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Institutions, social order and wealth in ancient India

Published online by Cambridge University Press:  29 June 2020

Jim Rooney Open the ORCID record for Jim Rooney [Opens in a new window]  and
Vijaya Murthy
Jim Rooney*
Affiliation:
School of Business, The University of New South Wales, Canberra, Northcott Drive, Campbell, ACT2600, Australia
Vijaya Murthy
Affiliation:
Discipline of Accounting, Business School, Coddrington Building, The University of Sydney, Sydney, NSW2006, Australia
*
*Corresponding author. Email: james.rooney@adfa.edu.au
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Abstract

Orthodox economic theorising on ancient societies emphasises the absence of market institutions, in contrast to advanced contemporary economies. However, this may downplay the influence of non-economic interests in the generation of wealth. Consequently, this paper examines an ancient civilisation identified as economically successful namely, the Mauryan Empire (322 to 85 BCE) centred on the Indo-Gangetic plains. Drawing on translations of books collectively known as the Arthasastra (lit. the science of wealth) as well as contemporaneous Greek and Roman texts, this paper examines the role of institutions in generating wealth within societal norms of income distribution and the preservation of social order. Given the importance of trade to this society, comparisons are made with medieval European institutions in terms of market coordination and the maintenance of generalised trust in trading markets. As a consequence, the role of institutions in addressing social and economic uncertainty affecting an ancient society is highlighted.

Keywords

Formal institutionsguildsMauryan Empiresocial orderwealth
Type
Research Article
Information
Journal of Institutional Economics , Volume 17 , Issue 1 , February 2021 , pp. 91 - 104
Copyright
Copyright © Millennium Economics Ltd 2020

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