JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Center for Latin American Studies at the University of Miami is collaborating with JSTOR to digitize, preserve and extend access to Journal of Interamerican Studies and World Affairs. IT IS THE MOST COMMON presumption that the relative priority accorded to education in an economy is significantly determined by economic conditions, particularly by the national income per capita and the budget. However, under normal conditions of economic well-being, allocation of resources to education is generally found to be least influenced by economic factors in any important way. Economic ability factors like GNP per capita and public spending on education are not significantly related.1 Neither are criteria for efficiency, like the rate of return to education, found to influence policies which allocate resources to education (see Tilak, 1982). Further, neither are educational planners guided by the manpower needs of the economy, nor even by social factorslike constitutional directives on universaliza-Jandhyala B. G.