Education and assessment in Swedish schools have been affected by several reforms during the last two decades. The educational system has moved from centralization to decentralization and a goal-oriented approach has been introduced on all educational levels. This paper provides an historical overview of the Swedish educational system, educational and assessment policies and principles, to explain why and how the reforms have been carried out. This is followed by a discussion on the effects and consequences of recent reforms, based on findings in recent education and assessment research. (Contains 2 figures.)