Research Summary: In this historical review of prison privatization, we identify interconnected events in the United States, Australia, and the United Kingdom and their distinctiveness from other nations. The political and economic catalysts for the post‐1980 reemergence of privatization are also analyzed. Privatization exists on a continuum from ancillary service delivery to full custodial operations and management. As privatization seems to have lost some of its momentum, it is unclear whether its advent has produced the intended system‐wide improvements.

Policy Implications: Modern privatization spawned an enormous amount of research in which a comparison of the private and public sectors was attempted. Despite the plethora of research, the findings are mainly inconclusive. Policy makers should focus on privatization as a subset of mainstream prisons research, with investigation of system‐wide key issues like confinement quality, preparation for release, and accountability. These matters bear, in turn, on outcomes such as reduced recidivism and the ability to lead a useful life postrelease.