Evolution of Economic Thought

 

Economic Policies and Philosophies of Chanakya and Mahavira

Chanakya's Economic Legacy

• Chanakya, an ancient Indian scholar and advisor, championed ethical and moral principles as the foundation for economic activities. As the chief advisor to Chandragupta Maurya, he penned the “Arthashastra” a timeless treatise on statecraft, economics, and political philosophy. He stressed integrity and fairness in business to foster a just and equitable society, a principle still pertinent today given the harm caused by corruption and unethical practices.

• His advice on taxation, advocating for balance between revenue generation and citizen well-being, remains relevant for governments worldwide. Chanakya's focus on well-regulated markets, efficient trade routes, and just weights and measures are critical in our globalized world, where international trade is pivotal.

• Chanakya recognized agriculture's importance and offered policies for increasing productivity and protecting farmers, ideas still valuable to contemporary policymakers. Maintaining monetary stability, whether in coins or digital currencies, remains significant, in line with Chanakya's recommendations.

• He highlighted the state's role in maintaining law and order, ensuring fair trade, and safeguarding the economy from external threats, reinforcing the government's crucial role in creating an environment for economic growth.

• Chanakya encouraged wealth creation through entrepreneurship, investment, and innovation, mirroring modern economic thought. He also advocated for policies against monopolies and for protecting vulnerable communities, emphasizing fair competition and social safeguards.

• Chanakya's economic principles provide insights for today's economic discourse. His focus on ethics, balanced taxation, regulated markets, agricultural productivity, monetary stability, state involvement, wealth creation, international trade, and protection of the vulnerable remains applicable, offering guidance toward a more equitable and prosperous society.

 

Mahaveera's Economic Legacy

• Mahaweera, an ancient philosopher and economist, advocated for self-sufficiency, sustainability, and social welfare. He argued that individuals and communities should strive to produce what they need within their own means to reduce dependence on external sources. This idea is relevant today as we face challenges such as climate change and resource depletion.

• Mahaweera emphasized conducting economic activities in a way that does not harm the environment or deplete natural resources, aligning with the global concern for sustainable development. By adopting sustainable practices, we can mitigate the negative impacts of economic activities on the environment and work towards a more sustainable future.
• Furthermore, Mahaweera believed that economic systems should prioritize the well-being of all members of society, particularly the most vulnerable. This principle resonates in today's world where income inequality and social injustices are prevalent. By prioritizing social welfare, we can work towards a more equitable society where everyone has access to basic needs and opportunities for growth.

• Incorporating Mahaweera's principles into our economic systems can lead to a balanced and prosperous future. By striving for self-sufficiency, sustainability, and social welfare, we can create an economically successful system that is environmentally conscious and socially just. This approach will help us address the pressing challenges of our time and build a better world for future generations.

Written by: Dismi Hansika/Buddhin Waidyanatha

References

Kangle, R. (1960). Chanakye's Arthashastra.

Krishnaswamy, K. S. (2008). Economic Thought in India. A Historical Perspective.