Milton Friedman’s film series “Free to Choose” Episode on Education part 3. It was Friedman’s voucher plan that was put into practice in Sweden in 1993.
I am sitting in the St. Louis airport waiting to get on my plane to Orlando on a business trip. Can you imagine, I booked a trip with Southwest Airlines because they have always done such a great job and they sent me from Little Rock to Florida by way of St. Louis.
DL: What has Sweden’s experience been with the universal vouchers program?
TI: People really choose! Before the reform, less than 1 percent of all pupils in compulsory education (and around the same amount for students in upper secondary schools) were enrolled in private schools. Today, 10 percent of the pupils in compulsory education and 20 percent of students in upper secondary education choose independent schools. In certain regions of the country, almost half of all pupils and students are enrolled in independent schools.
The independent schools have gone from being an odd phenomenon in certain cities to an obvious and natural part of the Swedish education system. From a business point of view, the independent schools are developing into what can be considered as a real industry, and they are promoting real innovation.
The small independent schools have often challenged the public schools and forced them to improve. But the large chain companies, which have an estimated one-fourth to one-fifth of all independent school students, have proven to be an important force for innovative progress, regarding both educational methods and, important enough, ways to measure, compare, maintain, and improve results.
This also explains why independent schools, on an average, prove to have a smaller per pupil cost than public schools. Since 2004, the inflation-adjusted cost increase per pupil has been smaller for independent schools than that for the whole Swedish education system. And independent schools are not allowed to choose their students. Detailed analysis of cost items shows that independent schools spend a higher share of their revenues on education and teaching materials and are more efficient in managing other costs.