Since the late 1970s, the relationship between the state, the public sector, and the economy has undergone a profound transformation globally toward privatization, commercialization, and market organization. Pronounced marketization of education has occurred even in the Nordic countries, traditionally characterized as having social democratic/universalistic and egalitarian welfare systems, but with considerable national variations. Sweden has caught international attention by introducing unusually far-reaching, state-supported privatization of educational provision and strong incentives for school choice and competition. Central issues addressed include the factors associated with the exceptionally swift and far-reaching market reforms in Sweden, as well as the persistence of the resulting system and its consequences according to current research.
A hasty reform decision, paucity of envisioned alternatives, and the appeal of school choice for an expanding middle-class contributed to the neoliberal turn in Swedish education politics. Generous rules of establishment and possibilities of profit-making attracted big businesses, particularly after the decision in the mid-1990s to fully tax- fund independent “free” schools. Within a 10-year period, substantial proportions of the schools were owned and run by large, profit-making companies and chains. Research has shown that the school choice and privatization reforms, besides providing parents and young people in the urban areas with a vast smorgasbord of schools, have fueled growing educational inequity and segregation since the 1990s. Despite increasing criticism of the design of school choice and profit-making in education from many sides, recently even from conservative–liberal media and politicians, the Swedish “market school system” persists and flourishes.