This report is a primer on the multifaceted issues that state legislators are likely to confront under the rubric of human resource development. Chapter 1 proposes a philosophy: enabling every citizen to become a productive member of the 21st century economy is in a state's best interest both socially and fiscally. Chapter 2 focuses on the premium that the modern global market places on quality. It describes efforts in five states that are encouraging the development of continuous learning systems in firms and industries that promote constant improvement in the quality of goods and services. Chapter 3 emphasizes the need for state legislatures to incorporate basic public education from K-12 into the framework of comprehensive human resource development programs. Seven elements of education reform are discussed. Chapter 4 describes strengths and weaknesses of first-, second-, and third-wave state economic development strategies and suggests how states can use one or a combination in various ways and at different times. Chapter 5 discusses the federal role: the Job Training Partnership Act and welfare and training programs that have become closely associated with it. Chapter 6 describes the comprehensive education and training systems that Germany and Japan have implemented to help them become leading economic powers. Chapter 7 Discusses the importance of coordination, communication, and integration in a client-centered approach. (Contains 45 references.) (YLB)