NCJ Number
111860
Journal
New England Journal on Criminal and Civil Confinement Volume: 14 Issue: 1 Dated: (Winter 1988) Pages: 1-39
Date Published
1988
Length
40 pages
Annotation
Privatization describes a complex, multidimensional concept encompassing a variety of economic arrangements affecting the distribution of goods-production and service-delivery responsibilities between public and private sector.
Abstract
The motivation between privatization appears to be economic, a quest for greater efficiency, but also contains an ideological component related to the perceived proper role of government in business. Recent developments in the privatization of corrections constitute an especially controversial application of the concept. While it might be argued that prisons and prison services are a collective or public good and therefore should be under public-sector management and ownership, the essential role of Government is as arranger and subsidizer of public goods and services, not necessarily the producer. Eight alternatives to direct government production of prison services can be identified. These include intergovernmental service agreements, self-service, voluntary service, complete reliance on the free market, franchise, grant, voucher, and contract (purchase of service agreement). The fractionated service contract is probably the most likely to be successful in corrections. Overall, there is little in the nature of prison goods and services, the application of market principles to the enterprise, or the behavior of profit-oriented entities that puts the concept of privatized corrections beyond the bounds of the socially permissible. A test of the relative efficiencies, service quality, and general viability of the two modalities for providing correctional goods and services is needed. 2 tables and 103 footnotes.