1. By happiness , Chanakya Means to happiness of the people and by dharma is meant the dutifulness of the rulers. As long as the the ruler or the administrator is conscious of his duties towards the people , they will be happy and contended.
Wealth is at root of Dharma ( Dutifulness)
2. In order to promote prosperity of the people and stability of the state. It is essential that the state is run efficiently.
Victory over the senses ( self control ) is the root of ( stability of ) state.
3. One who is able to control and conquer his desires , is alone , competent to rule the state in a just , impartial and benovolent manner.
Humbleness is at the root of sense control.
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