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Wackenhut Corrections Corporation

The Wackenhut Corporation, founded in 1954 by former FBI official George Wackenhut, has grown from a small private security firm to one of the “Platinum 400” on Forbes magazine's list of America's Best Big Companies. Based in Boca Raton, Florida, it is one of the largest and most diversified private security corporations in the world, with more than 40,000 employees. Wackenhut provides a wide range of security related services, including uniformed security officers, investigations, and background checks.

In 1984, the company entered the private corrections business with the founding of the Wackenhut Corrections Corporation (WCC), which now manages more than 69 detention facilities and 42,000 offenders worldwide. WCC employs approximately 9,000 people in its facilities in 13 U.S. states and its international facilities in Australia, New Zealand, Canada, and South Africa. In 1997, WCC became the first private firm selected by the U.S. government to run one of its major correctional facilities when the Federal Bureau of Prisons awarded WCC management of the Taft Correctional Institution in Taft, California. For fiscal year 2002, WCC reported revenues of $568 million.

Why WCC Exists

During the 1980s and 1990s, dramatically rising incarceration rates created a significant increase in the demand for prison space. National and state governments saw their corrections budgets and inmate populations skyrocket. Private corrections corporations such as WCC alleged that they could provide detention services for less money than could government entities, without sacrificing the quality of service. They argued that free market principles could be applied to prisons to make them more efficient and effective. In other words, private corrections companies such as WCC believe that a well-run private prison can operate better and for less money than an overly bureaucratic public one.

Additionally, WCC and others have argued that private prisons are more just, because they make prison supply more responsive to changes in demand. Instead of having a fixed number of prison beds, and hence a fixed number of potential lawbreakers, private contracting with WCC allows the courts flexibility in sentencing. As a result, there is less likelihood that sentencing decisions will be made on the basis of limited prison space.

WCC and its advocates have also proposed that private corrections facilities have more incentive to treat prisoners fairly than do state-run prisons. Simply stated, they believe that to ensure the renewal of state contracts, private corporations have a vested interest in treating inmates well. If they do not, their reputation will suffer, as will their bottom line.

Criticisms

Critics have raised several issues in regard to private correctional corporations like WCC. First, many have argued that governments' contracting for imprisonment with private companies improperly delegates to private hands the coercive power and authority that should be uniquely held by government. That is, if people violate the laws of the state, the state should administer the punishments. If a private entity such as WCC, as opposed to the public itself, is responsible for administering punishments, profit motives may be placed ahead of the interests of the public or the inmates, or of the original reasons for imprisonment. In other words, private corrections corporations have a conflict of interest in the administration of prisons.

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