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Seeking Profit in Punishment - The Private Management of Correctional Institutions

NCJ Number
101355
Author(s)
J M Keating
Date Published
1985
Length
59 pages
Annotation
A number of economic, legal, and ethical issues must be addressed before the privatization of prison and jail operations can be embraced.
Abstract
Recent enthusiasm for the privatization of prison and jail operations is based in the assumption that governmental correctional operations are inherently cost ineffective and private correctional operations would be cost effective. Assumptions of inherent governmental cost ineffectiveness are based in the beliefs that governmental 'red tape' inevitably increases costs, and that unionization and civil service increase labor costs without a consequent increase in productivity. Supporters of privatization argue that economies of scale permit privately owned prisons to achieve substantial cost savings and that private enterprise can apply cost-saving management techniques unavailable to public institutions. There is little evidence to support these beliefs and assumptions. Significant cost savings through privatization must come by cutting labor costs, which is likely to lower the quality of personnel and their training. Legal issues that must be addressed under privatization are the retention of state powers over sentencing and corrections conditions, state liability for prisoner care, and accountability in the event a private corrections firm files for bankruptcy. A central ethical issue that must be resolved is whether the state should entrust its function of punishing citizens to a profit-oriented private entity. 44 footnotes.