The Swedish Model
A Swedish firm has worked out how to make money running free schools

The Economist:

BIG-STATE, social-democratic Sweden seems an odd place to look for a free-market revolution. Yet that is what is under way in the country's schools. Reforms that came into force in 1994 allow pretty much anyone who satisfies basic standards to open a new school and take in children at the state's expense. The local municipality must pay the school what it would have spent educating each child itself—a sum of SKr48,000-70,000 ($8,000-12,000) a year, depending on the child's age and the school's location. Children must be admitted on a first-come, first-served basis—there must be no religious requirements or entrance exams. Nothing extra can be charged for, but making a profit is fine.

The reforms were controversial, especially within the Social Democratic Party, then in one of its rare spells in opposition. They would have been even more controversial had it been realised just how popular they would prove. In just 14 years the share of Swedish children educated privately has risen from a fraction of a percent to more than 10%.

At the time, it was assumed that most “free” schools would be foreign-language (English, Finnish or Estonian) or religious, or perhaps run by groups of parents in rural areas clubbing together to keep a local school alive. What no one predicted was the emergence of chains of schools. Yet that is where much of the growth in independent education has come from. Sweden's Independent Schools Association has ten members that run more than six schools, and five that run ten or more.

Interesting.

Posted by Jim Zellmer at June 13, 2008 7:33 AM
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