While great progress has been made by the international community to promote inclusive education for all children, regardless of race, ethnicity, socio-economic status, gender or disability, many countries still continue to marginalize and exclude students in educational systems across the globe. High-stakes assessments in market-driven economies have increased exclusionary practices. Using international databases and research studies, this paper provides evidence of the poor performance of high-stakes assessment policies, particularly in the United States. The authors analyse and compare the key assumptions and consequences of a market-based system of education with those of a system that is based upon the principles of inclusive education through a school-community model and examples from Europe and Latin America. These models demonstrate that the twin goals of quality and equity can be achieved within a system that addresses educational policy and practices more broadly than market-based reforms. Conclusions call for policy-makers to respond to the discrimination and exclusion of various populations around the world by considering the impact of current educational models and the potential they have to support genuinely inclusive education for everyone.