Buddha saw politics not as an end in itself but as an instrument that could either provide favourable conditions or create harmful obstructions for individual's personal advancement. He recognized that the government is necessary to provide social order and welfare and that its values, content, and processes should be consistent with the 'Dharma'. Here Dharma refers to the teachings of Buddha and their realization, which are offered as universal or natural laws.

These laws are not created by Buddha, they operate with or without him but Buddha revealed these laws and recommended that we examine them and act accordingly, not through blind faith but through a process of rational human assessment. A fundamental principle of Dharma relevant to politics is the equality and dignity of all individuals. Buddha stressed that all human being have an inherent worth and capacity of enlightenment, called "Buddha nature". In contrast to the prevailing ritualism, Buddha rejected the caste system and argued that virtue were distributed equally, and hierarchically, across society. Buddha's teachings also reflect the principle of equality when he prescribes that monarchy, during his life time, should be based on populate consent (not divine right), conducted in a consultation with the governed, even-handed in the application of justice, and conform to the Dharma. Buddha's own political creation, the sangha, is governed by strict equality in is rules for admission, participation, administration, and dispute resolution.