Inducements are used, both formally and informally, to serve as incentives for the targets of a policy to conform to the letter and the spirit of that policy. Inducements are used at many levels of the government. They are offered to other nations, for example, to encourage compliance with expectations and international standards. For instance, the United States often uses the inducement of financial assistance as a means of urging other countries to comply with policies. It is widely believed that an inducement, which is viewed as positive, is far more effective than a deterrent, which is typically punitive or prohibitive in nature. Any inducement, regardless of its nature or intended objective, is comprised of three main parts: (1) the inducer, or the person or party offering the incentive; (2) the inducee, also referred to as the target, or the individual or entity being offered the inducement; and (3) the inducement or incentive itself. Ultimately, the goal of using the inducement is to bring individual actions into alignment with the strategic plan of a larger body, in this case, the government.

Inducements are sophisticated and frequently effective policy tools because they rely not upon force, but upon the power of persuasion. At the same time, however, their complexity must be acknowledged and respected. The inducement as a policy instrument will only be effective to the extent that the inducer is willing and able to make good on its promise, the degree to which the inducement that is actually provided reflects what was offered, and the extent to which the inducee complies with its responsibilities and obligations pursuant to the agreement it made with the inducer. In many cases, inducements are not one-shot deals. In other words, an inducement is not simply provided for behavior or compliance in a single episode. Rather, inducements tend to have as their goal the object of securing ongoing compliance with overarching, long-range policy goals. Thus, the use of inducements both suggests and assumes that the inducer must be willing to monitor the inducee over a longitudinal period of time.

Although inducements are often viewed favorably by both the inducer and the inducee, they can also be the source of conflict. Consider, for instance, that inducements are often used to secure compliance of governments where there is marked political, economic, and social instability. In the event of regime change, for instance, the nature of the agreement regarding the inducement may need to change or be suspended altogether. The sudden withdrawal of an inducement—even when it is conditioned by an accord between the two parties—can create friction, ultimately causing more problems than it may have solved. Also, there is a fine line between inducements as a legal and ethical activity and the unethical use of bribes. Thus, it is important to consider the short- and long-term challenges and opportunities of using inducements as a supportive instrument of policy implementation and maintenance, as well as understanding fully the potential implications of their use.