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The progress of an Improving the Efficiency of Educational Systems (IEES) Project initiative toward developing a prototype indicator system for tracking the overall education systems in participating countries, is described in this interim report. Two needed dimensions were identified during the development of the model: (1) incorporate qualitative data on educational processes into the model; and (2) provide for variations by country in the design characteristics. The first section of this document describes the conceptual analysis of educational indicator systems. The second section describes the prototype model of primary education, which consists of stages based on context, input, process, output, and outcomes. The development process envisaged and now under way for host country clarification of the model is described in the third section. The fourth section discusses the potential for using the indicator system for both incountry educational planning and staff training purposes. Plans for information dissemination are also described. The conclusion emphasizes the importance of place and process in developing a theoretical framework. The original IEES plan was adapted to engage host-country participants in a dialogue about collaborative design of more flexible and location-specific systems. One figure is included. The appendix contains definitions of model domains with their proposed indicators. (Contains 15 references.) (LMI)