This examination of implications of African economic conditions for educational policy considers problems which arise in the attempt to relate economic circumstances to education. The first of three parts compares product levels of about 50 African countries with selected developed countries and a number of developing countries outside Africa, examines economic progress in recent years, and judges present African circumstances in terms of the income level and market size of Canada in 1870. Such comparisons were designed to help identify a group of African countries with common characteristics and problems using three related criteria: low income level, small market size, and unfavorable economic structure. Part 2 discusses the significance of education and skill development in Africa from an economic point of view. Implications of a development model formulated by Chenery and Strout are reviewed and inadequacies of Africa's educational system are outlined. Part 3 examines important questions of choice which arise in the determination of economic and educational priorities in low income countries. Specific attention is given to education as an economic priority, to priorities within the educational system itself, and to kinds of education which should be offered. (LH)