This publication is part of a package of three booklets that synthesize current knowledge about the preconditions for learning in children and discuss ways of fostering these conditions. (The other two booklets are an executive summary of this report and a collection of five vignettes on services for infants, toddlers, and families). This report is based on the premise that children's expectations and attitudes are formed in the first months and years of their lives. Parents need to understand how they can promote in their children certain characteristics that are related to learning in school. These characteristics are: (1) confidence; (2) curiosity; (3) intentionality; (4) self-control; (5) relatedness; (6) capacity to communicate; and (7) cooperativeness. To develop these characteristics, four kinds of needs must be met. First, the need for good physical health is met by providing affordable and accessible health care; tracking children through the health care system; and making child care a health resource. Second, children should be assured of time for unhurried caring from parents and family members, and stability of child care providers over time. Responsive caregiving from parents and child care providers is a third need of all children. Fourth, meeting children's need for safe and supportive environments requires an adequate standard of living for children's families and adequate space in child care settings. In addition to these needs, some children have special needs for themselves and their families that must be met. Recommendations for serving these needs of children are summarized in a chart that describes the responsibility of federal, state, and local governments, and of corporate sources, in serving these needs. Numerous endnotes are included. (SLD)