that
the state should be the market regulator and advocated the principle of a mixed
economy when India was ruled by autocrats. He was meticulous in technique of
controlling every activity and insisted on governance for the betterment of public
Though individual merchants were free to contribute
they also had to comply with the rules and regulations set by the state and
authorities appointed by the state including
superintendents for the State, for weights and measures, for trade and
commerce, for agriculture, for mining, for prostitutes, for gems and jewels,
for horses, for elephants, for cows, for tolls, for storehouses, for forest
produce, for armoury, for weaving, for ships, for slaughter houses, for liquor,
for infantry, for passports, etc. Yet State did not interfere in the day to day
affairs of the public and encouraged all
types of wealth creation. “There shall be no restrictions in the sales of those
items” (Created by: Harikrishnan Potty. ) Thus the evils of centralization were
avoided.
According to Kautilya,
the State had the following roles facilitator.
regulator. protector. to
facilitate transactions for the formation of a Welfare State. The principles of
equality of opportunity, equitable distribution of wealth, and public
responsibility for those unable to avail themselves of the minimal provisions
for a good life. The State formulated laws and practices
Need to be informed and
reported consistently about the functioning of the business was made essential
and thereby the State acted as a protector of masses. Especially it created
mechanisms that would protect the commercial interests of traders and artisans…
“those who conspire to lower the quality of the work of the artisans, to hinder
their income, or to obstruct their sale or purchase shall be fined.”
Kautilya insisted in
creation of towns and villages at strategic places with commercial areas
and trade zones. (Book II of
Arthashastra translated by R. Shamasastry) explains the formation of villages
during the reign of Chandragupta Maurya: “CHAPTER I: FORMATION OF VILLAGES.”
The king may construct
villages either on new sites or on old ruins (bhútapúrvama vá). “Villages
consisting each of not less than a hundred families and of not more than
five-hundred families of agricultural people of súdra caste, with boundaries
extending as far as a krósa (2250 yds.) or two, and capable of protecting each
other shall be formed. Boundaries shall be denoted by a river, a mountain,
forests, bulbous plants (grishti), caves, artificial buildings (sétubandha), or
by trees such as sálmali (silk cotton tree), Sámi (Acacia Suma), and
kshíravriksha (milky trees). There shall be set up a stháníya (a fortress of
that name) in the centre of eight-hundred villages, a drónamukha in the centre
of four- hundred villages, a khárvátika in the centre of two-hundred villages
and sangrahana in the midst of a collection of ten villages. There shall be
constructed in the extremities of the kingdom forts manned by boundary guards
(antapála) whose duty shall be to guard the entrances into the kingdom. The
interior of the kingdom shall be watched by trap-keepers (vágurika), archers
(sábara), hunters (pulinda), chandálas, and wild tribes (aranyachára). Those
who perform sacrifices (ritvik), spiritual guides, priests, and those learned
in the Vedas shall be granted Brahmadaya lands yielding sufficient produce and
exempted from taxes and fines (adandkaráni). Superintendents, Accountants,
Gopas, Sthánikas, Veterinary surgeons (Aníkastha), physicians, horse-trainers,
and messengers shall also be endowed with lands which they shall have no right
to alienate by sale or mortgage. Lands prepared for cultivation shall be given
to tax-payers (karada) only for life (ekapurushikáni)”
Kautilya dictated that
the unprepared lands shall not be taken away from those who are preparing them
for cultivation. Rather confiscate land from those who do not cultivate them
and give to others including village
labourers (grámabhritaka) and traders (vaidehaka), “If cultivators pay their taxes
easily, they may be favourably supplied with grains, cattle, and money. The
king shall bestow on cultivators only such favour and remission
(anugrahaparihárau) as will tend to swell the treasury, and shall avoid such as
will deplete it. A king with depleted treasury will eat into the very vitality
of both citizens and country people.” Also remission of taxes shall be made
either on opening new settlements or on any other emergent occasions, with
fatherly kindness, carry on mining operations and manufactures, exploit timber
and elephant forests, offer facilities for cattle breeding and commerce,
construct roads for traffic both by land and water, and set up market towns
(panyapattana) were the duties of the king or governor. To construct reservoirs
(sétu) filled with water either perennial or drawn , to provide with sites,
roads, timber, and other necessary things for those who construct reservoirs,
or places of pilgrimage (punyasthána) or
groves of their own accord is the duty. For cooperative construction
(sambhúya setubhandhát) either each will participate or shall send his servants
and bullocks to carry on his work, then he shall have a share in the
expenditure, but no claim to the profit. The king shall exercise his right of
ownership (swam yam) with regard to fishing, ferrying and trading in vegetables
(haritapanya) in reservoirs or lakes (sétushu).”
Kautilya held great
reverence to law making and law abiding acticity. “The weights and measures
were standardized and all merchants had to comply with the same….Kautilya also
laid strict rules on the constitution of a “legal agreement”. For him, the
element of transparency was the foremost in an agreement. During this period,
oral agreements were valid; however, there had to be a voluntary witness to these
agreements. The witness had to be of a sound mind and not a lunatic. The
witness should not act under provocation, anxiety or intoxication. Also, the
witness could not be those who had a criminal record.”
The importance of
forming associations, collective units was stressed and all contracts within
the association were considered legal and also there were laws for joint
ventures and partnerships. And for
arbitrations and trials in courts. Every citizen and foreigners had to
carry a passport and non compliance with this law led to a fine or
imprisonment.
The importance of fair
trade practices and fines for adulteration and supply of goods of an inferior
quality were in place and so was documenting f good practices and guidelines in
case of professional services. As per Arthashastra, “Artisans shall, in
accordance with their agreement as to time, place, and form of work, fulfil
their engagements. Those who postpone their engagements under the excuse that
no agreement as to time, place and form of work has been entered into shall,
except in troubles and calamities, not only forfeit ¼th of their wages, but
also be punished with a fine equal to twice the amount of their wages. They
shall also make good whatever is thus lost or damaged. Those who carry on their
work contrary to orders shall not only forfeit their wages, but also pay a fine
equal to twice the amount of their wages.” According to Kautilya, “Physicians
undertaking medical treatment without intimating (to the government) the
dangerous nature of the disease shall, if the patient dies, be punished with
the first amercement. If the death of a patient under treatment is due to
carelessness in the treatment, the physician shall be punished with the
middle-most amercement. Growth of disease due to negligence
indifference
(karmavadha) of a physician shall be regarded as assault or violence.”
He appointed three
commissioners to maintain peace. Arthashastra wrote about how much to pay the
merchants, artisans, craftsmen and goldsmiths, list of the wages to be paid for
metal workers and builders, prohibited ‘beggars and other entertainers from
moving about during the monsoons’. The policy of consumer protection- “The
Superintendent of Commerce shall allow the sale or mortgage of any old
commodities (purána bhándanám) only when the seller or mortgagor of such
articles proves his ownership of the same. With a view to prevent deception, he
shall also supervise weights and measures. Difference of half a pala in such
measures as are called parimání and drona is no offence, difference of a pala
in them shall be punished with a fine of 12 panas. Fines for greater
differences shall be proportionally increased.”
“When a trader sells or
mortgages inferior as superior commodities, articles of some other locality, as
the produce of a particular locality, adulterated things, or deceitful
mixtures, or when he dexterously substitutes other articles for those just sold
(samutparivartimam), he shall not only be punished with a fine of 54 panas but
also be compelled to make good the loss”
The court would not
allow a person with a criminal background to appear as a witness.
According to Kautilya,
"Taxation should not be a painful process for the people. There should be
leniency and caution while deciding the tax structure. Ideally, governments
should collect taxes like a honeybee, which sucks just the right amount of
honey from the flower so that both can survive. Taxes should be collected in
small and not in large proportions. “
These taxes were
collected from the guilds of artisans and the merchants. Income Taxes: were collected by farmers and
agriculturists as a part of their produce.
Indirect Taxes: These were levied on liquor, slaughter houses, mining,
transportation, etc. Land and Property
Tax: These included taxes on houses, agricultural or any other material
property. Customs Duty: All imported
goods had to bear customs duty.
Entertainment Taxes: Gambling, entertainment, etc had to part with a
specific amount of taxes. Special Taxes:
These were levied during special occasions such as wars, famines, draughts,
etc.
In case of a widow with children to look
after, the transferred income due to the death of her husband is exempt from
taxation. In case of faulty rainfall or
draught, agricultural produce is exempted from taxation. Taxes were exempted for soldiers with
exemplary record. Taxes were also
exempted in case of serious medical illness.
The family of martyrs in war did not have to pay taxes: This shows
respect for humanity and acknowledged the efforts and pains of the citizens.
Kautilya laid emphasis
on foreign trade as well as on domestic trade. It was the king’s duty to
promote trade and commerce by maintaining trade routes connecting markets and
industrial zones, by improving infrastructure and to keep trade routes free of
harassment by courtiers, state officials, thieves and frontier guards.
heavy fines were
designed on traders for discouraging financial offences by traders and with a
view of consumer protection. Laws on private merchants included: ‘(a) Selling
on agency basis. (b) Revocation of contracts between traders. (c) Traders
traveling together and pooling their goods.’ frontier officers were to ensure the safe passage of the
merchandise and to make good any loss incurred.
recompense loss to traders vested with the village headman barring, of
course, goods that were stolen or sent away, if any property of trader was lost
or driven away in an area between villages, the person responsible was the
Chief Superintendent of Pastures,
Foreign traders had to
pay a sum of money in order to carry out business in the state and this was to
regulate the traders with invaders who arrived to conduct business. The foreign
businessmen being threats to the kingdom should not be given the same status as
the local traders and incentives for
local traders were given for exporting their products. In all areas other than
the monopoly areas. Trade was allowed freely. The revenues raised through trade
was to finance the army and to expand the territories.
Revenue from foreign
trade was divided into three sources:
Land Revenue: It consisted of taxes for using the land in the kingdom.
The land revenue was fixed at 1/6th of the share of the produce from the land.
Import Duties: Import duties on foreign goods were roughly around 20% of their
value. Miscellaneous Levies: These consisted of tolls, road cess, ferry
charges, etc. Wine, chemicals, high quality pottery, alloys, gold and silver,
spices, etc were imported from Rome and local merchants who brought in foreign
goods by caravans or water routes were
exempted from taxes. Entrepreneurship was encouraged and in a partnership with
foreign merchant, it was the local partner which was allowed to be sued in order to fix the
responsibility on citizens for fair trade.
The threshold limit on
profit was on imported goods was 10%. Arthashastra encouraged profitable
trading especially with strategic nations. Kautilya emphasized on the
importance of using trade to create alliances with strong nations. In the words
of Kautilya, “Having ascertained the value of local produce as compared with
that of foreign produce that can be obtained in barter, the superintendent will
find out (by calculation) whether there is any margin left for profit after
meeting the payments (to the foreign king) such as the toll (sulka), road-cess
(vartaní), conveyance- cess (átiváhika), tax payable at military stations
(gulmadeya), ferry- charges (taradeya), subsistence to the merchant and his
followers (bhakta), and the portion of merchandise payable to the foreign king
(bhága). If no profit can be realised by selling the local produce in foreign
countries, he has to consider whether any local produce can profitably bartered
for any foreign produce. Then he may send one quarter of his valuable merchandise
through safe roads to different markets on land. In view of large profits, he
(the deputed merchant) may make friendship with the forest guards,
boundary-guards, and officers in charge of cities and of country-parts (of the
foreign king). He shall take care to secure his treasure (sára) and life from
danger. If he cannot reach the intended market, he may sell the merchandise (at
any market) free from all dues (sarvadeyavisuddham).”
‘Kautilya was cognizant
of the fact that the terms of trade were not just dependent on the economics
but also on other various parameters. Banking and insurance sectors have always
been the catalysts of economic development. Kautilya related the levels of
risks and uncertainties to levels of profits and interests. He was of the
opinion that higher levels of risk and uncertainty had to be compensated with
higher levels of profits. According to the Arthashastra, “An interest of a pana
and a quarter per month per cent is just. Five panas per month per cent is
commercial interest (vyávaháriki). Ten panas per month per cent prevails among
forests. Twenty panas per month per cent prevails among sea-traders
(sámudránám). Persons exceeding, or causing to exceed the above rate of
interest shall be punished with first amercement; and hearers of such
transactions shall each pay half of the above fine.”
Kautilya centralized
control over all the transactions relating to insurance though the landlords
though had to abide with the interest rates prevalent in the economy. There was
a limit on the amount of money they lent. The private money lenders were to
take up the risk for investments in merchandise and right to lend was granted
only to people with enough income to dispose off and people of good character.
Government treasury also gave money only
to the needy and to people of good character.
Kautilya wrote about six
different kinds of interests: compound interest, periodical interest,
stipulated interest, daily interest, and the use of a pledged article. Most
probably the idea of expressing interest as a percent originated in India.
According to Kautilya, “The nature of the transactions between creditors and
debtors, on which the welfare of the kingdom depends, shall always be
scrutinized. Interest in grains in seasons of good harvest shall not exceed
more than half when valued in money. Interest on stocks (prakshepa) shall be
one-half of the profit and be regularly paid as each year expires. If it is
allowed to accumulate owing to the intention or to the absence of the receiver
or payer, the amount payable shall be equal to twice the share or principal
(múlyadvigunah). A person claiming interest when it is not due, or representing
as principal the total amount of his original principal and the interest
thereon shall pay a fine of four times the amount under dispute
(bandhachaturgunah).”
Kautilya wrote also on
the type of loans, ‘the rate of interest, methods of calculating interest and
circumstances under which interest may not be calculated by the lenders. While
the Interest rates varied from 1.25% to 2% per month, interest rate depended
upon the risk involved and the potential productivity of the money borrowed.
The highest rate of interest was 20% per month and was charged to those
involved in overseas trade as the risk involved in this transaction was the
maximum.’
GUILDS AND INSURANCE:
Kautilya also attributed a greater rate of interest to debts taken by a group
of individuals or guilds ..(as) it would not be heavy on one individual and the
group was in a position to pay high interest since it was involved in larger
profit margin. According to Kautilya, “Those who can be expected to relieve
misery, who can give instructions to artisans, who can be trusted with
deposits, who can plan artistic work after their own design, and who can be
relied upon by guilds of artisans, may receive the deposits of the guilds. The
guilds (srení) shall receive their deposits back in time of distress.”
Kautilya considered
cultivable land as better than mines ‘because mines fill only the treasury
while agricultural production fills both treasury and store houses.’ ‘the King
should understand the intricacies of agriculture. Agriculture has always been
the backbone of Indian economy. The government recognises agriculture as the
most important occupation in India. Agriculture requires irrigation facilities
to survive. This has given rise to the irrigation sector. Hence, both go hand
in hand.’….agriculture, cattle-rearing and commerce were the three main
occupations in the State. ‘a king must also learn agriculture.’ And it is
essential to develop villages and create an agrarian economy. “Possessed of the
knowledge of the science of agriculture dealing with the plantation of bushes
and trees (krishitantragulmavrikshsháyurvedajñah), or assisted by those who are
trained in such sciences, the superintendent of agriculture shall in time
collect the seeds of all kinds of grains, flowers, fruits, vegetables, bulbous
roots, roots, fiber producing plants, and cotton. He shall employ slaves,
labourers, and prisoners (dandapratikartri) to sow the seeds on crown-lands
which have been often and satisfactorily ploughed. The work of the above men
shall not suffer on account of any want in ploughs (karshanayantra) and other
necessary instruments or of bullocks. Nor shall there be any delay in procuring
to them the assistance of blacksmiths, carpenters, borers (medaka), rope
makers, as well as those who catch snakes, and similar persons.”
Weather forecasting was
made by observing the planetary motion and the rise and appearance of the Sun.
A good rainy season was when one-third of the annual rainfall occurs in the
beginning and at the end of the season and two-thirds in the middle. According
to the Arthashastra, “The quantity of rain that falls in the country of jángala
is 16 dronas; half as much more in moist countries (anúpánám); as to the
countries which are fit for agriculture (désavápánam);--13½ dronas in the
country of asmakas; 23 dronas in avantí; and an immense quantity in western
countries (aparántánám), the borders of the Himalayas, and the countries where
water channels are made use of in agriculture (kulyávápánám). When one-third of
the requisite quantity of rain falls both during the commencement and closing
months of the rainy season and two-thirds in the middle, then the rainfall is
(considered) very even (sushumárúpam). A forecast of such rainfall can be made
by observing the position, motion, and pregnancy (garbhádána) of the Jupiter
(Brihaspati), the rise and set and motion of the Venus, and the natural or unnatural
aspect of the sun. From the sun, the sprouting of the seeds can be inferred;
from (the position of) the Jupiter, the formation of grains (stambakarita) can
be inferred; and from the movements of the Venus, rainfall can be inferred.
Three are the clouds that continuously rain for seven days; eighty are they
that pour minute drops; and sixty are they that with the sunshine-this is
termed rainfall. Where rain, free from wind and unmingled with sunshine, falls
so as to render three turns of ploughing possible, there, the reaping of good
harvest is certain.”
The Arthashastra says, “According as the rainfall is more or less, the superintendent shall sow the seeds which require either more or less water. Sáli (a kind of rice), vríhi (rice), kodrava (Paspalum Scrobiculatum), tila (sesame), priyangu (panic seeds), dáraka, and varaka (Phraseolus Trilobus) are to be sown at the commencement (púrvávápah) of the rainy season. Mudga (Phraseolus Mungo), másha (Phraseolus Radiatus), and saibya are to be sown in the middle of the season. Kusumbha (safflower), masúra (Ervum Hirsute), kuluttha (Dolichos Uniflorus), yava (barley), godhúma (wheat), kaláya (leguminous seeds), atasi (linseed), and sarshapa (mustard) are to be sown last. Or seeds may be sown according to the changes of the season. Fields that are left unsown (vápátiriktam, i.e., owing to the inadequacy of hands) may be brought under cultivation by employing those who cultivate for half the share in the produce (ardhasítiká); or those who live by their own physical exertion (svavíryopajívinah) may cultivate such fields for ¼th or 1/5th of the produce grown; or they may pay (to the king) as much as they can without entailing any hardship upon themselves (anavasitam bhágam), with the exception of their own private lands that are difficult to cultivate.” “The superintendent shall grow wet crops (kedára), winter-crops (haimana), or summer crops (graishmika) according to the supply of workmen and water. Rice-crops and the like are the best (jyáshtha, i.e., to grow); vegetables (shanda) are of intermediate nature; and sugarcane crops (ikshu) are the worst (pratyavarah, i.e., very difficult to grow), for they are subject to various evils and require much care and expenditure to reap. Lands that are beaten by foam (phenághátah, i.e., banks of rivers, etc.) are suitable for growing vallíphala (pumpkin, gourd and the like); lands that are frequently over flown by water (paríváhánta) for long pepper, grapes (mridvíká), and sugarcane; the vicinity of wells for vegetables and roots; low grounds (hariníparyantáh) for green crops; and marginal furrows between any two rows of crops are suitable for the plantation of fragrant plants, medicinal herbs, cuscus roots (usínara), híra, beraka, and pindáluka (lac) and the like. Such medicinal herbs as grow in marshy grounds are to be grown not only in grounds suitable for them, but also in pots (sthályam).” It is evident that the cropping pattern has been exhaustively dealt with, in the Arthashastra.
Kautilya believed that irrigation was the most
crucial contributor for agriculture. So was the establishment of many
irrigation facilities within the State and rules for building tanks and dams.
According to the Arthashastra, “Irrigational works (sétubandha) are the source
of crops; the results of a good shower of rain are ever attained in the case of
crops below irrigational works.” It also states the following: “Of forts such
as a fort on a plain, in the centre of a river, and on a mountain, that which
is mentioned later is of more advantage than the one previously mentioned; of
irrigational works (sétubandha), that which is of perennial water is better
than that which is fed wit water drawn from other sources; and of works
containing perennial water, that which can irrigate an extensive area is
better.”
Kautilya was strictly
against excessive taxation. The nominal
taxes like 1/6th, 1/8th or 1/10th of the produce depending on the annual
production and the nature of the produce. According to Arthashastra, “In case
of construction of new works such as tanks, lakes, etc; taxes on the lands
below such tanks) shall be remitted for five years (Panchavárshikah parihárah).
For repairing neglected or ruined works of similar nature, taxes shall be
remitted for four years. For improving or extending water-works, taxes shall be
remitted for three years. In the case of acquiring such newly started works by
mortgage or purchase, taxes on the lands below such works shall be remitted for
two years. If uncultivated tracts are acquired (for cultivation) by mortgage,
purchase or in any other way, remission of taxes shall be for two years. Out of
crops grown by irrigation by means of wind power or bullocks
(vátapravartimanandinibandháyatana) or below tanks, in fields, parks, flower
gardens, or in any other way, so much of the produce as would not entail
hardship on the cultivators may be given to the Government. Persons, who
cultivate the lands below tanks, etc., of others at a stipulated price
(prakraya), or for annual rent (avakraya), or for certain number of shares of
the crops grown (bhága) or persons who are permitted to enjoy such lands free
of rent of any kind, shall keep the tanks, etc., in good repair; otherwise they
shall be punished with a fine of double the loss. Persons, letting out the
water of tanks, etc., at any other place than their sluice gate (apáre), shall
pay a fine of 6 panas; and persons who recklessly obstruct the flow of water
from the sluice- gate of tanks shall also pay the same fine.”
SUSTAINABLE AGRICULTURE
was a very important concept in Arthshastra: According to Kautilya, “The seeds
of grains are to be exposed to mist and heat (tushárapáyanamushnam cha) for
seven nights; the seeds of kosi are treated similarly for three nights; the
seeds of sugarcane and the like (kándabíjánam) are plastered at the cut end
with the mixture of honey, clarified butter, the fat of hogs, and cow dung; the
seeds of bulbous roots (kanda) with honey and clarified butter; cotton seeds
(asthibíja) with cow dung; and water pits at the root of trees are to be burnt
and manured with the bones and dung of cows on proper occasions.”
The main role of the
public sector was maintaining the well being of the nation and also act as a regulator of all economic activities
in the society. The private sectors were free to carry out their transactions
but with a precondition to intimate the state before any such activity. Thus
state allowed many private sectors to bloom and flourish under the surveillance
of the public sector as the private players were given permission only after
proper scrutiny of their past record, character and capacity, skills, etc.
Business of gambling and
betting was the State’s monopoly and any private party involved in this was
severely punished.
Animal Husbandry was allowed to private sector
while the State volunteered to take care
of animals and cattle for a nominal charge. Forestry and mining were monopolies
of the State. Apart from weapon making and liquor brewing, all other
manufacturing activities were privatized while the State regulated and
controlled them.
Arthashastra wrote about
a well thought of Human Resource Management structure. The individuals who
comprise the workforce and by aligning
the supply of skilled and qualified individuals and by selecting, training,
grooming the capabilities of the current workforce, for the organizations ongoing and future business
plans to maximize return on investment and secure future survival and success.
This has to be done not only effectively but also pragmatically, in view of
legal, ethical and spiritual matters.
To develop policies,
standards, systems, and processes that implement these strategies : The cycle
is : ‘Recruitment and selection. Organizational design and development. Business transformation and change
management. Performance, conduct and
behaviour management. Industrial and
employee relations. Human resources
(workforce) analysis and workforce personnel data management. Compensation, rewards, and benefits
management. Training and development
(learning management). Implementation of such policies, processes or standards
may be directly managed by the HR function itself, or the function may
indirectly supervise the implementation of such activities by managers, other business
functions or via third-party external partner organizations. Applicable legal
issues, such as the potential for disparate treatment and disparate impact, are
also extremely important to HR managers.’ ‘Arthashastra identifies four kinds
of people who could be lured; the angry, the timid, the greedy and the
proud.
‘Every good in business
– peace, conquest, order, proper organization, dharma1 (social responsibility
& ethics) and so on depends on the business acquiring wealth and using it
wisely. ‘
"material well
being alone is supreme" Kautilya continued by saying that, the king
(Owner/Manager) will be happy only when his subjects are happy, and,
"Therefore, being ever active, the king should carry out the management of
material well being. The root of material well being is activity, material
disaster its reverse."(A.1.19.35, 34, 47).
In this statement we
find the key to the proper financial management actively according to Varkey.
The goals are always "wellbeing and security" (A.8.1.23, 387)
As translated by
Chaturvedi (2001) in his book Kautilya's Arthashastra "…..He may enjoy in
equal degree the three pursuits of life, charity, wealth and desire, which are
inter-dependent on each other. Any one of these when enjoyed to an excess,
hurts not only the other two, but also itself."
‘Kautilya had listed
several ways by which funds are misappropriated. Some of these frauds relevant
in today's corporate environment are as follows:
(a) Falsification with a
motive of personal profit.
(b) Misrepresentation
(of income received or expense incurred) with a motive of personal profit:
(c) Discrepancies
(arising out of willful fraud) in:
- Personally supervised
work
- Account heads
- Labour and overhead
charges
- Work measurement ‘….
‘Kautilya admitted that
some degree of corruption would always exist, and cannot be scrutinized
perfectly, ' It is possible to mark the movements of birds flying high up in
the sky; but not so is it possible to ascertain the movement of personnel of
hidden purpose.' He therefore recommends strictest punishment, both material
and corporal, as a disincentive to cheat.’
(Financial Management
Lessons from Kautilya's Arthashastra
Chitranka Dalakoti Varkey)
The widespread assumption that technology and
management techniques are value-free needs to be challenged. The apparent failure of technology and management
in accomplishing the developmental objectives is due to an inadequate
appreciation of the historical context in which these techniques emerged and
have been deployed successfully. ‘It suggests that the intervention of advanced
techniques of management may have actually contributed, even if inadvertently,
to further intensification of the state of underdevelopment in many
underdeveloped countries. What is necessary is a recognition that the
developmental objectives of highly advanced societies like that of the United
States and of underdeveloped countries like India are significantly different;
and only by a critical re-ordering of the institution of management can modern
technology and management be harnessed towards these different objectives.’
(Management Movement in India: Towards a Critical History, V. Padaki , Economic
and Political Weekly , Vol. 16, No. 35 (Aug. 29, 1981), pp. M90-M91+M93-M94)
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