Education is a necessary investment in the modern state since it is the key to overall national development. Its two parts consist of formal and out-of-school education. The first includes the regular classroom--primary, secondary, technical, and university education. The second consists of nonformal education and training. Economic development is the increasing per capita, the volume quality, and range of economic goods and services at diminishing or constant real costs. It also includes political and social progress. A sound philosophy of education is necessary for an effective educational system. Education must meet the needs of both urban and rural communities. Rural development may be enhanced through various forms of out-of-school education, such as national youth service training, correspondence education, extension, adult, and continuing education programs. The use of educational media is important. Allocation of educational resources may be achieved through an integrated and team approach to national development planning. (CK)