A review of the articles on modernization in Australia, England, New Zealand, Scotland and the USA demonstrates and discusses the complexity attached to the concept. This also enables a better understanding of the contention and controversy that surrounds the concept and its application to educational policy and practice. Modernization policies in these five countries are then analysed and interpreted within a conceptual framework that explores the locations of decisions and the motivational principles underlying decisions. The analysis proposes four "ideal" type mechanisms for allocating resources in society. Arguing that a "mixed economy" model is both necessary and right, the discussion concludes by examining the appropriate balance within that "mixed economy" if education is to yield both economic growth and social cohesion.