The chapter contains a description of the Swedish school context over the last three decades, especially regarding compulsory education, and descriptions of research studies undertaken by Malmqvist. From the 90s to today, the Swedish school system has undergone many national reforms such as decentralisation, the right to choose school, and the establishment of independent schools (free schools) in a developed quasi-market for education. The free school idea, with schools financed by national taxes, is internationally unique and popular among venture capital companies as they can transfer profits abroad to tax havens. Segregation and inequity have increased while academic achievement among students has decreased to an extent that the first national school committee since 1946 was recently commissioned. At present in the area of special needs education, student misbehaviour and social order in schools are heavily debated. The large proportion of students who receive diagnoses, ADHD for instance, reveals the popularity of medical explanations and medical treatment. The current establishment of special education classes and medication of individuals interpreted biological deficits exacerbate school segregation and seem to be inadequate solutions to school system problems. Party political decisions that lack support from pedagogical empirical research findings, push this development.