This is one of several papers written to provide a rationale for programs of the new National Institute of Education (NIE). The basic elements of the rationale for each proposed NIE program and the sequence in which they will be discussed are: (1) educational goals to be achieved, (2) variables that can be manipulated to reach the goals, (3) current practice and status of R&D on the variables, (4) new R&D programs that might lead to goal achievement, and (5) management and budget recommendations. The research and development programs derived from this rationale fall into four areas defined by NIE legislation: (1) basic research to increase the fund of knowledge about education, (2) improvement of current educational practice, (3) activities to build the R&D capability of the country, (4) programs to solve major educational problems. The selection of Learner Goals, Enabling Goals, and Systems Goals is based upon the opinions and work of many people and a wide range of literature sources. Learner goals have three areas: social-emotional development, cognitive development, and physical development. Enabling goals include effective selection and training of persons who work in education and effective dissemination of R&D results. System goals include productivity, access, and participation. (CK)