In this book, the first of a series on functional education for individual, community, and national development, the author shares her understanding of the needs of nonformal education and what may prove useful to fulfill these needs. The content is in three sections. The first one identifies the forces that have converged to give nonformal education the distinctive characteristics that distinguish it from traditional formal schooling. The second section explores three approaches (problem-centered, projective, and self-actualizing) to nonformal education that have been developed to (1) strengthen the problem-solving capacity of learners, (2) equip learners with coping skills to deal more effectively with their environment, and (3) develop the individual's inner potential and strengthen the positive awareness of self. The examples used in this section are drawn from nonformal education programs in Thailand, Ethiopia, Bangladesh, Ghana, Turkey, the United States, and the Philippines. The third and final section presents ten assumptions about nonformal education made by the author based on her experiences with these three approaches. The appendix includes sensitizing exercises for trainers and field staff, learning materials, forms for recording feedback, and descriptions of the nonformal educational projects discussed in the text. (EM)