Since there are increasing international concerns with both the positive and negative impacts of globalization on indigenous and national development, how to manage the realities and practices of globalization and localization in education for maximizing the benefits and minimizing the disadvantages for the development of individuals and their local community inevitably becomes a key issue in educational development particularly in the developing countries. This article proposes a typology of multiple theories of fostering local knowledge and human development to address this key concern. These theories have varied emphasis on global dependence and local orientation and therefore they have their own characteristics, strengths, and limitations. The typology can provide a wide spectrum of alternatives for policy-makers and educators to conceptualize and formulate their strategies and practices in developing local education. This article also presents how to facilitate individual learning and organizational learning in fast-changing local and global environments and how to foster both individual knowledge and institutional knowledge in schools as the major contribution to the growth of local knowledge and local development. It is hoped that the theories and ideas raised in this paper can benefit the ongoing international efforts for globalization and localization in education for the future of our next generations in the new millennium. (Contains 3 tables and 9 figures.) [Abstract has been modified to meet ERIC guidelines.]