State governments

However, recently many state governments rescinded the contracts they had formed with private prisons, because the prisons seems to be more ridden with abuse and lawsuits than the government correction facilities. The laxity in the private correction facilities are been blamed for their urge to maximize their profit thereby reducing the protection and security in their units as a means of cost reduction. This explains the increased attempts of Publication of the private correction units to shift the responsibility of running the units between the government and the private units.

The government attempts to re-form the agreement that exists between the private correction facilities to effectively cater for the loopholes of the private prison system. Therefore this study will compare the private and government prison system to analyze the benefits achieved by privatization of prisons which is less costly, in an attempt of countering the above argument. The study will rely on prison systems in U. S. to outline the relationship between the two sectors.

The recorded information from studies that have evaluated the performance and cost effectiveness of the two prison systems will be used to relay the information in this report and provide a case study between the two prison systems (Gaes et al. , 2004). Prison systems are supposed to provide the essential resources that will enable the requirement and management of the physical plant and staffing are efficient. It should also ensure a good relationship between prisoners and staff members prevails.

To effectively run the system the management should also ensure that there exists no conflict between the prisoners by protecting them and providing the physical, social and psychological amenities such as health care, recreation facilities and enough food among others. The prison system should also plan in advance on effective measures to undertake in instances where the management and the staff members fail to accomplish their obligation.

Recent studies have shown that by privatization of prison facilities both systems that is the private and public prison system are able to underlie within the context of prison system (FDCBRDA, 1998). The large size and scope of government correction facilities has been reduced through the initiative of privatization of prisons. This has helped the government to adequately formulate, maintain and take the liability of their prisons as the privatization introduces the concept of cost sharing.

For instance U. S. federal and state government relies on the private prisons for imprisonment of criminals as thousand of prisoners are contracted out to private prisons annually. On the other hand the private correction facilities are able to re-package capital to cater for the operation cost thus cutting down on overhead expenses, unlike the government correction facilities which rely on public coffers to get money to cater for the operation expenses.

The private correction facilities uses the stock exchange market to earn more capital by selling their shares and bonds to the public and attracting more investors internationally, for example Xcorrection Corporation of America (CXW), Geo group (GEO) and Group 4 Securicor (GS). These facilities have also been subject to acquisition and merger in an attempt of further soliciting funds to enable the correction units to be financially stable (Douglas et al. , 1998).