Analysis of Private Sector Participation in the Education System

Education is the pivot of development and evolution in society and an important tool to achieve social and economic progress of countries. The ever-increasing growth of population and increased demand for education and improving the quality and efficiency on one hand and severe restrictions of public funds and declining trend of education share of national income on the other hand leads to an imbalance between facilities’ capacity of education against numerous and diverse expectations of society and according to economy’s theories based on free market and human capital, the necessity of transferring services to the private sector would be resulted. The present article with the goal of identifying the causes, challenges, methodologies and feedbacks resulted from privatization of education in different societies deals with investigating the researches conducted in this field by case study method and a critical approach. The results show that the privatization of education in addition to reducing the pressure on government budget and more efficiency in using funds and facilities will enhance the quality of education. However, the existing different needs in developed and developing countries mean that incentives to participate in the privatization of education are different and accepted privatization form is also specific to any country and economic and demographic conditions.