This study examines the major forces that have affected the costs of Peru's educational development in the last decade and the forces that are likely to affect its educational finance until 1980. Chapter 1 is an introduction to the study and to the geographic setting. Chapter 2 provides a descriptive and historical analysis of the past decade's accomplishments in education. It describes past expenditure/cost trends and analyzes per pupil costs and the major contributing cost variables such as teacher salary policy. The new features of Peru's educational reform are discussed in Chapter 3. Chapter 4 discusses the Peruvian economy in the past decade. This historical and descriptive chapter prepares the way for the projections of economic performance offered in Chapter 5. Chapter 6 offers projections of educational costs to 1980. The major question raised by this study is whether ambitious educational goals can be made consistent and compatible with probable economic growth. (Author/IRT)