THE TREATMENT APPROACH TO JUVENILE OFFENDERS ORIGINATED IN THE REFORM MOVEMENTS OF THE LATE 19TH CENTURY AND HAS BEEN IMPLEMENTED THROUGH INSTITUTIONS IN WHICH THE FOCUS OF THERAPY IS TO CHANGE THE INDIVIDUAL. STUDIES IN CALIFORNIA AND GREAT BRITAIN HAVE FOUND THAT PROGRAMS WHICH REMOVE THE CHILD FROM SOCIETY ARE NOT AS EFFECTIVE AS COMMUNITY-BASED TREATMENT CENTERS. INSTITUTIONS TEACH SKILLS THAT ARE IRRELEVANT TO THE JUVENILE'S NATURAL ENVIRONMENT. SUBCULTURES DEVELOP WITHIN THE INSTITUTION WHICH ENCOURAGE CRIMINAL BEHAVIOR. INSTITUTIONAL CARE IS EXPENSIVE, PARTICULARLY WHEN COMPARED TO COMMUNITY PROGRAMS WHOSE COSTS ARE LESS AND WHOSE EFFECTIVENESS ARE THE SAME OR BETTER. THE DETERRENCE ASPECT IS LARGELY NEGATED BECAUSE DELINQUENTS' COMMUNITIES PLACE NO STIGMA ON INCARCERATION AND LIVING CONDITIONS ARE OFTEN BETTER THAN IN THE JUVENILE'S HOME. ALTHOUGH INSTITUTIONALIZATION MAY PROTECT THE COMMUNITY TEMPORARILY FROM OFFENDERS, IT DOES NOT CHANGE ENVIRONMENTAL FACTORS WHICH CAUSE CRIME AND ALLOWS COMMUNITIES TO IGNORE THEIR SOCIAL RESPONSIBILITIES. INSTITUTIONS IMPOSE LABELS ON THEIR INMATES WHICH CAN RESULT IN SELF-FULFILLING PROPHECIES. COMMUNITY-ORIENTED PROGRAMS WHICH TRY TO MODIFY THE OFFENDER'S FAMILY AND SOCIAL ENVIRONMENT HAVE BEEN CRITICIZED FOR BEING NOTHING BUT TRADITIONAL CORRECTIONAL PROGRAMS DRESSED UP IN NEW SETTINGS. FOR THESE PROGRAMS TO BE MORE EFFECTIVE, A STRICT ACCOUNTABILITY SYSTEM AND SPECIALLY TRAINED PERSONNEL ARE NEEDED. REFERENCES ARE PROVIDED. (MJM)