The purpose of this report is to identify the issues that policy makers and practitioners ought to consider when formulating and establishing social policies and services for young children. The six chapters included are grouped according to three parts. Part 1 describes the context of social and family environments for children living in the United States and European countries, stressing the changes directly brought about in children's lives and indirectly reflected in the definition of their educational needs. Part 2, the main body of the report, reviews several topics which have importance to the greatest number of member countries in the Organization for Economic Cooperation and Development and which constitute the common denominator in professional controversy and political debate on early childhood issues. Five such topics are discussed: the cost and financing of services for children, quality versus quantity of services, centralized versus decentralized models of service, professionals' versus parents' services, and public organization of services versus private service initiatives. Finally, Part 3 indicates likely trends that may guide and explain the choice of policies and practices in the field of early childhood care and education in the future. An article discussing a conceptual framework for the analysis of the economics of early childhood services completes the document. (MP)