Describes decentralization and privatization policies in El Salvador's education reform plan and assesses their potential success and limitations. The EDUCO program, in which nonprofit parents' associations in poor rural communities administer community schools, has expanded rural access to education. However, EDUCO also has potential to exacerbate existing inequities in rural areas, and its productive efficiency and effect on school quality have not been fully examined. (Contains 44 references.) (SV)