This manual contains a set of tools to assist policymakers in analyzing and revamping educational policy. Its main focus is on some economic and financial aspects of education and selected features in the arrangements for service delivery. Originally offered as a series of training workshops for World Bank staff to work with clients in the education sector in low-income countries, the book is also appropriate for education specialists in developed countries. The modules in the book are a self-contained set, complete with answer sheets to the exercises collected on a CD-ROM. Chapter 1, "Introduction," offers an overview and background. The titles of the remaining chapters reflect the topics of the manual: (2) "Diagnosing Structural Weaknesses in EducationImplications for Project Selection"; (3) "Analyzing Costs in Education"; (4) "Conducting Cost-Effectiveness Analysis in Education"; (5) "Managing Teacher Deployment and Classroom Processes"; (6) "Assessing Policy Options for Teacher Training and Pay"; (7) "Analyzing Equity in Education"; (8) "Addressing Policy Issues in Girls' Schooling"; (9) "Performing Economic Analysis of Educational Technology"; and (10) "Conducting Comparative Policy Analysis in Education." Appended are instructions for performing regression analyses and using Excel. The manual also contains many tables, charts, graphs, and worksheets. (WFA)