Chanakya Neeti on Farmers

Chanakya was a great strategist. Chanakya speaks to Chandragupta about the concept of good governance. According to Chanakya, A successful nation is one where the people have risen above poverty. In-country everybody may not be rich, but they must be happy and satisfied.

One day Chanakya decides to give him some lessons in economics. “How a nation can be wealthy?” Chanakya asked king Chandragupta.

King Chandragupta answered, “by collecting taxes from the people.” “correct. Is there any other way for wealthy strategy?” the king Chandragupta thought for some moment and said, “the fine collected from defaulters also helps to run governance.” Chanakya said, “but I asked a different question to you. The question was about becoming wealthy.”

Chandragupta was still thinking and Chanakya replied, “a nation become wealthy by creating wealth” but king Chandragupta had not understood. Chanakya asked him for a walk.

After some time, both of them left the palace disguised as common people. First, they went to a crowded marketplace. “what do you observe here Chandragupta?” “the place has a great economic activity. Much of the growth of the economy depends on the sales of goods.

“yes but this is not wealth creation.” Chanakya to Chandragupta.

Chandragupta was still confused, and maintain some silence.

Then Chanakya took him to the moneylender. They stood there and saw as many people borrowed the money for many reasons like business, personal requirements.

“what are you able to see here Chandragupta?” “those who needed money, they got it from money lender but often interest paid on return.”

“yes this is true but this is not money creation.” Said Chanakya.

Chanakya took him to third place- field where some farmers were working. “this is where wealth is created. They provide us with food grains. And it is with these that we fill the treasury.”

“through tax collection, we can take care of the citizens and their welfare. We pay ourselves and the government servents with this money and also used for development projects.”

“but Chanakya, the people we saw before also work harder. So what is the difference between them?” Chandragupta to chanakya.

“look at the piece of land of the farmers. It doesn’t yield and grain because no one tills the soil. But the same soil can create wealth-with human endeavor. Without that, it is merely just a useless land.”

This means that human enterprise is more important in wealth creation.

“Exactly. Now your role is to make sure such farmers are getting compensated with good money.”

Wealth creation is different from monetary transactions or revenue collection. It is what happens with human endeavor.