Incentives

According to the U4 Corruption Glossary, an incentive is an inducement or stimulus (the carrot or the stick), that encourages someone to do something. Incentive theory provides a conceptual framework for analysing the role and potential of recruitment and promotion mechanisms, detection and penalties, and different wage systems in improving the efficiency of public agencies. It challenges, for instance, the simplistic view that pay increases will always reduce fraud in public administration. Note that an incentive might also be a bribe, persuading officials to return undue favours to the briber.