SOME HIGHLIGHTS OF CURRENT PENAL POLICY PROVIDE THE SETTING. TWO PRINCIPAL GOALS OF PENAL POLICY PREDOMINATE: TO REDUCE AS MUCH AS POSSIBLE SOCIAL COSTS RELATED TO CRIME; AND TO ENSURE THAT COSTS AND SUFFERING WHICH OCCUR ARE JUSTLY DISTRIBUTED. AN IMPORTANT CONCEPT UNDERLYING PENAL POLICY IS THAT, WHEREAS THE QUALITY AND THE QUANTITY OF CRIMINALITY IN A SOCIETY DEPEND PRIMARILY ON ITS SOCIAL STRUCTURE, PENAL LEGISLATION IS THE MOST EFFECTIVE INSTRUMENT IN DISTRIBUTING PROPERLY THE COSTS AND SUFFERING AMONG SOCIAL GROUPS: VICTIM, OFFENDER, AND THE REST OF SOCIETY. REFERENCES ARE PROVIDED. (AUTHOR ABSTRACT MODIFIED).