How to make prisons economically viable - Essay Example

Economically Viable Prisons Economically Viable Prisons Introduction United s of America is considered to have the highest rate of imprisonment and incarceration and has been successful in creating a powerful private prison industry by investing more than three billion dollars currently(Logan, 2007). In the state of Texas, the private prisons have been successful in generating profits and improving productivity and at the same time, maintaining law and order. However, because of the shortage of offenders, the state has to deal with empty cells and decreased profitability.

This has made a negative impact on the private prison industry. The aim of this paper is to analyze private prisons in United States in the lights of broad and diverse academic resources. SWOT Analysis During the eighties, the trend in privatization of prisons started and thus, by the nineties, majority of the prisons became private. In the prison industry, private prisons are considered to be the most profitable and lucrative methods of maintaining law and order and at the same time, generating revenues (Shichor, 2002).

Correctional Corporation of America and Wackenhut are considered to be the two dominant players in the private prison industry(Logan, 2007). Research suggests that by sentencing one prison, the correctional institution gets large amount of money (Sloane, 2006). However, in the last few years, there has been decline in the private prison industry. Based on the decline and massive expenditure on private prisons, the following analysis has been conducted in for economically viable private prisons: Strengths 1.

There is no doubt that private prisons are more effective in maintaining law and order as compared to public prisons. 2. Privatization concentrates on providing quality to the prisoners. 3. Private prisons allow business owners to generate higher revenues. 4. Private prison facilities run at greater efficiency and effectiveness as compared to public prisons. Weaknesses 1. In Texas, the private prison industry had concentrated on providing the inmates with superior quality prison facilities as compared to public prisoners.

The facilities provided include gymnasium, libraries, furniture, etc. The private correctional institution has to pay for these facilities(Logan, 2007). 2. The current market of private industry is declining and thus, it has become difficult for prisoner owners to maintain private prisons. 3. The crime rate has been lowered significantly in accordance to the data complied by Bureau of Justice Statistics. Threats 1. The decline in crime rates is considered to be a threat for the prison industry. 2. Secondly, majority of the convicts are now opting for other alternatives in order to serve their sentence(Logan, 2007). 3. The budgets are being slashed by every state.

Opportunities 1. The private prison industry can work collaboratively with the public sector in order to cope with budget deficit(Logan, 2007). 2. To increase profitability, private prisons should concentrate on lowering their expenditures on the prison facilities provided to the inmates. Recommendations Based on the SWOT analysis conducted, following recommendations are suggested: 1. It is suggested that in order to make a better market, organizations should rent prison facilities as it would assist in dealing with the issues related to funding. 2. Collaborative relations must be formed between the state and private prison facilities to reduce the costs.

Conclusion This paper concentrated on providing suggestion for economically viable private prisons. Since the private prison industry is experiencing a decline, it is suggested that cities work collaboratively with the public sector to meet the deficit in budget. References Logan, C, "Prison Privatization: Objections and Refutations", http://www.ucc.uconn.edu, 2007. Shichor, David. Private Prisons in Perspective: Some Conceptual Isues Article first published online: 16 DEC 2002.Blackwell Publishers Ltd ,Volume 37, Issue 1, pages 82–100.

Sloane, D, "Private and Public Prisons", GAO, 2006