historyWikipedia2002 · Afghanistan
A 2002 payment to destroy poppy crops led Afghan farmers to plant more poppies
In 2002 British officials trying to reduce opium production in Afghanistan offered farmers 700 dollars an acre to destroy their poppy crop. The scheme created an incentive to grow poppies in order to collect the payout. Farmers planted as many as they could, and some harvested and sold the sap before destroying the plants, earning more than the payment alone. The result was a frenzy of poppy planting rather than a reduction. The case is a textbook example of a perverse incentive, where a rule produces the opposite of its intent.
It shows how a well-meant policy can backfire when it rewards the thing it is meant to stop. Economists and policymakers still cite it when designing incentives.
From Wikipedia, the free encyclopedia · text CC BY-SA 4.0
