This ERIC digest presents an overview of small-scale schooling in an international context; examines demographic data, staffing problems, and incentives used in other nations; and points out the distinctive characteristics and unique value and potential of small schools in both industrialized and developing nations. Rural school populations remain significant in most countries and even in the most industrialized countries, small rural schools are still the rule rather than the exception. The plight of small schools has, however, grown worse in both industrialized and developing nations. Stereotypes of small schools and their settings are misleading; these schools are diverse, and their characteristics vary substantially, even within a single nation. Small schools have survived out of necessity in industrialized and developing nations alike. Although no one definition of "rural" or "small" applies to all countries and settings, the strengths and needs of small schools transcend national boundaries. Small schools will not disappear in the foreseeable future because the rural populations served by small schools will continue to be substantial, even as industrialization proceeds. The strengths of small schools, as well as their evident needs, are significant, and policies should attend to both. Because of their diversity, small schools cannot be well served by a single policy even within a given nation. Policies to support small schools must consider the specific local or regional context, so that the needs of small schools can be met at the same time. This digest lists 10 references. (ALL)