Kautilya, Amartya Sen & Gopal Krishna Gokhale — Political Economy
Kautilya (Chanakya)
Kautilya, also known as Chanakya or Vishnugupta, was an ancient Indian polymath, philosopher, economist, jurist, and royal advisor. He served as the chief advisor to the founder of the Maurya Empire, Chandragupta Maurya (c. 375–283 BCE).
Key Work
The Arthashastra (c. 3rd century BCE).
Main Contributions
Political Science and Statecraft
The Arthashastra is a seminal text on statecraft, economic policy, and military strategy. Kautilya’s philosophy revolves around the concept of Matsyanyaya (Law of the Fish), where the state’s primary function is to protect the weak from the strong, justifying an all-powerful sovereign.
Realpolitik
He advocated for practical, results-oriented politics, including espionage, alliances, and warfare, prioritizing the security and prosperity of the state.
Economics
He detailed a comprehensive framework for a state-controlled economy, covering taxation, trade, agriculture, and public finance.
Amartya Sen
Amartya Sen is a globally renowned Indian economist and philosopher. He is currently a professor at Harvard University and has made transformative contributions to welfare economics, social choice theory, economic and social justice, and development economics.
Key Award: Nobel Memorial Prize in Economic Sciences (1998) “for his contributions to welfare economics.”
Main Contributions:
Capability Approach: This is his most significant contribution to development economics. Sen argues that development should be measured not just by income/GDP, but by the capabilities and functionings people are able to achieve—such as the capability to be healthy, educated, or politically active.
🇮🇳 Gopal Krishna Gokhale
Gopal Krishna Gokhale (1866–1915) was a prominent leader of the Indian independence movement, a social reformer, and a dedicated public servant. He belonged to the moderate faction of the Indian National Congress.
Role: Regarded as the political guru of Mahatma Gandhi.
Main Contributions:
Moderate Politics: Gokhale advocated for constitutional methods and reform within the existing British structure, believing in gradual change and cooperation to achieve self-governance.
Servants of India Society: In 1905, he founded this society to train national missionaries for the service of India and to promote education, sanitation, health care, and to fight social evils like untouchability.
Kautilya, also known as Chanakya or Vishnugupta, was the chief advisor to the Mauryan emperor Chandragupta Maurya (circa 4th century BCE). His economic theories are primarily detailed in his magnum opus, the Arthashastra (“The Science of Wealth” or “The Science of Statecraft”). Kautilya’s economic system was a highly centralized and pragmatic model focused on maximizing state wealth (kosha) as the foundation for the king’s power and the people’s welfare (yoga-kshema).
Key Features of Kautilya’s Economic Model
Kautilya advocated for a strong, interventionist state that balanced private enterprise with public control.
State-Centric Economy and Varta:
He considered Varta (Economics)—comprising agriculture, cattle-rearing, and trade—to be the source of wealth, essential for state administration (danda).
The state played an active and dominant role in the economy, regulating markets, promoting key industries, and managing public resources.
Public Finance and Taxation:
The treasury (Kosha) was considered the most important element of the state (Saptanga Theory).
He introduced the concept of an Emergency Tax (Pranaya), which could be levied only once in a king’s lifetime during a crisis.
State Monopoly and Regulation:
The state held monopolies over strategic resources like mines, salt, liquor production, and defense equipment to control supply and generate revenue.
He prescribed strict market regulation to prevent hoarding, black-marketing, and price manipulation, ensuring price stability for both consumers and producers.
Agriculture and Infrastructure:
Agriculture was the backbone of the economy, and the state was responsible for its development.
The state invested heavily in public works and infrastructure (roads, waterways, and especially large-scale irrigation projects) to boost productivity and facilitate trade.