This paper is a keynote speech delivered during the NDEA 2nd General Assembly for SY 1999-2000 held at NDU Gymnasium, Cotabato City. It describes the challenges that schools have to face and contend with. There are five challenges posed by the author. These include: (1) the challenge of an emerging world culture, which is described as secular and materialistic, (2) the challenge of a new "faith" that takes the place of "religious faith", which is a "faith" in science and technology, (3) the challenge of a new explosion of knowledge, (4) the challenge of dialogue of peace, and (5) the challenge pf survival in a world of increasing costs.