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Education and its relationship with livelihood, quality of life, increased earning and social mobility are well recognized for developing countries. Education is an important factor for inequality reduction and for overall development. In India many reforms in the field of primary public schools in forms of curriculum, coverage, training and infrastructure have been initiated by the government in the last two decades. Today government provides funds to schools. These schools then provide education to students. The voucher system provides funding to the student who then approaches any of the schools for education. A voucher is only a form of financial assistance. Voucher programs have been implemented in different forms in countries as diverse as Sweden, Chile, Columbia, Holland, USA, UK, New Zealand, Bangladesh, Czech Republic and Cote d'Irovie. There has been an increase in the quantitative indicators like parental satisfaction increase of test scores and learning outcomes of students, improved performance of public schools and increase in enrolment etc. The present attempts to improve quality of Public Schools Via-a Vis Private Schools are not delivering significant result as quality of public schools and for that matter any public service depends, among other factors significantly pressure and effective demand of the people. In this paper, privatization is not discussed directly except in reference to vouchers. Rather it is contended that privatization with poor quality public schools is increasing SES (Socio- Economic Segration). The paper examines the efficacy of vouchers as an instrument to reduce SES and to ensure equitable access to poor. This is the issue, which is applicable to whole country; the analysis is done from national point of view also. First discuss Chile with Argentina to see how SES can occur in any dual system. The paper examines working of selective voucher system in Colombia to see how it was devised to handle SES and to what extent it has succeeded in improving students performance. Lastly, the problem has been discussed at national level to bring out the seriousness of the issue. Gujarat is discussed specifically for contextual application for vouchers. The need to concentrate on the larger issues of removal inequality and poverty need not be reemphasized. Poor deserves better deal and equal partnership in development process. The presented model can be an important step in that direction. [ABSTRACT FROM AUTHOR]