In the last week or so there has been a veritable media frenzy here in Australia about an incident involving members of a football team, some professional strippers, and an undisclosed amount of Columbian marching powder. Apparently, the team decided to celebrate an important win by ordering strippers and blow to be delivered to their hotel room, which, I presume, is about as easy these days as ordering Uber Eats. Not only did the media get in on the story, both the prime minster and governor general of the country saw fit to comment.
Nothing could seem more remote from this incident than a treatise on political economy written two and a half thousand years ago in India. But stick with me and I’ll explain how the two are intimately related.
I’ve mentioned before on the blog that I picked up a copy of the Arthashastra while killing time at New Delhi airport a number of years ago. I’d never heard of either the book or its author, Kautilya, but what instantly appealed to me as I leafed through its pages was a number of parallels I could see with our time. One of those is directly related to the incident with the Australian football players and the professional strippers they called to their hotel room.

In his book, Kautilya asks the question, put very poetically in the English translation, “Should a woman be allowed to profit from her beauty?” In other words, should prostitution and similar activities be legal? Kautilya answers in the affirmative, but it’s his reasons for doing so that are relevant to our time.
As a quick bit of background context, Kautilya is the ultimate political pragmatist. Very much like Machiavelli two millennia later, he has no concern whatsoever whether a thing be true, righteous, or beautiful. He is concerned with one thing only: power. No surprise, then, that his main justification for the legalisation of prostitution is that it will allow the activity to be taxed, increasing state revenue. That is easy to understand. His other reasons are more subtle, and more interesting.
The first of those is that the regulation of an industry creates jobs – not jobs in the private sector, but government jobs. If you want to increase the power of the state, having more people on the payroll is an important way to do so. Lots of people on the state payroll means lots of latent support for the government. But it’s the kind of employee Kautilya was talking about that is important because what he had in mind were bureaucrats.
Here we must note another crucial piece of context. Northern India at the time Kautilya was writing (around 450 B.C.) had possibly the most sophisticated state bureaucracy in the world. At the very least, it was a strong rival for China. For that reason, Kautilya sees the growth of the bureaucracy as synonymous with increasing the power of the state. When you legalise prostitution, you create jobs for bureaucrats who have to regulate the industry. It is those bureaucrats who form the backbone of political support for the government.
The second reason why Kautilya recommends legalisation is that a prostitution industry under state control can be used for both espionage and blackmail. Ladies of the night may overhear valuable information about nefarious activities. Meanwhile, respectable citizens who value their reputation can be politically neutralised via honey traps. In both respects, the state gets more levers of power over private citizens. All of this implies the equivalent of modern intelligence agencies who belong to the state-controlled bureaucracy, which is exactly what existed at the time in India.
What has all this got to do with the modern West? Well, this is a topic I’ve covered in past posts, but I think it’s worth reiterating because it is not well understood that the kind of bureaucracy we now take for granted is a very recent arrival in Western society. It really only began to form in the middle of the 19th century, and its political domination only started at the end of WW2. Perhaps more importantly, its power has been accelerating in recent decades.
What is new for us is not new for India and China. Both nations already had complex bureaucracies at the time when Kautilya was writing. By contrast, the Western tradition has always been predicated on the Greek and Roman examples, neither of which had bureaucracy in any form we would recognise. It is true that the late Roman Empire from Diocletian onwards started to dabble with bureaucracy. But the centre of power had already shifted to the east by that time and the western empire collapsed shortly thereafter.
The Greek and Roman models were predicated on an independent citizenry and patronage networks based around military service. That was the way it worked in the ancient world and it was the same model that was adopted during the Middle Ages. Even proto-democracy in Britain and its colonial offshoots still operated mostly via patronage networks. It was taken for granted that whoever won office would reward their supporters with government jobs and contracts. Thus, even the democratic and capitalist revolutions had almost nothing to do with bureaucracy, which was a concept that was foreign to Western culture.
The foreignness of bureaucracy is demonstrated by the fact that the idea only came into the West via contact with China at the time of the Enlightenment. Thinkers such as Voltaire loved the idea. It’s no coincidence that those same thinkers were against democracy and capitalism. What they wanted was a political system almost identical to the one that Kautilya lived in, i.e., a king leading a large bureaucracy. Naturally, it would be the intellectuals who would work in the bureaucracy. The reason Kautilya is relevant to our time is because his vision for society is very similar to our modern “elites”. Just like him, their first and foremost concern is increasing state power, i.e. the power of the bureaucracy.
And this brings us back to the issue of the legalisation of prostitution. Kautilya recommended this measure as a way to increase taxation, expand the size of the bureaucracy, and keep powerful private citizens and groups in check. Here in the state of Victoria, the legalisation of both prostitution and other adult entertainment was carried out in 1994 via the Sex Work Act, which implemented licensing and registration requirements, all of which created jobs within the bureaucracy. In addition, money which used to flow entirely within the private sector could now be taxed thereby increasing government revenue. All of this is exactly what Kautilya would have recommended.
But it’s the other measure of control that most directly relates to the furore that erupted this week over the football players. With the legalisation of the adult industry, it is now the easiest thing in the world to call up some strippers and have them come over to your hotel room on a Sunday evening. It’s exactly the kind of trap you would expect foolish, overpaid young men with too much time on their hands to fall into.
All of this is a form of social control exactly as Kautilya envisaged two and a half millennia ago. Australian football enjoys enormous grassroots popularity, which gives it a great deal of power, both economic and political. That makes it a political threat. Incidents like the one that happened this week show the footballers who’s boss. It works, too. The executives at the Australian football league trip over themselves to demonstrate their fealty to the latest thing. It doesn’t matter how absurd the latest thing is. On the contrary, the greater the absurdity, the more fealty is displayed. That is how you kiss the ring of power in our modern bureaucrat-controlled society. Kautilya would approve.


