In the research discussed in this paper, two major dimensions of social-emotional competence are identified, which are labeled Interest/Participation versus Apathy/Withdrawal, and Cooperation/Compliance versus Anger/Defiance. There is evidence of two environmental dimensions which set the stage for the two dimensions of social-emotional competence. These dimensions were designated by Stern as anabolic press, which deals with growth-promoting characteristics, and catabolic press, which has to do with stimuli designed to maintain a basic orderliness to the social process. The dimensions of social-emotional competence consist of two components--a person-specific component, roughly gauged by the extent of cross-situational stability and longitudinal persistence, and a situation-specific component, measured by the extent to which variations in the environment lead to increases or decreases in the specific dimensions of social-emotional competence. Interest/Participation versus Apathy/Withdrawal is shown to be related to cognitive functioning and school achievement. School systems and teachers foster high social-emotional competence and at the same time create classroom settings which are optimal for learning. (Author/JM)