| In Arthasastra, Kautilya shows a knowledge of basic economics that had no parallels in Western economic thought until the publication of Adam Smith’s Wealth of Nations in 1776. Although the king was at the centre of the body politic in Kautilya’s time, Kautilya makes it clear that the king is bound by an implicit social contract and that the ultimate objective of the king, in economic and other affairs, should be to benefit his subjects. Their happiness or welfare should be the prime objective of State policy. As pointed out here, Kautilya’s conception of economics was superior to that of the Mercantilists and the Physiocrats. Given the central position of the Mauryan State in directing economic activity and providing security, the importance of adequate... |
