International Growth Trends in
Prison Privatization
Cody Mason
August 2013

For further information:

This report was written by Cody Mason, consultant to The
Sentencing Project.

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

F

or-profit prison privatization, which dates back to 16th Century
England, 1 began to enjoy a modern reincarnation in the United States in
the 1980s. 2 Privatization advocates promised low-cost, quality, detention
services at a time when government resources were being strained under the weight
of exploding prison populations. It was on the back of these promises that
lawmakers and officials would hand over eight percent of America’s prisoners, 3 as
well as larger amounts of its federal pre-trial 4 and immigrant detainees, 5 to privately
owned or operated facilities by 2011. However, although privatization has enjoyed a
steady reemergence in the United States, the companies managing these facilities
have faced persistent criticism for providing low-quality services, failing to save
taxpayer money, and negatively affecting criminal justice policy. 6
Despite these failures, several countries have followed the United States in utilizing
private prisons and detention centers with the intent of decreasing correctional
expenditures and reducing prison overcrowding. These developments have helped
private U.S. prison companies diversify their investments at a time when America’s
prison population growth has stalled. 7 For example, 14 percent of the revenue for
America’s second largest private prison company, The GEO Group, came from
international services in fiscal year 2012. 8 Similarly, the spread of prison
privatization has also benefited for-profit companies from other countries,
including UK-based G4S, which claims to be the largest security service provider in
the world. 9 Together, these companies have thrived off of the expanded
privatization of prisons, immigration detention systems, and other governmental
services, while often failing to deliver on the services that were promised.
This report investigates the trends identified above and explores the growth of forprofit prison privatizations across the globe. Noteworthy findings discussed in this
report include:
•

At least 11 countries, spread across North America, South America, Europe,
Africa, and Oceania, are engaged in some level of prison privatization.

•

While the United States maintains the highest total number of privately held
prisoners, Australia, Scotland, England and Wales, and New Zealand hold a

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

larger proportion of prisoners in private facilities, with a high of 19 percent
in Australia.
•

As in the United States, immigrant detention has been a particular target of
privatization in the United Kingdom, which has 73 percent of its immigrant
detainees held privately, and Australia, which has a wholly private immigrant
detention system.

•

The prison privatization market outside of the United States is dominated
by The GEO Group and two British companies, G4S and Serco.

•

Media reports from countries including the United Kingdom, New Zealand,
Australia, and Canada have reflected research conducted in the United
States showing that private prison companies’ profit motives often lead to
inadequate services and unsafe conditions.

THE EXTENT OF INTERNATIONAL PRIVATIZATION
Prison privatization now exists in various forms in at least 11 countries throughout
the world. However, although the scope of prison privatization is relatively wide, it
appears most concentrated and most fully privatized in a handful of predominantly
English-speaking countries. These include Australia, Scotland, 10 England and Wales,
New Zealand, South Africa, and the United States.
Percent of Prisoners Held Privately 11

Note: Data from Australia and the United States are from 2011; Data from Scotland and South Africa are from fiscal
year 2011; data from New Zealand and England & Wales are from 2012.

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

Although each of the above countries allows private companies to manage and
operate prison facilities, prison privatization can vary by whether it is achieved
through for-profit or not-for-profit organizations, as well as by the extent of the
privatization. For example, German officials remained in charge of all detention
services 12 when their country contracted its first private prison in 2004. 13 France
utilizes a public-private partnership in which civil servants remain responsible for
the management and security of privately constructed facilities, 14 which were
expected to house over 50 percent of France’s inmates by the end of 2012. 15 Some
states in Brazil have also been utilizing a form of limited privatization since 1999,
and about 1.5 percent of its inmate population was held in partially privatized
facilities in 2009. 16 Since then Brazil has opened a portion of its first fully private
prison, which is expected to have a capacity of 3,040 when completed in December
2013, 17 and the state of São Paolo has sought investors for three new private prison
facilities. 18
Japan’s first private prison, which opened in 2007, operates on a less restricted form
of privatization in that the majority of its management, including security, is the
responsibility of private actors. 19 However, this facility and the three other private
facilities that followed it are currently reserved for first-time offenders. 20 In 2003,
Chile became the first South American country to fully contract with private prison
companies, 21 and Peru began soliciting bids for its first private prison in 2010. 22
Israel’s plans to open a fully private prison were blocked in 2009 when the Israeli
Supreme Court ruled that the transfer of correctional authority in the name of the
state to for-profit companies would cause “harsh and grave damage to the basic
human rights of prisoners and to their personal freedom and human dignity.” 23
Thailand has also reportedly experimented with some level of prison privatization, 24
and officials in Jamaica have recently raised the prospect of partial or total
privatization of the country’s prison system. 25 Similarly, there have been reports that
Mexico would open its first private prison in 2012 26 and that private companies
could end up guarding all of Greece’s immigrant detention centers. 27
American private prison companies, including The GEO Group and Management
and Training Corporation (MTC), have reportedly targeted Canada’s Conservative
government for potential prison and detention contracts. 28 Two of Canada’s three
official immigrant holding centers are privately operated 29 and The GEO Group
currently owns the Miramachi Youth Detention Facility, which is leased to and

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

operated by the New Brunswick Government. 30 Any further privatization would
occur in spite of an earlier privatization effort, in which MTC’s contract to operate a
facility in Ontario was not renewed after the prison was found to be inefficient and
beset with problems. 31

PRIVATIZATION TRENDS IN SELECTED COUNTRIES
Australia
Australia’s first private prison was operated by Correctional Corporation of
Australia, an international venture of Corrections Corporation of America. 32 The
Queensland facility began operations in 1990, and soon stoked interest in
privatization in several other states. 33 By 2011, five of Australia’s eight states had
some level of privatization, with Victoria having the highest rate (33 percent), as
well as the largest privately held population (1,530). 34 Victoria is likely to add to its
privately held population as the local government is soliciting bids for a new 500bed facility to be built in Melbourne. 35 Nonetheless, Victoria may lose the dubious
distinction of having the most privatized prison system in Australia to Queensland,
where there are plans to privatize the entire state prison system. 36
Australian Prison Populations by State, 2011 37

Combined, the private prisons in these states resulted in 19 percent of Australia’s
28,711 prisoners being held privately in 2011. 38 The 5,520 privately-held prisoners

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

represented a 95 percent increase from the private population of 1998. 39 In contrast,
during this period, the number of publicly-held prisoners grew by 50 percent and
the total prison population increased by 57 percent. 40
Prison Population, Australia, 1998-2011 41

As in the United Kingdom and the United States, Australia’s use of private prison
companies is more pervasive in the detention of immigrants than in the
management of prisons. 42 However, the Australian immigrant detention system is
unique in that it is entirely operated by for-profit companies. 43 In April 2013, there
were 8,797 individuals held in Australian Immigration Detention Facilities and
Alternative Places of Detention. 44
Scotland
Scotland’s first private prison was Her Majesty’s Prison (HMP) Kilmarnock. 45 It was
opened in 1999 and is operated by Serco under a 25-year contract with the Scottish
Prison Service. 46 Kilmarnock was joined in 2008 by the Addiewell Prison, which is
operated by UK-based Sodexo. 47 By fiscal year 2011, these two private facilities held
an average daily population of 1,408 individuals out of Scotland’s total average
prison population of 8,178. 48

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

Prison Population, Scotland, 2000-2011 49

Growth within Kilmarnock and the opening of Addiewell increased the average
daily private prison population by 175 percent between 2000 and 2011. 50 In
contrast, the total prison population grew by 39 percent and the public prison
population increased by 26 percent during this time. 51 These disparate growth rates
led to 17 percent of Scotland’s prisoners being held privately in 2011, 52 compared to
nine percent in 2000. 53
England and Wales
G4S began managing England’s first private prison in 1992. 54 Approved under a
Conservative Government, HMP Wolds began a trend in England and Wales that
would result in a total of 14 private prisons by 2012. 55 Six of these facilities are
operated by G4S, while Serco manages five, and Sodexo operates four. 56 Combined,
these three companies held roughly 14 percent of England’s prison population in
2012, compared to 8 percent in 2000. 57 This growth represented a 140 percent
increase in the number of privately held inmates. 58 In contrast, during the same
period the number of publicly held prisoners increased by 23 percent and the total
prison population grew by 32 percent. 59

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

Prison Population, England and Wales, 2000-2012 60

The growth in private prisons in recent years can be attributed to the transfer of
HMP Birmingham from public control to G4S in 2011, 61 and the opening of two
new private facilities, HMP Thameside and HMP Oakwood, in 2012. Serco operates
HMP Thameside, while the management of Birmingham and Oakwood resides with
G4S. 62 It has also been reported that several other facilities will be put up for
possible privatization, 63 including HMPs Castington, Acklington, Moorland,
Hatfield, and Lindholme. 64 In addition, the percentage of prisoners held by private
companies was further increased by the closure of several public facilities, including
HMP Ashwell, Lancaster Castle, 65 and Latchmere House 66 in 2011, as well as HMP
Wellingborough, which was shuttered in 2012, 67 but could eventually reopen. 68
Despite this recent shift toward prison privatization, the level of privatization in
English and Welsh prisons is substantially less than that found in the United
Kingdom’s immigration detention system. 69 Predating the United States’
implementation of private detention, the UK’s Conservative Government started its
immigration detention system by contracting with Securicor (which later merged
with Group 4 Falck to create G4S) in 1970. 70 The initial agreement to manage
immigration detention centers at the Heathrow and Manchester airports 71 would
evolve over the next several decades into an immigration detention system that
continues to be dominated by private companies. 72

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

In March 2012, 73 percent of the U.K.’s 3,034 immigrant detainees were held by
private companies. 73 This represented a decline from the recent peak of 80 percent
in 2010 and 2011, which can be attributed largely to the closure of the G4Soperated Oakington Immigration Reception Centre (IRC) in 2011, and the opening
of the publicly-operated Morton Hall IRC in 2012. 74
United Kingdom Immigrant Detainee Population, 2008-2012 75

In 2012, ten different facilities held the UK’s 2,219 privately held immigrant
detainees. 76 G4S managed four facilities, while Serco, The GEO Group, and the
U.K.-based Reliance Security each managed two. U.K.-based MITIE operated a
single IRC. 77
New Zealand
The first private prison in New Zealand was the Auckland Central Remand Prison,
which opened in 2000. 78 The GEO Group operated the facility until early 2005,
when the center-left New Zealand Parliament repealed the law permitting private
prisons. 79 Parliament’s decision was reversed by a new conservative coalition in
2009, 80 and the British company, Serco took over operations of the Auckland
Central Remand Prison in May 2011. 81 That facility was then incorporated into the
Mount Eden Correctional Facility, which Serco began managing in August 2011. 82
In March 2012, the newly expanded Mount Eden facility held 954 individuals,
representing nearly 11 percent of New Zealand’s 8,698 prisoners. 83 In September
2012, construction began on a new 960-bed prison that would be operated largely

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

by Serco. 84 It is scheduled to open in mid-2015, and would, if filled to capacity,
effectively double the privately held prison population of New Zealand. 85
South Africa
In 1997, South Africa began planning to open four private prisons. 86 In 1999, those
plans were scaled back to two facilities, 87 Kutama-Sinthumule Correctional Centre
and Mangaung Maximum Security Correctional Centre. 88 Kutama-Sinthumule
Correctional Centre was built with a capacity of 3,024 and is operated by The GEO
Group. 89 Mangaung has a capacity of 2,928, 90 and is managed by G4S, 91 which
acquired the original South African managing company. 92 By 2004, these two
facilities were filled to capacity and held a combined 5,952 individuals, representing
three percent of the total correctional population of 181,688. 93 Both facilities
remained full in the 2011 fiscal year, despite South Africa’s total prison population
falling to a daily average of 158,790. 94 This drop, coupled with the consistency in the
private population, resulted in roughly four percent of South Africa’s prison
population being held privately in 2011. 95

CONCERNS OVER PRIVATIZATION
Although several countries rely on private prisons more than the United States, the
U.S. remains far ahead in the actual number of prisoners held by for-profit
companies, totalling over 130,000 in 2011. 96 However, this is largely a result of the
United States’ comparatively large population and high incarceration rates.
Moreover, Australia, England and Wales, New Zealand, and Scotland all currently
have a larger commitment to prison privatization in terms of the share of prisoners
held privately.
Number of Prisoners Held Privately
Privately Held
Prisoners

Publicly Held
Prisoners

Percent Held
Privately

Australia 97

5,520

23,191

19%

98

1,408

6,770

17%

Scotland

England & Wales99

10,936

74,030

13%

100

925

7,508

11%

101

130,941

1,467,839

8%

5,952

152,838

3%

New Zealand
United States

South Africa 102

Note: Data from Australia and the United States is from 2011; Data from Scotland and South Africa is from fiscal
year 2011; data from New Zealand and England & Wales is from 2012.

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

The significance of international prison contracts is also reflected by the financial
success of companies such as G4S and Serco, as well as The GEO Group’s
investments in international operations. However, the importance of global prison
privatization is most directly connected to the basic fact that countries are handing
thousands of incarcerated and detained individuals over to for-profit schemes that
have been shown to result in substandard services, while negatively influencing
public policy.
Substandard Service
Studies in the United States have found that the profit motive of private prisons
leads to an emphasis on revenue and cost saving, rather than providing quality
service. As prisons lack many unnecessary costs, this often results in lower staff
salaries and benefits, less training, 103 and higher turnover rates. 104 In some instances,
private prison companies have also been criticized for providing substandard
services, including healthcare and hygiene. 105 Combined, these factors can lead to
volatile environments that are more prone to abuse, violence, injury, and death. 106
These deficiencies may have contributed to several violent riots and alleged abuse at
immigration detention centers in Australia, 107,108 as well as negative assessments of
facilities in other countries. In 2013, the new Thameside prison in England was
criticized by the chief inspector of prisons for having high rates of assault as well as
Serco’s response to the assaults. 109 In 2012, it was announced that G4S would lose
its contract for England’s first private prison, HMP Wolds, after the facility’s
inmates were found to have high levels of drug use and idleness. 110 Scotland’s
privately-operated Addiewell Prison was found to be the most violent prison in the
country for both staff and inmates in 2011. 111 In 2009, government documents
revealed that private prisons in England and Wales were less proficient than their
publicly-operated counterparts, and that twice as many inmate complaints were
upheld in private facilities than in their publicly operated counterparts. 112
Unlikely Financial Benefits
Performing cost-comparisons between privately and publicly operated prison
facilities is a complex and difficult task 113 that is only further complicated when
dealing with various forms of privatization within different countries. However,
studies from the United States have found that there are no guaranteed cost-savings

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

associated with private prisons, 114, 115 and that private companies may end up
costing more than publicly-operated alternatives. 116, 117 The economic benefits to
communities housing private facilities have also been called into question through
research 118 and media reports. 119
Policy Implications
This report does not examine the international political role of private prison
companies, due to the disparate lobbying and campaign finance laws between
countries. However, for-profit prison companies, including Corrections
Corporation of America and The GEO Group, have spent millions of dollars on
lobbying and campaign contributions, on both the state and federal levels in the
United States. Although it is difficult to assess the exact effect of these actions,
private prison companies have lobbied federally in regard to immigration policy,
and have a history of contributing to supporters of harsh immigration detention
laws. 120
Although these findings are specific to the United States, the business model of forprofit prison companies leaves their financial success dependent on individuals
being incarcerated and detained, regardless of the country in which they are
operating. This creates a natural incentive for these companies to promote policies
that will ensure higher incarceration rates and more privatization contracts. 121

CONCLUSION
Research to date on private prisons has found that they perform no better than
publicly operated facilities, are not guaranteed to reduce correctional costs, and
provide an incentive for increasing correctional and detention populations. Despite
these repeated failings, many countries, including those facing serious problems in
the quality and capabilities of their correctional systems, have followed the United
States in adopting a flawed and shortsighted scheme.
The form and extent of privatization varies by country, but there is little reason to
believe that any of these governments are spending taxpayer money wisely by
investing in private prisons. At its most basic level, prison privatization is based on
maximizing profits by incarcerating and detaining the largest amount of individuals
at the lowest possible cost. The result of this dynamic is less spending on staff,

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INTERNATIONAL GROWTH TRENDS IN PRISON PRIVATIZATION

lower quality services, and an industry focused on increasing the population of
incarcerated individuals and detainees.
These practical failures and moral implications deserve serious attention and
scrutiny by the international community and the policymakers and citizens in the
countries that utilize private prisons, and those contemplating doing so. Specifically,
at a time of increased globalization and international corporate reach, it is
imperative that lawmakers evaluate the full effect of prison privatization as
experienced in other countries, as well as at home. Accordingly, prison privatization
should be restricted and reduced with the aim of turning toward more effective and
fiscally sound measures to reduce costs and prison overcrowding, such as reforming
sentencing laws and adopting alternatives to incarceration. These systemic problems
will only be remedied when lawmakers directly address criminal justice and
correctional system reform, rather than passing the buck on to profit-motivated
companies.
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Further reading available at www.sentencingproject.org:
Dollars and Detainees: The Growth of For-Profit Detention
Too Good to be True: Private Prisons in America
Trends in U.S. Corrections

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