Despite an increased economic growthfollowing the introduction of the Real Plan in 1994, thepoverty rate in Northeast Brazil is not declining at parwith that in other regions, aggravated by the fact that theNortheastern illiteracy rate, is twice as high as thenational average. This report identifies exclusion fromeducational opportunities, suggesting ways to attaininclusion, based on an analysis of successful experiences,both in other parts of Brazil, and abroad. The analysiscovers four states, selected on the basis of povertyincidence, and of educational failure and exclusion, as wellas on the extent to which education authorities at the statelevel have expressed interest in educational reform. Thestudy examines the determinants of educational exclusion,including that of rural, indigenous, and Quilombo (groups ofslave descendants) children, stipulating there is a clearneed for policymakers to adopt educational approaches thataccount for the many different perspectives of the Brazilianpopulation, including the need to address geographicalisolation, teacher qualification, the preponderance ofover-aged students, and the lack of teaching supportsystems. Similarly, the study addresses the education ofyoung adults, and their need for different educationoptions, i.e., distance learning, accelerated classes,external certification, and modular courses. Moreover,school autonomy, and the financial aspects of educationreform are examined, suggesting a focus on educationalpolicies that increase educational access for vulnerablegroups, reform of education management, and increasedfunding for education, by mobilizing public expenditureresources, and private sector financing.