This report discusses the impact of and presents guidelines for developing a computer-aided instructional (CAI) system. The first section discusses CAI in terms of the need for the countries of Asia to increase their economic self-sufficiency. The second section examines various theories on the nature of learning with special attention to the role of teachers in the learning process. The third section, which covers instructional systems development, is divided into two parts. The first part focuses on models of instructional design underlying CAI (the traditional approach of identifying skills and then subskills and the approach typified by information processing models) and on the importance of mission, accomplishment, performances, and criterion abilities. The second part deals with instructional strategies, with particular emphasis on learner control strategies and the sequence of instructional strategy events (specifying competencies, developing the first epitome, sequencing all remaining epitomes, defining prerequisite abilities, identifying strategy components, planning lesson logic, and authoring the lesson). The fourth section discusses authoring languages and systems, outlines measures of authoring productivity (power, ease of use, output), and presents a case study evaluation of the WISE (WICAT's Interactive System of Education) authoring system. The advantages of CAI (increased control, reduced resource requirements, individualization, timelessness and availability, reduced training time, improved job performance, convenience, the computer as a change agent, increased learning satisfaction, and reduced development time) are explained in the fifth section. (MN)