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Competition between schools combined with test-based accountability to hold schools accountable for predetermined knowledge standards have become a common solution in educational change efforts to improve the performance of educational systems around the world. This is happening as family and community social capital declines in most parts of developed world. Increased competition and individualism are not necessarily beneficial to creating social capital in schools and their communities. This article argues that: (1) the evidence remains controversial that test-based accountability policies improve the quality and efficiency of public education;(2) the current practice of determining educational performance by using primarily standardized knowledge tests as the main means of accountability is not a necessary condition for much needed educational improvement; and (3) there is growing evidence that increased high-stakes testing is restricting students' conceptual learning, engaging in creative action and understanding innovation, all of which are essential elements of contemporary schooling in a knowledge society. Finland is used as an example to suggest that educational change should rather contribute to increasing networking and social capital in schools and in their communities through building trust and strengthening collective responsibilities within and between schools. This would create better prospects of worthwhile lifelong learning in and out of schools. Based on this analysis, the article concludes that education policies should be directed at promoting more intelligent forms of accountability to meet external accountability demands and to encourage cooperation rather than competition among students, teachers and schools.

Globalization has increased economic competition within and between countries and the world's regions. Economic competitiveness is commonly seen as a valid index for judging a country's level of economic prosperity. Many recent large-scale education reforms have been justified by the urgent need to increase labor productivity and promote economic development and growth through expanded and improved education. It is generally assumed that to increase economic competitiveness, citizens must acquire knowledge, skills and attitudes necessary for civic success and the knowledge-based economy. This article argues that what schools are expected to do in order to promote economic competitiveness often contradicts commonly accepted global education reform thinking. Experience in many countries indicates that increased standardization of teaching and learning, for example, may be counterproductive to the expectations of enhanced economic competitiveness. The conclusion is that rather than competition between education systems, schools and students, what is needed is networking, deeper co-operation and open sharing of ideas at all levels if the role of education in economic competitiveness is to be strengthened. The key features of education reform policies that are compatible with competitiveness are those that encourage flexibility in education systems, creativity in schools and risk-taking without fear on the part of individuals.

Globalization has increased mobility of people, resources, and ideas. It is also affecting how governments think about education and what schools teach to their students. Attributes related to education for a knowledge society, sustainable development, or 21st century skills are parts of current national educational policies and reforms. A powerful pretext for global educational reform thinking is current international student assessments. As a consequence, particular educational reform orthodoxy has emerged that relies on a set of basic assumptions in order to improve the quality of education and fix other educational deficiencies. This article describes the beginning of the present global educational reform movement discussing some of its key characteristics and implications in practice. Although overlooked by many policy analysts, Finland represents a striking and highly successful alternative to this global educational reform movement. The scholarly work of Andy Hargreaves is seen as essential in understanding the requirements and resources that are needed in securing good public education for all in the future.

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