A discussion of the relationship between public policy on languages and national economic development focuses on formulation of policy, especially in the case of Australia. It begins with a brief history of language policy-making in that country since the 1960s, including early proposals and a 1990 report that has been adopted as a basis for Queensland language policy. The second section examines two primary factors motivating development of national language policy: national economic development in the international context, and human rights. Reference is made to the Universal Declaration of Language Rights, a document in the process of being developed by the World Federation of Modern Language Teachers. A third section looks at the nature of policy-making as a decision making or problem solving process, both for the parent discipline of applied linguistics and for language policy-making or language-in-education planning. Finally, the structure of language policy is examined, and six essential elements of rational language policy are outlined. Salient features of Queensland language policy and corollary needs based on Queensland social needs are identified. Other aspects of the Queensland policy are also discussed briefly. It is concluded that improved, rational, systematic language policy-making, realized in sound language-in-education policy, is a priority for the 1990s. (MSE)