This report focuses on the economicrather than the social and cultural dimensions of education.Its approach in answering the questions raised is analyticaland comparative in nature. Education outcomes in the regionare compared with education outcomes in other developingcountries. The development impact of investment in educationis considered in the context of the large body of literatureon the subject. The education reform strategies in MiddleEast and North Africa (MENA) are assessed on the basis of anew analytical framework. Labor market outcomes areevaluated on the basis of how well these markets function,given past reform efforts. The feature of the report is thatit covers all levels of instruction, not just basic,secondary, or higher education. Although the primary focusof the report is education, it was important to pay specialattention to domestic labor markets and migration. Afterall, this is where the returns to education are determinedand its impact on development made.