"For-Profit": For Some, That's All They Need To Know

Where I live, there are certain subjects that elicit automatic disapproval, no explanation given or requested - it’s just obvious. Case-in-point: for-profit schools and prisons. A few headlines to illustrate the prevailing sentiment:

In this particular worldview, the owners of for-profit schools and prisons are amoral fakes, ruthless, self-serving opportunists, skimming off public funds without adding anything of value. In a word: evil. Occasionally, news stories and opinion pieces (a pretty meaningless distinction) will recount scandals or cite studies documenting the dismal performance of the for-profiteers. Those so inclined will be satisfied with the evidence presented. No need to look too closely at the quality of those studies.

And yet in some other countries, for-profit schools and prisons are considered an improvement on their government-run counterparts. For-profit schools are doing wonders for poor children in India and Nigeria and for-profit prisons are widely accepted and praised in Australia. What’s the story? The story is that government-run schools and prisons often suffer from rule-bound bureaucratic systems that protect poor performers. Now consider this description of Australia’s for-profit prisons:

“Almost everyone I spoke with about privatization thought that the new private prisons were on balance better than their public counterparts. Almost everyone agreed that they had more and better programming, and almost everyone agreed that their staffs were more flexible and receptive to new ideas.” Malcolm M. Feeley (2014) "The Unconvincing Case Against Private Prisons".

Why are for-profit prisons doing so well in Australia but fraught with problems in the US? Lots of reasons, but a biggie is that the Australian government closely monitors the private prisons and holds them to high standards. Properly constrained and directed, the pursuit of profit can be a force for good.

References:

Feeley, Malcolm M. (2014) "The Unconvincing Case Against Private Prisons," Indiana Law Journal: Vol. 89: Iss. 4, Article 3. Available at: http://www.repository.law.indiana.edu/ilj/vol89/iss4/3

Tooley, J. and Dixon, P. (2005) Is There a Conflict between Commercial Gain and Concern for the Poor? Evidence from Private Schools for The Poor in India and Nigeria.. Economic Affairs, 25: 20-26. doi:10.1111/j.1468-0270.2005.00546.x