Wednesday, January 16, 2008

What's wrong with privatization?

Nobody likes a government run bureaucracy; they're wasteful, full of red tape and do-gooders.

The privatization of organizations which perform a public good may not be a great solution.

At Many Homes, More Profit and Less Nursing

Six prisoners had escaped in broad daylight from the Northeast Ohio Correctional Center and were still at large. The inmates had cut a four-foot hole in the prison's fence during outdoor recreation, then maneuvered through three rolls of razor ribbon without being detected. No alarm went off, and the officers patrolling the perimeter didn't notice anything amiss.

A meta-analysis of studies found little difference in cost to the public of private prisons:

Maahs, J. & Pratt, T. (1999). Are Private Prisons More Cost-Effective Than Public Prisons? A Meta-Analysis of Evaluation Research Studies. Crime & Delinquency, 45(3), 358-371.

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