One of the most vital areas of public policy is education. In today’s societies quality and equality in education are among the basic human rights and its provision within the basic responsibilities of modern governments. Setting educational policies is the framework within which governments try to fulfill this duty. The success of such policies is a function of basic administrative arrangements, if we look at the experiences of developing East Asian countries during the recent decades. However, perusal of the recent post-revolutionary Iranian governments and their experiences in this area tells a story of weakness and inefficiency. The incomplete process of governance in contemporary Iran and its deepening problems in post revolution period has created serious barriers to the making and implementing of educational policies.  Political elite’s decisions and actions have played an effective role in the development of these shortcomings. Different administrations during the past 40 years have failed to transform and condense the country’s natural resources into socio-cultural capital due to fundamental structural difficulties. Educational indices have fallen below the global averages and the Ministry of Education has performed poorly. In such circumstances, sustainable development requires the statesmen and politicians to reform the educational institutions and prioritize educational policies through three basic actions of institution making, coalition building, and decision making.