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A private prison, or for-profit prison, is a place where people are imprisoned by a third party that is contracted by a
government agency A government or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an administrati ...
. Private prison companies typically enter into contractual agreements with governments that commit prisoners and then pay a
per diem ''Per diem'' ( Latin for "per day" or "for each day") or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer's business. A ' ...
or monthly rate, either for each prisoner in the facility, or for each place available, whether occupied or not. Such contracts may be for the operation only of a facility, or for design, construction and operation.


Global spread

In 2013, countries that were currently using private prisons or in the process of implementing such plans included
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
,
Chile Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the eas ...
,
Jamaica Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of Hispa ...
,
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...
,
Mexico Mexico (Spanish language, Spanish: México), officially the United Mexican States, is a List of sovereign states, country in the southern portion of North America. It is borders of Mexico, bordered to the north by the United States; to the so ...
,
Peru , image_flag = Flag of Peru.svg , image_coat = Escudo nacional del Perú.svg , other_symbol = Great Seal of the State , other_symbol_type = National seal , national_motto = "Firm and Happy f ...
,
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring coun ...
,
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...
and
Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is b ...
. However, at the time, the sector was still dominated by the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
,
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
,
Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
and
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...
.


Australia

Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
opened its first private prison, Borallon Correctional Centre, in 1990. In 2018, 18.4% of prisoners in Australia were held in private prisons. This was much higher than the rate for the United States which was 8.4%.


Arguments for and against

A 2016 article by Anastasia Glushko (a former worker in the private prison sector) argues in favor of privately owned prisons in Australia. According to Glushko, private prisons in Australia have decreased the costs of holding prisoners and increased positive relationships between inmates and correctional workers. Outsourcing prison services to private companies has allowed for costs to be cut in half. Compared with $270 a day in a government-run West Australian jail, each prisoner in the privately operated Acacia Prison near Perth costs the taxpayer $182. Glushko also says positive prisoner treatment was observed during privatisation in Australia by including more respectful attitudes to prisoners and mentoring schemes, increased out-of-cell time and more purposeful activities. However, a 2016 report from the
University of Sydney The University of Sydney (USYD), also known as Sydney University, or informally Sydney Uni, is a public research university located in Sydney, Australia. Founded in 1850, it is the oldest university in Australia and is one of the country's si ...
found that in general, all states of Australia lacked a comprehensive approach to hold private prisons accountable to the government. The authors said that of all the states, Western Australia had the "most developed regulatory approach" to private prison accountability, as they had learnt from the examples in Queensland and Victoria. Western Australia provided much information about the running of private prisons in the state to the public, making it easier to assess performance. However the authors note that in spite of this, overall it is difficult to compare the performance and costs of private and public prisons as they often house different kinds and numbers of prisoners, in different states with different regulations. They note that Acacia Prison, sometimes held up as an example of how private prisons can be well run, cannot serve as a general example of prison privatisation.


Private immigration prisons

Several Australian immigration prisons are privately operated, including the Nauru Regional Processing Centre which is located on the pacific island country of
Nauru Nauru ( or ; na, Naoero), officially the Republic of Nauru ( na, Repubrikin Naoero) and formerly known as Pleasant Island, is an island country and microstate in Oceania, in the Central Pacific. Its nearest neighbour is Banaba Island in ...
and operated by Broadspectrum on behalf of the Australian Government, with security sub-contracted to Wilson Security. Immigration prisons typically hold people who have overstayed or lack a visa, or otherwise broken the terms of their visas. Some, such as the facility on Nauru, hold
asylum seekers An asylum seeker is a person who leaves their country of residence, enters another country and applies for asylum (i.e., international protection) in that other country. An asylum seeker is an immigrant who has been forcibly displaced and ...
,
refugees A refugee, conventionally speaking, is a displaced person who has crossed national borders and who cannot or is unwilling to return home due to well-founded fear of persecution.
and even young children who can be detained indefinitely. In many cases people have been detained for years without charge or trial. This, as well as poor conditions, neglect, harsh treatment and deaths in some of the centers, has been the source of controversy in Australia and internationally.


Canada

There have been three notable private detention facilities in
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
to date, and all have either gone defunct or reverted to government control. The only private adult prison in Canada was the maximum-security
Central North Correctional Centre The Central North Correctional Centre formerly known as "The Superjail" is a maximum security prison located in Penetanguishene, Ontario, Canada. During its period of private management from 2001 to 2006, it was the only privately-run adult correct ...
in Penetanguishene,
Ontario Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...
, operated by the U.S.-based Management and Training Corporation from its opening in 2001 through the end of its first contract period in 2006. The contract was held by the Ontario provincial Ministry of Community Safety and Correctional Services. A government comparison between the Central North "super-jail" and a nearly identical facility found that the publicly run prison had measurably better outcomes. Two youth detention centres in Canada were operated by private companies, both at the provincial level. The Encourage Youth Corporation operated
Project Turnaround Project Turnaround was a private youth detention centre for male young offenders between 16 and 18 years of age that operated from 1997 to 2004 in Hillsdale, Ontario, Canada. The facility held up to 32 high-risk youths at a time who were servi ...
in Hillsdale, Ontario under contract from the
Government of Ontario The government of Ontario (french: Gouvernement de l'Ontario) is the body responsible for the administration of the Canadian province of Ontario. A constitutional monarchy, the Crown—represented in the province by the lieutenant governor� ...
from 1997 to 2004, after which the facility was shut down. In
New Brunswick New Brunswick (french: Nouveau-Brunswick, , locally ) is one of the thirteen provinces and territories of Canada. It is one of the three Maritime provinces and one of the four Atlantic provinces. It is the only province with both English and ...
, the multinational private prison firm GEO Group constructed and operated the Miramichi Youth Detention Centre under contract with the province's Department of Public Safety before its contract was ended in the 1990s following public protests. As of mid-2012, private prison companies continued to lobby the Correctional Service of Canada for contract business.


France

The involvement of the private sector in prisons in
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
grew significantly between 1987 and the late 2000s, as reported by French scholar Fabrice Guilbaud. France's system is semi-private: so-called non-sovereign missions (kitchen, laundry, maintenance) are delegated to private companies, while guard and security functions are left to the State. Organization of inmate labor in prison workshops is another task that has been delegated to prison management companies. There are however no prisons in France in which every aspect of the prison is run by the private sector, as in the UK. The French approach to privatisation therefore necessarily divorces security and production functions. Prison is a space of forced confinement where the overriding concern is security. The fact is that at several levels, and depending on the type of prison (high security or not), production logic clashes with security logic. Structural limitations of production in a prison can restrict private companies’ profit-taking capacities. A field study conducted by Guilbaud in 2004 and 2005 in five prisons chosen by prison and management type shows that the intensity of the tension between production and security, and the various ways in which this tension arises and is handled, vary by type of prison (short-stay, for convicts awaiting sentencing, or relatively long-stay for sentence-serving inmates) and type of management. The production/security tension seems better integrated in public-sector prisons than in those managed by the private sector in the sense that it produces fewer conflicts in them. This result runs counter to the widespread understanding that shaped the 1987 reform, the idea that introducing private enterprise and the professionalism associated with it into prisons would improve inmate employment and prison operation. It is worth noting that in the UK, this problem is overcome by handing over all aspects of management, including both security and prisoners' work, to the operating company, thereby achieving the integration of the two.


Israel


Initial attempt

In 2004, the
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
i
Knesset The Knesset ( he, הַכְּנֶסֶת ; "gathering" or "assembly") is the unicameral legislature of Israel. As the supreme state body, the Knesset is sovereign and thus has complete control of the entirety of the Israeli government (wit ...
passed a law permitting the establishment of private prisons in Israel. The Israeli government's motivation was to save money by transferring prisoners to facilities managed by a private firm. The state would pay the franchisee $50 per day for inmate, sparing itself the cost of building new prisons and expanding the staff of the
Israel Prison Service Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
. In 2005, the Human Rights Department of the Academic College of Law in
Ramat Gan Ramat Gan ( he, רָמַת גַּן or , ) is a city in the Tel Aviv District of Israel, located east of the municipality of Tel Aviv and part of the Tel Aviv metropolitan area. It is home to one of the world's major diamond exchanges, and man ...
filed a petition with the
Israeli Supreme Court ar, المحكمة العليا , image = Emblem of Israel dark blue full.svg , imagesize = 100px , caption = Emblem of Israel , motto = , established = , location = Givat Ram, Jerusalem , coordina ...
challenging the law. The petition relied on two arguments; first, it said transferring prison powers to private hands would violate the prisoners' fundamental human rights to liberty and dignity. Secondly, a private organization always aims to maximize profit, and would therefore seek to cut costs by, such means as skimping on prison facilities and paying its guards poorly, thus further undermining the prisoners' rights. As the case awaited decision, the first prison was built by the concessionaire, Lev Leviev's
Africa Israel Investments Africa Israel Investments Ltd. (AFI Group) is an international holding and investment company based in Yehud, Israel. The group consists of several private and public companies active in areas such as real estate, construction, infrastructure, ...
, a facility near
Beersheba Beersheba or Beer Sheva, officially Be'er-Sheva ( he, בְּאֵר שֶׁבַע, ''Bəʾēr Ševaʿ'', ; ar, بئر السبع, Biʾr as-Sabʿ, Well of the Oath or Well of the Seven), is the largest city in the Negev desert of southern Israel. ...
designed to accommodate 2,000 inmates.


Israeli Supreme Court rejection

In November 2009, an expanded panel of 9 judges of the
Israeli Supreme Court ar, المحكمة العليا , image = Emblem of Israel dark blue full.svg , imagesize = 100px , caption = Emblem of Israel , motto = , established = , location = Givat Ram, Jerusalem , coordina ...
ruled that privately run prisons are illegal, and that for the State to transfer authority for managing the prison to a private contractor whose aim is monetary profit would severely violate the prisoners' basic human rights to dignity and freedom. Supreme Court President
Dorit Beinisch Dorit Beinisch ( he, דורית ביניש; born February 28, 1942) was the 9th president of the Supreme Court of Israel. Appointed on September 14, 2006, after the retirement of Aharon Barak, she served in this position until February 28, 2012. ...
wrote: "Israel's basic legal principles hold that the right to use force in general, and the right to enforce criminal law by putting people behind bars in particular, is one of the most fundamental and one of the most invasive powers in the state's jurisdiction. Thus when the power to incarcerate is transferred to a private corporation whose purpose is making money, the act of depriving a person of
heir Inheritance is the practice of receiving private property, titles, debts, entitlements, privileges, rights, and obligations upon the death of an individual. The rules of inheritance differ among societies and have changed over time. Offic ...
liberty loses much of its legitimacy. Because of this loss of legitimacy, the violation of the prisoner's right to liberty goes beyond the violation entailed in the incarceration itself."


New Zealand

In 2016, 10% of prisoners in New Zealand were housed in private prisons.


Prison privatisation

The use of private prisons has also been tried, stopped and reintroduced. New Zealand's first privately run prison, the Auckland Central Remand Prison, also known as Mt. Eden Prison, opened under contract to
Australasian Correctional Management Australasian Correctional Management (ACM) was a private Australian company that existed from 1991 to 2003 and was owned by American company Wackenhut. History From 1998 until 2003 ACM was responsible for running at least six immigration detenti ...
(ACM) in 2000. In 2004, the Labour Government, opposed to privatisation, amended the law to prohibit the extension of private prison contracts. A year later, the 5-year contract with ACM was not renewed. In 2010, the National Government again introduced private prisons and international conglomerate
Serco Serco Group plc is a British company with headquarters based in Hook, Hampshire, England. Serco primarily derives income as a contractor for the provision of government services, most prominently in the sectors of health, transport, justice, ...
was awarded the contract to run the Mt Eden Prison. Numerous scandals surrounding the Mt Eden Prison led to Serco's contract not being renewed there. On 16 July 2015, footage of "fight clubs" within the prison emerged online and was reported by
TVNZ , type = Crown entity , industry = Broadcast television , num_locations = New Zealand , location = Auckland, New Zealand , area_served = Nationally (New Zealand) and some Pacific Island nations such as the Cook Islands, Fiji, and the ...
. Serco was heavily criticized for not investigating until after the footage was screened. On 24 July 2015, Serco's contract to run the Mount Eden prison was revoked and operation was given back to the New Zealand Department of Corrections. Serco was ordered to pay $8 million to the New Zealand government as a result of problems at Mount Eden Prison while it was under Serco's management. Serco has also been given the contract to build and manage a 960-bed prison at Wiri. The contract with Serco provides for stiff financial penalties if its rehabilitation programmes fail to reduce re-offending by 10% more than the Corrections Department programmes. The
Auckland South Corrections Facility There are eighteen adult prisons in New Zealand. Three prisons house female offenders, one each in Auckland, Wellington and Christchurch. The remaining fifteen house male offenders; ten in the North Island and five in the South Island. In addit ...
was opened on 8 May 2015. The contract to operate the prison ends in 2040.


Growth in prison population

Since it was established, the department has had to cope with a dramatic growth in the prison population. Between 1997 and 2011 the number of inmates increased by 70% and, at 190 prisoners per 100,000 of population (in 2011), New Zealand has one of the higher rates of imprisonment in the Western world. Five new prisons have been built in the last ten years to accommodate the increase. The
Fifth Labour Government The Fifth Labour Government of New Zealand was the government of New Zealand from 10 December 1999 to 19 November 2008. Labour Party leader Helen Clark negotiated a coalition with Jim Anderton, leader of the Alliance Party. While undertaking ...
built four prisons – at Ngawha (Northern Region) housing 420 prisoners, Springhill (north of Huntly) housing 840, Auckland Women's' holding 330 and Milton (Otago) holding 425 – at a cost of $890 million. When National came to power in 2008, the Department built a new 1,000 bed prison at Mt Eden for $218 million in a public private partnership and gave the contract to
Serco Serco Group plc is a British company with headquarters based in Hook, Hampshire, England. Serco primarily derives income as a contractor for the provision of government services, most prominently in the sectors of health, transport, justice, ...
. The Department's growth has been such that in July 2010, Finance Minister Bill English expressed concerns that Government spending was "led by a rapidly expanding prison system which would soon make Corrections the government's biggest department". As at December 2011, New Zealand had 20 prisons and the Department employed over 8,000 staff. The Department's operating budget is over $1 billion a year. As at 31 March 2011, there were 8,755 people in prison in New Zealand. However, the prison population is very fluid and altogether about 20,000 people spend time in prison each year, the vast majority on remand. Nearly 75% of those given a prison sentence are sentenced to two years or less, and all these are automatically released halfway through their sentence. As of 2001, 96% percent of inmates were men and 51% of male inmates were Māori, so Māori were over-represented on a population basis by 3.5 times. The cost of keeping a person in prison for 12 months is $91,000. In 2001 the Department estimated that a lifetime of offending by one person costs victims and taxpayers $3 million. Despite English's concerns about the growing cost, in 2011 the government approved the building of a 960-bed prison at Wiri estimated to cost nearly $400 million. Later that year, justice sector forecasts showed a drop in the projected prison forecast for the first time. Charles Chauvel, Labour Party spokesperson for justice, and the
Public Service Association The Public Service Association ( mi, Te Pūkenga Here Tikanga Mahi) or PSA is a democratic trade union that represents over workers in the Aotearoa New Zealand public sector. The aims of the PSA are: * strong public and community services * ...
both questioned the need for a new facility when there were 1,200 empty beds in the prison system. In March 2012, Corrections Minister
Anne Tolley Anne Merrilyn Tolley (née Hicks, born 1 March 1953) is a New Zealand politician and former member of the New Zealand House of Representatives representing the National Party. She was New Zealand's first female Minister of Education from 200 ...
announced the new prison would enable older prisons such as Mt Crawford in Wellington and the New Plymouth prison to be closed. Older units at Arohata, Rolleston, Tongariro/Rangipo and Waikeria prisons will also be shut down.


South Korea

There is only one private prison in S. Korea, Somang Correctional Institution. Somang Correctional Institution was founded in 2010 and is operated by the Association of Churches. They are a non-commercial private prison and have 300~380 beds. However, their inmates are relatively minor criminals (cherry picking).


United Kingdom


Number of prisoners

* In 2018, 18.46% of prisoners in
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
and
Wales Wales ( cy, Cymru ) is a country that is part of the United Kingdom. It is bordered by England to the east, the Irish Sea to the north and west, the Celtic Sea to the south west and the Bristol Channel to the south. It had a population in ...
were housed in private prisons. * 15.3% of prisoners in
Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to ...
were housed in private prisons.


Development

In the modern era, the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
was the first European country to use for-profit prisons. Wolds Prison opened as the first privately managed prison in the UK in 1992. This was enabled by the passage of the Criminal Justice Act 1991 which empowered the
Home Secretary The secretary of state for the Home Department, otherwise known as the home secretary, is a senior minister of the Crown in the Government of the United Kingdom. The home secretary leads the Home Office, and is responsible for all nationa ...
to contract out prison services to the private sector. In addition, a number of the UK's Immigration Removal Centres are privately operated, including the Harmondsworth Immigration Removal Centre, Yarl's Wood Immigration Removal Centre, and
Colnbrook Immigration Removal Centre Colnbrook Immigration Removal Centre is located in Harmondsworth, London Borough of Hillingdon. Colnbrook, adjacent to Harmondsworth Immigration Removal Centre and London Heathrow Airport, houses only males. Colnbrook, which opened in August 200 ...
. In 2007 the new Scottish National Party Government in Scotland announced that it was opposed to privately run prisons and would not let any more contracts. Since then, new prisons in Scotland have been built and run by the public sector. The last contract let in England and Wales was for
HM Prison Northumberland HM Prison Northumberland is a Category C men's prison, located in Morpeth near the village of Acklington in Northumberland, England. Since 2013 Northumberland has been operated by private prison firm Sodexo Justice Services under contract with ...
, which transferred from the public sector to Sodexo in 2013. The most recent new prison to be built in England and Wales,
HM Prison Berwyn HM Prison Berwyn ( cy, Carchar Berwyn EF; ) is a £250 million Category C adult male prison in Wrexham County Borough, Wales. It is the largest prison in the UK, opened in 2017, and is operated by His Majesty's Prison Service. Name The gaol' ...
near Wrexham, was given to the public sector to operate without any competition when it opened in 2017. Since 2017, it has been Labour Party policy not to commission any new private prisons in England and Wales. On 5 November 2018, the prisons minister, Rory Stewart, told the
House of Commons The House of Commons is the name for the elected lower house of the bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of parliament. T ...
that two new prisons at Wellingborough, Northants, and Glen Parva, Leicestershire, would be built using conventional public finance, but their operation would be contracted out. On 29 November, he announced a framework competition, under which private operators would seek to be placed on a list of companies which would be eligible to bid in future competitions, including the planned programme for 10,000 new places to replace old prisons, and also for prisons currently operated privately, when those contracts end. It was implied that the public sector would be excluded from all such competitions. He said: "This Government remains committed to a role for the private sector in operating custodial services. The competition launched today will seek to build on the innovation and different ways of working that the private sector has previously introduced to the system. The sector has an important role to play, and currently runs some high-performing prisons, as part of a decent and secure prison estate.....A balanced approach to custodial services provision, which includes a mix of public, voluntary and private sector involvement has been shown to introduce improvements and deliver value for money for taxpayers." The Secretary of State for Justice announced on 9 July 2019 that 6 companies had been accepted on to the Prison Operators Service Framework: G4S Care and Custody Services UK Limited, Interserve Investments Limited, Management and Training Corporation Works Limited, Mitie Care & Custody, Serco Limited, and Sodexo Limited. Of the two new contenders, Interserve had operated offender services in the community as part of the Purple Futures consortium: the Chief Inspector of Probation had rated 4 out of their 5 operations as ‘requiring improvement’. The other, MTC, has run prisons in the USA, several of which have been the subject of serious failures and scandals. The Secretary of State added: "The Government is committed to a mixed market of custodial services. The Prison Operator Framework will increase the diversity and resilience of the custodial services market in England and Wales, by creating a pool of prison operators who can provide high quality, value for money, custodial and maintenance services and enable us to effectively and efficiently manage a pipeline of competition over the next six years." On 26 June 2020 the Government announced plans for a further 4 prisons, although a site only exists for one of them. It claimed, without evidence, that the new prisons would cut reoffending. It stated that at least one of the four would be publicly run.


Contractual arrangements

In the UK there are three ways in which a private company may take on management of a prison: # Companies compete to finance, design, build and run a new prison under the
private finance initiative The private finance initiative (PFI) was a United Kingdom government procurement policy aimed at creating "public–private partnerships" (PPPs) where private firms are contracted to complete and manage public projects. Initially launched in 19 ...
. Most prisons in the UK are of this kind, although the use of PFI has now been abandoned. # The Government builds a prison and then contracts out its operation. # A prison formerly operated by the public sector prison service may be contracted out after competition ("market testing"). Prisons may be re-competed at the end of the contract. Increasingly, a range of services within all prisons, whether public or privately run, are contracted out on a regional basis: this includes works and FM services, and rehabilitation programmes.


Governance and accountability

Privately run prisons are run under contracts which set out the standards that must be met. Payments may be deducted for poor performance against the contract. Government monitors ("controllers") work permanently within each privately managed prison to check on conditions and treatment of prisoners. The framework for regulation and accountability is much the same for privately run prisons as for publicly run ones. In
England and Wales England and Wales () is one of the three legal jurisdictions of the United Kingdom. It covers the constituent countries England and Wales and was formed by the Laws in Wales Acts 1535 and 1542. The substantive law of the jurisdiction is En ...
they are subject to unannounced inspection by HM Chief Inspector of Prisons, to monitoring by local Independent Monitoring Boards and prisoner complaints are dealt with by the Prison and Probation Ombudsman. Similar arrangements exist in
Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to ...
and
Northern Ireland Northern Ireland ( ga, Tuaisceart Éireann ; sco, label=Ulster Scots dialect, Ulster-Scots, Norlin Airlann) is a part of the United Kingdom, situated in the north-east of the island of Ireland, that is #Descriptions, variously described as ...
.


Evaluation

There has been little systematic, objective evaluation of private prisons in the UK. The best study, by the Institute of Criminology at Cambridge University, using direct observation of staff and prisoner behaviour, found that public sector staff tended to be more knowledgeable and confident, while the private sector treated prisoners more respectfully, though one private prison scored well on both. Earlier, cruder, studies came to broadly the same conclusion. Another study found marked improvements in prisoner quality of life at Birmingham prison after transfer from public to private sector (though subsequently, conditions at Birmingham deteriorated to such a degree that the contract was ended and the prison returned to public operation). An analysis of performance assessments of individual prisons by the Chief Inspector of Prisons and by the Prison Service suggested no consistent difference in service quality between sectors The same study showed that construction and operating costs were for many years much lower in the private sector, but that the gap has narrowed. In May 2019, the Labour Party spokesman on prisons published data showing that the rate of assaults in privately run local prisons is around 40% higher than in publicly run ones.


Controversies

In early 2012, Frances Crook, chief executive of the Howard League for Penal Reform said Her Majesty's Inspectorate of Prisons encountered an almost nine-fold rise in restraint used in the previous year at Ashfield Young Offenders Institution, which holds 15- to 18-year-olds. She cited "many incidents of strip searching children unnecessarily". Force had been used almost 150 times a month compared to 17 times monthly the prior year, recalling it had "chilling echoes" of circumstances in the choking death of a 15-year-old at
Rainsbrook Secure Training Centre Rainsbrook Secure Training Centre is a secure school and housing unit for children and teenagers between Dunchurch and Barby, south of Rugby, in Warwickshire, England. It is next to HM Prison Onley and HM Prison Rye Hill. While designed for a ca ...
after restraints had been applied. Frequent use of force followed failure of wards to obey staff instructions. Three years earlier the institution recorded more than 600 attacks on inmates in one year - the highest number of every jail, including adults, in the country. Crook claimed "This jail has a history of failing children and the public." Managers claimed the increase was due to better reporting of the use of restraints. The institution had been half full during the previous unannounced inspection in 2010. The chief inspector of prisons noted "some staff lacked confidence in challenging poor behaviour." The director of the prison and the YOI admitted there is "room for improvement." Six members of staff were dismissed from G4S-operated Rainsbrook Secure Training Centre for children in
Rugby Rugby may refer to: Sport * Rugby football in many forms: ** Rugby league: 13 players per side *** Masters Rugby League *** Mod league *** Rugby league nines *** Rugby league sevens *** Touch (sport) *** Wheelchair rugby league ** Rugby union: 1 ...
in May 2015 following a series of incidents of gross misconduct. G4S took the action in response to an
Ofsted The Office for Standards in Education, Children's Services and Skills (Ofsted) is a non-ministerial department of His Majesty's government, reporting to Parliament. Ofsted is responsible for inspecting a range of educational institutions, incl ...
inspection that reported some staff being on drugs while on duty, colluding with detainees and behaving "extremely inappropriately". The behaviour allegedly included causing distress and humiliation to children by subjecting them to degrading treatment and racist comments. Four G4S team leaders of Medway Secure Training Centre in Rochester were arrested in January 2016 and four other staff members were placed on restricted duties, following an investigation by the BBC's ''
Panorama A panorama (formed from Greek πᾶν "all" + ὅραμα "view") is any wide-angle view or representation of a physical space, whether in painting, drawing, photography, film, seismic images, or 3D modeling. The word was originally coined i ...
'' TV programme into the centre. Allegations in the television programme included foul language and use of unnecessary force – such physical violence, overuse of restraint techniques (causing one teenager to have difficulties breathing) – on 10 boys aged 14 to 17, as well as a cover-up involving members of staff by avoiding surveillance cameras in order not to be recorded, and purposefully misreporting incidents in order to avoid potential fines and punishment; for example, in one exchange, it was claimed some staff don't report "two or more trainees fighting" because it indicates they've "lost control of the centre", resulting in a potential fine. G4S-run Medway managers received performance-related pay awards in April 2016, despite the chief inspector of prisons weeks saying weeks earlier that "managerial oversight failed to protect young people from harm at the jail." In January, ''Panorama'' showed an undercover reporter working as a guard at the Medway secure training centre (STC) in Kent. The film showed children allegedly being mistreated and claimed that staff falsified records of violent incidents. No senior managers were disciplined or dismissed. Prior to the Panorama programme's broadcast, the Youth Justice Board (YJB), which oversees youth custody in England, stopped placing children in Medway. In February, a Guardian investigation revealed that, in 2003, whistleblowers had warned G4S, the Ministry of Justice (MoJ) and the YJB that staff were mistreating detained children. Their letter, forwarded by Prof John Pitts, a youth justice expert, was ignored. When the prisons inspectorate carried out a snap inspection at Medway it found detainees reported staff had used insulting, aggressive or racist language toward them and felt unsafe in facility portions not covered by closed circuit TV. Reviewers agreed to the legitimacy of evidence presented by Panorama showing, "...targeted bullying of vulnerable boys," by employees, and that, "A larger group of staff must have been aware of unacceptable practice but did not challenge or report this behaviour." In an earlier Ofsted report on Medway, inspectors said staff and middle managers reported feeling a lack of leadership and having "low, or no confidence in senior managers." Nick Hardwick, at the time the chief inspector of prisons said, "Managerial oversight failed to protect young people from harm. Effective oversight is key to creating a positive culture that prevents poor practice happening and ensuring it is reported when it does." ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers '' The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the ...
'' newspaper learned that senior managers at Medway received performance-related pay awards in April amounting to between 10-25% of their annual salaries, according to seniority. One 15-year-old girl placed at Medway in 2009 said she was frequently unlawfully restrained over 18 months, citing an occasion in which her face was repeatedly slammed into icy ground. "I assumed the senior management team would be sacked... But now it looks like they have been rewarded for allowing children to be abused in prison," she said. Former Labour MP
Sally Keeble Sally Curtis Keeble (born 13 October 1951) is a British Labour Party politician. She was the Member of Parliament (MP) for Northampton North from the 1997 to 2010 general elections, when she lost her seat to the Conservative Party candidate ...
has complained about G4S maltreatment in STC's for over ten years, stating: "This is people making personal profit out of tragedy. I hope that justice minister Liz Truss would intervene and make sure these bonuses are not being paid by a Ministry of Justice contractor." Notwithstanding the results of the investigations no senior managers at Medway were disciplined or dismissed. In May, the MoJ said the National Offender Management Service (NOMS) would take over the running of Medway. In July, it formally assumed control of the STC. In February 2016, G4S had announced that it was to sell its children's services business, including the contract to manage two secure training centres. The company hoped to complete the process by the end of 2016. Following release of an extremely critical report regarding a G4S-operated jail, the Labour party's shadow justice secretary said they would be inclined to take control of for-profit prisons if the industry competitors had not met deadlines imposed upon them. Sadiq Khan's response stressed the need for better contracting, to include liquidated damages provisions. The chief inspector of prisons Nick Hardwick, recommended the crafting of a takeover contingency plan. "It's not delivering what the public should expect of the millions being paid to G4S to run it." Khan said, " I see no difference whether the underperformance is in the public, private or voluntary sector... We shouldn't tolerate mediocrity in the running of our prisons." Khan continued: "We can't go on with scandal after scandal, where the public's money is being squandered and the quality of what's delivered isn't up to scratch. The government is too reliant on a cosy group of big companies. The public are rightly getting fed up to the back teeth of big companies making huge profits out of the taxpayer, which smacks to them of rewards for failure."Failing private prisons to be renationalized says Labour
''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers '' The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the ...
'', Nicholas Watt, Jan 2, 2014. Retrieved 27 September 2016.


United States

Private prisons are operated in the
United States of America The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...
. In 2018, 8.41% of prisoners in the United States were housed in private prisons. On January 25, 2021, President Joe Biden issued an executive order to stop the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...
from renewing further contracts with private prisons. As most facilities are run by their respective states, the order only will apply to small fraction of private prisoners, about 14,000 inmates housed in federal prisons.


Early history

The privatization of prisons can be traced to the contracting out of confinement and care of prisoners after the
American Revolution The American Revolution was an ideological and political revolution that occurred in British America between 1765 and 1791. The Americans in the Thirteen Colonies formed independent states that defeated the British in the American Revoluti ...
. Deprived of the ability to ship criminals and undesirables to the Colonies, Great Britain began placing them on hulks (used as
prison ships A prison ship, often more accurately described as a prison hulk, is a current or former seagoing vessel that has been modified to become a place of substantive detention for convicts, prisoners of war or civilian internees. While many nation ...
) moored in English ports. In 1852, on the northwest San Francisco Bay in California, inmates of the prison ship Waban began building a contract facility to house themselves at Point Quentin. The prison became known as
San Quentin San Quentin State Prison (SQ) is a California Department of Corrections and Rehabilitation state prison for men, located north of San Francisco in the unincorporated place of San Quentin in Marin County. Opened in July 1852, San Quentin is th ...
, which is still in operation today. Its partial transfer of prison administration from private to public did not mark the end of privatization. The next phase began with the
Reconstruction Period The Reconstruction era was a period in American history following the American Civil War (1861–1865) and lasting until approximately the Compromise of 1877. During Reconstruction, attempts were made to rebuild the country after the bloo ...
(1865–1876) in the south, after the end of the Civil War. Plantations and businessmen needed to find replacements for the labor force once their slaves had been freed. In 1865, the United States ratified the 13th Amendment, which abolished all forms of slavery "except as punishment for a crime". This exception allowed plantation owners and businessmen to find the unpaid labor they desired. Beginning in 1868,
convict lease Convict leasing was a system of forced penal labor which was practiced historically in the Southern United States, the laborers being mainly African-American men; it was ended during the 20th century. (Convict labor in general continues; f ...
s were issued to private parties to supplement their workforce. This system remained in place until the early 20th century.


Development


1980s–2009

Federal and state governments have a long history of contracting out specific services to private firms, including medical services, food preparation, vocational training, and inmate transportation. However, the 1980s ushered in a new era of prison privatization. With a burgeoning prison population resulting from the
War on Drugs The war on drugs is a global campaign, led by the United States federal government, of drug prohibition, military aid, and military intervention, with the aim of reducing the illegal drug trade in the United States.Cockburn and St. Clair, 1 ...
and increased use of incarceration, prison overcrowding and rising costs became increasingly problematic for local, state, and federal governments. In response to this expanding criminal justice system, private business interests saw an opportunity for expansion, and consequently, private-sector involvement in prisons moved from the simple contracting of services to contracting for the complete management and operation of entire prisons. The modern private prison business first emerged and established itself publicly in 1984 when the Corrections Corporation of America (CCA), now known as
CoreCivic CoreCivic, formerly the Corrections Corporation of America (CCA), is a company that owns and manages private prisons and detention centers and operates others on a concession basis. Co-founded in 1983 in Nashville, Tennessee by Thomas W. Beasl ...
, was awarded a contract to take over operation of a facility in
Shelby County, Tennessee Shelby County is the westernmost county in the U.S. state of Tennessee. As of the 2020 census, the population was 929,744. It is the largest of the state's 95 counties, both in terms of population and geographic area. Its county seat is Memp ...
. This marked the first time that any government in the country had contracted out the complete operation of a jail to a private operator. The following year, CCA gained further public attention when it offered to take over the entire state prison system of Tennessee for $200 million. The bid was ultimately defeated due to strong opposition from public employees and the skepticism of the state legislature. Despite that initial defeat, CCA since then has successfully expanded, as have other for-profit prison companies. CCA's $52 million January 1997 purchase of Washington, D.C.'s $100 million Central Treatment Facility was "the first time a prison has been sold outright (although under a lease-back arrangement, ownership is supposed to revert to D.C. after 20 years)."


2010s

Statistics from the U.S. Department of Justice show that, as of 2019, there were 116,000 state and federal prisoners housed in privately owned prisons in the U.S., constituting 8.1% of the overall U.S. prison population. Broken down to prison type, 15.7% of the federal prison population in the United States is housed in private prisons and 7.1% of the U.S. state prison population is housed in private prisons. As of 2017, after a period of steady growth, the number of inmates held in private prisons in the United States has declined modestly and continues to represent a small share of the nation's total prison population. Companies operating such facilities include the Corrections Corporation of America (CCA), the GEO Group, Inc. (formerly known as Wackenhut Securities), Management and Training Corporation (MTC), and
Community Education Centers Community Education Centers, Inc. (abbreviated CEC) was a private corrections company based in West Caldwell, New Jersey that operated residential reentry facilities, jails, and in-prison drug treatment programs in seventeen American states and Berm ...
. In the past two decades CCA has seen its profits increase by more than 500 percent. The prison industry as a whole took in over $5 billion in revenue in 2011. According to journalist
Matt Taibbi Matthew Colin Taibbi (; born March 2, 1970) is an American author, journalist, and podcaster. He has reported on finance, media, politics, and sports. A former contributing editor for ''Rolling Stone'', he is an author of several books, co-host o ...
,
Wall Street Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for ...
banks took notice of this influx of cash, and are now some of the prison industry's biggest investors.
Wells Fargo Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and intern ...
has around $100 million invested in GEO Group and $6 million in CCA. Other major investors include
Bank of America The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank ...
,
Fidelity Investments Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is o ...
,
General Electric General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable ene ...
and
The Vanguard Group The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania, with about $7 trillion in global assets under management, as of January 13, 2021. It is the largest provider of mutual funds and the second-l ...
. CCA's share price went from a dollar in 2000 to $34.34 in 2013.
Matt Taibbi Matthew Colin Taibbi (; born March 2, 1970) is an American author, journalist, and podcaster. He has reported on finance, media, politics, and sports. A former contributing editor for ''Rolling Stone'', he is an author of several books, co-host o ...
(2014). '' The Divide: American Injustice in the Age of the Wealth Gap.''
Spiegel & Grau Spiegel & Grau was originally a publishing imprint of Penguin Random House founded by Celina Spiegel and Julie Grau in 2005. On January 25, 2019, Penguin Random House announced that the imprint was being shut down and the two founders were lea ...
. pp. 214-216.
Sociologist John L. Campbell and activist and journalist
Chris Hedges Christopher Lynn Hedges (born September 18, 1956) is an American journalist, Presbyterian minister, author, and commentator. In his early career, Hedges worked as a freelance war correspondent in Central America for '' The Christian Science M ...
respectively assert that prisons in the United States have become a "lucrative" and "hugely profitable" business. In June 2013, students at
Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...
discovered that the institution owned $8 million worth of CCA stock. Less than a year later, students formed a group called Columbia Prison Divest, and delivered a letter to the president of the University demanding total divestment from CCA and full disclosure of future investments. By June 2015, the board of trustees at Columbia University voted to divest from the private prison industry. CoreCivic (previously CCA) has a capacity of more than 80,000 beds in 65 correctional facilities. The GEO Group operates 57 facilities with a capacity of 49,000 offender beds. The company owns or runs more than 100 properties that operate more than 73,000 beds in sites across the world. Most privately run facilities are located in the southern and western portions of the United States and include both state and federal offenders. For example, Pecos, Texas is the site of the largest private prison in the world, the
Reeves County Detention Complex Reeves County Detention Complex is a privately operated immigration detention facility, located about 3 miles southwest of Pecos in Reeves County, Texas. It was opened in 1986 to relieve overcrowding of contract federal inmates within the count ...
, operated by the GEO Group. It has a capacity of 3,763 prisoners in its three sub-complexes, Private prison firms, reacting to reductions in prison populations, are increasingly looking away from mere incarceration and are seeking to maintain profitability by expanding into new markets previously served by non-profit behavioral health and treatment-oriented agencies, including prison medical care, forensic mental hospitals, civil commitment centers, halfway houses and home arrest. A 2016 report by the U.S. Department of Justice asserts that privately operated federal facilities are less safe, less secure and more punitive than other federal prisons. Shortly thereafter, the DoJ announced it will stop using private prisons. Nevertheless, a month later the
Department of Homeland Security The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-ter ...
renewed a controversial contract with the CCA to continue operating the
South Texas Family Residential Center The South Texas Family Residential Center is the largest immigrant detention center in the United States. Opened in December 2014 in Dilley, Texas, it has a capacity of 2,400 and is intended to detain mainly women and children from Central Ameri ...
, an immigrant detention facility in Dilley, Texas. Stock prices for CCA and GEO Group surged following Donald Trump's victory in the 2016 elections. On February 23, the DOJ under Attorney General Jeff Sessions overturned the ban on using private prisons. According to Sessions, "the (Obama administration) memorandum changed long-standing policy and practice, and impaired the bureau's ability to meet the future needs of the federal correctional system. Therefore, I direct the bureau to return to its previous approach." Additionally, both CCA and GEO Group have been expanding into the immigrant detention market. Although the combined revenues of CCA and GEO Group were about $4 billion in 2017 from private prison contracts, their number one customer was ICE.


Impact

According to a 2021 study, private prison inmates serve longer time in prison than comparable inmates in public prisons.


Escape of Arizona murderers

In the wake of the escape of three murderers from the minimum/medium security Kingman Prison,
Arizona Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
operated by Management and Training Corporation (MTC), and its gruesome aftermath, Arizona Attorney General and gubernatorial candidate Terry Goddard said "I believe a big part of our problem is that the very violent inmates, like the three that escaped, ended up getting reclassified s a lower riskquickly and sent to private prisons that were just not up to the job". The private prison had inadequate patrols and prisoner movement, excessive false alarms, a lax culture, and inconsistencies in visitor screening procedures. One escaping murderer, Daniel Renwick, immediately absconded with the intended getaway vehicle, abandoning his companions outside the prison. He was involved in a shootout in Rifle, Colorado, about 30 hours after the prison break, and was captured by a Garfield County deputy and Rifle police. Though he still "owed" Arizona 32 years on his sentence, he was sentenced to sixty years to be served first in Colorado. In the course of evading pursuers, the remaining two escapees and their accomplice, Casslyn Welch, kidnapped and hijacked vacationing Oklahomans Gary and Linda Haas in New Mexico. The couple was soon murdered by the ringleader, John McCluskey. The extended family of the murdered couple sued the state of Arizona, as well as Dominion, a corporation based in
Edmond, Oklahoma Edmond is a city in Oklahoma County, Oklahoma, United States, and a part of the Oklahoma City metropolitan area in the central part of the state. The population was 94,428 according to the 2020 United States Census, making it the fifth largest c ...
, that spec-built the prison, and MTC, the corporation that managed it, for $40 million. The last escapees and their accomplice were soon captured. Tracy Province, a lifer, was apprehended in Wyoming on August 9. The final pair were arrested on August 19, 20 days after the jailbreak, upon their return to Arizona. All three were first convicted of the escapes, initial hijacking, kidnappings and robberies in
Kingman, Arizona Kingman is a city in, and the county seat of, Mohave County, Arizona, United States. It is named after Lewis Kingman, an engineer for the Atlantic and Pacific Railroad. It is located southeast of Las Vegas, Nevada, and northwest of Arizona ...
. Then they were charged with the same crimes plus murder in New Mexico. John McCluskey, the ringleader, and his accomplice, Casslyn Welch, were also alleged to have committed an armed robbery in Arkansas. The three were eventually held on federal murder charges in New Mexico. McCluskey was tried on death penalty charges but after five months of court proceedings, his jury gave him life imprisonment on December 11, 2013. Estimates of the costs of the nationwide searches as well as the apprehensions, prosecutions and subsequent imprisonment in the three states greatly exceed $1 million.


Torrance County Detention Center

Torrance County Detention Center is in
Estancia, New Mexico Estancia is a town in Torrance County, New Mexico, United States. As of the 2020 census, the town population was 1,242. It is the county seat of Torrance County. Estancia is part of the Albuquerque Metropolitan Statistical Area. History Estanci ...
. Estancia has a population of about 1,500 residents, while Torrance County has a population of more than 15,000. The Torrance County Detention facility houses about 580 prisoners, most of them federal inmates. The head of the Torrance County Detention center, Garland was told the prison needs closer to 700 beds filled to stay open. For several years they have not been able to maintain this quota and are being forced to shut down. The closure will cost the town of Estancia about $700,000 annually, according to the county's news release, and will result in about $300,000 worth of lost tax income for the county. "I’m concerned about the jobs," Garland said. "We are losing a large part of our workforce." Garland said the prison's imminent closure will affect the county in a number of ways, not the least of which is that the county, which does not have its own jail, will have to find another place to house the 40 to 75 inmates it sends there each month. The company told the county it has been holding fewer federal detainees for Immigration and Customs Enforcement, Garland said.


Increase in the prison population

From 1925 to 1980 the prison population stayed consistent with the general population. The private prison population began to increase at an disproportional rate in 1983 (the year that private prisons began operation in the United States). From 1925 to 1980 the prison population had a gradual increase from 150,000 to 250,000. However, From 1983 to 2016 the prison population has increased from 250,000 to 1,500,000. The exact causes for this overwhelming increase cannot be assigned to individual policies as even similar types of criminal sentencing policies were associated with wildly different rates of incarceration in different communities due to powerful external factors such as income disparity, racial makeup, and even the party affiliation of the lawmakers Correlated with the rise of incarceration rates in the United States was the abolition of loose sentencing guidelines for crimes. Before 1970 in the United States judges were given generally wide sentencing frames (2–20 years), allowing judges ample room for judicial discretion. Liberal Americans argued that this system left room for discrimination in sentencing while conservatives argued that this discretion led to unduly lenient sentences. Under pressure from both sides, many states adopted presumptive sentencing practices or presumptive sentencing guidelines. These policies presented a single recommended sentence among the wider statutory range. This left judges with some room to increase or reduce the sentence in response to mitigating or aggravating circumstances but generally limited their discretion under penalty of automatic appeal through appellate review. Accompanying this change was the adoption of determinate sentencing practices. These acted in the same way as presumptive sentencing but instead concerned release. Adoption of these type of laws effectively ended discretionary parole release for all offenses and made mandatory minimum sentences the norm. Researchers have had mixed results in trying to determine whether these policies themselves led to increased incarceration rates and the results largely depended on the demographics of the community in question. Based on a correlation matrix assembled by Stemen and Rengifo it was shown that the percentage of black residents in a community had a much higher correlation with an increased incarceration rate than the area's choice of sentencing policy. Determinate sentencing was however linked with increased drug arrests which correlated highly with increased incarceration rate and minority population percentage. Determinate and structured sentencing policies on their own lead to more stable jail times as they leave less room for judicial input. In doing so they embody the attitudes of the population at the time they were created. As a result of their static nature these policies were not well adapted to face the wave of drug related offenses created by the crack epidemic of the 1980s and the modern opioid crisis. When Reagan's
War on Drugs The war on drugs is a global campaign, led by the United States federal government, of drug prohibition, military aid, and military intervention, with the aim of reducing the illegal drug trade in the United States.Cockburn and St. Clair, 1 ...
lead to a massive rise in numbers in prisons, private prison operators were quick to seize the opportunity. According to statistics from "The Problem with Private Prisons—Justice Policy Institute", from 1990 to 2005 there was a 1600 percent increase in the American private prison population. However, the vast majority of prisoners, over 90 percent, remain in publicly-run prisons .


Cost–benefit analysis

To properly compare the benefits of private versus public prisons, the prisons must share common factors such as similar levels of security, number of staff, and population in the prisons. Studies, some partially industry-funded, often conclude that states can save money by using for-profit prisons. However, academic or state-funded studies have found that private prisons tend to keep more low-cost inmates and send high-cost back to state-run prisons. This is counterproductive to the cost benefit analysis of the Private Prisons and contradicts the original selling point of the CCA and other private prisons; "to mitigate the cost of running prisons". In practice these companies have not been shown to definitively reduce costs and have created several unintended outcomes. The supposed benefit of outsourcing correctional services takes root in the liberal economic idea that having multiple companies compete to provide a service would naturally make the companies innovate and find ways to increase their efficiency to win more contracts than the others. Few companies ever got involved in the business. In the United States CoreCivic, GEO Group Incorporated, and Management and Training Corporation house all the privately held federal inmates and most state inmates across the United States. (United States, Department of Justice, Office of the Inspector General,1 ) Naturally, this means there is little competition within the industry. When comparing the quality of the services that private prisons provide versus their public counterparts a 2016 report from the Office of the Inspector General found that private facilities underperformed their public counterparts in several key safety areas. 14 private prisons were surveyed in this study and compared to 14 federally operated facilities of the same security level in this study. Privately run facilities were found to have higher rates of inmate on inmate and inmate on staff assaults per capita. Twice as many weapons and eight times as many contraband phones were confiscated per capita at private facilities versus their public counterparts. Determining the quality per dollar spent by private prisons is a difficult proposition. At a surface level the Federal Bureau of Prisons (BOP) reports that private prisons expended an average of $22,488 annually per capita from 2011-2014 while BOP institutions expended $24,426. This may seem like a clear indication of savings but there is a critical lack of information about how the money supplied to private institutions is being spent each month. The Federal Bureau of Prisons (BOP) which oversees both federal and private prisons in the United States does not receive cost information broken out by function or department for private institutions, leaving them no way to compare the expenditures made in key cost-saving areas such as food and medical care. Without this data federal overseers cannot adequately evaluate the efficiency of the programs offered at private institutions. Several Research studies have indicated that the cost savings indicated in these reports may come from lower wages, lower staffing levels and reduced employee training at these private facilities. Another consideration when examining these cost savings is the disparity in the inmates housed at private facilities versus those that are publicly funded. Private institutions often have a laundry list of internal rules about the kinds of prisoners they will house. These rules are designed to prevent private companies from taking on prisoners that will be particularly costly to house. Christopher Petrella a researcher at the University of California investigated some of the rules set forth by CoreCivic in their contract with the California Department of Corrections and Rehabilitation. Based on their agreement CoreCivic could refuse the intake of prisoners over a multitude of health issues such as HIV of Hepatitis C positive status as well as mental health concerns. This is indicative of a greater trend across the United States. Private prisons tend to house prisoner that carry lower risk levels and require fewer services than their public counterparts making direct comparisons of savings unreliable. According to a 2020 study of private prisons in Mississippi, "private prison inmates serve 90 additional days... The delayed release erodes half of the cost savings offered by private contracting and is linked to the greater likelihood of conduct violations in private prisons."


Costs

Proponents of privately run prisons contend that cost-savings and efficiency of operation place private prisons at an advantage over public prisons and support the argument for privatization, but some research casts doubt on the validity of these arguments, as evidence has shown that private prisons are neither demonstrably more cost-effective, nor more efficient than public prisons. An evaluation of 24 different studies on cost-effectiveness revealed that, at best, results of the question are inconclusive and, at worst, there is no difference in cost-effectiveness. A study by the U.S.
Bureau of Justice Statistics The Bureau of Justice Statistics (BJS) of the U.S. Department of Justice is the principal federal agency responsible for measuring crime, criminal victimization, criminal offenders, victims of crime, correlates of crime, and the operation of cri ...
found that the cost-savings promised by private prisons "have simply not materialized". Some research has concluded that for-profit prisons cost more than public prisons. Furthermore, cost estimates from privatization advocates may be misleading, because private facilities often refuse to accept inmates that cost the most to house. A 2001 study concluded that a pattern of sending less expensive inmates to privately run facilities artificially inflated cost savings. A 2005 study found that Arizona's public facilities were seven times more likely to house violent offenders and three times more likely to house those convicted of more serious offenses. A 2011 report by the
American Civil Liberties Union The American Civil Liberties Union (ACLU) is a nonprofit organization founded in 1920 "to defend and preserve the individual rights and liberties guaranteed to every person in this country by the Constitution and laws of the United States". T ...
point out that private prisons are more costly, more violent and less accountable than public prisons, and are actually a major contributor to Incarceration in the United States, increased mass incarceration. This is most apparent in Louisiana, which has the highest incarceration rate in the world and houses the majority of its inmates in for-profit facilities. Marie Gottschalk, professor of political science at the University of Pennsylvania, argues that the prison industry "engages in a lot of cherry-picking and cost-shifting to maintain the illusion that the private sector does it better for less." In fact, she notes that studies generally show that private facilities are more dangerous for both correctional officers and inmates than their public counterparts as a result of cost-cutting measures, such as spending less on training for correctional officers (and paying them lower wages) and providing only the most basic medical care for inmates.Marie Gottschalk.
Caught: The Prison State and the Lockdown of American Politics
'' Princeton University Press, 2014
p. 70
/ref> A 2014 study by a doctoral candidate at UC Berkeley shows that minorities make up a greater percentage of inmates at private prisons than in their public counterparts, largely because minorities are cheaper to incarcerate. According to the study, for-profit prison operators, in particular CCA and GEO Group, accumulate these low-cost inmates "through explicit and implicit exemptions written into contracts between these private prison management companies and state departments of correction". Recidivism rates, how many prisoners are re-arrested after release, are not usually considered to measure performance. A study in 2005 found that out of half of the federal prisoners released that year, 49.3% were arrested again later on. Pennsylvania became one of the first states to offer a financial incentive to corrections facilities that were privately operated and could lower their recidivism rates in 2013. In order for these facilities to gain a 1% bonus, they had to lower rates to 10% below the baseline. Together, all 40 of these facilities in the state had an average of 16.4% reduction in their recidivism rates.


Inadequacies including being understaffed

Evidence suggests that lower staffing levels and training at private facilities may lead to increases in the incidence of violence and escapes. A nationwide study found that assaults on guards by inmates were 49 percent more frequent in private prisons than in government-run prisons. The same study revealed that assaults on fellow inmates were 65 percent more frequent in private prisons. An example of private prisons' inadequate staff training leading to jail violence was reported by two Bloomberg News journalists, Margaret Newkirk and William Selway in Mississippi regarding the now-closed Walnut Grove Correctional Facility (WGCF). According to the journalists, the ratio of staff to prisoners in this prison was only 1 to 120. In a bloody riot in this prison, six inmates were rushed to the hospital, including one with permanent brain damage. During the riot, the staff of the prison did not respond but waited until the melee ended, because prisoners outnumbered staff by a ratio of 60–1. The lack of well-trained staff does not only lead to violence but also corruption. According to a former WGCF prisoner, the corrections officers were also responsible for smuggling operations within the prison. To make more money, some provided prisoners with contraband, including drugs, cellphones and weapons. Law enforcement investigations led to the exposure of a far wider web of corruption.


Bureaucratic corruption scandals

At the Walnut Grove C.F., intense corruption was involved in the construction and operation of, and subcontracting for medical, commissary and other services. After exposure of the rape of a female transitional center prisoner by the mayor, who also served as a warden, a bribery scheme was uncovered. It had paid millions to the corrupt Mississippi Department of Corrections Commissioner Chris Epps and his conduits. Ten additional officials and consultants, including three former state legislators (two Republicans and one Democrat), were indicted in the United States Department of Justice, Department of Justice's Operation Mississippi Hustle prosecution. Prior to the Mississippi investigations and prosecutions, a similar investigation began in 2003, dubbed ''Alaska political corruption probe#Private corrections, Operation Polar Pen'', exposed a wide-ranging bribery scheme of what legislative members themselves called the "Corrupt Bastards Club" (CBC). It initially involved for-profit corrections, then extended to include fisheries management and oil industry taxation. At least fifteen targets of the investigation, including ten sitting or former elected officials, the governor's chief of staff, and four lobbyists were considered for possible prosecution, and a dozen were indicted. Investigation of a Democratic state senator found nothing amiss, but ten indictments were issued that included six Republican state legislators, two halfway house lobbyists, two very wealthy contractors and the U.S. Senator, Ted Stevens. The seven felony convictions against Stevens were overturned, as were verdicts involving three other legislators and the governor's Chief of Staff, one directly due to the United States Supreme Court, Supreme Court's overturning part of the existing "Honest Services Fraud" in the case of Representative Bruce Weyhrauch. Weyhrauch pleaded guilty to a state misdemeanor. Others also had their verdicts overturned, in part because the prosecution failed to completely disclose exculpatory evidence to their defense, but three of those also pleaded guilty to lesser charges. Though they were implicated, the Department of Justice also declined to prosecute a former state senator and the U.S. Congressman, Don Young, who spent over a million dollars on his defense, though he was never indicted.


Judicial corruption scandal

In the kids for cash scandal, Mid-Atlantic Youth Services Corp, a private prison company which runs juvenile facilities, was found guilty of paying two judges, Mark Ciavarella and Michael Conahan, $2.8 million to send 2,000 children to their prisons for such alleged crimes as trespassing in vacant buildings and stealing DVDs from Wal-Mart. Sentenced to 28 years in federal prison, Ciavarella will spend his time in Kentucky at Federal Correctional Institution Ashland. The two judges were not the only ones at fault though, seeing as the First National Community Bank never reported the suspicious activity, causing the scandal to go on even longer. In the end, FNCB was fined $1.5 million for failing to report the suspicious activities including transactions that went on over a total of 5 years.


Lobbying

“From 1999-2010, the Sentencing Project found that Corrections Corporation of America (CCA) spent on average, $1.4 million per year on lobbying at the federal level and employed a yearly average of seventy lobbyists at the state level.” The influence of the for-profit prison industry on the government has been described as the prison–industrial complex.
CoreCivic CoreCivic, formerly the Corrections Corporation of America (CCA), is a company that owns and manages private prisons and detention centers and operates others on a concession basis. Co-founded in 1983 in Nashville, Tennessee by Thomas W. Beasl ...
(previously CCA), Management and Training Corporation, MTC and GEO Group, The GEO Group have been members of the American Legislative Exchange Council (ALEC), a Washington, D.C.-based public policy organization that develops model legislation that advances free-market principles such as privatization. Under their Criminal Justice Task Force, ALEC has developed model bills which State legislators can then consult when proposing "tough on crime" initiatives including "Truth in Sentencing" and Three-strikes law, "Three Strikes" laws. By funding and participating in ALEC's Criminal Justice Task Forces, critics argue, private prison companies influence legislation for tougher, longer sentences. Writing in ''Governing (magazine), Governing'' magazine in 2003, Alan Greenblatt states: According to Cooper, Heldman, Ackerman, and Farrar-Meyers (2016), ALEC has been known to push for the expansion of the private prison industry by promoting greater use of private prisons, goods, and services; promoting greater use of prison labor; and increasing the size of prison populations. ALEC has had a hand in not only broadening the definition of existing crimes, but also in the creation of new crimes. ALEC is known for developing policies that may threaten civil liberties by increasing the probabilities of incarceration and lengthy sentences (Cooper et al., 2016). According to a 2010 report by ''NPR'', ALEC arranged meetings between the Corrections Corporation of America and Arizona's state legislators such as Russell Pearce at the Grand Hyatt in Washington, D.C. to write Arizona SB 1070, which would keep CCA's immigrant detention centers stuffed with detainees.Sullivan, Laura (2010)
Prison Economics Help Drive Ariz. Immigration Law
''National Public Radio''.
CCA and GEO have both engaged in state initiatives to increase sentences for offenders and to criminalization, create new crimes, including, CCA helping to finance California Proposition 6 (2008), Proposition 6 in California in 2008 and GEO lobbying for Jessica's Law in Kansas in 2006. In 2012, The CCA sent a letter to 48 states offering to buy public prisons in exchange for a promise to keep the prisons at 90% occupancy for 20 years. States that sign such contracts with prison companies must reimburse them for beds that go unused; in 2011, Arizona agreed to pay Management & Training Corporation $3 million for empty beds when a 97 percent quota wasn't met. In 2012 it was reported that the DEA had met up with the CCA to incorporate laws that would increase the CCA's prison population and in turn increased the CCA's prison population. CCA, now
CoreCivic CoreCivic, formerly the Corrections Corporation of America (CCA), is a company that owns and manages private prisons and detention centers and operates others on a concession basis. Co-founded in 1983 in Nashville, Tennessee by Thomas W. Beasl ...
, closed their facility in Estancia, New Mexico as the lack of prisoners made them unable to turn a profit, which left 200 employees without jobs. OpenSecrets reported that private prison corporations donated a record breaking 1.6 million in federally disclosed contributions in the 2018 United States elections, 2018 midterm elections.


Opposition

Many organizations have called for a moratorium on construction of private prisons, or for their outright abolition. The Presbyterian Church (U.S.A.) and United Methodist Church have also joined the call, as well as a group of Southern Catholic Bishops. As of 2013, there has been a modest pushback against the private prison industry, with protests forcing GEO Group to withdraw its $6 million offer for naming rights of FAU Stadium, and Kentucky allowing its contract with the CCA to expire, ending three decades of allowing for-profit companies to operate prisons in that state. In 2014, Idaho will be taking over the operation of the Idaho Correctional Center from the CCA, which has been the subject of a plethora of lawsuits alleging rampant violence, understaffing, gang activity and contract fraud. Idaho governor Butch Otter said "In recognition of what's happened, what's happening, it's necessary. It's the right thing to do. It's disappointing because I am a champion of privatization." In the final quarter of 2013, Scopia Capital Management, DSM North America, and Amica Mutual Insurance divested around $60 million from CCA and GEO Group.Katie Rose Quandt (28 April 2014)
Corporations Divest Nearly $60 Million From Private Prison Industry
''Mother Jones (magazine), Mother Jones.'' Retrieved 2 May 2014.
In a Color of Change press release, DSM North America President Hugh Welsh said:


Attempts to limit privatization and increase oversight

Some U.S. states have imposed bans, population limits, and strict operational guidelines on private prisons: * Banning privatization of state and local facilities—Illinois in 1990 (Private Correctional Facility Moratorium Act), and New York (state), New York in 2000, enacted laws that ban the privatization of prisons, correctional facilities and any services related to their operation. Louisiana enacted a moratorium on private prisons in 2001. In September 2019, the California legislature passed a bill that would prohibit private prison companies from operating in the state; however, ICE later extended a contract to continue the use of private prisons into the future due to it being exempt from state laws as it is a federal agency pursuant to the Supremacy Clause and due to the fact that Congress has not banned the use of private prisons. * Banning speculative private prison construction—For-profit prison companies have built new prisons before they were awarded privatization contracts in order to lure state contract approval. In 2001, Wisconsin's joint budget committee recommended language to ban all future speculative prison construction in the state. Such anticipatory building dates back to at least 1997, when Corrections Corporation of America built a 2,000-bed facility in California at a cost of $80–100 million with no contract from the California Department of Corrections; a CCA official was quoted as saying, "Field of Dreams, If we build it, they will come". * Banning exportation and importation of prisoners—To ensure that the state retains control over the quality and security of correctional facilities, North Dakota passed a bill in 2001 that banned the export of Class A and AA felons outside the state. Similarly, Oregon allowed an existing exportation law to sunset in 2001, effectively banning the export of prisoners. Several states have considered banning the importation of prisoners to private facilities. * Requiring standards comparable to state prisons—New Mexico enacted legislation that transfers supervision of private prisons to the state Secretary of Corrections, ensuring that private prisons meet the same standards as public facilities. In 2001, Nebraska legislation that requires private prisons to meet public prison standards was overwhelmingly approved by the legislature, but Pocket veto, pocket-vetoed by the governor. Oklahoma passed a law in 2005 that requires private prisons to have emergency plans in place and mandates state notification of any safety incidents. The Federal Bureau of Prisons announced its intent to end for-profit prison contracts. * Terminating federal contracts. On August 18, 2016, Deputy U.S. Attorney General Sally Yates announced that the U.S. Department of Justice, Justice Department intended to end its Bureau of Prisons contracts with for-profit prison operators, because it concluded "...the facilities are both less safe and less effective at providing correctional services..." than the Federal Bureau of Prisons. In response, Issa Arnita, the spokesperson for the third largest U.S. for-profit prison operator Management and Training Corporation, said it was "disappointed" to learn about the DOJ's decision. "If the DOJ's decision to end the use of contract prisons were based solely on declining inmate populations, there may be some justification, but to base this decision on cost, safety and security, and programming is wrong." In a memorandum, Yates continued, for-profit "...prisons served an important role during a difficult period, but time has shown that they compare poorly to our own Bureau facilities. They simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs; and as noted in a recent report by the Department's United States Department of Justice Office of the Inspector General, Office of Inspector General, they do not maintain the same level of safety and security. The rehabilitative services that the Bureau provides, such as educational programs and job training, have proved difficult to replicate and outsource and these services are essential to reducing recidivism and improving public safety. Also, the recidivism rates of the private prisons, “Within three years of release, about two-thirds (67.8 percent) of released prisoners were rearrested. Within five years of release, about three-quarters (76.6 percent) of released prisoners were rearrested. Of those prisoners who were rearrested, more than half (56.7 percent) were arrested by the end of the first year.” These private prison recidivism rates, compared to the public prison's recidivism rates, are virtually identical and in return have minuscule benefits . At the time, the Justice Department held 193,000 inmates, about 22,000 of whom were in 14 private prisons. Criminal justice reform had caused the prison population to drop by about 25,000 inmates over the previous few years. Separately the
Department of Homeland Security The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-ter ...
intends to continue to hold some suspected illegal aliens in private prisons.


Media coverage in the United States


Documentary

* Kids for cash scandal was featured in ''Capitalism: A Love Story'', the 2009 documentary by Michael Moore. * A full-length documentary covering the kids for cash scandal entitled ''Kids for Cash (2013 documentary), Kids for Cash'' was released in February 2014. * ''13th (film), 13th'' is an Oscar-nominated 2016 documentary that examines the role of private prison contracts in the mass incarceration of blacks and Latinos, primarily, in the United States. The name refers to the Thirteenth Amendment to the United States Constitution, Thirteenth Amendment which abolished slavery, yet allows for involuntary servitude as a punishment for crime.


Drama

* Kids for Cash scandal has also led to several portrayals in fictional works. Both the ''Law & Order: SVU'' episode "Law & Order: Special Victims Unit (season 10), Crush" and an episode of ''The Good Wife'' featured corrupt judges sending children to private detention centers. An episode of ''Cold Case'' titled "Jurisprudence" is loosely based on this event. * List of Orange Is the New Black episodes#Season 3 (2015), Season 3 of ''Orange Is the New Black'' portrays the transformation of the prison from federally owned to a privately owned prison for-profit. * An episode of ''Elementary (TV series), Elementary'' focuses on private prisons competing with each other in New Jersey to win a bid for another prison. * An episode of ''Boston Legal'' sees a 15-year-old former inmate suing a private prison over an alleged rape by one of its corrections officers.


See also

* Convict lease * Correctional Services Corporation * Critical Resistance * Angela Davis * East Mississippi Correctional Facility * Prison abolition movement * Prison–industrial complex * Private probation * Privatization * Public–private partnership * Wackenhut Corp. * Walnut Grove Correctional Facility * Winn Correctional Center


References


Further reading

* * * * * Gunderson, Anna (2022). ''Captive Market: The Politics of Private Prisons in America''. Oxford University Press. * Julian Le Vay is the former finance director of Her Majesty's Prison Service. The book is derived from all available analysis on costs of public and private prisons. * .


External links


How private prisons game the system
''Alternet'' at ''Salon (magazine), Salon''. December 1, 2011.
America's private prison system is a national disgrace
''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers '' The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the ...
''. 13 June 2013
The Business of Mass Incarceration
Chris Hedges Christopher Lynn Hedges (born September 18, 1956) is an American journalist, Presbyterian minister, author, and commentator. In his early career, Hedges worked as a freelance war correspondent in Central America for '' The Christian Science M ...
, ''Truthdig''. Jul 28, 2013.
Prisoners of Profit: Private Prison Empire Rises Despite Startling Record Of Juvenile Abuse
Chris Kirkham, ''The Huffington Post''. October 22, 2013
Revolt at "Ritmo": Dire Conditions in For-Profit Texas Immigration Jail Spark Prisoner Uprising
''Democracy Now!'' February 24, 2015.
How for-profit prisons have become the biggest lobby no one is talking about
''The Washington Post''. April 28, 2015.
Study finds private prisons keep inmates longer, without reducing future crime
University of Wisconsin–Madison News, June 10, 2015.

Bernie Sanders for ''The Huffington Post''. September 22, 2015.
Private Prison Exec Waves Off Criminal Justice Reform, Predicts More Profits
''The Intercept''. December 22, 2015.
"This Man Will Almost Certainly Die": The Secret Deaths of Dozens at Privatized Immigrant-Only Jails
''Democracy Now!'' February 9, 2016.
"My Four Months as a Private Prison Guard"
Shane Bauer for ''Mother Jones'', June 2016.
Ending the Barbarity
''Jacobin (magazine), Jacobin''. August 24, 2016.
Private prison stocks are soaring after Donald Trump's election
''Business Insider''. November 9, 2016. * Covers the current state of private prisons in the UK and the US.
A Federal Judge Put Hundreds of Immigrants Behind Bars While Her Husband Invested in Private Prisons
''Mother Jones'', August 24, 2017. {{DEFAULTSORT:Private Prison Private prisons, Privatization