This digest explores the possibilities of cost reduction in extending the coverage and upgrading the quality of preschool education especially in developing countries. The digest also seeks to highlight the importance of community participation in developing and managing preschool institutions and programs. Chapters cover the following topics: the overall scene; the case for preschooling; qualitative improvement with the possibility of cost reduction; measuring the quality of preschool education; improving management of early childhood care and education; improving institutional and program management by means of community participation; developmental research, with case studies from Malaysia and Turkey; the need to strengthen monitoring and evaluation; the "central message," or main conclusions, of efforts to develop more relevant and culturally sensitive forms of early childhood education, with two examples: an experimental Colombian effort at cooperative child care in the community; and the Indian experience with Balwadis. The final chapter briefly discusses various possible roles that international aid might play in the creation and development of viable, culturally sensitive preschool education programs in developing countries. (RH)