The privatization of education. Drivers, social effects and regulatory challenges
of private sector participation in schooling
Antoni Verger
a
, Clara Fontdevila
b
, and Adria ´ n Zancajo
c
,
a
Universitat Autònoma de Barcelona, Cerdanyola, Spain;
b
University of
Glasgow, Glasgow, United Kingdom; and
c
University of Manchester, Manchester, United Kingdom
© 2023 Elsevier Ltd. All rights reserved.
Definition and scope 174
Conceptual demarcation and relevant distinctions 174
World trends 175
Main drivers 175
Privatization by design versus de facto privatization 177
Beyond the neoliberal creed: privatization as a globalizing policy 177
The effects of privatization: emerging consensus and persisting discrepancies 178
Regulation and governance of private provision 179
The regulation of PPPs in education 179
Regulating independent schools: the case of LFPS 180
To conclude 180
References 181
The privatization of education is a global phenomenon taking place at all educational levels and growing worldwide. In this entry we
define educational privatization and examine its growth in different regions, discussing why it emerged, and how it has developed.
We also reflect on the main effects of education privatization policies, with an emphasis on the challenges these policies pose for
educational equity and the public regulation of education. We focus on basic education, including primary and secondary education.
Definition and scope
Conceptual demarcation and relevant distinctions
Privatization is a process through which the private sector increasingly participates in economic and social activities that, in most
countries, used to be the remit of the State. In the last decades, privatization has crystallized in public services that were previously
de-commodified and in relation to which the State has had an important historical presence over the 20th century, as tends to be the
case of education. Nonetheless, privatization processes can occur in various guises and to different degrees. To start with, we can
distinguish between drastic and gradual modes of privatization. Drastic privatization implies that both service ownership and
management responsibilities are transferred from public to private hands at a large scale. Although this form of privatization
has been more common in gas, water or telecommunications sectors, the expansion of fully private schools, which are exclusively
funded by families’ fees and/or philanthropic resources, would be also considered as part of a drastic privatization trend. In contrast,
gradual privatization entails a progressive or partial transfer of service ownership and/or management and delivery responsibilities
from the public to the private sector, with the State retaining full or an important part of the ownership. In most contexts, the privat-
ization of education has tended to follow a gradual privatization path rather than a drastic one. In fact, the privatization of educa-
tion tends to crystallize at the level of provision (via the outsourcing of service provision to private management organizations) and/
or funding (via co-payment policies). Conversely, it rarely entails changes at the ownership level- with the rapid academization of
schools in England being more an exception than the rule (Verger, 2020).
The concept of Public-Private Partnerships (PPPs) has been broadly used in educational literature to capture the predominantly
gradual character of privatization processes in education, as well as the hybrid nature that educational provision is acquiring in
numerous school systems. PPPs in education encompass a broad range of policies and programs that entail a contract between
the State and the private sector in which public sources fund an education service, and a private actor takes responsibility for its
delivery. In the context of PPPs, both sectors, the private and the public, are expected to share risks, ideas, and other resources
in delivering services (Hodge et al., 2010). In education, it is possible to distinguish at least three main policy categories that
fall under the PPP umbrella (Zancajo et al., 2021a):
1. Charter schools. Schools are owned by the State but managed by private entities. Frequently, these schools enjoy higher levels of
autonomy than regular public schools.
2. Vouchers. Private schools receive public funding depending on the number of students enrolled. In some cases, private schools
can combine voucher and self-funding students.
3. Contracted schools. Private schools that the government directly contracts to provide the educational service in exchange for
public funding covering part or all the costs they require to operate. Under this scheme, and in contrast with vouchers, schools
are not necessarily publicly funded on a per-capita basis.
174 International Encyclopedia of Education, 4th edition, Volume 1 https://doi.org/10.1016/B978-0-12-818630-5.01030-7