This paper is part of an international study of the preparation of school directors. This initial review looks at Mexico in the context of recent policy and the international movement to identify competencies necessary for educational leadership. Special attention is given to the power of the teacher union, funding of education, and the role of the supervisor. We address the following questions: What are the policies of the central government? What are some of the underlying assumptions that appear to be guiding these policies? Whose interests are served by this approach? What are the strengths and weaknesses of Mexican education? What are the critical issues to address in educational administration?