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Privatization
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Privatization programs have been undertaken in many countries across the world, falling into three major groups. The first is privatization programs conducted by transition economies in Central and Eastern Europe after 1989 in the process of instituting a market economy. The second is privatization programs carried out in developing countries under the influence of international financial institutions such as the World Bank and IMF. The third is privatization programs carried out by developed country governments, the most comprehensive probably being those of New Zealand and the United Kingdom in the 1980s and 1990s.
Privatization of government services is defined as turning over responsibility for services from the public to the private sector. It can involve the sale of assets, volunteer activity, franchise agreements, or contracting with a private firm for the provision of a service, which is the most common form of privatization.
The second way opponents of privatization worry that private firms will distort the administration of justice is by exerting undue influence on parole hearings. Opponents argue that since prison firms are generally paid per prisoner per day, they have an incentive to extend inmate stays as long as possible, and so are liable to reduce prisoner’s chances for parole or good time off by exaggerating or fabricating disciplinary infractions (DiIulio, 1990).
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