Cobra effect

The cobra effect is where a solution for solving a problem could actually make it worse.^[1][2] The term is used to illustrate the causes of wrong stimulation in economy and politics.^[2] There is also a book with the same title by Horst Siebert (1938–2009), German economist and professor.^[2]

Origin

The Indian Cobra

The term 'Cobra effect' stems from an anecdote set at the time of British rule of colonial India. The British government was concerned about the number of venomous cobra snakes. The Government therefore offered a reward for every dead snake. Initially this was a successful strategy as large numbers of snakes were killed for the reward. Eventually however the Indians began to breed cobras for the income.

When this was realized the reward was canceled, but the cobra breeders set the snakes free and the wild cobras consequently multiplied. The apparent solution for the problem made the situation even worse.^[2][3]

A similar incident occurred in Hanoi, under French colonial rule, where a program paying people a bounty for each rat pelt handed in was intended to exterminate rats. Instead, it led to the farming of rats.^[4]

See also

• Perverse incentive
• Unintended consequence
• Severed hands policy of Leopold II

References

1. ^ Brickman, Leslie H. (2002-11-01). Preparing the 21st Century Church. pp. 326. ISBN 9781591601678. http://books.google.com/?id=R6ocCjZIrrUC. 
2. ^ ^{a b c d} Siebert, Horst (2001). Der Kobra-Effekt. Wie man Irrwege der Wirtschaftspolitik vermeidet. Munich: Deutsche Verlags-Anstalt. ISBN 3421055629.  (German)
3. ^ Schwarz, Christian A. (1996). NCD Implementation Guide. Carol Stream Church Smart Resources. pp. 126.  Cited in the Brickman book, page 326.
4. ^ Vann, Michael G. (2003). "Of Rats, Rice, and Race: The Great Hanoi Rat Massacre, an Episode in French Colonial History". French Colonial History 4: 191–203. doi:10.1353/fch.2003.0027.