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This chapter analyses the origins of Brazil's poor performance in education from a political economy point of view, emphasising the predominance of private interests over public purposes in the formulation and implementation of educational policies. The authors begin by examining three instances in which public resources are allocated to benefit particular constituencies: the various practices subsumed under the name of clientelismo; the provision of public subsidies to private schools coupled with public regulation of private school fees; and the maintenance of free higher education in public universities. The second section looks at political conflicts in the educational system that focus not on the definition of policy objectives, but on control of policy instruments. Three leading issues in Brazilian school politics are discussed: the distribution of resources and responsibilities between central and local authorities; the role of private schools; and the reduction of inequalities in educational attainment especially across regions. Finally, the authors discuss recent constitutional and administrative changes that offer the possibility of improvement in the educational system, such as the emergence of new organisations and administrative practices at state and municipal level.