This article discusses a perennial problem in education in developing nations: how to balance the public investment of the national education administration with the private investments of parents who send their children to school. The development of the national education system of Papua New Guinea is analyzed in terms of three broad phases of education policy, each with its respective aims, goals, and results. Three villages' experiences with the educational system are reviewed, compared and contrasted with respect to changing government educational policies and implications for future development.