Economic internationalization has caused the traditional advantages enjoyed by the Texas and U.S. economies to either disappear or to diminish in importance. Further, technology has allowed natural resources to become less important, while elevating knowledge and skills as the keys to improvements in productivity, living standards, and national power. The development and use of leading edge technology is necessary; a work force with higher-order thinking and communication skills is required. Unless we give greater attention to upgrading the skills and knowledge of those who have already completed school and enact fundamental structural reforms within the current school system, the economic challenges the country will face during the next 10 to 15 years are likely to be unmet. School productivity must be improved to bring almost all students to a level previously reserved for the elite. To help accomplish this, it is particularly important to improve the status, remuneration, and responsibilities of teachers. In addition, decisions must be decentralized to the schools, and highly qualified professionals must be held accountable for measured student achievement. Moreover, many successful interventions depend on changing attitudes and expectations; the elitist myth that educational achievement is due to innate ability rather than hard work must be abandoned. The bibliography contains 122 references. (KM)