Since the beginning of the Asian Development Bank's involvement in education in 1970 up to December 1987, 35 education loans to its developing member countries (DMCs) have been approved. The general aim of this paper is to determine the direction of the bank's future policy in assisting education. Among the main reasons for reviewing the bank's role are the following: (1) the continued low enrollment ratios in basic education as well as low adult literacy rates in a number of DMCs; (2) the need for structural reforms in the education sector; (3) the changing economic conditions in the region; and (4) the surfacing of innovative areas of educational interest such as environmental education, distance education, and women's education. Chapter 1 provides a background analysis relevant to the education sector and development assistance in the region by describing the regional setting and analyzing the relationship between development and education. Chapter 2 reviews the present status of and ongoing development trends in education in the region and analyzes key issues and tasks ahead. Chapter 3 has three objectives: a review of the bank's past policy and performance in assisting education development in the region; a brief overview of other agencies' regional assistance operations in the sector; and an outline of the bank's future assistance policies and priorities. Relevant data is presented in ten appendixes. (68 references) (MLF)