A number of assumptions underlie this trend toward privatization. Among these are that private sector involvement will result in greater efficiency, more opportunity for the inmate worker, and a more productive prison environment. Options for private sector involvement include advisory boards, private vendors, inmate enterprise, private management of State-owned industries, and franchising. While a number of benefits can be derived from privatization, a number of issues and problem areas require resolution, including those relating to unfair competition, exploitation of inmate labor, worker incentives, and conflicts between correctional and profit-making goals. Available evidence suggests that the greatest contributions of privatization are in the areas of rehabilitation and institutional tranquility. Thus, evaluation of joint-venture programs should look for superior ability to meet rehabilitation and security goals in a cost-effective manner. 18 references.