A/HRC/35/24/Add.1 D. Scrutiny of financial operations of private providers of education 85. During his visit, the Special Rapporteur was informed by the President of the Senate Education Committee that nationalizing independent private schools was out of the question on account of the huge sums of money claimed by the proprietors as compensation for the real estate costs involved in running those establishments. Proprietors and owners of independent private schools may make exaggerated claims when their “edu-business” is questioned, for instance, because of the high costs of school infrastructure and buildings, including real estate, and the need for compensation for inflated financial losses. They may resist reforms and steps taken towards scrutinizing their financial operations. 86. The Special Rapporteur considers that full scrutiny of the financial operations of private providers of education, whether they are subsidized by the State or not, is of paramount importance. The State has a legal obligation as well as a political and moral responsibility to regulate the free market in education. Corporate interests and corporate funding of higher education, which can result, for instance, in charging exorbitant fees, raise questions not only about the affordability of higher education, but also ethical questions when universities compromise their social function to engage in profit-making in the name of academic independence. 87. The Special Rapporteur recalls that, in accordance with the international norms and principles governing the right to education, the overall conditions of provision of education in private educational establishments, including the fees charged to students, are subject to control and regulation in the same way that such establishments cannot pursue a curriculum that is not in line with the national curriculum. Private providers of education can assume their social responsibility to complement the public provision of education, but under no circumstances can they reduce education to business. The Special Rapporteur is of the view that the concept of education as a right, not a commodity, a concept that has been embraced by President Bachelet, should by definition be applicable to all private educational establishments, whether or not they are subsidized. 88. As such, putting an end to for-profit education must encompass the entire education system and all providers of education. Considering that private providers may seek to maximize profits from education, strict rules and regulations are required to control revenue accruing to owners of private educational establishments from all sources, notably by way of tuition fees. Public authorities can establish policies that permit only reasonable fees to be charged by private providers, with a ban on raising those fees without prior approval. The need to regulate fees in private educational establishments is clear when one considers that there are currently unaccredited technical training centres that are charging higher average fees than their accredited counterparts. E. Regulatory framework 89. The State is the legitimate authority to implement strict financial regulatory measures covering all aspects of the education provided by all private educational establishments. A strong regulatory framework is needed in order to effectively curb the for-profit pursuit of education. Under the relevant international instruments, States’ obligations to respect and protect the right to education are relevant regardless of whether the provider of education is public or private. Chile should develop and implement a regulatory and monitoring framework for the private education sector ensuring respect for the principle of non-discrimination and promoting inclusion and respect for diversity (see CRC/C/CHL/CO/4-5, para. 68 (h)). 90. Human rights principles and public interest in education require that financial fraud and covert and corrupt practices in education are rigorously investigated with transparency and full accountability, and those found guilty of indulging in such practices brought to justice. It is important to look into public procurement policies and their applicability to private providers of education. 91. The Inclusive Education Act establishes obligations for subsidized private schools to furnish information on their operations, giving the Superintendent of Education the 15

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