Financial Management for a 5 Star Hotel Essay Example for Free

Financial Management for a 5 Star Hotel Essay The service to be marketed is a 5 Star hotel with 380 luxury rooms supported by a range of food and beverage outlets. Located in Dubai, the domestic market will be considered to be the GCC, given the accessibility via short-haul flights and that currencies are broadly all pegged against the US Dollar, and therefore do not fluctuate against each other. The marketing strategy will cover sales in this domestic market as well as a range of global key feeder markets. Through analysis and comparison with economic theories, recommendations to guide the marketing strategy have been made. These point to focussing more strongly on the domestic market based on the higher levels of government spending, backed by a high oil price, the relatively low impact of cross elasticity with airfares and the lack of currency fluctuation risk for sales. Firstly I will consider the cost of production and some scenarios which may impact on the marketing strategy. The main costs in providing a hotel service are labour, rent and upkeep, energy and room servicing supplies (such as linen and tea amp; coffee). In terms of predicting costs for the first half of 2012, it appears likely the cost base will stay fairly stable. All costs are incurred in the UAE, with all items sourced in the local market. The major items, rent, labour and room servicing, are on long term agreements which are already fixed. Longer term macroeconomic effects may impact these, for example expat labour from Asia may be available cheaper next year in the global employment market if the world economy slips into recession. Unit energy costs are variable and could be influenced by macroeconomic factors affecting the oil price. These are difficult to predict, however I have considered that a global slowdown in the period could lead to less demand, forcing the oil price to decline. At the same time, continued tension in the Gulf, particularly around the Straits of Hormuz, could lead to upwards pressure on oil prices. On balance, for this exercise I have assumed that energy prices in Dubai with remain broadly flat. In summary, the overall cost base for the hotel service appears to be relatively flat for the first half of 2012. To assess the service type, I have analysed the price, income and cross price elasticities for the hotel service. I have observed from personal experience in the hotel market in Dubai that a 33% reduction in room rates results in almost doubling of demand, suggesting a relatively high price elasticity of demand of -3. This provides evidence that demand in the hotel market in Dubai is very sensitive to room rates. Whilst the service is considered to be a luxury item, the global tourist market is highly competitive. The income elasticity of demand for such a service is likely to be relatively high, given a luxury hotel’s status as a non-essential item. Since it is a global market it is complex to assess how individual income effects will influence each feeder market, although I would expect that this elasticity will generally be greater than 1. For residents of some countries with high GDPs, such as the GCC, I would anticipate a luxury hotel in Dubai may have a slightly higher income elasticity of demand than for countries with a very low GDP, where increases in income may still not be enough to afford this service. When considering possible cross elasticities, a key factor influencing hotel demand in Dubai is likely to be the cost of air travel to the UAE. Since such a high proportion of guests arrive by air, some from far away with relatively large airfares, there is likely to be a high cross price elasticity between demand for hotel rooms and the price of air travel. Looking to the first half of 2012, possible effects on aviation prices may include additional aviation taxes, such as the EU carbon tax [1]. This cross price elasticity may therefore result in less demand for McKenzie Group’s service from Europe. Assessing the market structure for the McKenzie Group Hotel in Dubai, it is highly competitive. For 2012 STR Global said â€Å"most rooms planned to open in the luxury segment (11,123 rooms amp; 34 projects) and upper upscale category (10,198 rooms amp; 31 projects). The new supply growth in 2012 is expected to reach 9. 6% causing both rates and occupancy to slow down† [2]. Given the range of hotels and brands, my assessment is that the market is near to a perfect competition. Competitive strategies are likely to include discounted room rates, special offers for additional added benefits (such as complimentary transfers, room upgrades and theme park tickets), and increased sales and marketing efforts. Given the analysis above, The McKenzie Group will need to compete on pricing supported by investment in sales and marketing campaigns. In order manage the cross price elasticity risk with aviation prices, The Group should look to focus efforts on the non-air travel local market and pursue pricing opportunities for packages with airlines to give competitive overall costs to global customers. The market for The McKenzie Hotel Group is mainly segmented geographically, location of customers is the biggest influence on buying behaviour. This can be grouped into four key feeder markets: Asia Pacific (10% of sales), Europe (40%), GCC (40%) and North America (10%). Demographically, gender has no noticeable effect and buyers from all markets tend to be middle aged professionals. In the European market government-level economic activity is likely to dominate prosperity given the current crisis. High debt and deficit levels in certain countries will lead to big reductions in government spending and may reduce consumer confidence. Combined with general forecasts for flat growth, if not recession, in the first half of 2012, this could have a large negative impact on overall demand. The GCC market however could be buoyant with high levels of government spending activity, mainly on infrastructure backed by oil and gas revenues. There may also be additional government spending on social schemes as a result of the Arab Spring in Levant countries. As a result of this activity, the domestic market is likely to remain strong. Given the analysis above on the economic climate in key feeder markets and the effects of government spending, The McKenzie Group should target the domestic GCC market much stronger in the first half of 2012. Given the breadth of global feeder markets, a variety of currencies must be considered in relation to pricing effects for customers. Costs are all incurred in UAE Dirhams so the main impact on currencies is not on costs but on sales. Since the Dirham and GCC currencies are pegged to the US Dollar there is no consideration required currency fluctuations with the domestic (or North American) market. However some currency fluctuations could have a major impact on sales in the first half of 2012. The Eurozone crisis may reduce the value of the Euro against the Dollar (and hence the Dirham) which will make hotels in Dubai more expensive for customers in the Eurozone market. As well as the cost of rooms, customers will also be affected by the relative increase in costs for anything bought locally, such as food and entertainment. This risk adds to the argument that Europe is not a good prospect for sales for the first half of 2012. Since the UK is not in the Eurozone its currency (Sterling) moves independently to the Euro and given that it is traditionally a strong market for McKenzie Group, this must be considered. Since the UK may enter recession again in the first half of 2012 it seems unlikely that interest rates will be increased from their current low rates. In addition Bank of England actions might also reduce the value of Sterling and so holidays in Dubai will seem relatively expensive for UK customers. McKenzie Group should reduce its reliance on the UK market in the first half of 2012 to help protect against this risk. Having analysed various macroeconomic and microeconomic influences on costs and sales for McKenzie Group Hotels in Dubai in the first half of 2012, there are some clear recommendations for the marketing strategy. Costs are anticipated to be reasonably stable since they are either already fixed or are incurred locally. Sales are likely to be much less stable. Given the high price elasticity on demand and the near perfect competition in the market in Dubai, price strategies will be key. For sales from the European market in particular, poor economic conditions, low levels of government spending, the risk of weak currencies, and cross elasticity with aviation costs, could all have a negative impact on sales. In contrast, these effects have much less, if any, impact on the domestic GCC market which is also likely to be buoyant from government spending. It is recommended to invest sales effort in the GCC for the first half of 2012.

Reasons for European Exploration to the Americas Essay Example for Free

Reasons for European Exploration to the Americas Essay There were many reasons for European exploration. As Europes demand for Eastern goods grew Europeans began to search for new trading routes to reduce the expenses. Another reason for exploration was the arrival of Marco Polo. When he returned from China, he came back with stories of the East. In addition, each empire wanted to expand its empire and acquire colonies and gold in order to fulfill the imperialism principle, which stated that a strong empire must have the most bullion or silver. Moreover, Europeans also set off to explore the land in order to spread Catholicism. In other words, God, gold, and glory stated and summarized the Europeans motives for exploration. The Portuguese and Spanish empires were one of the first to start exploring the New World. The Portuguese exploration was one of the first European explorations. The Portuguese started sending voyages to find new trading routes. The Portuguese also established trading posts along the African shore for the purchase of gold and slaves. The Portuguese established plantations on the African coastal islands of Madeira, the Canaries, Sao Tome, and Principe. The Portuguese pushed farther southward in search of the water route to Asia. DÃ ­as was the first to get to the southernmost tip of the African continent in 1488. Ten years afterwards Vasco da Gama reached India, making him the first to first to find a route to India by going around the tip of Africa or the Cape of Good Hope. Other Portuguese explorers included Magellan, who was the first to sail around the world. At the end, Portugal discovered an eastern route to India that doubled the Cape of Good Hope. Since the Portuguese set trading post and controlled the only trade route then, the Spanish set out to find their own trade route. Because the Portuguese controlled the eastward route, Columbus believed that it was possible to reach the Spice Islands by heading westward since the Earth was round. Columbus persuaded the Spanish king and queen and they granted him three ships. Heading westward, Columbus discovered a New World. He discovered the Caribbean Islands and then the Americas, but he thought he reached the Indies. This was the greatest accomplishment or rather the best failure in the Spanish exploration. The news of a New World spread like a forest fire throughout Europe and the race for colonies between Portugal and Spain began. Each country started to conquer the ancient civilizations and exploit the continents raw material; this often caused disputes over colonies and territories. In order to end disputes, Spain and Portugal formed the Treaty of Tordesillas. This treaty divided South America into two vertical divisions; the lion share went to Spain, but the Portugal received compensating territory in Africa and Asia, as well as the title to lands that one day would be Brazil. The Americas after 1492 would never be the same. In conclusion, the Portuguese exploration found a new route around the southern African tip. The Spanish exploration found the New World, which was considered a new source of raw material. After the discovery of the New World, the Spanish and Portugal raced to establish new colonies; the New World would never then be the same after 1492. www.stemnet.nf.ca/CITE/exage.htmAmerican Pagent 13e

Kautilyas Arthashastra and War

Kautilyas Arthashastra and War CHAPTER I INTRODUCTION 1. Arthashastra Kautilya on War. Kautilya was a proponent of a welfare state but definitely encouraged war for preserving the power of the state. Kautilyas Arthashastra is a book of pure logic, not taking any religious aspect into account. It deals with the various subjects directly and with razor like sharpness. The Arthashastra totally contains 5363 Sutras, 15 books, 150 chapters, and 180 Sections. The 15 Books contained in the Arthashastra can be classified in the following manner: Book 1, as a book on Fundamentals of Management, Book 2 dealing with Economics, Books 3, 4 and 5 on Law, Books 6, 7, 8 describes Foreign Policies. Books 9 to 14 concerns subjects on War. The 15th book deals with the methodology and devices used in writing the Arthashastra. What is interesting to note is that the topic of war is the last subject in the Arthashastra. War is always the last option. However, a war in certain cases is unavoidable, hence, preparation and maintenance of the army, the right moves in the battle field and warfar e strategies all are essential in the defence of a country, subjects which Kautilya tackles with the extra sensory precision. Economics in Statecraft and War. Kautilya thought that the possession of power and happiness in a state makes a king superior hence a king should always strive to augment his power. Kautilya propounded that war is natural for a state. He said that, Power is strength and strength changes the minds[2].Economic power has helped shape statecraft. This element of power is very flexible. Thi s aspect of the power is one which Arthashastra concentrates on and has highlighted Artha, the economics of the state in the pursuit of power. The quest for power is driven by the satisfaction of the king and his subjects in all the spheres of material well being and social acceptance. This can be achieved by a progressive and robust economy. A corollary to this fact is that the economics of a state can be used to progress the influence of the state over international issues and also used to augment the war waging potential of the state. Whether a nation has a large or small military, its leadership does understand economics. Economics is a great tool to create conditions for further action or force a nation to change behaviour. There are constraints prevelant in the pursuit of sound economy to further the war waging capability of a state and in turn achieve te power . the resolution of these constraints is the enigma which Kautilya unraveled through Arthashastra. 2. Kautilya presents that for a King to attain these three goals he must create wealth, have armies and should conquer the kingdoms and enlarge the size of his state. This is quite interesting because he in a way does believe that a states superiority is in its military and economic might which is what later philosophers and rulers have followed. In the case of war, Kautilya advocates the King to be closely involved in the science of war. 3. Classifications of War. Kautilya advocated three types of war: Open war, Concealed war and the Silent War[3]. Open war he describes as the war fought between states, concealed war as one which is similar to guerilla war and Silent war which is fought on a continued basis inside the kingdom so that the power of the King does not get diluted. He believed that there were three types of kings who go into warfare and it is important to understand the distinction between the types of kings and the appropriate warfare strategy to be selected. 4. Kautilya propounded that state is not considered a massive entity but as one which combines various internal constituents the king , the fortified city ,the countryside, the treasury and the army. The power with which a state can promote its own interests over other states in the neighbourhood depends on how close to ideal the internal constituents are. The four devices Kautilya used for deriving practical advice were: relative power, deviations from the ideal, classification by the type of motivation and the influence of the unpredictable. This is the core what Arthashastra addresses as the endeavour is to resolve all the constraints that arise in the quest of the state to gain ascendency and enhance its power. 5. War fighting tactics. Kautilya was also very harsh in narrating the exact methods of fighting a war and use of various tools to reduce the strength of a state. Kautilya wrote in detail explaining the war strategy because he was a strong proponent of social structure. He vehemently defends the state and believes that religion and morals are supposed to serve the state. In Kautilyas concept of war, chivalry does not have any place and he is a realist. Kautilya in his Arthashastra and believes that war is a means to an end for wealth and stability. He provided the understanding to resolve all the constraints which emerge to achieve the ends. Kautilya has argued that the primary constraint that a state faces is the economic constraints and many a war has been lost for want of resources. The Arthashastra has guided the king in eliminating the constraints, primarily the economic constraints in the furtherance of its interests. The use of economic strength as a means of statess power has also been highlighted by Kautilya. 6. Kautilya also took the societal structure and Kings power as given and never challenged it. His focus was not on war per se but on the strategy and tactics of war which elaborates in his work. In describing his opinion on war, he has been very right in saying that a state which seeks power is in war all the time and economy is the most definitive aspect which governs the quest of the state for power. CHAPTER II METHODOLOGY Statement of the Problem 1. The aim of this paper is to investigate the modus operandi for the resolution of the economic constraints, imposed in an armed conflict during the Arthashastra period and its concurrence in the present times. Justification for the Study 2. Constraints in War. Armed conflict has many facets attached to it and it is not a mere attack and capture as the folklore puts it to be. The constraints as they emerge, from the time of planning of a battle till the time the armies face each other at the outbreak of the hostilities, are what the commander in the battlefield has to counter and work out the resolution of each of the prevalent constraints. The constraints as defined for the evaluation of this research is akin to the risks or uncertainties as they present themselves in the battlefield and which may govern the outcome of the war or the projection of the true power of the nation state. The constraints present as tangible constraints and also intangible blocks which have to be resolved in order to progress the war and ultimately achieve victory. The tangible constraints can be classified as the economic requirements for war effort to sustain and the logistics support required for the armed forces and the intangibles are morale, leadership and the training of the troops. 3. Evaluating Constraints. The fog of war has prompted strategists throughout history to grapple with the concept of constraints/risk and methodologies for its assessment. There will always be uncertainty. It often will be immeasurable. The very nature of war and conflict and the increasingly complex strategic environment ensures that this is so. Is risk/constraint assessment simply the .comfort level that senior planners experience as they assess key variables? [6] Strategic risks then is the probability of failure in achieving a strategic objective at an acceptable cost. The concept is simple to articulate and easy to understand. But, as in war, the simplest things in strategy are the most difficult. 4. Constraints Management Arthashastra . The Arthashastra is essentially a treatise on the art of government and specially focuses on aspects of internal administration and foreign policy. It has been translated as Science of Politics, Treatise on Polity or the Science of Political Economy. These have been translated over time in the subjects of Timeless Laws of Politics, Economy, Diplomacy and War. Kautilyas treatise encapsulates in many ways, the complexity of the modern times with the constraints faced during war being the same as were relevant in older times. The problems that existed then, persist in a more widespread and magnified manner in the contemporary world. The principles of Constraint resolution in the Military strategy followed by Kautilya are also relevant in the contemporary world. Study of Kautilyas war strategy will provide an insight into the knowledge of warfare in ancient India and would also throw up important aspects of the constraints to warfare in the moder n world, besides enhancing understanding and pride in our country and its thinkers. 5. Hypothesis. The growth of the nation state has been based on the gain of the economic power and the shift in the economic potential. This has resulted in the economics of war emerging as the single most important constraint in the war waging potential of a nation state. The concurrence of the economic power with the military power of a nation state has been the cornerstone of the present day world powers. Kautilya in Arthashastra had realised the prominence of economy in the statecraft and the war strategy. How relevant those postulates are in the modern day strength of a nation state? The ability of the state to exert its influence for the furtherance of the national interests has been defined by the resolution of the economic constraints. The military has become the national instrument that can enforce the economic objective and thus the military power of a nation. Therefore the role of the economic power and the resolution of the economic constraints of a nation are primary for the acceptance of a Nation-State as a world power. 6. Scope. The scope of this paper is restricted to study and analysis of the economics of war. The financial constraints in the war potential of the State and the methods adopted by Kautilya to resolve those constraints. The study will attempt to identify possible constraints in the war potential of the State and present the relevance of Arthashastra in constraint management with the modern day constraint resolution. It will be further endeavoured to understand the lacunae in the present day approach and investigate the Arthashastra for solutions. Thereafter, the paper will focus on assessing the perceived link between economic power of the state and the military power and how one is derived from the other. The resolution of the economic constraints as practiced during Kautilyas time and in the modern times will also be discussed. 7. Methods of Data Collection. There are many books written translating the Arthashastra. Modern Warfare strategy has many parallels in the theories as propounded by Kautilya. Research on this topic will be mostly based on the translations of Arthashastra and its relevance with the modern day approach to the resolution of the economic constraints in the war waging potential of the nation state. Sources are likely to include the following:- (a) Books written by eminent authors and translation of the Arthashastra by various authors. (b) Articles in periodicals and Journals. (c) Reports of International strategists and researchers on Arthashastra. (d) Websites featuring proceedings of various conferences and meetings on the subject. (f) Papers published or presented by various organisations on the subject. 8. Organisation of the Dissertation. This study is envisaged to be organised under the following chapters:- (a) Introduction. (b) Methodology. (c) Constraints in warfare -Drawing parallels with Arthashastra. (d) Arthashastra approach to economics of war. (e) Derivation of Military power from economic power. (f) Resolution of economic constraints to war potential. (g) Conclusion CHAPTER III CONSTRAINTS IN WARFARE DRAWING PARALLELS WITH ARTHASHASTRA 1. Interests of the nation state. The behavior of a nation-state is rooted in the pursuit, protection, and promotion of its interests. The interests of the nation state are to be accurately identified to understand much of its behavior vis-ÃÆ'  -vis other states and actors in the international system. All states have common interests like its territory, its people, and its sovereignty. While forces outside their own boundaries affect all countries large and powerful, small and weak, a certain level of sovereignty is critical to the notion of national interests. A country that is unable to exercise effective control over its territory and its peoples, relatively free from the intrusion of other nation-states into its internal affairs, is lacking in this critical element of sovereignty. War is an instrument of national policy, albeit a violent one. 2. Arthashastra view point. Kautilyas Arthashastra was a science of politics intended to teach a wise king how to govern. In this work, Kautilya offers wide-ranging and truly fascinating discussions on war and diplomacy, including his wish to have his king become a world conqueror, his analysis of which kingdoms are natural allies and which are inevitable enemies, his willingness to make treaties he knew he would break, his doctrine of silent war or a war of assassination against an unsuspecting king, his approval of secret agents who killed enemy leaders and sowed discord among them, his view of women as weapons of war, his use of religion and superstition to bolster his troops and demoralize enemy soldiers, the spread of disinformation, and his humane treatment of conquered soldiers and subjects. 3. Kautilya thought there was a science of warfare, presumably part of a larger science of politics. Kautilya advised the king not to leave military matters entirely to others: Infantry, cavalry, chariots and elephants should carry out practice in the arts outside (the city) at sun-rise. The king should constantly attend to that, and should frequently inspect their arts.[9] Open war is obvious, and concealed war is what we call guerrilla warfare, but silent war is a kind of fighting that no other thinker could propound and thus Kautiliya was much ahead of his times and this makes his thinking relevant even today. Silent war is a kind of warfare with another kingdom in which the king and his ministersà ¢Ã¢â€š ¬Ã¢â‚¬ and unknowingly, the peopleà ¢Ã¢â€š ¬Ã¢â‚¬ all act publicly as if they were at peace with the opposing kingdom, but all the while secret agents and spies are assassinating important leaders in the other kingdom, creating divisions among key ministers and classes, and s preading propaganda and disinformation. 4. Kautilya advised the king that When he is superior in troops, when secret instigations are made (in the enemys camp), when precautions are taken about the season, (and) when he is on land suitable to himself, he should engage in an open fight. In the reverse case, (he should resort to) concealed fighting.[12] 5. Overriding the constraints. Speaking of justice to an enemy about to conquer is the last tactic of the weak, willing to try all tactics, even desperate ones, Kautilya made up a powerful speech to be given by a weak king to the king about to conquer, a speech offering a mixture of moral exhortation and arguments based on the self-interest of the conqueror. In this speech, Kautilya depicted an envoy saying to the conquering king that he should accept a treaty and pay regard to [his] spiritual and material well-being; that conquering a kingdom willing to surrender on reasonable terms is an impious act; that battle is not in the conquering kings self-interest, since to fight with brave men who have given up all hope of life is a rash deed and the conqueror will lose troops and material good; that such a conquest will only unite his enemies all the more; that the conquering kings enemies are only waiting for him to be weakened in order to attack; that he himself is risking death; that war itself in which men on each side die is an impious act; and that he should not listen to enemies masquerading as friends who are giving him false advice as to his real self-interest.[13] Kautilya demonstrated the realities of diplomacy and war as well as the ineffectiveness of moral pleas when confronted by a superior power. Kautilya wanted legions, but he wanted them preceded by elephants, which acted in the ancient world a bit like modern tanks. 6. Kautilya considered the treasury most valuable in raising an army, procuring equipment (including elephants), and preparing for war. After the treasury and the army, Kautilya focused on the importance of the fort, on which depends the treasury, the army, silent war, restraint of ones own party, use of armed forces, receiving allied troops, and warding off enemy troops and forest tribes. And in the absence of a fort, the treasury will fall into the hands of enemies, those with forts are not exterminated.[15] 7. Constraint resolution. Kautilya was consistent in ranking the importance of the treasury, the army, and forts, but it seems that the people, or a popular army, are the most important of all. As he put it, one should seek a fortress with men.[19] 8. Kautilya apparently believed that an army of kshatriyas was best; warriors were supposed to find their highest duty and pleasure by dying in battle. Kautilya clearly argued that sections of the army should consist mostly of persons from the same region, caste or profession. It was a very clever idea to be mooted as common sense, shows that he is suggesting that men of an army should know one another, that an army of friends fighting side by side is the most difficult to defeat. On the subject of the kings location during battle, for example, he wrote: A bare army, without standards, consisting of warriors related as fathers, sons and brothers, should be the place for the king. An elephant or a chariot should be the vehicle for the king, guarded by cavalry. (Kautilya wanted a man who looked like the king to lead the army into battle.) And thus, a kings power, for Kautilya, is in the end tied to the power and popular energy of the people, without which a king can be conquered, for n ot being rooted among his subjects, a king becomes easy to uproot.[20] Although Kautilya wrote of using money to raise an army and even of purchasing heroic men, he was not advocating mercenaries who fought only for pay, but he was merely outlining the cost of paying, supplying, and feeding soldiers. He believed that hereditary troops are better than hired troops; in other words, troops made of men born in the kingdom and thus loyal to the king since birth are better than strangers fighting for money. 9. Contemporary school of thought. While military power may be the primary tool a nation uses to wage war, it is not the only one available. Military power, together with economic and political power, may be used to impose ones will upon an opponent. These other elements of national power, such as economic or political, are linked with military action at the national strategic level and passed to the operational and tactical levels of military actions through constraints or limitations on the use of force. Nevertheless, these other elements of power are not fully integrated at the lower levels of war. In the Marxist tradition, Svechin included the possibility of war on economic and social fronts as well as on a military front. [21] The actions along all fronts must be fully integrated and in accord with the political goals of the struggle. The use of diplomatic efforts to preclude and enemy alliance or a second hostile (military) front and economic efforts to insure sufficient financ ial resources for the conduct of combat operations. 10. While Kautilya had propounded the postulates for constraint management in warfare in the ancient times but the relevance with the contemporary thought is startling. Military power being only one of the instruments of national power has been highlighted by Kautilya and the same thought is holding today. The resolution of the constraints and overriding of the bottlenecks faced by the commander in the battlefield have their genesis in the employment of all the instruments of national power towards conflict resolution and that is why Arthashastra has been regarded as the epitome of statecraft in all the spheres. If decisive military force is used only as a last resort, after extensive diplomatic, economic, political, and even military power short of actual war have failed to break the will of the enemy, a quick and well placed application of military force would leave little opportunity for the implementation of further nonmilitary initiative. One must never lose sight of the overall objective of warfare which is to get the enemy to do ones will. This may be best achieved through a thoughtful and complete linkage of all elements of national power. With that linkage brought down to the operational level, chances for a long-lasting victory will increase dramatically. This is where Arthashastra and the present day war strategy are concomitant. CHAPTER IV ARTHASHASTRA APPROACH TO ECONOMICS OF WAR 1. Economics of the nation state. Economic power has become a very powerful tool to enhance the capabilities of a nation and limit those of an adversary. However, as nations become more intertwined through globalisation, they become more vulnerable to disruptions in their economies, manmade or natural, due to reliance on foreign sources of raw materials, components, finished products, or key services. A nation can also use its economy to try to defeat another power. The nation can use its economic power in attempts to destroy a targets capability to take certain actions or destroy its ability to project power. Although physical defeat of the enemy is more often associated with military operations, economic means are also viable to support the elimination of a nations ability to take certain actions. 2. A nations ability to provide resources to research, develop, and further educate their people can lead to new applications of science and knowledge to solve problems in other words, technology. Technological advances can replace existing weapon and support systems to enhance or expand war fighting capability. Acquiring technology through a nations own human resources or with capital resources can allow the nation to make great leaps in economic progress. 3. Arthashastra view of economy as precursor to military power. Kautilya emphasised that, the three kinds of powers intellectual, compelling, motivating are essentially and unavoidably required to be developed and employed in a manner that they complement each other. None can be used in isolation. According to Kautilya the main aim of any state is to increase ones power, mainly at the cost of the natural enemy. This increase in power is essentially the first step in the realisation of the ambition to conquer the world. However, Kautilya also specifically mentions that the most important factor that must be weighed before starting is the gain expected from the confrontation and the losses likely to be suffered. Normally, the gain that is to accrue should far outweigh the losses in men, animals and expenses in cash and grains. Thus Kautilya professed a thoughtful approach to the cause of expanding ones kingdom and always kept the focus on resolution of the economic constraints in the w ar waging capability of the state. He has also stressed that the king is duty bound to ensure, that the people of his kingdom are happy and content, because, a happy kingdom is likely to be prosperous. He further states that a prosperous and wealthy state is unlikely to succumb to another even in case of a conflict. 4. Kosa or the Treasury. The fifth most important element of the state is the treasury according to Kautilya. All activities of the state depend on finance and therefore sufficient attention needs to be given to the treasury. Kautilya considered the treasury most valuable in raising an army, procuring equipment (including elephants), and preparing for war. After the treasury and the army, Kautilya focused on the importance of the fort, on which depends the treasury, the army, silent war, restraint of ones own party, use of armed forces, receiving allied troops, and warding off enemy troops and forest tribes. Kautilya lays down various causes that may contribute to the growth or reduction of the treasury. Kautilya says The wealth of the state shall be one acquired lawfully either by inheritance or by the kings own efforts. He further adds that the treasury should be rich enough to withstand any calamity especially when the state has no income for a long time. 5. Managing the economy for power Arthashastra approach. Management of the state necessitated realism, not idealism. It required the prudence and precise calculation of measures undertaken alongside their short and long-term consequences, which formulated the theoretical beginnings of economics: Wealth will slip away from that childish man who constantly consults the stars: the only guiding star of wealth is itself; what can the stars of the sky do? Man, without wealth, does not get it even after a hundred attempts. Just as elephants are needed to catch elephants, so does wealth capture more wealth.[22] Public welfare was contingent upon the strength of the state. The latter was achieved by internal development or territorial expansion, both of which were realized through power.[24] Hence, the prime motive of the state was the never-ending pursuit of artha. It is only after dedicating its energies to this end, can the state or king then move on to fulfilling dharma and kama. As such, the Arthashastra provides extensive coverage on the overall economy, which includes: infrastructure (roadwork, irrigation, forestry, and fortification), weights and measurements, labor and employment, commerce and trade, commodities and agriculture, land use and property laws, money and coinage, interest rates and loan markets, tariffs and taxes, and government expenditures and the treasury. The high level of detail dedicated to these areas demonstrates the remarkable organisation and centralisation of the state idealised in the Arthashastra, and it also supports the view that the information contained in the text is a compilation of works that have endured over long periods of trial and er ror. 6. The Arthashastra is surprisingly calculated on every minute detail and economic function the exact number of panas[25] is provided for every salaried position, legal ramification, commodity, and livestock. Economics was regulated through such central planning and the highly detailed attempts at identifying the optimal amount for every economic function stresses this constant strive towards efficiently improving the overall utility and welfare of society. Along with prudence and careful calculation, the state is advised to be extremely active or energetic in managing the economy, as the Arthashastra states that, The root of material well-being is activity, of material disaster its reverse. In the absence of activity, there is certain destruction of what is obtained and of what is not yet received. By activity reward is obtained, and one also secures abundance of riches.Similarly, a different verse in the same chapter advocates the direction of such activity towards improving publi c welfare. Though seemingly liberal and humanitarian, this too had a very important economic basis. Hence, dedicating resources to the lower rungs of society also strengthened the peripheries of the state, which in turn actuated territorial expansion. Furthermore, providing amenities for the poor masses indirectly stimulated population growth, and thus, the overall growth of the state and economy in the long run. Hence, there is a lot of truth in the verses in which the Arthashastra states that it is the people who constitute a kingdom; like a barren cow, a kingdom without people yields nothing. The emphasis on population growth for indirectly achieving economic prosperity is also hinted elsewhere in the text, in which the Arthashastra strongly prohibits premarital sex and adultery and instead encourages fertility via rewards and punishments framed within the legal system. Central planning was directed towards maintaining stability, order, and efficiency in the economy. 7. Kautilyas Principle and Aim of Economy Artha can therefore be summed up as Peace can be maintained by making war difficult and costly for the enemy through the balance of power achieved through alliances. 8. Contemporary perspective. Whilst the basis of exerting power of any country has been that of expansion in the last twenty odd years the focus has shifted from territorial expansion to one of economic expansion. There are a number of examples of countries or coalitions trying to exert pressure on other countries to ensure the protection of their own economic interests. The engagements between all the countries of the world bear testimony to the fact that almost all parties have been trying to protect their own interests in dealing with others. The principles enumerated by Kautilya in his policy of Samdhi or Treaty have almost universal application today. Countries today are indulging in more and more treaties or accords than ever before to safeguard their own interests. 9. Kautilya also mentions that war should be declared as a last resort and that all other means like sama, dana, and bheda (conciliation, gifts/bribes, dissension) should be implemented towards averting war. In other words Kautilya prefers putting pressure on the enemy without breaking the peace. These very principles have been laid down in Chapter I of the United Nations Charter, where article I states To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace. 10. This brings forth the justification of the well being of the society as the predominant factor since the ancient times till date. Also, the diversion of the resources meant for the well being of the society towards the war waging potential without the exploitation of all the options towards resolution is being despised upon. This was relevant during Kautilyas times and is as relevant today. Though economy is a major constraint in the war waging potential of a nation state, and all efforts are made by the state to strengthen this instrument of national power prior to gaining the military ascendency, it is also proving to be a major restraint in controllong the expansionist attitude of states since ancient times. CHAPTER V DERIVATION OF MILITARY POWER FROM ECONOMIC POWER 1. Economic power. Economic power can be defined broadly as the capacity to influence other states through economic means. It is composed of a countrys industrial base, natural resources, capital, technology, geographic position, health system and education system. 2. Military power. Military power is the capacity to use force or the threat of force to influence other states. Components of military power include number of divisions, armaments, organisation, training, equipment, readiness, deployment and morale. 3. Power is an elusive concept. In the historical perspective, military power has been paramount and economic power a luxury. This has slowly changed to the point that the two roles have become interchangeable. A countrys military capability is derived from its economic capacity. A countrys economic capacity also de Kautilyas Arthashastra and War Kautilyas Arthashastra and War CHAPTER I INTRODUCTION 1. Arthashastra Kautilya on War. Kautilya was a proponent of a welfare state but definitely encouraged war for preserving the power of the state. Kautilyas Arthashastra is a book of pure logic, not taking any religious aspect into account. It deals with the various subjects directly and with razor like sharpness. The Arthashastra totally contains 5363 Sutras, 15 books, 150 chapters, and 180 Sections. The 15 Books contained in the Arthashastra can be classified in the following manner: Book 1, as a book on Fundamentals of Management, Book 2 dealing with Economics, Books 3, 4 and 5 on Law, Books 6, 7, 8 describes Foreign Policies. Books 9 to 14 concerns subjects on War. The 15th book deals with the methodology and devices used in writing the Arthashastra. What is interesting to note is that the topic of war is the last subject in the Arthashastra. War is always the last option. However, a war in certain cases is unavoidable, hence, preparation and maintenance of the army, the right moves in the battle field and warfar e strategies all are essential in the defence of a country, subjects which Kautilya tackles with the extra sensory precision. Economics in Statecraft and War. Kautilya thought that the possession of power and happiness in a state makes a king superior hence a king should always strive to augment his power. Kautilya propounded that war is natural for a state. He said that, Power is strength and strength changes the minds[2].Economic power has helped shape statecraft. This element of power is very flexible. Thi s aspect of the power is one which Arthashastra concentrates on and has highlighted Artha, the economics of the state in the pursuit of power. The quest for power is driven by the satisfaction of the king and his subjects in all the spheres of material well being and social acceptance. This can be achieved by a progressive and robust economy. A corollary to this fact is that the economics of a state can be used to progress the influence of the state over international issues and also used to augment the war waging potential of the state. Whether a nation has a large or small military, its leadership does understand economics. Economics is a great tool to create conditions for further action or force a nation to change behaviour. There are constraints prevelant in the pursuit of sound economy to further the war waging capability of a state and in turn achieve te power . the resolution of these constraints is the enigma which Kautilya unraveled through Arthashastra. 2. Kautilya presents that for a King to attain these three goals he must create wealth, have armies and should conquer the kingdoms and enlarge the size of his state. This is quite interesting because he in a way does believe that a states superiority is in its military and economic might which is what later philosophers and rulers have followed. In the case of war, Kautilya advocates the King to be closely involved in the science of war. 3. Classifications of War. Kautilya advocated three types of war: Open war, Concealed war and the Silent War[3]. Open war he describes as the war fought between states, concealed war as one which is similar to guerilla war and Silent war which is fought on a continued basis inside the kingdom so that the power of the King does not get diluted. He believed that there were three types of kings who go into warfare and it is important to understand the distinction between the types of kings and the appropriate warfare strategy to be selected. 4. Kautilya propounded that state is not considered a massive entity but as one which combines various internal constituents the king , the fortified city ,the countryside, the treasury and the army. The power with which a state can promote its own interests over other states in the neighbourhood depends on how close to ideal the internal constituents are. The four devices Kautilya used for deriving practical advice were: relative power, deviations from the ideal, classification by the type of motivation and the influence of the unpredictable. This is the core what Arthashastra addresses as the endeavour is to resolve all the constraints that arise in the quest of the state to gain ascendency and enhance its power. 5. War fighting tactics. Kautilya was also very harsh in narrating the exact methods of fighting a war and use of various tools to reduce the strength of a state. Kautilya wrote in detail explaining the war strategy because he was a strong proponent of social structure. He vehemently defends the state and believes that religion and morals are supposed to serve the state. In Kautilyas concept of war, chivalry does not have any place and he is a realist. Kautilya in his Arthashastra and believes that war is a means to an end for wealth and stability. He provided the understanding to resolve all the constraints which emerge to achieve the ends. Kautilya has argued that the primary constraint that a state faces is the economic constraints and many a war has been lost for want of resources. The Arthashastra has guided the king in eliminating the constraints, primarily the economic constraints in the furtherance of its interests. The use of economic strength as a means of statess power has also been highlighted by Kautilya. 6. Kautilya also took the societal structure and Kings power as given and never challenged it. His focus was not on war per se but on the strategy and tactics of war which elaborates in his work. In describing his opinion on war, he has been very right in saying that a state which seeks power is in war all the time and economy is the most definitive aspect which governs the quest of the state for power. CHAPTER II METHODOLOGY Statement of the Problem 1. The aim of this paper is to investigate the modus operandi for the resolution of the economic constraints, imposed in an armed conflict during the Arthashastra period and its concurrence in the present times. Justification for the Study 2. Constraints in War. Armed conflict has many facets attached to it and it is not a mere attack and capture as the folklore puts it to be. The constraints as they emerge, from the time of planning of a battle till the time the armies face each other at the outbreak of the hostilities, are what the commander in the battlefield has to counter and work out the resolution of each of the prevalent constraints. The constraints as defined for the evaluation of this research is akin to the risks or uncertainties as they present themselves in the battlefield and which may govern the outcome of the war or the projection of the true power of the nation state. The constraints present as tangible constraints and also intangible blocks which have to be resolved in order to progress the war and ultimately achieve victory. The tangible constraints can be classified as the economic requirements for war effort to sustain and the logistics support required for the armed forces and the intangibles are morale, leadership and the training of the troops. 3. Evaluating Constraints. The fog of war has prompted strategists throughout history to grapple with the concept of constraints/risk and methodologies for its assessment. There will always be uncertainty. It often will be immeasurable. The very nature of war and conflict and the increasingly complex strategic environment ensures that this is so. Is risk/constraint assessment simply the .comfort level that senior planners experience as they assess key variables? [6] Strategic risks then is the probability of failure in achieving a strategic objective at an acceptable cost. The concept is simple to articulate and easy to understand. But, as in war, the simplest things in strategy are the most difficult. 4. Constraints Management Arthashastra . The Arthashastra is essentially a treatise on the art of government and specially focuses on aspects of internal administration and foreign policy. It has been translated as Science of Politics, Treatise on Polity or the Science of Political Economy. These have been translated over time in the subjects of Timeless Laws of Politics, Economy, Diplomacy and War. Kautilyas treatise encapsulates in many ways, the complexity of the modern times with the constraints faced during war being the same as were relevant in older times. The problems that existed then, persist in a more widespread and magnified manner in the contemporary world. The principles of Constraint resolution in the Military strategy followed by Kautilya are also relevant in the contemporary world. Study of Kautilyas war strategy will provide an insight into the knowledge of warfare in ancient India and would also throw up important aspects of the constraints to warfare in the moder n world, besides enhancing understanding and pride in our country and its thinkers. 5. Hypothesis. The growth of the nation state has been based on the gain of the economic power and the shift in the economic potential. This has resulted in the economics of war emerging as the single most important constraint in the war waging potential of a nation state. The concurrence of the economic power with the military power of a nation state has been the cornerstone of the present day world powers. Kautilya in Arthashastra had realised the prominence of economy in the statecraft and the war strategy. How relevant those postulates are in the modern day strength of a nation state? The ability of the state to exert its influence for the furtherance of the national interests has been defined by the resolution of the economic constraints. The military has become the national instrument that can enforce the economic objective and thus the military power of a nation. Therefore the role of the economic power and the resolution of the economic constraints of a nation are primary for the acceptance of a Nation-State as a world power. 6. Scope. The scope of this paper is restricted to study and analysis of the economics of war. The financial constraints in the war potential of the State and the methods adopted by Kautilya to resolve those constraints. The study will attempt to identify possible constraints in the war potential of the State and present the relevance of Arthashastra in constraint management with the modern day constraint resolution. It will be further endeavoured to understand the lacunae in the present day approach and investigate the Arthashastra for solutions. Thereafter, the paper will focus on assessing the perceived link between economic power of the state and the military power and how one is derived from the other. The resolution of the economic constraints as practiced during Kautilyas time and in the modern times will also be discussed. 7. Methods of Data Collection. There are many books written translating the Arthashastra. Modern Warfare strategy has many parallels in the theories as propounded by Kautilya. Research on this topic will be mostly based on the translations of Arthashastra and its relevance with the modern day approach to the resolution of the economic constraints in the war waging potential of the nation state. Sources are likely to include the following:- (a) Books written by eminent authors and translation of the Arthashastra by various authors. (b) Articles in periodicals and Journals. (c) Reports of International strategists and researchers on Arthashastra. (d) Websites featuring proceedings of various conferences and meetings on the subject. (f) Papers published or presented by various organisations on the subject. 8. Organisation of the Dissertation. This study is envisaged to be organised under the following chapters:- (a) Introduction. (b) Methodology. (c) Constraints in warfare -Drawing parallels with Arthashastra. (d) Arthashastra approach to economics of war. (e) Derivation of Military power from economic power. (f) Resolution of economic constraints to war potential. (g) Conclusion CHAPTER III CONSTRAINTS IN WARFARE DRAWING PARALLELS WITH ARTHASHASTRA 1. Interests of the nation state. The behavior of a nation-state is rooted in the pursuit, protection, and promotion of its interests. The interests of the nation state are to be accurately identified to understand much of its behavior vis-ÃÆ'  -vis other states and actors in the international system. All states have common interests like its territory, its people, and its sovereignty. While forces outside their own boundaries affect all countries large and powerful, small and weak, a certain level of sovereignty is critical to the notion of national interests. A country that is unable to exercise effective control over its territory and its peoples, relatively free from the intrusion of other nation-states into its internal affairs, is lacking in this critical element of sovereignty. War is an instrument of national policy, albeit a violent one. 2. Arthashastra view point. Kautilyas Arthashastra was a science of politics intended to teach a wise king how to govern. In this work, Kautilya offers wide-ranging and truly fascinating discussions on war and diplomacy, including his wish to have his king become a world conqueror, his analysis of which kingdoms are natural allies and which are inevitable enemies, his willingness to make treaties he knew he would break, his doctrine of silent war or a war of assassination against an unsuspecting king, his approval of secret agents who killed enemy leaders and sowed discord among them, his view of women as weapons of war, his use of religion and superstition to bolster his troops and demoralize enemy soldiers, the spread of disinformation, and his humane treatment of conquered soldiers and subjects. 3. Kautilya thought there was a science of warfare, presumably part of a larger science of politics. Kautilya advised the king not to leave military matters entirely to others: Infantry, cavalry, chariots and elephants should carry out practice in the arts outside (the city) at sun-rise. The king should constantly attend to that, and should frequently inspect their arts.[9] Open war is obvious, and concealed war is what we call guerrilla warfare, but silent war is a kind of fighting that no other thinker could propound and thus Kautiliya was much ahead of his times and this makes his thinking relevant even today. Silent war is a kind of warfare with another kingdom in which the king and his ministersà ¢Ã¢â€š ¬Ã¢â‚¬ and unknowingly, the peopleà ¢Ã¢â€š ¬Ã¢â‚¬ all act publicly as if they were at peace with the opposing kingdom, but all the while secret agents and spies are assassinating important leaders in the other kingdom, creating divisions among key ministers and classes, and s preading propaganda and disinformation. 4. Kautilya advised the king that When he is superior in troops, when secret instigations are made (in the enemys camp), when precautions are taken about the season, (and) when he is on land suitable to himself, he should engage in an open fight. In the reverse case, (he should resort to) concealed fighting.[12] 5. Overriding the constraints. Speaking of justice to an enemy about to conquer is the last tactic of the weak, willing to try all tactics, even desperate ones, Kautilya made up a powerful speech to be given by a weak king to the king about to conquer, a speech offering a mixture of moral exhortation and arguments based on the self-interest of the conqueror. In this speech, Kautilya depicted an envoy saying to the conquering king that he should accept a treaty and pay regard to [his] spiritual and material well-being; that conquering a kingdom willing to surrender on reasonable terms is an impious act; that battle is not in the conquering kings self-interest, since to fight with brave men who have given up all hope of life is a rash deed and the conqueror will lose troops and material good; that such a conquest will only unite his enemies all the more; that the conquering kings enemies are only waiting for him to be weakened in order to attack; that he himself is risking death; that war itself in which men on each side die is an impious act; and that he should not listen to enemies masquerading as friends who are giving him false advice as to his real self-interest.[13] Kautilya demonstrated the realities of diplomacy and war as well as the ineffectiveness of moral pleas when confronted by a superior power. Kautilya wanted legions, but he wanted them preceded by elephants, which acted in the ancient world a bit like modern tanks. 6. Kautilya considered the treasury most valuable in raising an army, procuring equipment (including elephants), and preparing for war. After the treasury and the army, Kautilya focused on the importance of the fort, on which depends the treasury, the army, silent war, restraint of ones own party, use of armed forces, receiving allied troops, and warding off enemy troops and forest tribes. And in the absence of a fort, the treasury will fall into the hands of enemies, those with forts are not exterminated.[15] 7. Constraint resolution. Kautilya was consistent in ranking the importance of the treasury, the army, and forts, but it seems that the people, or a popular army, are the most important of all. As he put it, one should seek a fortress with men.[19] 8. Kautilya apparently believed that an army of kshatriyas was best; warriors were supposed to find their highest duty and pleasure by dying in battle. Kautilya clearly argued that sections of the army should consist mostly of persons from the same region, caste or profession. It was a very clever idea to be mooted as common sense, shows that he is suggesting that men of an army should know one another, that an army of friends fighting side by side is the most difficult to defeat. On the subject of the kings location during battle, for example, he wrote: A bare army, without standards, consisting of warriors related as fathers, sons and brothers, should be the place for the king. An elephant or a chariot should be the vehicle for the king, guarded by cavalry. (Kautilya wanted a man who looked like the king to lead the army into battle.) And thus, a kings power, for Kautilya, is in the end tied to the power and popular energy of the people, without which a king can be conquered, for n ot being rooted among his subjects, a king becomes easy to uproot.[20] Although Kautilya wrote of using money to raise an army and even of purchasing heroic men, he was not advocating mercenaries who fought only for pay, but he was merely outlining the cost of paying, supplying, and feeding soldiers. He believed that hereditary troops are better than hired troops; in other words, troops made of men born in the kingdom and thus loyal to the king since birth are better than strangers fighting for money. 9. Contemporary school of thought. While military power may be the primary tool a nation uses to wage war, it is not the only one available. Military power, together with economic and political power, may be used to impose ones will upon an opponent. These other elements of national power, such as economic or political, are linked with military action at the national strategic level and passed to the operational and tactical levels of military actions through constraints or limitations on the use of force. Nevertheless, these other elements of power are not fully integrated at the lower levels of war. In the Marxist tradition, Svechin included the possibility of war on economic and social fronts as well as on a military front. [21] The actions along all fronts must be fully integrated and in accord with the political goals of the struggle. The use of diplomatic efforts to preclude and enemy alliance or a second hostile (military) front and economic efforts to insure sufficient financ ial resources for the conduct of combat operations. 10. While Kautilya had propounded the postulates for constraint management in warfare in the ancient times but the relevance with the contemporary thought is startling. Military power being only one of the instruments of national power has been highlighted by Kautilya and the same thought is holding today. The resolution of the constraints and overriding of the bottlenecks faced by the commander in the battlefield have their genesis in the employment of all the instruments of national power towards conflict resolution and that is why Arthashastra has been regarded as the epitome of statecraft in all the spheres. If decisive military force is used only as a last resort, after extensive diplomatic, economic, political, and even military power short of actual war have failed to break the will of the enemy, a quick and well placed application of military force would leave little opportunity for the implementation of further nonmilitary initiative. One must never lose sight of the overall objective of warfare which is to get the enemy to do ones will. This may be best achieved through a thoughtful and complete linkage of all elements of national power. With that linkage brought down to the operational level, chances for a long-lasting victory will increase dramatically. This is where Arthashastra and the present day war strategy are concomitant. CHAPTER IV ARTHASHASTRA APPROACH TO ECONOMICS OF WAR 1. Economics of the nation state. Economic power has become a very powerful tool to enhance the capabilities of a nation and limit those of an adversary. However, as nations become more intertwined through globalisation, they become more vulnerable to disruptions in their economies, manmade or natural, due to reliance on foreign sources of raw materials, components, finished products, or key services. A nation can also use its economy to try to defeat another power. The nation can use its economic power in attempts to destroy a targets capability to take certain actions or destroy its ability to project power. Although physical defeat of the enemy is more often associated with military operations, economic means are also viable to support the elimination of a nations ability to take certain actions. 2. A nations ability to provide resources to research, develop, and further educate their people can lead to new applications of science and knowledge to solve problems in other words, technology. Technological advances can replace existing weapon and support systems to enhance or expand war fighting capability. Acquiring technology through a nations own human resources or with capital resources can allow the nation to make great leaps in economic progress. 3. Arthashastra view of economy as precursor to military power. Kautilya emphasised that, the three kinds of powers intellectual, compelling, motivating are essentially and unavoidably required to be developed and employed in a manner that they complement each other. None can be used in isolation. According to Kautilya the main aim of any state is to increase ones power, mainly at the cost of the natural enemy. This increase in power is essentially the first step in the realisation of the ambition to conquer the world. However, Kautilya also specifically mentions that the most important factor that must be weighed before starting is the gain expected from the confrontation and the losses likely to be suffered. Normally, the gain that is to accrue should far outweigh the losses in men, animals and expenses in cash and grains. Thus Kautilya professed a thoughtful approach to the cause of expanding ones kingdom and always kept the focus on resolution of the economic constraints in the w ar waging capability of the state. He has also stressed that the king is duty bound to ensure, that the people of his kingdom are happy and content, because, a happy kingdom is likely to be prosperous. He further states that a prosperous and wealthy state is unlikely to succumb to another even in case of a conflict. 4. Kosa or the Treasury. The fifth most important element of the state is the treasury according to Kautilya. All activities of the state depend on finance and therefore sufficient attention needs to be given to the treasury. Kautilya considered the treasury most valuable in raising an army, procuring equipment (including elephants), and preparing for war. After the treasury and the army, Kautilya focused on the importance of the fort, on which depends the treasury, the army, silent war, restraint of ones own party, use of armed forces, receiving allied troops, and warding off enemy troops and forest tribes. Kautilya lays down various causes that may contribute to the growth or reduction of the treasury. Kautilya says The wealth of the state shall be one acquired lawfully either by inheritance or by the kings own efforts. He further adds that the treasury should be rich enough to withstand any calamity especially when the state has no income for a long time. 5. Managing the economy for power Arthashastra approach. Management of the state necessitated realism, not idealism. It required the prudence and precise calculation of measures undertaken alongside their short and long-term consequences, which formulated the theoretical beginnings of economics: Wealth will slip away from that childish man who constantly consults the stars: the only guiding star of wealth is itself; what can the stars of the sky do? Man, without wealth, does not get it even after a hundred attempts. Just as elephants are needed to catch elephants, so does wealth capture more wealth.[22] Public welfare was contingent upon the strength of the state. The latter was achieved by internal development or territorial expansion, both of which were realized through power.[24] Hence, the prime motive of the state was the never-ending pursuit of artha. It is only after dedicating its energies to this end, can the state or king then move on to fulfilling dharma and kama. As such, the Arthashastra provides extensive coverage on the overall economy, which includes: infrastructure (roadwork, irrigation, forestry, and fortification), weights and measurements, labor and employment, commerce and trade, commodities and agriculture, land use and property laws, money and coinage, interest rates and loan markets, tariffs and taxes, and government expenditures and the treasury. The high level of detail dedicated to these areas demonstrates the remarkable organisation and centralisation of the state idealised in the Arthashastra, and it also supports the view that the information contained in the text is a compilation of works that have endured over long periods of trial and er ror. 6. The Arthashastra is surprisingly calculated on every minute detail and economic function the exact number of panas[25] is provided for every salaried position, legal ramification, commodity, and livestock. Economics was regulated through such central planning and the highly detailed attempts at identifying the optimal amount for every economic function stresses this constant strive towards efficiently improving the overall utility and welfare of society. Along with prudence and careful calculation, the state is advised to be extremely active or energetic in managing the economy, as the Arthashastra states that, The root of material well-being is activity, of material disaster its reverse. In the absence of activity, there is certain destruction of what is obtained and of what is not yet received. By activity reward is obtained, and one also secures abundance of riches.Similarly, a different verse in the same chapter advocates the direction of such activity towards improving publi c welfare. Though seemingly liberal and humanitarian, this too had a very important economic basis. Hence, dedicating resources to the lower rungs of society also strengthened the peripheries of the state, which in turn actuated territorial expansion. Furthermore, providing amenities for the poor masses indirectly stimulated population growth, and thus, the overall growth of the state and economy in the long run. Hence, there is a lot of truth in the verses in which the Arthashastra states that it is the people who constitute a kingdom; like a barren cow, a kingdom without people yields nothing. The emphasis on population growth for indirectly achieving economic prosperity is also hinted elsewhere in the text, in which the Arthashastra strongly prohibits premarital sex and adultery and instead encourages fertility via rewards and punishments framed within the legal system. Central planning was directed towards maintaining stability, order, and efficiency in the economy. 7. Kautilyas Principle and Aim of Economy Artha can therefore be summed up as Peace can be maintained by making war difficult and costly for the enemy through the balance of power achieved through alliances. 8. Contemporary perspective. Whilst the basis of exerting power of any country has been that of expansion in the last twenty odd years the focus has shifted from territorial expansion to one of economic expansion. There are a number of examples of countries or coalitions trying to exert pressure on other countries to ensure the protection of their own economic interests. The engagements between all the countries of the world bear testimony to the fact that almost all parties have been trying to protect their own interests in dealing with others. The principles enumerated by Kautilya in his policy of Samdhi or Treaty have almost universal application today. Countries today are indulging in more and more treaties or accords than ever before to safeguard their own interests. 9. Kautilya also mentions that war should be declared as a last resort and that all other means like sama, dana, and bheda (conciliation, gifts/bribes, dissension) should be implemented towards averting war. In other words Kautilya prefers putting pressure on the enemy without breaking the peace. These very principles have been laid down in Chapter I of the United Nations Charter, where article I states To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace. 10. This brings forth the justification of the well being of the society as the predominant factor since the ancient times till date. Also, the diversion of the resources meant for the well being of the society towards the war waging potential without the exploitation of all the options towards resolution is being despised upon. This was relevant during Kautilyas times and is as relevant today. Though economy is a major constraint in the war waging potential of a nation state, and all efforts are made by the state to strengthen this instrument of national power prior to gaining the military ascendency, it is also proving to be a major restraint in controllong the expansionist attitude of states since ancient times. CHAPTER V DERIVATION OF MILITARY POWER FROM ECONOMIC POWER 1. Economic power. Economic power can be defined broadly as the capacity to influence other states through economic means. It is composed of a countrys industrial base, natural resources, capital, technology, geographic position, health system and education system. 2. Military power. Military power is the capacity to use force or the threat of force to influence other states. Components of military power include number of divisions, armaments, organisation, training, equipment, readiness, deployment and morale. 3. Power is an elusive concept. In the historical perspective, military power has been paramount and economic power a luxury. This has slowly changed to the point that the two roles have become interchangeable. A countrys military capability is derived from its economic capacity. A countrys economic capacity also de

Problems of Medieval Europe :: European Europe History

Problems of Medieval Europe The setting: Medieval Europe. The problem: the pope is living in Avignon, under strict control from the French King. The plague is ravaging Europe, leaving behind whole cities of corpses. Sanitation is very poor, there are no sewer systems, and more often than not, one could find human and animal feces lining the streets. The standard of living is very low, and much of this is blamed on religion. Many people would like to see the pope dead. Solutions are virtually non-existent. The pope is looking for a way to restore his power, and improve the life of Europeans. The main problem facing the pope was, of course, the plague. Nearly twenty-five million people had died of this highly infectious disease already, and it didn't appear to be slowing. Medieval physicians had developed a number of "cures," some as absurd as placing live chickens on the wounds of the infected. Due to the primitive technology at that time, there were very few actual cures. Many of the practices of the doctors were invented simply to deceive the populous into believing that they had cures, and that all was not lost. The pope, in his quarters at Avignon, sat between two large fires. They thought that this would purify the "bad air" which most blamed for the spread of the plague. Although there was no bad air, the fires actually did prevent the plague, killing off the bubonic bacteria. This was an example of what some people call "accidental science," or a discovery made from superstition, or by accident. From the viewpoint of a medieval doctor, there were few things you could do. Most medicine at that time was based on the four humors, and the four qualities. The four humors were phlegm, blood, bile, and black bile. Illness would occur when these humors were imbalanced. Doctors often let blood, attempting to restore balance. There were also four qualities; heat, cold, moistness, dryness. Diseases were often deemed to have two qualities, i.e. hot and dry. If a person had a disease that was hot and dry, they would be administered a plant that was considered cold and moist. Basically what I have tried to say in the previous two chapters is that there was no medicinal cure for the plague in medieval times. If they had antibiotics, however, there would have been very few fatalities.

Free College Admissions Essays: My Experience :: College Admissions Essays

College Admissions : My experience To whom that cares!!! At this moment when I am sitting down here writing this, I suddenly think of this time last year when I was fresh out of high school, hearing about Berea for the first time. I sent my application to Berea with lots of confidence and hope, and I knew I was not accepted. College to me, as much as to many others, is so important. At the time I heard the news of my being denied, I was disappointed, but soon I realized that my failure was just among the many challenges that anybody has to face during their lifetime. Further more, I happened to know, later on, about the two other Vietnamese who were accepted. Having known that hardly ever more than one student from each country is accepted to Berea, I was so proud to know that the ability of Vietnamese students has been recognized and that, despite of the fact that our country still faces many difficulties, the students have been trying to reach high goals. In Vietnamese proverbs, we have this saying :" A day one goes, a sea of knowledge he earns". By this time, I have realized how true it is. Last year, I was an exchange student in a high school in Mississippi. That was the first time I went overseas. Although, before this trip, I was quite used to living independently because I had to live without my mom for almost 7 years during the time she went to work in Poland. However, my first trip abroad was something totally new and different. A very different country and her people first met me. I gradually got used to everything and felt that those adaptations I had made also came with growth in my maturity. When mentioning about maturity, I am quite sure about what I am talking. Obviously, I still am a long way from being an adult who has gone through enough hardships in life to have the right to judgment on life. However, I believe that the ten months I was away from my homeland, from my family, I now look at my life and future with a very serious and subjective point of view. If I had not been in the U.S, I would never have known of an eventful U.S senior year in high school, and the people, the lifestyle there. Free College Admissions Essays: My Experience :: College Admissions Essays College Admissions : My experience To whom that cares!!! At this moment when I am sitting down here writing this, I suddenly think of this time last year when I was fresh out of high school, hearing about Berea for the first time. I sent my application to Berea with lots of confidence and hope, and I knew I was not accepted. College to me, as much as to many others, is so important. At the time I heard the news of my being denied, I was disappointed, but soon I realized that my failure was just among the many challenges that anybody has to face during their lifetime. Further more, I happened to know, later on, about the two other Vietnamese who were accepted. Having known that hardly ever more than one student from each country is accepted to Berea, I was so proud to know that the ability of Vietnamese students has been recognized and that, despite of the fact that our country still faces many difficulties, the students have been trying to reach high goals. In Vietnamese proverbs, we have this saying :" A day one goes, a sea of knowledge he earns". By this time, I have realized how true it is. Last year, I was an exchange student in a high school in Mississippi. That was the first time I went overseas. Although, before this trip, I was quite used to living independently because I had to live without my mom for almost 7 years during the time she went to work in Poland. However, my first trip abroad was something totally new and different. A very different country and her people first met me. I gradually got used to everything and felt that those adaptations I had made also came with growth in my maturity. When mentioning about maturity, I am quite sure about what I am talking. Obviously, I still am a long way from being an adult who has gone through enough hardships in life to have the right to judgment on life. However, I believe that the ten months I was away from my homeland, from my family, I now look at my life and future with a very serious and subjective point of view. If I had not been in the U.S, I would never have known of an eventful U.S senior year in high school, and the people, the lifestyle there.

Crucial Effect Of The Cuban Missile Crisis Essay -- History, Nuclear W

Since the Cuban Revolution of 1959, tension and problematic situations have arose between the United States and Cuba (US-Cuba Relations 1). Before America helped Cuba fight of the Spanish for their independence, the Americans had strong political and economical affairs within the island (US-Cuba Relations 1). But, since the Cubans created a nation of their own, they blocked the Americans from many freedoms within Cuba (US-Cuba Relations 1). Although there are many examples of the tension between America and Cuba, the Cuban Missile Crisis had the most crucial effect on their long lasting feud. The main reason for the crucial effect of the Cuban Missile Crisis comes from the fact that this event was the closest the world has ever been to a nuclear war. In 1962, America was very prepared with their nuclear weapons, being able to attack the Soviet Union with missiles if necessary (Overview of the Crisis 1). But the disadvantage to the Soviets was that their missiles could only be used within Europe. As a result, Soviet Premier Nikita Khrushchev proposed the idea of placing their missile launching centres in Cuba, making their distance from the United States very slim (Overview of the Crisis 1). Since Castro was fearing another American attack, he approved the proposal of placing missiles on his island. By 1962, the Soviets had started placing missiles in Cuba, and that was when the crisis began (Overview of the Crisis 1). On October 15, 1962, photos were taken from American airplanes revealing the missions of the Soviet missiles in Cuba (Overview of the Crisis 1). On Octob er 22, President Kennedy took matters into his own hands by announcing the reveal of missiles in Cuba (Overview of the Crisis 1). He announced his mission to q... ...was a powerful source of the tension that still exists between America and Cuba, but since it remains to separate the two countries from each other, it does not prove as significant as the Cuban Missile Crisis. Therefore, the strength of the Cuban Missile Crisis proves to be the strongest of all events that represent tension between the United States and Cuba. In conclusion, the Cuban Missile Crisis proves to have had a large impact on our world today. Whether it is through the way we consider how we avoided a nuclear war, learnt a lesson of resolution, or compare it’s significance to other events between Cuba and America, this crucial event has shown a significant part in North American and European history. Although there are many examples of the tension between America and Cuba, the Cuban Missile Crisis had the most crucial effect on their long lasting feud.

Belonging – Short Story

Screaming in pain, Rebecca was about to give birth to her first baby. She was forced to have a homebirth as there were no hospitals around for miles. Her shrieks of pain had woken everyone in the neighbourhood, many came up to the house to get a glimpse of the situation. One of Rebecca’s friends, Rick, had rushed into the house in a matter of minutes after he heard the screaming. Rick stayed with Rebecca for several hours that followed to comfort her as best he could. His best attempts to calm her down, it seemed, were not good enough. At last, the ordeal was over. After ten hours of labour she had finally given birth to a baby boy. As Rick turned to face Rebecca, he saw an expression of sadness in her eyes. He knew that she didn’t want the baby, that she wasn’t capable of providing for it with her waitressing job at a cafe. In the months that followed, Rebecca had a tough time trying to earn money to feed herself, let alone her son. She turned to drugs to fight her depression, but she found that they had no effect. When her son, who she named William (Billy), was six years old, he started school. There, he was a social outcast; no one wanted talk to him. Five more years passed before he decided to quit school and stay at home, he felt that he didn’t belong anywhere else. Billy started experimenting with cocaine when he saw his mother using it, but she had been sober for a few years now. It seemed that for every year she got sober, her son’s heart simultaneously grew colder. He joined gangs, Billy had built a reputation that he could hustle and steal, but he got caught once and was sent to jail for three years. During his time at prison, he was working as an informant for the guards on staff in exchange for protection from all the rapists and paedophiles that roamed the prison. When Billy had gotten out of jail, the reputation that he had built up had been crumbled; he was kicked out of the gang because the other members were too suspicious of him. He once again dropped to the rank of social outcast. In a vain attempt to get back into the gang, he tried to act tough, fighting people over little things, his attempts went unnoticed. He had turned to selling crack to the people on the streets for money. He sold crack until he had enough money to move up to cocaine, trying to fulfil the fantasy stuck in his brain. Tired of trying to get back into the gang, he pursued a path to be with the hardcore gangs, with the cutthroats and the thugs. But when he stepped up to the gang, they turned him down saying â€Å"any coward can sell drugs, anyone with a gun can kill a man. But only a real thug has stabbed someone till they die, standing in front of them staring straight into their eyes†. Feature Article –  The Plane of the Sleeping Beauty Analysis Billy knew these men were well guarded, that they wanted to test him before business started. They proposed that he kill a woman to show he was cold hearted. Now Billy had a choice between going back to his life or making money with ‘made men’ in the higher ranks. His dreams about cars and drugs made him agree, a hardcore gangster is all he ever wanted to be. He met them the next week, at night on a lonely street. They drove around the town, slow while it was raining, smoking and drinking for entertainment. Late at night they saw a woman walking alone, coming back on her way home. They quietly got out of the car and followed her, one of the people wrapped a shirt around her face and pushed her onto the floor. Billy picked her up and took her into an empty building, forcing her to go up onto the roof. They were yelling at her and telling her to stop moving and screaming, when she wouldn’t listen, Billy hit the woman on the face until he had broken her jaw. Blood leaking through her clothes, she cried silently, praying to god. They proceeded to abuse her for the next few hours. At the end, one of the people next to Billy pulled out a handgun and gave it to him. They told him that if he killed her, he was guaranteed a spot in the gang. Right before he killed her, he thought about the drugs, women and respect he would get and felt strong standing next to his new gang. He put the gun right to her head and pulled back the shirt from her face. What he saw made him cringe and stutter because he was staring into the eyes of his own mother. Rebecca started crying harder than when they were beating her up, broken inside that her own son was going to kill her. His whole world stopped, he couldn’t contemplate what had just happened. His need to belong to a group he barely knew had ripped him apart from the one person he had the strongest bond with, his mother. He turned away from the woman who had once given him birth. As Billy dropped the gun, one of the other men picked it up and shot her in the head. Billy screamed out to the sky because he was lonely and scared; right then he knew what it meant to be empty and cold and jumped off the roof and died with no soul. After that, the gang members hid their bodies and never spoke about it, as if they never existed. His death was much like his birth, painful, shrieking and a mistake.