Carrots and sticks have always been used in combination in diplomatic affairs, but scholars and policymakers have focused more on the sticks than the carrots. In this provocative study, policy-savvy scholars examine a wide range of cases-from North Korea to South Africa to El Salvador and Bosnia-to demonstrate the power of incentives to deter nuclear proliferation, prevent armed conflict, defend civil and human rights, and rebuild war-torn societies. The book addresses the 'moral hazard' of incentives, the danger that they can be construed as bribes, concessions, or appeasement. Incentives can take many forms-economic and political, as palpable as fuel oil and as intangible, yet powerful, as diplomatic recognition and 'constructive engagement.' The cases demonstrate that incentives can sometimes succeed when traditional methods-threats, sanctions, or force-fail or are too dangerous to apply.