A key objective of this report is tocontribute toward developing a widely-shared vision foreducational development for Madagascar based on a commonunderstanding of the chalenges involved, and the part thateach participant can play in realizing that vision. Thereport deals with all the main education sectors (i.e.,primary, secondary, vocational/technical, and highereducation), but the focus is necessarily limited by thecomplexity of the subject. In particular, non-formaleducation has been set aside. Similarly, neither earlychildhood nor curriculum development, teacher education, andpedagogical methods are addressed here. Rather, the emphasisis on key aspects of education cost and finance, and thelink between spending options and educational outcomesAsummary of key challenges includes an overall sector strateyof universalizing basic education of a reasonable qualitywhile closely linking expansion of other levels and types ofeducation and training to labor market demand. Furtherchallenges include at the primary level, rationalizingteacher allocation to increase their time utilization;reducing the drop-out rate and grade repitition; andenhancing student learning with teaching materials andimproving pedagogical management. At the secondary level,expand enrollment and increase the practice of multi-subjectteaching. Reducing the cost of vocational training andimproving higher education quality and responsiveness tomarket demand are other challenges.