In the Buddhist state described in the Agganna Sutta, the ruler, known as Mahasammata, was tasked with maintaining order and administering justice. Although not a lawgiver, the ruler interpreted, codified, and enforced existing natural laws to ensure social stability. The ruler was chosen by the people based on their popularity and ability to enforce justice, marking a departure from hereditary or divine kingship. The ruler’s primary role was the regulation of conduct, the prevention of antisocial behavior, and mediation between private property rights and societal order .

According to the Agganna Sutta, several key factors led to the necessity of establishing a governing authority. First, the accumulation of private property stimulated economic divisions and competition among individuals. This newfound sense of 'mine' and 'yours' heightened social tensions and led to antisocial behaviors such as theft and lying. As these behaviors increased, they disrupted collective communal living and necessitated a structured response. Consequently, the need for an authoritative figure to enforce laws and resolve disputes became apparent. This communal decision to elect a ruler to uphold societal order underscores the social contract theory central to Buddhist thought, highlighting governance as a pragmatic solution to emerging conflicts .

Buddha describes the transition from collective happiness to the necessity of governance in the Agganna Sutta as a progressive degeneration from an ideal state. Originally, beings lived in unity, sustained by happiness and free from material desires and social distinctions. However, as they began to consume earthly flavors and develop desires, physical and mental differences emerged, leading to pride, theft, and conflict. This moral and social chaos necessitated governance, as traditional social contracts no longer sufficed. To restore order, communities collectively chose a ruler, born from practical necessity rather than divine right, to enforce laws and handle dissent, thus formalizing governance as a solution to human imperfections and societal breakdown .

The Agganna Sutta depicts a direct correlation between the concept of private property and the emergence of societal conflict. Initially, beings lived communally without concepts of ownership, but as they began to accumulate private property—starting with grains and land—social disparities appeared. As individuals began to store and mark property for themselves, competition for resources led to theft, dishonesty, and conflicts. These antisocial behaviors prompted the community to elect a ruler to establish law and order, addressing the chaos born from unregulated private property ownership. This narrative suggests that while private property contributed to economic organization, it also introduced inequalities and moral decline, necessitating governance to manage the ensuing social issues .

The emergence of social contracts in the Agganna Sutta reflects early democratic ideals through its emphasis on collective decision-making and the consensual establishment of authority. The text describes a prehistoric society where the degeneration of moral and social order necessitated the election of a ruler (Mahasammata) by the people, rather than by divine selection or heredity. This election was a conscious social contract, where authority was granted based on merit and the ability to enforce justice, highlighting the people's role in shaping governance. This represents an embryonic form of democratic thought, emphasizing governance as derived from the consent of the governed, reflecting ideals of representation and accountability central to democratic systems .

According to the Agganna Sutta, the evolution of the universe and society occurred in several stages. Initially, beings lived in a perfect state, subsisting on happiness alone. As the universe evolved with the formation of the Earth's crust, living beings began to associate with it and experience desires. Over time, these beings' physical forms coarsened due to consumption of earthly substances, leading to physical and mental variations. This led to the development of pride and social distinctions. Eventually, with the emergence of various food sources like mushrooms and grains, private property and domestic life arose, setting the stage for societal changes such as theft and moral disarray. To counter these issues, people gathered to choose a leader to enforce order, culminating in the establishment of the state .

The Buddhist theory of the origin of the state as described in the Agganna Sutta differs significantly from the Brahmanical divine theory of kingship. While the Brahmanical view posits that kingship is divinely ordained, the Buddhist view, as presented by Buddha, argues against this divine right and instead proposes a social contract theory. According to this theory, the state originates not from divine decree but from a pre-political era where people collectively chose a leader among themselves. This elected ruler, termed 'Mahasammata,' was selected to uphold justice and manage society, framing governance as a practical necessity rather than a divine mandate .

In the Agganna Sutta, the principle of non-violence, or Ahimsa, is integrated into the governance model as a fundamental component of leadership attributes. The ruler is expected to embody non-violence, which is one of the ten qualities ('Dasa-Raja-Dhamma') that define ethical and effective rulership. This principle guides the ruler in resolving conflicts, administering justice, and exercising power with compassion and restraint. By prioritizing non-violence, Buddha's governance model seeks to prevent harm and promote peace, both in interpersonal relations and broader societal structures, thereby fostering a political environment that alleviates suffering and promotes the welfare of all beings .

The concept of 'Mahasammata' in the Buddhist theory of political governance refers to the 'great elect,' a ruler chosen by the people to lead and administer justice. This term encapsulates the democratic aspect of Buddhist political theory, emphasizing the idea that legitimate authority comes from the collective will of the governed rather than divine right or hereditary succession. The Mahasammata was responsible for upholding customary laws and serving as an executive head to mitigate societal conflicts. This choice represented a shift towards a contract-based view of statehood, where governance sought to maintain social harmony through popular sovereignty and representative leadership, underpinning the Buddhist emphasis on moral and ethical governance .

The Agganna Sutta outlines specific qualities that a good ruler should possess, known as the 'Dasa-Raja-Dhamma'. These qualities include generosity (Dana), morality (Sila), sacrifice (Pariccaga), honesty and integrity (Ajjava), kindness or gentleness (Maddava), restraint (Tapa), absence of hatred (Akkodha), non-violence (Ahimsa), patience and tolerance (Khanti), and non-opposition (Avirodha). These virtues align closely with Buddhist moral teachings that emphasize ethical conduct, compassion, and wisdom. By embodying these attributes, a ruler not only upholds societal order but also reflects the core principles of Buddhism, encouraging the moral development of the kingdom's subjects, thereby establishing a model of governance focused on ethical integrity .