THE PRIMARY PURPOSE OF THIS STUDY WAS TO COMPARE CULTURAL AND CHARACTER VARIABLES AND RELATE THEM TO THE COGNITIVE DEVELOPMENT OF MEXICAN PEASANT CHILDREN. THE CULTURAL VARIABLES STUDIED INCLUDE ECONOMIC LEVELS, MORAL AND AFFECTIVE JUDGMENTS, AND THE RELATIONSHIPS BETWEEN PARENTS AND CHILDREN. MODES OF ASSIMILATION, SOCIAL RELATIONS, FIXATIONS, AGGRESSIVENESS, HOSTILITIES, FEARS, ASPIRATIONS, FANTASIES, AND PRODUCTIVITY WERE THE CHARACTER VARIABLES. THE COGNITIVE VARIABLES INCLUDE GENERAL LEVEL OF INTELLECTUAL FUNCTIONING, EQUIVALENCE AND DIFFERENCE JUDGMENTS, MORAL REASONING, AND ATTRIBUTIONS OF LIFE AND CAUSALITY. IT WAS CONCLUDED THAT VILLAGE CHILDREN DID TEND TO DEVELOP THOSE INTELLECTUAL SKILLS MOST FUNCTIONAL FOR THEIR SOCIETY. ADDITIONAL CONCLUSIONS AND IMPLICATIONS ARE GIVEN. (CG)