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This article, by Jean Ware of Bangor University School of Education, examines policy developments in education in Wales since devolution, and their implications for inclusive and special education. This is set in the context of the demographics of Wales, which, it is argued, have a significant influence on policy and on the nature of educational provision as a whole. The discussion initially focuses on issues related to the Welsh language. The article then discusses four policy initiatives (the Foundation Phase, the Literacy and Numeracy Framework, the Masters in Educational Practice and the proposed reform of initial teacher education and training), intended to respond to Wales's poor performance in the Programme for International Student Assessment, and their potential impact, as well as the White Paper on reforming the special educational needs system in Wales. It is too soon to discuss the impact of these special educational needs-specific reforms, but the differences from the English special educational needs reforms highlight the inherent tensions in special educational needs systems. It is argued that the Tabberer Report's critique of the teacher education system in Wales, which emphasises the need for teacher education to be strongly connected to relevant research, provides an opportunity to improve the quality of education in Wales for all children; but that considerable investment, and a willingness to address the potential tensions between the different initiatives, is necessary to achieve such an outcome. [ABSTRACT FROM AUTHOR]