A problem for small states is how to access specialist knowledge when the national pool of human resources is small. This is a difficulty for ministries of education and educational institutions. The usual response is to draw on technical assistance, often as part of a wider aid package, from industrialized countries or international agencies. But there is scope for developing the capacity of universities within small states to provide consultancy services. This offers a way for institutions of higher education to play a stronger role in national education development. The result of a training workshop on educational consultancy in small states, this manual has three parts. Part One examines demographics of small states; factors influencing their choice of consultants; and the nature of consulting (including a definition), why consultants are used, consultancy as an agent of change, and the ethics of consultancy. Part Two presents a five-phase model of the consulting process and the skills required for successful consulting. Part Three examines key considerations in developing a consulting business, including planning, structure and administration, marketing, and management of assignments. Case studies illustrate the consultancy dilemmas of small states and describe existing university-based consultancies in four small states. Contains an 80-item bibliography for further reading with the following sections: managing consulting organizations; selecting and using consultants; consulting skills; communication and report writing skills; consulting in education; education in small states; and general topics. Contains 15 references. (TD)