We can describe the discovery of the Arthashastra as a fortunate accident, happening as it did in 1905. The first Sanskrit edition, published in 1909, was very timely. The new century had barely completed a decade and a sense of nationalist pride was developing in India. There were stirrings of a movement for freedom from foreign rule that was gathering momentum. Mahatma Gandhi’s iconic book Hind Swaraj or Indian Home Rule, which he wrote in Gujarati, was published the same year. The English translation of The Indian War of Independence of 1857 by Vinayak Damodar Savarkar also came out. Both books were banned by the British government. Thus, the surge of excitement that the unearthing of an ancient, legendary text aroused, was just in tune with the prevailing political climate.

But what exactly is this legendary text, the Arthashastra, about? While the title literally translates as “science of wealth”, it can be better described as a treatise on the science of governance. Artha, or the pursuit of material gain or prosperity, is considered one of the four purusharthas or aims of life in Hindu philosophy. But the writings of the Arthashastra go far beyond that. This work contains almost everything possible about the art of efficiently administering a country.

It is generally accepted that the Arthashastra was compiled between the second and third century BCE and was not the work of a single individual. Written in Sanskrit, the language of scholars at the time, it consists of 15 books containing 150 chapters and covering 180 topics. The second book is the lengthiest, with 1285 sentences, while the eleventh is the shortest, with just 56 sentences. The chapters are written mainly in prose but conclude with verses. This was the typical style followed in ancient Sanskrit texts. Why is this old treatise considered so important, apart from its historical value? First, the fact that a work of such wide-ranging scope and vision was written in our country centuries ago demonstrates the quality of scholarship and discourse that had evolved in ancient India. Secondly, the vastness of this work is incredible – it covers almost every subject concerning governance in extensive detail. Thirdly, Kautilya shows an approach that is both practical and humanitarian. Lastly, this work provides us with valuable insights into the kind of society that existed in that era.

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What are the main ideas that the Arthashastra covers? These extend from statecraft to economic policy to military strategy. Kautilya gave primary importance to artha or the financial aspect of governance. He also devised a bureaucratic system that addressed practically all the requirements of an efficient administration and a legal system that covered civil and criminal law. Topics such as the education of a future king, his duties, foreign policy, theories on war and peace, markets and trade all find a place in this text.

In addition, the Arthashastra deals with several aspects of social welfare and lays emphasis on dharma, or the code of ethics that binds society, following the traditions of Hindu philosophy. While it discusses a monarchical system, the theories propounded in the Arthashastra can apply to almost any form of government. We may well ask if all these ideas about statecraft were derived from actual practice. There is good reason to believe that Kautilya employed his theories as prime minister under Chandragupta Maurya, the first emperor of India and laid the foundations of a well-governed empire.

The Mauryan empire continued to expand and prosper till the reign of Chandragupta’s grandson Ashoka the Great, and we can well assume that these principles of administering a country, its foreign policy, revenue collection and military strategy contributed immensely to its success. The Arthashastra is an ancient text. Then how can it be considered relevant in contemporary times? Apart from the fact that Kautilya talked about a monarchical system of government, all the other theories of administration, law and order, taxes, social welfare, trade, defence and diplomacy that he proposed are universal and timeless. Indeed, the Arthashastra has been accorded an important place among classic works on the science of government. It has a pragmatic but thoughtful approach to governance.

Kautilya declared, “the ultimate source of the prosperity of the kingdom is its security and the prosperity of its people”. Like the modern welfare state, the Arthashastra displays concern for the common man, the less privileged sections of society, the weak and the elderly and even animals. Interestingly, Kautilya’s interpretation of the three aims of human existence – dharma, artha and kama – differed from that of other philosophers of his time. The general belief was that all three should be given equal importance, as giving too much importance to one would create a disbalance. Kautilya, however, placed artha or economics, above the others and claimed that the other two could not be practised effectively if artha was not placed foremost. For these reasons, to this day, the Arthashastra is consulted, quoted and held up as a manual for good governance. Chanakya Neeti, a widely circulated compilation of his principles, is extremely popular, too.

Excerpted with permission from The Arthashastra for Children, Deepa Agarwal, Puffin India.