INNOVARE StudyDevelopment Economics · Chapter 2 · Measuring Growth & Development
Case 1 · The concept: You get what you measure

The Cobra Bounty

A government wanted fewer venomous snakes. So it paid a reward for every dead cobra. It ended up with more cobras than it started with — and a lesson every economist has to learn.

Case 1 of 4
Hold this as you read

The moment you turn a measurement into a target people are paid to hit — what happens to the thing you were actually trying to fix?

More
cobras
What a bounty on dead cobras produced. Not fewer snakes — more of them, bred on purpose, because the reward measured the wrong thing.

Let me tell you about a city with a snake problem — and a solution so sensible it’s almost funny how badly it backfired. Inside this small, strange story is one of the most important ideas in the whole chapter, the one that decides whether the numbers a country chases actually help it.

The story

A reward for dead snakes

Let me tell you about colonial-era Delhi. The city had too many venomous cobras, and the government wanted the number down. So it did the obvious, reasonable thing: it offered a bounty — a cash reward for every dead cobra you brought in. Clean, simple, measurable. Bring a snake, get paid. At first it worked exactly as intended, and the dead cobras came in.

Then people noticed something. If a dead cobra is worth money, a cobra is an asset. So enterprising residents began quietly breeding cobras — not to reduce the snakes, but to farm the reward. When the government realised what was happening and scrapped the bounty, the breeders had no more use for their now-worthless snakes, so they let them go. The city ended up with more cobras than before it ever tried to help.

The intention
Reduce the cobra population.
The action
Pay a bounty per dead cobra.
The effect
People farm cobras. More snakes, not fewer.
The idea underneath

When the measure becomes the target

The bounty measured “dead cobras handed in.” But the goal was “fewer cobras in the city.” As long as nobody was gaming it, those two things moved together and the measure looked perfect. The instant there was money in it, they came apart — and people optimised the measure they were paid for, not the goal it was standing in for.

That is the trap, and it is everywhere. Reward a factory for the number of nails it makes and you get a mountain of tiny useless nails; switch to rewarding weight and you get a few giant ones nobody can use. The measure, once it becomes the target, stops being an honest picture of the thing you cared about. For a country choosing how to size up its own progress, that is not a cute anecdote — it is the whole risk. Pick the wrong number and you don’t just mis-describe the nation; you send it chasing the wrong thing.

The idea the story was carrying

You get what you measure. The moment a measure becomes a target, people optimise the measure instead of the goal — and the two quietly part ways. So the number a country picks to chase is never neutral. It steers everything.

The other side

The same power, pointed well

It would be easy to take the wrong lesson — “measuring is dangerous, so don’t.” But the cobra story cuts both ways. During the pandemic, one country measured how many days it took to trace a COVID contact, and made that number the target. Because the measure genuinely tracked the thing that mattered — stopping the spread — chasing it made the country better at the real goal, not worse. Same tool, opposite result. A measure can drive a nation toward the right thing just as easily as toward the wrong one. Everything hangs on whether the number you chase and the outcome you want are actually the same thing.

Test yourself — mark your own thinking

Have you actually got the story?

As always — no answer keys. Each prompt reveals the marks a strong answer has to earn, not the answer itself. Say your version first, then check it against the rubric.
Prompt 1 of 3

Explain what went wrong in Delhi to someone who’s never heard of it — and pull the general rule out of it, without stating any “law” by name.

A strong answer earns these marks
  • Tells the mechanism cleanly: reward per dead snake → snakes become worth breeding → more snakes.
  • Draws the general point — the measure and the real goal came apart once there was an incentive to game the measure.
  • States it as a rule that would apply beyond snakes, in your own words.
Prompt 2 of 3

The cobra bounty backfired; the contact-tracing target worked. Same tool, opposite results — so what actually made the difference?

A strong answer earns these marks
  • Puts the difference in the right place: whether the measure and the true goal are the same thing, or can be pried apart.
  • Identifies that the bounty could be gamed (breed snakes) while the tracing target couldn’t easily be faked without also achieving the goal.
  • Avoids the lazy reading (“one good, one bad”) — explains why.
Prompt 3 of 3

Pick a number your school, team, or workplace is actually judged on. How could someone hit the number while missing the point?

A strong answer earns these marks
  • Names a real, specific measure (there’s no correct one — the mark is in the reasoning).
  • Describes the gap between the measure and the real goal it stands for.
  • Gives a concrete way to game it — the “cobra-farming” move for your example.