This study is focused on policy: How did the school decentralization law affect the recruitment and selection of board members? How did the legal matrix set the conditions for community boards to function? And how did these community boards pursue their policies in three key areas: personnel, budget, and curriculum? Social change requires a methodology that is process oriented and qualitative. This methodology relies heavily on field observation and interview and on the participant-observer approach. However, where appropriate, the quantitative approach is also employed. Research assistants were assigned to each of the 31 districts; they attended meetings and interviewed participants over a two-year period. A total of 156 participants--79 board members and 77 community members--agreed to formal interviews. The participant-observers also attended 90 meetings of the community school boards in the city. At least one meeting of every board was observed. In addition the institute staff attended several meetings of associations, community groups, and community organizations. This study is divided into six sections dealing with the various aspects of school decentralization and the community school boards: (1) Political Participation; (2) Policy: Personnel; (3) Policy: Budget; (4) Policy: Educational Program; (5) Community School Board; and, (6) Conclusion. (Author/JM)