The most controversial feature of the privatization movement has been private companies assuming responsibility for operating secure prisons and jails. As of October 1988, more than 25 for-profit companies were competing for rights to build, own, and operate prisons and jails throughout the United States. Privatization in juvenile corrections has grown at an even faster pace. Further, in recent years, the private sector has radically altered the way correctional facilities are financed and built. Private lease-purchase arrangements are increasingly replacing government-issued bonds. Advocates of privatization say it is an efficient and cost-effective approach, while critics argue that punishment is one of the core functions of government. The historical review of privatization suggests that the most significant feature of private involvement in corrections is the capacity of the private sector to promote new forms of penalties which expand the capacity of the State to apply criminal sanctions. In recent years, the private sector has played a major role in promoting new forms of intermediate level control and new surveillance and control technologies and has thus expanded the reach of criminal sanctions. 49 references and 11 notes