Guidelines are presented for applying cost-effectiveness and cost-benefit analysis techniques to nonformal education (NFE) programs in developing nations. The methods are based on workshops conducted in Kenya, Tanzania, Indonesia, and Guatemala. The manual is designed for those personnel responsible for planning, administering, and evaluating NFE programs, and government or private agency officials who make investment decisions. The manual is intended as a guide, and is organized as follows: economic analysis in project selection, development, and evaluation; organizing for economic analysis; concepts in economic analysis of NFE; step-by-step procedures--including defining the project and stating objectives, listing resources, determining and adjusting resource costs, summarizing and analyzing project costs, specifying educational outcomes and skills to develop, specifying intended and unintended proect outcomes, valuing and adjusting project outcomes, relating costs and outcomes, and interpreting results of the analysis; report writing; information processing; and use of computer-based information systems. Examples and exercises are included in the manual, and explanations of statistical methods and concepts are appended. (MH)