We introduce the concept of efficiency of a network, measuring how efficiently it exchanges information. By using this simple measure small-world networks are seen as systems that are both globally and locally efficient. This allows to give a clear physical meaning to the concept of small-world, and also to perform a precise quantitative a nalysis of both weighted and unweighted networks. We study neural networks and man-made communication and transportation systems and we show that the underlying general principle of their construction is in fact a small-world principle of high efficiency.