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School Voucher System in Hong Kong

School Voucher System in Hong Kong

Text adapted from Wikipedia.com

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voucher system for 3 to 6 years olds attending non-profit kindergartens will be implemented in Hong Kong starting in 2007. Each child will get HK$13,000 year. $13,000 subsidy will be separated into two parts. $10,000 is used to subsidize school fee and remaining $3000 is used for kindergarten teachers to pursue further education and obtain certificate in Education. Also, there are some restrictions on voucher system. Parents can only choose non-profit kindergartens with a yearly fee less than $24,000. It is hoped by government that by academic year 2011-2012, all kindergarten teachers can obtain education certificate and government will adjust subsidy amount to $16,000 for each student and all of money will go towards school fee subsidy.
Milton Friedman criticised the system, saying "I do not believe that this proposal is properly structured". He said that whole point of voucher system is to provide competitive market place, therefore, it shouldn't be limited to non-profit kindergartens.