Lessons Learned From the Privatization of U.s. Prisons

This article examines Social Impact Bonds (SIBs) in the United States, drawing lessons from the privatization of U.S. prisons. It analyses SIBs as a novel government-funding and privatization structure where payments are contingent on achieving specific social outcomes. The paper discusses potential challenges in SIB implementation, akin to those faced by private prisons, and proposes contractual solutions to overcome traditional obstacles in privatization schemes. It ultimately considers how SIB elements can enhance existing privatization models and influence the debate on privatization.