Economic Incentives as Weapons of War

International relations scholars tend to differentiate between a state’s use of military and economic instruments of power and also between rewards and punishments. In conflict scenarios, leaders are typically depicted as facing a choice between using military versus economic forms of punishment to achieve desired political outcomes. The role of economic rewards is seldom analyzed within the context of adversarial relations or within combat operations. The U.S. military has used money in combat and noncombat operations to influence actors and shape the operational environment in a manner favorable to the troops. There has been some attention devoted to the military’s noncombatant role and to efforts to win hearts and minds. Little attention has been devoted to the use of money in kinetic operations. The military’s use of money in its operations, including counterinsurgency and stability operations, provides insight for international relations scholars interested in when economic inducements may be effective within adversarial relations or conflict situations. It represents a form of targeted sanctions, in the sense of applying positive inducements selectively at the micro level, to achieve macro-level objectives. The U.S. military has relied on a growing body of empirical research in persuasion science to inform its operations. The case and findings from persuasion science could contribute to understanding the problems and possibilities of harnessing the power of money to achieve political outcomes.