The past decade has witnessed a notable shift in the international education policy environment, characterized by a rapid growth in private educational provision. In the context of a divisive debate on the role of the non-state sector in primary and secondary education, this paper grapples with the theoretical underpinnings of both advocacy and critique of educational privatization, paying particular attention to a rise in low-fee private schools and public-private partnerships. It is argued that three of the most commonly adopted conceptual frameworks--the neoclassical, social primary goods and rights-based approaches--each have notable shortcomings when applied to an analysis of privatization. In light of this, the overarching aim of this paper is to offer the human capability approach and to argue that it is the strongest and most appropriate framework for understanding and analyzing the complex and multi-faceted issue of private sector engagement in education.