Increasing globalization, information technology, based on a knowledge economy, and socio-economic changes are rapidly changing the goals, policies, curricula, contents and methods of education. The need to differentiate and re-thinking education and learning, both within and outside the school system, is gaining increased attention among education researchers, policy-makers, and practitioners. This paper tries to present a careful analysis of current trends and challenges in education and focuses on the policies of education for the 21st century in both developed and developing countries. Emphasis is placed here on the educational reform plan for the 21st century in Japan and the educational policies of Persian Gulf Countries. 1) The objective is to examine what "we" can learn from Japanese approach and experience in promotion of the educational reform plan for the 21st century named "Rainbow Plan" the seven priority strategies. In section I, the major trends that the world faces in the twenty-first century are concerned. In section II, the economic and social situation of the Persian Gulf Region will be examined. Section III deals with major challenges the educational systems are facing both in the world and the Persian Gulf Region. In the following section IV, I will analyze the Japan's educational goals in the 21st century. In section V, the Japanese educational reform plan for the 21st century named "Rainbow Plan" the seven priority strategies is discussed. In the last section VI, I would like to deal with a number of lessons which the Persian Gulf countries can learn from Japanese approach in promoting their educational reform plans.