DW examines how private contractors, organized crime gangs and inmates exploit prison for profit. The US government spends over $3.9 billion per year on private prisons , whose operators earn billions more from others services, including prisoner food, health care and telecommunications. Private prison operators are criticized for a lack of accountability and profit-driven incentives Image: Douglas R. Clifford/ZUMA/picture allianceWhile private prisons get a bad rap for profiting from punishment, state-operated prisons struggle with mismanagement, security threats and inefficiency. In many Brazilian prisons, powerful gangs effectively run daily operations Image: Apolline Guillerot-Malick/SOPA Images/Sipa USA/picture allianceThe gangs sometimes run the prisons better than the state. Edited by: Uwe HesslerEditor's note: This article was updated on September 18th, 2025, to reflect the crackdown on extortion gangs by the El Salvadoran government.