Private prisons exist in the Netherlands, but they are not allowed to make a profit. How and why do they exist?

Question

Private prisons exist in the Netherlands, but they are not allowed to make a profit. How and why do they exist?

In: Economics

Answer 1

Private prisons are a form of government outsourcing. As when all companies outsource, it’s sometimes more efficient to do that then to do it inhouse, private prisons are no different.