…poor communities have Internet access, but no water.
That’s because internet service is provided by the free market, water by the state monopoly [supposedly]. The government is not reforming, but at the grass-roots level people are finding free market solutions for at least their education needs.
…By chance, during my visits I learned that the rejection of state services has extended to education as well. One day, a woman in Villa El Salvador confirmed to me that the large building in the distance was a public school, and volunteered that she did not send her son there. Instead, he goes to a private school that charges a fee. “It hurts, but it’s well worth it,” she explained.
Somewhat surprised, I then asked if many other parents there send their children to private schools. She estimated that at least half do so. Standing on the dusty hillside overlooking the town, with the putrid smell of human waste wafting through the air, the mother pointed to building after building where private, informal-sector schools educate the poor.
As it turns out, Peru’s shanty towns are full of such private, for-profit schools. Yet to my knowledge, the phenomenon has not been carefully studied. The anecdotal evidence is, however, consistent with the pathbreaking work of University of Newcastle Professor James Tooley, who documented how private schools in the African and Indian slums he studied have arisen to educate the majority of the children there. Mr. Tooley found that students in private schools performed notably better than those in public schools, and private schools rated better on most indicators, including teacher attendance.
The same seems to be the case in Peru. The one grade school I visited, San Vicente de Paúl, offered classes to 30 children at a cost of about $12 per month. Its several classrooms were clean and orderly, and looked well supplied. The school even had 10 computers connected to the Internet and a small play area. Director Ariela Roque’s main complaint, however, was that her school lacked a property title, thus inhibiting its expansion.
So it is that people in Lima’s squatter settlements rely on their wits to overcome any number of obstacles thrown up by government. Their thinking is still, as anthropologist William Mangin, one of the first to document the vast informal economies of Lima’s shanty towns, described it some 40 years ago: “Similar to the beliefs of the operator of a small business in 19th century England or the United States . . . Work hard, save your money, trust only family members . . . outwit the state, vote conservatively if possible . . . educate your children for their future and as old-age insurance for yourself.”

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