This paper focuses on the World Bank/IMF (International Monetary Fund), the OECD (Organisation for Economic Cooperation and Development) and the WTO (World Trade Organisation) as institutions of transnational policy making. They are all at present making education policies which are decisively shaping current directions and developments in national education systems. The paper reviews the enhanced role of these institutions in producing education policies and investigates the ideological basis as well as the processes through which these policies are made. It is argued that decisions are taken largely through asymmetric, non-democratic and opaque procedures. It is also argued that the proposed policies purport to serve the principles of relentless economic competition. Taking into account similar policies and initiatives, the paper concludes that we are experiencing not only the transnationalisation of education policy making but also the full submission of education to the pursuits of global economy.