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If crime won't pay, prisons will.
Hello.
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66,270 prisoners for 57,841 spots
in 188 penitentiaries;
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an occupancy rate of 114 %.
In 2015, French prisons seemed
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to have a slight
overpopulation problem.
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But this is not new. In 1987
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the occupancy rate of the 178 jails
of the hexagon were already 160 %.
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Fortunately, the Keeper of the Seals,
Albin Chalandon, had the solution:
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in 1988, he launched "Program 13,000,"
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a plan to add 12,824 new places in cells.
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Convinced the private sector would
succeed where the state had failed,
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he decided to open the vast
prison market to French companies.
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After all, he had already privatized
highways in the 1970s.
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Why not penitentiaries?
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Welcome to prisons under
delegated management,
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where the only function
is regalian.
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The management, registry, and
surveillance of prisoners
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remain in the state's hands.
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Catering, dining hall, maintenance,
laundry, cleaning,
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prisoner transportation,
familial visitation,
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prison work, and even
professional training;
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everything else becomes
a new market.
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In 2004 a new contract appeared:
PPP (Public-Private Partnership.)
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From that time forward, the
private provider
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could even design
and build prisons.
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This drew much interest.
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In 2015, 54 prisons
were in delegated management,
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which totals almost 49 %
of places in cells, vs. 36 % in 2009.
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Quite a leap in number.
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Two companies dominated
the sector:
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Sodexo, with 34 prisons;
and GDF Suez, or Engie, with 16.
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In 2008, Bouygues also
entered the dance.
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Bouygues won the first
PPP contract:
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This big name in construction gained
3 prisons within 3 years.
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With a contractual obligation
lasting 25-30 years,
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monies paid by the state
are lucrative.
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Of the total 13 prisons run by PPP,
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the state will pay 1.4 billion Euros
in rent by 2040, including interest.
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The prison market is growing.
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Since 2005, the prison population
increased by 21 %,
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while the average sentence
increased:
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8.6 months in 2006,
vs. 11 months in 2013.
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More tenants, who stay longer:
every landlord's dream.
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Contracts even specify
the state must pay a penalty
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if the occupancy exceeds
120 %.
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Well done.
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The concern is,
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while money given to prisons
in delegated management increases,
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the funds to install new
prison policies are decreasing.
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In 2008, the unchangeable expenses
in the prison administration budget
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totaled 34 %.
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Three years later,
they were 50 %.
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Fewer funds for reintegration,
or for sentencing adjustments.
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In addition, all changes
decided by the state
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may be refused by
private managers,
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if not included in
their original contract.
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But the mainstay of private prisons,
is the USA.
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Private prisons first began in 1984.
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CCA and GEA, the 2 giants of the sector,
generate $3.3 billion per year.
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A market that huge defends itself.
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Between 2002 and 2009,
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prison industry lobbying costs
increased by 165 %,
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which influenced the adoption
of certain laws,
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such as law SB-1070,
passed in 2010, in Arizona.
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The law allowed the imprisonment,
for up to 30 days,
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of undocumented foreigners suspected
of illegal immigration.
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Between 2002 and 2009,
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the federal prison population
in the U.S. private sector went up 37 %.
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Yet, between 1990 and 2012,
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the U. S. crime rate
had dropped by 45 %.
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It became a necessity
to fill prisons.
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U. S. private prison managers have a
contract which includes
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an obligatory occupation clause.
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The clause stipulates that prisons
must be full to between 80 to 100 %,
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under pain of penalty,
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no matter what the crime rate.
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When prisons become a marketplace,
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the Judge's hammer quickly transforms
to gold bullion.
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Goodbye Justice, Hello Tragedy.
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[Audio: Cash register bell.]