Over the years, I have made friends on Twitter with educators and scholars in Sweden, who have generously provided me with analyses of Sweden’s free market of schooling. My friends, not surprisingly, agree that the introduction of “choice” and for-profit providers has been a disaster for schooling in Sweden. The outcome has been more socioeconomic segregation and an impoverishment of public schools. The following post was written by Linnea Lindquist, experienced educator and journalist.
THE SWEDISH SCHOOL SYSTEM
By Linnea Lindquist
I believe many in Sweden choked on their coffee when Lotta Edholm, the school minister from the Liberal Party, critically spoke about the school system in an interview with The Guardian. She stated, “It’s not just a problem that it is a number of schools, but it becomes a system failure of everything.”
I have been a part of the school debate for several years and there has been a change in how politicians talk about the school system itself. I will return to this later in the text.
Sweden has one of the most extreme school systems in the world. Whether schools are run by municipalities, the state, or as independent entities, they are funded entirely by taxpayer money. It is the combination of per-student funding, free school choice, and unlimited profit extraction that makes Sweden’s school system unique (in a bad way) in the world. However, this is not enough. We also have free establishment rights for independent schools, meaning that anyone can apply to start a school. The state School Inspection Authority grants permission, but it is the municipalities that finance the schools. This means that municipalities have no control over the number of schools in their area. As a result, municipalities are forced to maintain many empty school places, diverting funds that could have been used for teaching to finance these empty spots. The problem is not that the municipalities have empty classrooms, the problem is a few empty chairs in each classroom.
Sweden has significant performance disparities between schools. While parents in neighboring Finland feel confident that the nearest school is among the world’s best, Swedish parents lie awake at night wondering which school to choose for their children. When students fail in school, the blame is placed on parents for making the wrong school choice.
Sweden has major problems with its school system, and in this text, I will try to explain the reasons for these issues and what needs to be done to solve them. Let’s start with how the school system is structured.
Market-Driven Schools
In most of Sweden’s 290 municipalities, schools are financed with a per-student funding model. This funding is not the student’s money to shop for education; it is merely a model for distributing money between schools. Legislation states that the funding should be equal for municipal and private schools. Private schools in Sweden are free of charge as they are financed by taxes. This means that if a municipality compensates its own schools with 100,000 SEK per student, it should also compensate independent schools with the same amount per student. One might think this is reasonable since all schools provide education.
However, in Sweden, we have a supply responsibility. What is the problem with that? I’ll try to explain.
We have compulsory schooling, meaning all students in primary education (ages 6-16) must attend school. The state has given municipalities the responsibility to ensure that all students have a school placement. This is known as supply responsibility. In turn, this means that municipalities must always be prepared to accommodate students who do not wish to continue studying in independent schools or if the independent school decides to cease operations. Independent schools are businesses and can shut down whenever they want. Municipalities must also have schools in all geographical areas since all citizens of a municipality do not live in the same geographical location. All this costs money, and since we have a principle of equal treatment, the municipalities receive zero compensation for these additional costs.
When independent schools are established in a municipality, it often results in a budget deficit for the municipality as it creates more empty school places. When they have a deficit, they have to spend more money than budgeted for at the beginning of the year. Then the per-student funding increases as independent schools must receive the same funding as the municipality’s schools. This results in what’s called the “independent school penalty.” Municipalities must compensate independent schools with the same amount per student that they have in deficit for all students attending independent schools. This creates new deficits and the negative spiral begins.
It is the principle of equal treatment in the School ordinance that leads to significant problems in the school market. In Sweden, we pay independent schools for a responsibility they do not have. Yes, I know you won’t believe me, but this is the foolish system we have in Sweden.
For an independent school to make a profit, they must operate at a lower cost per student compared to the municipality’s average. How do you cut costs easily? By employing fewer qualified teachers, serving cheaper food, and providing less teaching resources. Most importantly, one must have students that mainly come from academic homes. When you have students from academic homes, you can have larger group sizes and every additional student in a group, compared to the municipality’s average, is pure profit. It costs the same to educate a group of 20 and 25 students. The income is obviously much higher if you have 25 students per teacher as we have per-student funding. The cost of schools is 90 percent fixed since the largest expenses are rent and salaries. However, revenues are 100 percent variable because each student generates a per-student funding for the principal’s annual budget.
The per-student funding that municipalities pay to independent schools is something that a municipality can not control. It is up to the independent school what they use the money for and if it is a private company there is no demand for publicity due to competition legislation. The Swedish school system is entirely unregulated, meaning there are no requirements on the proportion of teachers, size of groups, or whether a school must have a cafeteria, library, or gymnasium.
I wrote initially that we have free establishment rights in Sweden. This means that schools are started even when there is no need for more schools. The state’s School Inspection Authority overrides the municipalities all the time. Municipalities express their views and describe to the School Inspection Authority that granting permission leads to cuts in the municipal education. The municipalities state that there are no needs for more schools and that school segregation will increase. Unfortunately, the state’s extended arm does not listen to those who are close to the schools runned by municipalities. Those who advocate the current school system argue that it is important for freedom of choice that we have free establishment rights. Anyone who knows anything about schools has by now understood that it’s not about freedom of choice. It has never been about freedom of choice.
The free establishment right, and what we will now come to – the free school choice, has never been about freedom of choice. The so-called freedom of choice reforms, implemented in the early 90s, were meant to legitimize school segregation. It’s not about choosing to – it’s about choosing not to. System-savvy and quick-footed parents were given the opportunity to avoid poor schools. Today, school choice is used to avoid schools where students have less-educated parents. Regardless of where in the school system the students are, a significantly higher proportion of students from academic homes attend independent schools. There are no independent schools that have a student base that matches that of the municipalities. I have not found any examples of this, and I have read 1,400 municipal school budgets and reviewed the statistics of hundreds of schools in cities with vulnerable areas.
Opinion
I initially wrote that public opinion has turned when it comes to market-driven schools. When I entered the school debate over five years ago, I was called a free school hater, an opponent of freedom of choice, and a communist every time I wrote about the problems with the school system. Now, politicians on the right side of the political spectrum have started using the words and concepts that I, and other critics of the school system, use when we describe the system’s flaws. It’s not the politicians who have changed the opinion; they have been forced to change their view of the school system due to public opinion. In Sweden, it is now political suicide to defend the current system. However, I don’t believe the politicians have changed their opinions, but they are forced to make changes in the system if they want to be re-elected in the next parliamentary elections in 2026.
Marcus Larsson and Åsa Plesner, who run the think tank Balans, have mapped the prevalence of lobbying in the welfare sector, especially in education. They have shown many examples of politicians being lobbyists in the independent school sector while holding political positions of trust. Sweden stands out when it comes to allowing politicians to sit on double or triple chairs. Several of those who created the market-driven school in the early 90s now own school corporations with high profitability.
If one wonders why the market-driven school remains, despite the majority of the Swedish population wanting change, one should look at the politician’s school-business. When politicians own school corporations and sit on boards for school companies, it is not hard to understand that they want to maintain the system. Lotta Edholm, the schoolminister, sat on the board of a school corporation until the day she took office as a minister. There are many examples of politicians having fingers in several pies.
The freeschool system is a threat to national security
The Swedish Defence Research Agency, FOI has released a report titled “Foreign Investments and Ownership in Swedish Primary and Secondary Schools – A Study of Risks”. It’s authored by Maria Refors Legge, Alma Dahl, Michal Budryk, Helene Lackenbauer, and Jens Lusua. There are numerous ways an antagonist could influence the democratic education and rights of Swedish students, one being the acquisition of existing school authorities. This allows for rapid establishment across the country. If one aims to influence Sweden, reaching a large number of students is easier, but it also increases the risk of detection. The report offers several examples of how foreign owners or Swedish school owners who do not wish to operate schools based on democratic principles can function. They describe how schools can be used to counteract the integration of students and parents in vulnerable areas, maintaining and reproducing norms and values that are anti-democratic.
The report explains how the free choice of teaching materials can influence student values and support school ownership. The risk of being detected is relatively low, and if detected, one can continue operating a school, even if deemed unsuitable, by having all paperwork in order.
The report outlines various risks and our vulnerability in Sweden to foreign influence through our school system. There are risks in the free school system that could be exploited by a foreign owner with antagonistic intentions, such as influence operations undermining democratic values. The authors emphasize that the security risk is not due to foreign ownership of schools but rather how the Swedish free school system is structured.
Since it’s impossible to trace how school funding is used, authorities can’t intervene against an antagonist. School owners can use the school funding as they wish, and thus neither municipalities nor the state can control whether it’s used for anti-democratic purposes. The authors argue that the School Inspectorate and other supervisory authorities lull us into a false sense of security, having few tools to detect antagonists in the school system. This makes Sweden particularly vulnerable.
I shouldn’t say – I told you so, but I’m saying it anyway.
What’s stated in the report should not be news. We’ve known for many years that the school system is open to corruption and to foreign and anti-democratic forces. It’s astonishing that the security risk doesn’t come from foreign ownership of independent schools but from how we’ve structured the Swedish freeschool system. For 30 years, we’ve had an education system structure that’s a potential threat to national security. Swedish politicians should let this sink in.
Every time an antagonist is exposed, politicians scream for a more powerful School Inspectorate. It doesn’t matter how much the School Inspectorate, the Security Police, and other authorities check the independent schools. When we have a free-school system closed to scrutiny yet wide open to corruption, anti-democratic forces will use it for their own gain.
Believing that free school choice and freedom of choice would protect against corruption and anti-democratic school owners is naively lawful. Parents choose schools that match the values and norms they want to pass on to their children. Parents with children in schools run by anti-democrats think it’s good, otherwise, they wouldn’t have placed their children there. Rather, parents uphold and reproduce anti-democratic values through free school choice.
We have foreign owners of schools in Sweden that we probably don’t know about. Long chains of ownership, subsidiaries, and funds, combined with a lack of transparency, make us extremely vulnerable.
The worst thing in all this is that we have politicians who on one hand say that they are concerned about the terror threat, and on the other hand, they defend a free-school system which itself is a threat to national security.
In conclusion
When the Education Minister expresses herself in The Guardian with the words – “It’s not just a problem that it is a number of schools, but it becomes a system failure of everything,” it is proof that she has been influenced by public opinion.
I don’t have high hopes for any system changing reforms. The government wants to limit profits, but anyone who knows anything about business economics knows there are many ways to circumvent profit restrictions.
The government wants independent schools to be more tightly controlled. Anyone who knows anything about the school system knows that you can’t control systemic errors. It’s the incentives that must be removed. This means that if we want independent schools to compete with quality, we must stop paying them for a responsibility they don’t have. Municipalities must be allowed to decide how many schools there should be in a municipality.
If we want freedom of choice in the school system, we must have admission rules that are common to all schools, regardless of who runs them. Therefore, the queues for charter schools must be abolished.
If the government wants order in the school system, they must open up those schools for scrutiny under the same principles as municipal schools. They must regulate lobbying and forbid politicians from sitting on multiple chairs at the same time.
I have worked as a principal in Sweden’s toughest areas for the past 12 years. Before that, I was a teacher in a particularly vulnerable area. I see segregation with my own eyes daily.
The consequences of the school market for students is clear.
I have a dream.
A dream that politicians will start making decisions based on what’s best for the children. I wish they would do more of what we expect of them, not the least they can get away with in the next election.
Björn Dahlman, a well-known teacher, author and school debater in Sweden, wrote a wise thing on Twitter, currently X ,a while ago. – “In Sweden, municipalities are punished for educating the students that privately owned schools can not make money on.”
I couldn’t have said it better myself.
To address the problems in the Swedish school system, we must:
– Rework the school funding system so that municipal schools are compensated for their supply responsibility.
– Abolish the free establishment right.
– Make school choices collectively. No queues.
– We should not allow foreign owners to Swedish schools.
….to begin with.
Why should we make these reforms? The answer is: for the sake of the students. It’s also for the sake of national security, future democracy and freedom of speech. If we want an education with high quality for all children and competence provision in the future, we need a school system without principles of market.
To politicians in other countries, I have one thing to say to you: Don’t copy our school system. It’s a true disaster and a failure for the nation. Don’t go that way, please!
Thank you for reading this far.
Linnea Lindquist
If you want to read more from me, please visit my blog at www.rektorlinnea.com
Linnea Lindquist: @rektor_linnea