IT IS NOTED THAT RECENT DEMANDS TO MAXIMIZE THE REFORM CAPACITY OF THE CORRECTIONAL SYSTEM AND, AT THE SAME TIME, TO CONTROL THE COST, HAVE FACED ADMINISTRATORS WITH THE PROBLEM OF RESOLVING POTENTIALLY CONTRARY NECESSITIES DEMANDED BY CHANGING CRIMINOGENIC, IDEOLOGICAL, AND ECONOMIC PRESSURES. THE AUTHORS EXAMINE MAJOR TRENDS IN SENTENCING AND INCARCERATION IN NEW ZEALAND, AND DISCUSS THE USE OF INCARCERATIVE SANCTIONS, NON-INCARCERATIVE SANCTIONS, AND SEMI-INCARCERATIVE SANCTIONS SUCH AS PERIODIC DETENTION. THE AUTHORS CONCLUDE THAT AN OVERALL PICTURE EMERGES IN WHICH ECONOMIC CONSIDERATIONS HAVE MORE OR LESS DICTATED THE ADOPTION OF CERTAIN SENTENCING POLICIES WHICH ARE ALSO CONSISTENT WITH REFORM-ORIENTED GOALS OF CORRECTION. THEY ARGUE THAT THE MASSIVE INCREASE IN THE NUMBER OF CONVICTED OFFENDERS WHICH HAS OCCURRED OVER THE LAST TWO DECADES HAS REQUIRED THAT LESS EXPENSIVE MEANS OF DEALING WITH SUCH PERSONS BE DEVELOPED, AND THUS IT IS NOT SURPRISING THAT THE MOST RAPIDLY GROWING FORM OF SENTENCE HAS BEEN THAT WHICH IS MOST ECONOMICALLY VIABLE, I.E., THE FINE, AND THAT THE PROPORTION OF PERSONS SENTENCED TO INCARCERATION HAS DECREASED MARKEDLY. (AUTHOR ABSTRACT MODIFIED)