The idea of a "hyper-surveillance" state that devolves school management to the private sector and local governments, but, at the same time, evaluates, inspects, and sanctions schools in the name of "educational quality and equality," has been advocated by diverse sectors, right and center-left, conservative and liberal, pro-privatization, and pro-public education. It is a "seductive policy." This article is based on the case of Chile, which in recent decades has consolidated a "performative school market" model. The study is based on an examination of official speeches and policy documents (a total of 84 documents), from the germination of the model in 1979 through to 2011 when the "Quality Assurance Education System" law was passed. Following Foucault's studies in governmentality, the analysis not only aims to understand the policies that led to the creation of the hyper-surveillance state in education, but also seeks to examine the policy rationale that made these transformations desirable. The research analysis is also intended to contribute to a broader understanding of the spread of testing and accountability policies around the world.