Kautilya’s Arthashastra------jaico
Kautilya,
also known as Chanakya, is India’s most illustrious political economist
of all time. He regarded economic activity as the driving force behind
the functioning of any political dispensation. In fact, he went to the
extent of saying that revenue should take priority over the army because
sustaining the army was possible out of a well-managed revenue system.
Kautilya advocated limiting the taxation power of the State, having low
rates of taxation, maintaining a gradual increase in taxation and most
importantly devising a tax structure that ensured compliance. He
strongly encouraged foreign trade, basing it on the premise that for a
successful trade contract to be established, it had to be beneficial to
all. He emphasised State control and investment in land, water and
mining.
Kautilya was a true statesman who bridged the gap between experience and
vision. For Kautilya, good governance was paramount. He suggested
built-in checks and balances in systems and procedures for the
containment of malpractices. Many postulates of Kautilya’s philosophy of
political economy are applicable to contemporary times.