This UNESCO-sponsored report explores the value of applying incentive-based management concepts to educational planning. There is a continuing need for macro-educational planning if overall system coordination, coherence, efficiency, and equity are to be ensured. Chapter 1, "Incentive Concepts and Macro-Educational Planning," reviews key concepts and literature from the field. Chapter 2, "The New Educational Environment: Planning and Participation," describes recent changes in education, including globalization, financial constraints, and increasing demands. Chapter 3, "Behavioral Incentives in Educational Management," reviews the empirical record of incentives. Chapter 4, "State/Local Partnerships in Financing Basic and Secondary Education," describes the appropriate roles of state and local factors in financing through grant-in-aid schemes. Chapter 5, "Incentives for Public Higher Education," introduces a theoretical framework and reviews the experiences of recent programs. Chapter 6, "Developing a Participatory Framework for Local Teacher Incentives," describes the school-based provision of incentives for performance. Chapter 7, "Incentives for Student Learning Achievement," describes the macro-educational basis for the use of incentives to enhance learning. Chapter 8, "Incentives in Special Education," considers incentives systems in special education and offers policy recommendations. Chapter 9, "Creating an Environment for Informed Individual Choice: The Role of the Central Authorities," explains the informational and policy role of the state in incentive-based planning. Chapter 10, "Linking Information to Incentives," reviews the linkages between information and incentives in relation to the roles played by central and individual decision makers. Chapter 11, "Applying Incentive Concepts in Educational Planning," summarizes key conclusions of the report, regarding the new educational environment, the use of different types of incentives at different educational levels, and their potential to provide a more efficient and equitable decision-making structure. (TEJ)