This paper presents the most notorious decentralization and privatization policies of education delivery included in the 1995-2005 education reform plan and briefly explains some of the factors justifying their existence, potential success, and possible limitations. It also examines the capacity of a privatization strategy, contracting not-for-profit parents' associations to administer schools financed by the state, to improve education in rural areas (The EDUCO program). The author concludes that decentralization and privatization policies have produced multiple results. In the search for a better education system, decentralization and privatization policies have not only given the Salvadoran government new ways to exert control over the education system but also added new problems and challenges. In the case of the EDUCO program, for instance, although it has successfully contributed to expanding education supply and promoting social cohesion, its impact on equity and the productive efficiency of schooling may not be what is expected. Therefore, decentralization and privatization strategies, like any other policies, have had their pros and cons. There may never be a perfect policy to solve satisfactorily all weaknesses within an education system, but education advocates and policymakers should always be committed to review and improve existing practices. (Contains 37 references.) (Author/RT)