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Decentralization and Privatization: Education Policy in Chile

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  • Parry, Taryn Rounds

Abstract

Many countries have experimented with decentralization and privatization policies in hopes of increasing public sector efficiency. This article explores the impact of decentralization and privatization of education in Chile. Decentralization did have some benefits such as improved administrative efficiency and greater productive efficiency. However, government size, as measured by the total personnel working in the education sector, increased under decentralization. Privatization of education in Chile created a type of voucher system. Although educators are more accountable to parents who compare products, the greatest problem is that schools do not necessarily respond to competition by promoting better quality education. Comparisons of student performance in public and private schools in Chile is not conclusive, but national average scores have not risen even though private provision of education has expanded dramatically while public education has waned. Finally, both decentralization and privatization resulted in greater inequity in expenditures and in the performance of students from different income groups.

Suggested Citation

  • Parry, Taryn Rounds, 1997. "Decentralization and Privatization: Education Policy in Chile," Journal of Public Policy, Cambridge University Press, vol. 17(1), pages 107-133, January.
    • Handle: RePEc:cup:jnlpup:v:17:y:1997:i:01:p:107-133_00
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    Cited by:

    1. Cheryl Gray & Tracey Lane & Aristomene Varoudakis, 2007. "Fiscal Policy and Economic Growth : Lessons for Eastern Europe and Central Asia," World Bank Publications - Books, The World Bank Group, number 6883.
    2. Leonardo Letelier S & Hector Ormeño C, 2018. "Education and fiscal decentralization. The case of municipal education in Chile," Environment and Planning C, , vol. 36(8), pages 1499-1521, December.
    3. Leonardo Letelier S. & Héctor Ormeño, 2018. "El mapa de la descentralización fiscal en Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 21(3), pages 004-040, December.
    4. Patrick McEwan, 2001. "The Effectiveness of Public, Catholic, and Non-Religious Private Schools in Chile's Voucher System," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 103-128.
    5. Herrera, Veronica & Post, Alison E., 2014. "Can Developing Countries Both Decentralize and Depoliticize Urban Water Services? Evaluating the Legacy of the 1990s Reform Wave," World Development, Elsevier, vol. 64(C), pages 621-641.
    6. Rita Afsar, 2010. "Poverty, Inequality and the Challenges of Pro-Poor Governance in Bangladesh," Journal of South Asian Development, , vol. 5(2), pages 187-219, October.

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