May 2000 – The paper contains a review of case studies and empirical research examining the ways in which positive inducements shape the preferences of political leaders in recipient countries. The evidence shows that incentives work better than sanctions and that the combination of incentives and sanctions is more effective than either approach alone.
The paper was prepared for the conference “Promoting Human Rights: Isolation or Investment,” sponsored by the Fraser Institute and held in Calgary, Canada in May 2000.
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