ECONOMIC ASPECTS OF PRISON PRIVATISATION: THE QUEENSLAND EXPERIENCE

issue. The literature search for this paper uncovered only one article by an economist (Roper 1986). This is all the more surprising considering that there is now a thriving industry throughout the developed world of economists studying and analysing the general phenomenon of privatisation, and the privatisation of a large number of individual government business enterprises. Part of the reason for this dearth of economic studies on the subject is no doubt due to the fact that the current era of private prison operations is a relatively recent development and is still confined to only a few countries. Nevertheless, it is puzzling that so far American economists have considered the issue unworthy of study. An examination of the now quite extensive non-economic literature on prison privatisation reveals that criminologists, lawyers, sociologists, bureaucrats and activists writing on the topic usually involve themselves in economic considerations, either consciously or unconsciously. The treatment of the economic aspects of prison privatisation is generally well handled and well integrated within the wider consideration of the issue. It is also notable that, in the fine tradition of the discipline of economics, the non-economists arrive at differing conclusions regarding the economic consequences of prison privatisation. The purpose of this paper is to draw an outline of some of the major economic questions relating to the privatisation of prisons. These matters will be discussed within the context of the Queensland experience, especially the Borallon prison. By way of background, some reference will be made to the history of private operation of prisons and to the related "moral issue"