ABSTRACT
This chapter introduces the basic idea behind education markets, tracing it back to classical economists in the eighteenth century. It provides the main elements of the Chilean voucher system and a general appraisal of the current situation. The chapter examines the assumptions underlying education markets, in an attempt to explain why competition fails to be a strong driver of education quality improvement. It examines the assumptions underlying education markets, in an attempt to explain why competition fails to be a strong driver of education quality improvement. Throughout Latin American history, education has moved between the private and the public sphere. In colonial times, education was mainly perceived as a privilege oriented toward the local elites. The education system has serious weaknesses, many of which seem to be related to the current institutional framework.
