This second issue of the PIDS Economic Policy Monitor (EPM) focuses on education. It takes a special look at the sector`s achievements, direction, priorities, and critical gaps in order to help the government and other education stakeholders craft the necessary education reform agenda that will further push the education sector`s contribution for a sustained, inclusive, and rapid growth of the country`s economy. Important policy decisions taken in 2011, both as responses to global and domestic developments and as part of the government`s overall development thrust, are also presented in this issue. This is in consonance with one of EPM`s objectives of looking into the impact or potential impact of policy measures instituted in the year under study. Thus, policies made during the year in the areas of trade and industry, competition policy, infrastructure, innovation strategy, environment and natural resources, and poverty-related matters are likewise discussed.