But sometimes, policies punish the very outcomes they claim to promote.
That’s an inverted incentive structure—and authoritarian regimes are full of them.
Does power distort logic? You better believe it.
What is it?
An inverted incentive structure occurs when the rules reward failure, deception, or loyalty—and punish competence or success.
You still have a “system,” but it runs in reverse.
And history shows the damage.
In "Crisis in Autocratic Regimes" (Rienner, 2018), scholars show how dictators survive by building incentive structures that prioritize loyalty over results.
When regime survival is the goal, performance becomes a threat.