Six principles of efficient penal policies are examined. An efficient penal policy minimizes confinement and maximizes cheaper alternatives, especially fines; it uses long confinement only for those offenders whose recidivism will probably cost society more than the cost of confining them, and it provides punishment, assistance, and control in the community for offenders whose stake in conformity to the law seems appreciably stronger than their stake in crime. Further, efficient penal policy removes from the community any person who is highly but briefly enculturated in delinquent or criminal groups or in a run of success at crime; it also reduces the criminalizing effects of confinement by minimizing the influence of prisoners on other prisoners while maximizing the influence of nonoffenders on prisoners; and gives long-term prisoners intensive vocational education and realistic work experience, with incentives for good performance. Alternative penal systems may be assessed by their conformity to the principles listed here. Because of Holland's legalization of gambling, prostitution, marijuana, and alcohol, and its emphasis on abstract moral principles instead of on specific variations in behavior, the Dutch are likely to retain lower serious crime rates and a more efficient criminal justice system than most other nations. Six tables and approximately 50 references are included.