Equity in Education: The Case for Amending the Swedish Education Act By: Jessica Gonzalez

Sweden is often praised for its highly developed welfare state and high quality of life, but its K-12 public education system may be facing significant challenges. In the 20th century, Sweden's education system became centralized, with the federal government controlling key education decisions. This shift was part of broader reforms aimed at promoting social and economic equality.[1] However, by the 1980s and early 1990s, economic pressures and dissatisfaction with centralized control led to a major overhaul of the system. One of the most significant changes was the introduction of school choice in 1992, allowing parents to choose privately operated schools—known as independent schools—funded by taxpayer money.[2] In 2023, Sweden’s school minister Lotta Edholm declared a “system failure” in education, promising the biggest shake-up in 30 years due to the privately run schools funded by public money.[3] While this reform expanded educational options, it has increasingly benefited independent schools at the expense of public schools.[4] As a result, the Swedish Education Act should be amended to regulate independent schools more effectively, specifically, limit proprietors who are eligible to open independent schools to ensure that the quality of public education is not compromised.

Before exploring the reasons for amending the Swedish Education Act to more effectively regulate independent schools—specifically by limiting the eligibility of proprietors to establish them—it is important to consider the impact this system has on public schools. The Swedish school system has made it possible for resourceful parents in disadvantaged neighborhoods to choose to send their children to a school that they perceive to be better.[5] However, this has led to an exodus of students from more resourceful families, leaving behind students from lower-educated and lower-paid households in schools that may lack necessary resources.[6] Consequently, this dynamic risks creating disparities in educational quality and raises concerns about the overall sustainability and equity of the educational landscape.[7] This can lead to disparities in the quality of education provided, particularly if oversight is weaker or accountability is not enforced rigorously.[8] Therefore, it is important that the Swedish Education Act must be amended to impose stricter regulations on independent schools, particularly by limiting who is eligible to establish and operate them, to safeguard the quality and equity of the national education system.

The Swedish Education Act must be amended to impose stricter regulations on independent schools, particularly by limiting who is eligible to establish and operate them, to safeguard the quality and equity of the national education system. Independent schools are managed by a proprietor, who runs and manages the school, which can be an a foundation, company, an association, private person, a religious group, or a limited liability company.[9] When a proprietor manages an independent school it could be a potential drawback because its decisions may prioritize business interests or efficiency over educational quality, especially those with multiple school units — because a proprietor can wear different hats highlighting the potential conflict between business and educational management rather than addressing the specific needs of students.[10] This can lead to disparities in the quality of education provided, particularly if oversight is weaker or accountability is not enforced rigorously, therefore: it’s important that the Swedish Education Act must be amended to impose stricter regulations on independent schools, particularly by limiting proprietors in order to safeguard the quality and equity of the Sweden national education system.

The Swedish Education Act must be amended to impose stricter regulations on independent schools, particularly by limiting proprietors who are eligible to establish and operate them to prevent negative impacts on educational quality. Additionally, the governance structure of independent schools, often managed by boards or parent companies, can result in uneven educational outcomes.[11] Centralized management, where “ownership is actually exercised by the parent company’s board and CEO,” can detach decision-makers from the specific needs of individual schools. [12] This lack of transparency and accountability is further compounded by the fact that “there is very little research on the organization of proprietorship...and the significance it holds for the results achieved.”[13] To safeguard public education, it is essential that the Swedish Education Act amended to limit who can open independent schools and ensure that proprietorship is aligned with maintaining high educational standards.

The Swedish Education Act must be amended to impose stricter regulations on independent schools, particularly by limiting proprietors who are eligible to establish and operate them. A significant drawback of allowing proprietors to manage independent schools in Sweden, is that the profit motive can overshadow educational quality and equity.[14]Since there are no ownership restrictions and both for-profit and non-profit providers are treated equally in the approval process, this creates a situation where “a considerable majority of students in independent schools attend for-profit institutions.”[15] This indicates that the focus on profitability may lead to prioritizing financial returns over the educational needs of students.

The Swedish Education Act should be amended to impose stricter regulations on independent schools, specifically by limiting proprietors who are eligible to establish and operate them to ensure educational quality is not compromised. Moreover, the lack of restrictions on dividend payouts or profits can incentivize proprietors to allocate resources in ways that maximize their financial gains, potentially compromising the quality of education.[16] “For-profit providers...have strong incentives to expand and can seek funding on the private market in exchange for potential future returns,” highlighting how the financial motivations of for-profit schools can drive their growth.[17] This dynamic can result in a system where educational standards vary significantly, as larger for-profit chains may prioritize growth over the specific needs of individual schools or their communities.[18] Ultimately, this situation raises concerns about the long-term sustainability and equity of the educational system, as the focus on profit may detract from providing a high-quality education for all students.[19] To ensure that independent schools prioritize educational outcomes over financial interests, amending the Swedish Education Act is necessary to regulate proprietors more effectively.

In conclusion, the challenges facing Sweden's K-12 public education system highlight the urgent need for reform in the governance of independent schools. The 1992 voucher reform, while expanding educational choices, has led to a system where profit motives can overshadow the fundamental goal of providing high-quality education.[20] To safeguard the integrity of public education and ensure that independent schools contribute positively to the system, it is essential that the Swedish Education Act is amended to impose stricter regulations by limiting the eligibility of proprietors who can establish and operate independent schools.

[1] Gabriel Heller Sahlgren, Regulation and Funding Schools Lessons from Sweden, Fraser Inst. (Nov. 2016) https://www.fraserinstitute.org/sites/default/files/regulation-and-funding-of-independent-schools-lessons-from-sweden.pdf.

[2] Id.

[3] Miranda Bryant, Sweden’s schools minister declares free school  ‘system failure’, The guardian (Nov. 10, 2023) https://www.theguardian.com/world/2023/nov/10/swedens-schools-minister-declares-free-school-system-failure.

[4] Erik Lakomaa, On the pros and cons of the Swedish Voucher System, ecaef (May 2024) https://ecaef.org/swedish-voucher-system/#:~:text=In%201992%2C%20Sweden%20went%20from%20having%20a%20highly%20centralized%20school,”)%20via%20a%20voucher%20system.

[5] Anders Trumberg & Susanne Urban, School Choice and Its Long-Term Impact on Social Mobility in Sweden, 65 Scandinavian J. Educ. Research 569, 569–83 (2021).

[6] Id.

[7] Id.

[8] Id.

[9] About Independent Schools, Swedish Ass’n of Indep. Schs. (Mar. 2022) https://engelska.se/media/wa0o4ggc/25750-220207-friskolorna-en_uppslag.pdf.

[10] Id.

[11] Id.; Johan Wennström, Marketized Education: How Regulatory Failure Undermined the Swedish School System, 88 J. Educ. 671 (2019).

[12] Lakomaa, supra note 4, at 7.

[13] Lakomaa, supra note 4, at 7

[14] Olof Hallonsten & Ellika Sevelin, Why Do Associations Run Independent Schools in Sweden, and Why Does It Matter?, 27 Scand. J. Pub. Admin. 71 (2023).

[15] Sahlgren, supra note 1, at 14.

[16] Sahlgren, supra note 1, at 14.

[17] Sahlgren, supra note 1, at 14.

[18] Sahlgren, supra note 1, at 23.

[19] Sahlgren, supra note 1, at 14.

[20] Gabriel H. Sahlgren, Schooling for Money: Swedish Education Reform and the Role of the Profit Motive, inst. of econ. affs. (Dec 2010)https://www.iea.org.uk/sites/default/files/publications/files/Schooling%20for%20money%20-%20web%20version_0.pdf.