This study of basic education in El Salvador was carried out between September and December of 2003 by a team of researchers. This publication has two parts: (1) The introduction which addresses the main findings of the study and proposes education policy priorities for the next reform effort; and (2) A summary of the original study of basic education. This report focuses specifically on preschool and primary education, as well as on subsystems that affect educational quality at these levels: teacher training, educational financing, and educational management, with special attention to educational evaluation and the definition of standards. In addition, the report analyzes educational policies applied over the past decade in response to demands on the country imposed by globalization. Finally, it examines the contributions made by donor agencies to education in El Salvador. (Contains 9 annexes.) [Financial support was received from USAID/El Salvador under the Indefinite Quantity Contract (IQC) for Education.]