Service and Asset Privatization Essay example

In America today, there is a trend in corrections of taking the duty of running prisons out of the hands of state and federal authorities and contracting it out to private organizations. Along with the drift to privatization is a plethora of research pertaining to the subject taking many different approaches to analyzing the effectiveness. The majority of research focuses on one of three areas. The first questioning whether or not it is cost effective to make the switch. The second being the ethical problems that can and have risen from the privatization of prisons. The third being a wide painting of the change and the implications it has on society as a whole.

According to Alex Tabarrok, privately managed facilities can have cost savings of 15-25% on prison edification and 15% on administrative expenses. Likewise, private prisons generate competition and exert pressure towards public prisons. They encourage public prisons to also innovate and lower costs. Other studies (Lundahl et al. 2009, page 392) argue, “prison privatization provides neither a clear advantage nor disadvantage compared with publicly managed prisons.”

dilemma with public verse private prisons is observed by countries all over the world. Furthermore, in the article Doing well and doing good: The case for privatizing prisons the Australians discuss the possibility of privatization of their prisons. However, they take note of the American experience with privatization of the prisons. The characteristics that have been noted were that they were corrupt, morally bankrupt and secretive. Contrary to the before mentioned characteristics Ms. Glushko reported that the private institutions are less expensive, more accountable, transparent and innovative. Additionally, the review article The Social Order of the underworld what goes on in the US prisons should worry the UK states that just maybe the

Prison Privatization: The Case of Michigan Privatization is a term and action that has grown in prominence and visibility in the United States and in many other parts of the world in recent years. Privatization may be found in virtually all sectors of the U.S. economy and has the potential to impact millions of employees in both non-profit and for-profit organizations. Various factors contribute to the decision to privatize, and much debate has taken place regarding the costs and benefits of this fundamentally system-changing process. While privatization may occur in all sectors, from privately-held corporations to the federal government, the focus of this paper will be privatization relating to prisons, particularly in the state of Michigan.

The claim that prison privatization demonstrably reduces costs and trims government budgets may detract from the critical work of reducing the state’s prison population.

As the number of prisoners have constantly been rising at an exceedly fast pace, several governments around the world have embraced the use of private prisons. Private prisons are confinements run by a third party, through an agreement with the government. In the United States, it is estimated that there are over 1.6 million inmates, of that there are 8% that are housed in privately-operated prisons. While the other 92% are housed in the public prison system. Private prisons have existed since the 19th century. Their use increased in the 20th century and continues to rise in some states. When a government makes an agreement with a private prison, it makes payments per prisoner or vacancy in jail on a regular basis for maintenance of the prisoners. Privatization became involved due to the fact that prisons were becoming overpopulated. Public prisons contracted the confinement and care of prisoners with other organizations. Due to the cost-effectiveness of private firms, prisons began to contract out more services, such as medical care, food service, inmate transportation, and vocational training. Over time private firms saw an opportunity for expansion and eventually took over entire prison operations. However, now their security, how they treat the inmates, and their true cost effectiveness has come into question

where's that goes on the privatization of prisons. Providing a broad study between public and

In the course of the most recent 20 years, the U.S. correctional facility populace has qua-drupled, with someone.9 million people in the slammer in government and state penitentiaries, and local prisons by the year 2000. firms are looking for benefit making open doors from this prison populace. that corpora-tions are profiting by prison work: correctional facility privatization and prison exchange. we tend to in the blink of an eye survey key clarifications of detainment, re-port on this condition of prison privatization and correctional facility industrialization, look at the effect they require on sorted out work, and propose union routes in battling against the amplification of organization force inside the (D. E. (2002 inside the u. s., privatization should be comprehended as each a driving and main effect of financial procedure. The expanding dependence on advertised sorts of organization and organization self-direction in a portion of control by government is normally talked as "the new administration. " thirty The new administration is demonstrative of late changes inside the relationship between the business sector furthermore the state itself—changes that region unit resolute from world financial rivalry and option sorts of commonality amongst state and non-state on-screen characters, locally and transnational, as these have created in late decades (C. J. (2014).

One of the reasons the government turned to privatization was the prospect of saving money. However, in 2011 a study of Arizona prisons found that “inmates in private prisons can cost as much as $1,600 more per year, while many inmates cost about the same as they do in state-run prisons” (Oppel 1). The Bureau of Prisons concluded that in California the 11 low-security federal prisons operated by private companies save, on average, 17 dollars per day per prisoner. Therefore, those 11 facilities cost taxpayers 144 million dollars less annually” (Feliciano 2). Some private prisons do save more money, but they do that by sacrificing things that may not be worth it in the end. A 2016 study by the Brookings Institution found “[that] those savings are achieved primarily by hiring fewer correctional officers and paying them less”(Feliciano 3).

Nowadays, we are facing a major experiment in privatization. For example, private companies have entered the business of managing public schools, or religious schools. Also, they even run in prison industry. Among them is Private Prison Corporation of America, which is growing fast in prison industry in the United States. Especially, immigration detention business has brought up massive profit for Private Prison of America. Therefore, corporation is planning to join other private prison corporations by making campaign donation and retaining lobbyist to draft and seek the passage of two laws about anti-illegal immigrant and the Intensive Probation Act that will increase opportunities to do

Privatisation is where a previously public owned firm is sold privately usually to generate a large capital sum or to reduce the burden on the public sector. Privatisation refers to the changing of ownership from a state-owned to a privately owned entity. It is usually done three ways which usually are the sale of assets, contracting out and deregulation. Therefore by privatising the MHPA, it means that the ownership of the enterprise would change to a privately owned firm from a state owned firm and therefore this would bring about a large amount of potential changes in the way that the firm is run and operates.

In the previous years ago, the word privatization was not well-known same as today. Conversely, word nationalization was popular at that time because of the government at that time owned all of the important enterprises such as infrastructure businesses while private sector owned in the diminutive enterprise which not important about the lifestyle of the people that illustrated the government had more bargaining power than private sector. Almost people knew nationalization but did not know about privatization. They had negative view point in privatization and thought the private sector could not develop the services or products like the government. Until 1969 Peter F. Drucker is the first person who wrote about privatization in the book

Beginning in the 1980s, many jurisdictions started to seek third-party alternatives to provide public service under the pressure for cost savings and the call for government efficiency. Private organizations are known for their expertise in specific fields – if leverage private sector know-how well, it can bring success to public sector – high quality public services can be delivered with lower costs. Therefore, public organizations can concentrate on solving critical tasks when they contract out the mundane work to private sector. Outsourcing waste management is one of the effective privatization solutions for public organizations given its easy-to-measure nature, and it continues to be popular among local governments. Nevertheless, the success of privatizing government services is not guaranteed. If not manage privatization well, it could result in increased costs, organization structure and culture change or legal liabilities. In addition, take advantage of privatizing public services redefines the nature of government service and governance as it creates a partnership between private and public sector. With the rapid pace of technology development and the obligation of government to spend taxpayer’s money strategically, privatizing government services has gained unstoppable momentum.

Public organizations and the public administrators have an important duty of promoting and maintaining democratic government especially by ensuring good governance. Social and economic development can be achieved through good governance. Collaborative governance is a primary component of good governance (Ansell & Gash, 2008). Admittedly, public management reforms are fundamental to improving the abilities of various nations to address issues that touch on democratic government. Some of the

Privatization basically being the process of transferring ownership of specific property and business transactions basically from a governed owned operation to a private operation. This focus has been widely used in the context of the organizations and industrial operations in the capital market. (Cook & Kirkpatrick, 1988, Cook Paul, 1986; Kay & Thompson, 1986)