The denial usually continues until some catalytic event prompts an overreaction in the form of the establishment of a police gang unit. This response often backfires when marginal gang members are labeled as gang members and therefore solidify their gang identity. The third phase consists of misidentification both of gang members and their causes and of resulting wastes of financial and human resources on ineffective policies. Instead of these approaches, leadership should acknowledge the problem while keeping it in its proper perspective, understand the social and economic contexts of gangs, and develop coordinated communitywide and systemwide strategies rather than isolated programs. The research evidence also suggests that the best investments may be in programs such as job training, child care, and other efforts to improve the overall quality of life. Notes.