With explosion in educational services to all eligible people in all countries of the world there is a serious concern about the quality of education. The global knowledge economy demands educated citizens, and a skilled and innovative workforce. But the quality of schools is deteriorating and education is unable to produce the workforce needed for the rapidly advancing technology and the world market. The focus has therefore turned to effective schools that will bring countries to the forefront of the global market through its educated citizens. Despite a variety of empirical and analytical research studies, there are no criteria that enable schools to identify factors that will improve the effectiveness of schools.This brief paper is based on a keynote address given at the 2012 World Global Forum in Taipei and argues that in a world with globalization and rapid movement of populations, excellence in education must go hand in hand with educational inclusiveness. School effectiveness cannot be measured through international tests alone. Effective schools will use teaching strategies that are needed for students with diverse abilities, cultures and backgrounds for strong achievement in academic and other areas, but at the same time empower them with interpersonal/intercultural skills to face rapid change and life-long learning. To be effective, schools must strive for excellence with inclusion because excellence is enhanced and enriched by diversity.