THE NETHERLANDS HAS BEEN ACCLAIMED INTERNATIONALLY AS THE COUNTRY WITH THE LOWEST INCARCERATION RATE OF ALL WESTERN INDUSTRIALIZED NATIONS. THE DUTCH INCARCERATION RATE IS 24 PRISONERS PER 100,000 INHABITANTS, LESS THAN ONE-TENTH OF THE U.S. RATE. THIS LOW INCARCERATION RATE IS THE RESULT OF SOCIAL CONCEPTS PUT INTO PRACTICE. TWO KEY SOCIAL CONCEPTS ARE: (1) THAT GOVERNMENT SHOULD BE MINIMALLY INVOLVED IN INDIVIDUAL LIVES; AND (2) THAT A FREE ENTERPRISE SYSTEM IMPLYING COMPETITION AMONG SUPPLIERS IS THE PREFERRED WAY TO MEET NEEDS AND ASSURE QUALITY. ALMOST ALL ASPECTS OF THE U.S. CRIMINAL JUSTICE SYSTEM ARE WEIGHTED IN FAVOR OF INTERVENTION BY GOVERNMENT IN THE LIVES OF INDIVIDUALS. IT APPEARS THAT AMERICANS BELIEVE IN MINIMAL GOVERNMENT INTERVENTION IN THEIR OWN LIVES BUT NOT IN THE LIVES OF CRIMINALS. THE DUTCH HAVE DEVELOPED A SYSTEM THAT DEALS WITH CRIMINALS IN A MANNER CONSISTENT WITH THE MINIMAL STATE INTERVENTION CONCEPT. THE SYSTEM IS BASED ON TWO PRINCIPLES. THE SUBSIDIARY PRINCIPLE STATES THAT A CRIMINAL DISPOSITION (PROSECUTION AND SENTENCE) SHOULD NOT BE USED UNLESS SUCH A DISPOSITION WOULD BE MORE EFFECTIVE THAN A NONCRIMINAL OR LESS DRASTIC CRIMINAL DISPOSITION. THE OTHER PRINCIPLE IS THAT PRISON IS A HARMFUL INSTITUTION AND SHOULD BE USED AS INFREQUENTLY AS POSSIBLE. DUTCH POLICE CAN AND DO COLLECT FINES AT THE SCENE OF A CRIME OR MEDIATE IMMEDIATE SETTLEMENTS BETWEEN INVOLVED PARTIES. WHEN AN ARREST IS MADE, IT IS REFERRED TO A PROSECUTOR WHO MUST DECIDE WHETHER THE OFFENDER SHOULD BE PROSECUTED. SENTENCING OPTIONS TEND TO SUPPORT MINIMAL GOVERNMENT. FOR MOST OFFENSES, LEGAL MINIMUMS ARE SET AT A SUSPENDED FINE. FOR GRAVER OFFENSES, A 1-DAY IMPRISONMENT MAY BE IMPOSED. STIPULATED MINIMUMS DO NOT ACCELERATE THE USE AND DURATION OF INCARCERATION. THE DUTCH ASSURE FULL GOVERNMENT FUNDING FOR PRIVATELY ADMINISTERED SOCIAL SERVICE AGENCIES. IN THE UNITED STATES WHERE ECONOMIC, POLITICAL, AND RACIAL CONDITIONS PERPETUATE THE OVERUSE OF IMPRISONMENT, SOCIAL CONCEPTS HAVE NOT BEEN IMPLEMENTED EFFECTIVELY IN THE CRIMINAL JUSTICE SYSTEM. FOOTNOTES ARE INCLUDED. (DEP)