This position paper surveys recent study results on the variable effects of both socioeconomic status and parent-child relationships on the development of competence in young children. Research results imply that certain ways that parents interact with their children are more effective than others in aiding the development of a child's social, intellectual, and language abilities. In this connection, an overview and analysis of the Harvard Preschool Project study of the development of competence in young children is presented. Discussion centers around the following questions: Do the characteristics of competence occur in the same sequence in children of different cultures? Are these characteristics dependent on internal developmental structures similar to those that have been theoretically described by Jean Piaget? How much attention should be given to studying the existence and importance of critical periods? Should parenthood be a licensed profession requiring special preparation? And how much influence should the state exercise in the family life of its citizens? (Author/CS)