Private companies have long been involved in providing auxiliary services like food preparation, building maintenance, social services, medical care, and data processing. Private firms have also been involved in prison industries. However, the most controversial area of privatization involves the ownership and management of prisons. Some evidence exists that private firms may be able to speed up the process of prison construction and may make certain cost savings. However, serious potential problems are involved in delegating the provision or administration of prisons to private agencies. Initial problems include accountability and the development of effective monitoring systems, as well as a range of legal issues. The American experience suggests that if privatization is to be pursued as a prison policy, several complex issues need careful consideration. 91 references.