The first section provides a summary of developments in these countries since the early 1980's, followed by a discussion of why private imprisonment emerged during this period. Some of the principal issues raised by private imprisonment, including some of the important research issues, are identified and discussed. In identifying reasons for the privatization of prison and jail operations, the author discusses conservative political trends to reduce government controls, increasing inmate populations, speedy expansion of capacity, the need to achieve lower costs, and the desire for increased governmental managerial control. Issues discussed are whether corrections contracting is proper, the consequences of contracting, whether private imprisonment is less costly, whether profit-seeking firms provide poorer services, whether inmates' rights are diminished or jeopardized, and whether a "penal-industrial" complex has dominated policymaking. The author identifies three principal challenges to public policy posed by private imprisonment firms. The first is to devise procedures to ensure that inmates' rights and welfare are protected; the second is to prevent governments' dependence on private firms, especially entrenched suppliers; and the third challenge is to protect the integrity of government- procurement processes. 100 references