Both standards-based and market-style reforms come from outside the system but they follow different theories and many people believe they are incompatible. After all, standards-based reform-typified by statewide academic standards, tests and rewards/sanctions a la President Bush's No Child Left Behind legislation-is top-down, driven by elites that tell schools what results to achieve and reward and punish them. Market-style reform-vouchers, charters, privately operated public schools, home-schooling, "virtual" schooling, etc.-is populist and bottom-up, relying on the preferences of clients to signal to schools what must be done and on the individual actions of schools and educators to satisfy those clients.
In today's education policy tussles, each has many fans and partisans, but their advocates tend to be leery of one another. Advocates of the marketplace don't think a dirigiste, state-run accountability system can ever work well, while cheerleaders for "systemic" reform doubt that markets will be good for schools, children, or the common weal.
Can they work together? Can a hybrid system succeed? We have promising evidence from charter schools, which must contend with both forms of accountability at the same time and which generally find it possible to balance them. We also find an interesting example in Florida, which has devised a standards-based accountability system that uses exposure to the marketplace as the ultimate "consequence" that can befall a failing school. Enacted in 1999, Florida's "A+" plan assigns a letter grade to every public school based primarily on its school's performance on statewide tests. If a school gets an "F" for two years, its students become eligible for vouchers, i.e. can take their state dollars to the schools of their choice, including private and parochial schools. (George W. Bush proposed something similar for failing Title I schools but Congress demurred.)
At least one analyst who has examined the Florida program judges that it was precisely the threat of vouchers that has caused the state's failing public schools to tug hard on their own bootstraps. In other words, exposure to the marketplace-even a whiff of the marketplace-is an action-forcing consequence that can play a constructive role within a regimen of standards-based reform.
To my eye, though, the greatest source of interdependence between standards-based and market-style accountability is that each offers a promising solution to a big problem besetting the other.
We have ample evidence that standards-based systems are better at identifying failing schools than at fixing them. In most jurisdictions, the list of failing schools doesn't change much from one year to the next, despite many efforts to improve them. Unfortunately, bad schools are extremely hard to transform into good ones, particularly when the main agents of their transformation are lumbering government bureaucracies working within a political environment where myriad interest groups have great power to block changes that they dislike.
The upshot is that children enrolled in failing schools are apt to linger for years in classrooms where they learn very little. What's happened is that a pure standards-based accountability system has succeeded in revealing shortcomings that it is incapable of fixing.
What to do? Bring market forces to bear. Move the children to more effective schools, or turn them loose to move themselves. This is all but certain to benefit the youngsters who do move. And, as we have seen in Florida, Albany, Milwaukee, and elsewhere, it may also trigger needed changes in the schools they are leaving, which betters the lot of those youngsters who don't exit. No, we don't have solid, large-scale data. But we have suggestive research by Caroline Hoxby, indicating that school systems produce stronger results when they face competition and we have lots of case studies and small-scale research on charter schools that generally point in the same direction.
The converse is also true. Market-style reform benefits from standards and tests. That's because the education market, in and of itself, is often flawed. Private schools, for example, are often coy about their actual academic results because they prefer to rely on their reputations to market themselves to customers. Those reputations may be justified-or they may not. Without a transparent marketplace based on uniform standards and replete with comparable and readily accessible achievement data, one must trust every school to tell the truth. Thus we could have a situation where schools are formally answerable to the marketplace yet their consumers are unable to make informed choices among them. That leads in time to market failure. How can people know what school to choose-and resist false claims and unwarranted reputations-if they don't have the kinds of comparative performance data that are most apt to emerge from a system of uniform standards and tests? How will educators know which schools are most worth teaching in? How will prospective school founders know which education niches cry out to be filled with high-quality alternatives?
The solution seems obvious: create a regimen of uniform academic standards for core subjects, uniform (or comparable) assessments, and a transparent, publicly accessible, reporting system, whereby every school and other provider of instruction can be carefully scrutinized by quality-minded shoppers in the education marketplace.
The marketplace will work better if standards, tests and reporting systems are in place. And systemic reform will work better if there are bona fide alternatives for kids otherwise stuck in schools that have been revealed to be failing. So let's do both. If we're serious about school improvement and accountability, let's go for the combination of standards-based reform and market-style reform. Not only can they coexist. They need each other.