How education and training systemsrespond to the sweeping changes brought about byglobalization and the knowledge economy can havefar-reaching implications for developing countries in termsof sustainability of growth, competitiveness, job creation,and poverty reduction. This issue is especially pertinent tothe countries of South Asia, which are currently growing ata rapid pace and are gradually becoming more integrated intothe world economy. This regional study is a first attempt toaddress these questions. Its main objective is to documentand compare trends in education and training in thecountries of South Asia, as well as the associated changesin earnings and employment. It draws upon household, laborforce, and firm-level surveys from 1990 to the most recentyear available. The analysis focuses on Bangladesh, India,Pakistan, and Sri Lanka (countries with well-developedsurveys), with some references to Bhutan, the Maldives, andNepal, along with comparisons with countries in East Asiaand with other regions.