Mexico's Programa de Escuelas deCalidad (PEC) combines increased funding per student withsignificant training to principals in school managementpractices, especially in areas of parent participation,planning, organization, and accountability. Mexico began PECas its first school-based management program in 2001. Theprogram provides a fixed-amount, cash grant to schools inexchange for school planning and enhanced parentparticipation in most aspects of school operations through aschool council. Mexico's education system is structuredby level of education, from pre-primary to primary, lowersecondary, secondary, and tertiary. School autonomy andaccountability are key components to ensure educationquality. The transfer of core managerial responsibilities toschools promotes local accountability, helps reflect localpriorities, values, and needs, and gives teachers theopportunity to establish a personal commitment to studentsand their parents. There are five indicators of schoolautonomy and accountability that can help benchmark aneducation system's policies that enable school autonomyand accountability: school autonomy in budget planning andapproval; school autonomy in personnel management; theparticipation of the school council in school finance; theassessment of school and student performance; and schoolaccountability to stakeholders. This report focusesspecifically on policies in the area of school autonomy and accountability.