The most critical challenge regarding the issue of quantity and quality in education is faced by many developing nations; India being one of them. According to an official data, almost 40 percent of children, in the school - going age, are out of school. On the other hand, the learning outcomes of students, enrolled in government schools, are very poor. Despite Herculean efforts by the Indian government, our education has failed to provide access to all and good quality of education to those who are in the school. The reasons for the failure are many but the result is that we have a two-tier system of government and private schools. Those who can afford, go to private schools; those who cannot, go to government schools. The children of the poor have no option but poorly functioning government schools. Commonly, two approaches are suggested to deal the problem. One is to pressurize the government to increase its expenditure on education. But, international evidence suggests that it is not how much the government spends but how it spends that determines the quality of education. The other path is to liberate the private sector so that it can reach out to as many parents and to exercise delicensing, deregulation, decentralization, giving education an industry status etc. Funding students, not the schools, will control the quality of education and the liberalization will deal with the remaining part - 'quantity' segment, of the problem. Education vouchers are suggested as a way to transform financing of education, especially for the poor. In this system, the money would follow students and not schools. Present paper recommends 'education vouchers' as a tool to reform the present education system for the developing countries, on the basis of experiences of eleven countries that have been exercising the education vouchers.