Prepared for presentation to a "Consultation on the Cultural Dimensions of Learning and Development in the Young Child," this paper offers a series of policy recommendations as a guide to implementation of child service programs that are sensitive to cultural and group identity influences. The terms "ethnicity,""identity" and "culture" are defined, and it is emphasized that professionals must understand the culture of young children and their families and the way that culture diverges from the values and culture of public institutions. The bulk of the paper consists of specific policy recommendations for each of the following groups: researchers, child welfare agencies and professionals, employers and labor unions, government, training institutions, the media, schools, child/day care programs, and consumers (including children, parents, community, and ethnic or special interest groups). (BF)