Formative assessment is a potentially powerful instructional process because the practice of sharing assessment information that supports learning is embedded into the instructional process by design. If the potential of formative assessment is to be realized, it must transform from a collection of abstract theories and research methodologies and become a creative and systematic classroom practice. Policy-makers and school administrators must support this transition from theory into practice, particularly in the early stages of professional adaptation, and design assessment systems that teachers may internalize and enact efficiently. The article explores the hypothesis that many public school teachers are "trapped" within environments which deter them from enacting open and inventive social learning strategies in their own classrooms, which when implemented have great potential to support autonomous learning, realize achievement, and create economically productive lifelong learners. This article therefore reviews the literature on formative assessment in practical settings, and investigates the extent to which teachers perform the basic functions of gathering and using evidence to further learning and development in pursuit of the lifelong learning competencies that are essential in the "new economy."