Characteristics of the system are a preponderance of fines, a variety of other alternatives to institutionalization, and short prison sentences; use of diversion possibilities that curtail criminal justice processing; and the employment of legal and social assistance workers to aid defendants through the criminal justice procedures. The present system has evolved over the past 3 decades. Among its consequences are that the Netherlands has the smallest prison population in the world (24 inmates per 10,000 population) and a crime rate comparable to other countries. According to 1979-1980 data, of 179,682 cases registered with the justice department, 77,868 were dropped, 79,198 prosecuted, and 72,712 convicted. Of the sentences pronounced, 74.2 percent were fines and 25.8 percent were deprivation of liberty, with 3.4 percent of the latter suspended conditionally and 8.6 percent suspended partially. The average prison sentence pronounced was 92 days, but the average stay at an institution was only 42 days; sentences of less than 1 month constituted 58 percent of prison sentences given. Parole is not viewed as a reward for good behavior, but rather as a step in the reintegration process to which all long-term inmates are subjected after serving 9 months in prison or two-thirds of their sentences. Recidivism rates are also comparable to those of other countries. The functioning of the system is explained through analysis of the criminal code with respect to types of penalties and assistance services. One table and 13 footnotes are provided.