This chapter examines how overpopulation and socio-economic inequality shape crime patterns and recidivism within island and marginalized societies. It analyzes the psychological, social, and institutional consequences of overcrowded environments and explains how spatial pressure weakens rehabilitation, intensifies stress, and fragments identity. The chapter explores the relationship between economic exclusion, limited opportunity, and persistent involvement in informal or illicit economies. It situates crime within a broader social ecology where inequality, demographic pressure, and structural instability erode social cohesion and personal agency. The discussion highlights education as a structural intervention that strengthens ethical reasoning, self-regulation, and social responsibility. Through the lens of Identity Restoration Theory, the chapter argues that effective prevention and reintegration require addressing overpopulation and inequality as core identity-disrupting conditions rather than treating them as secondary social variables.