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The purpose of the paper is to discuss the major findings of a large scale study of the education of students with intellectual disability in Icelandic schools. This is done in the context of an increasing divide between a policy of social inclusion on one hand and diagnostic practices on the other affecting the schooling of students with special needs. The analysis is done within a theoretical framework of social constructionism, poststructuralism and notions of social capital to explain the structure, roles and routines of a school system as well as the inclusive and exclusionary processes affecting the students labeled with intellectual disabilities in this system.A research team at the Iceland University of Education conducted, in collaboration with the Association of Intellectual Disability, a comprehensive study of Icelandic schools at all levels attended by students labelled with intellectual disabilities. The study consisted of eight case studies, two of each school type, pre-school, primary mainstream school, primary special school and upper-secondary school, followed by eight questionnaire studies for staff and parents of these students. The quantitative stage of the data collection and analysis was based on the findings of the qualitative phase, the final analysis being a holistic interpretation of the large data base.Through the analysis a complex picture is presented of three very different levels of an educational system that attempts to "manage" a group of students accepted into the mainstream, where the staff is unsure of its values, skills or resources necessary to implement the policy of inclusive education as intended. In addition teacher disaffection with their terms of employment affects school work. This is reflected in expectations to students, administrative arrangements, classroom practices, and the social relationships between disabled and non-disabled learners, resulting in "exclusionary inclusion" based on a binary construction of the student body. A discrepancy between views of parents and staff indicate lack of communication between these parties while schools rely on expert support based on a medical model of special needs education. The resultant lack of equality of opportunity and outcome for students with intellectual disability belies the fundamental belief in equity ingrained in the culture.Barton, L. (1999). "Struggle, support and the politics of possibility." Scandinavian Journal of Disability Research 1(1): 13-22. Berger, P. L. and T. Luckman (1966). The social construction of reality: A treatise in the sociology of knowledge. London, Penguin. Bjarnason, D. (2004). Disability and young adulthood: New voices from Iceland. NewYork: NOVA Science Publishers.Bjarnason, D. (2006). From the toolbox of theory: Which theoretical tools are useful for understanding inclusive practice in Icelandic schools? (first presented as a paper at The 8th International Conference on Education, Athens Institute for Education and Research in Athens May 25th-28th 2006). In Research on Education. Edt. M.S. Giannakaki, G.T. Papanikos, Y. Pozios and J. K. Richards.2006. ATINER, Athens: 557-569. Clark, C., Dyson, A., Millward, A. J. & Skidmore, D. (2001). The cane of down land. In: J. Wearmouth. Special educational provision in the context of inclusion: Policy and practice in schools. London: David Fulton in association with Open University. Ferguson, D. L. and P. M. Ferguson (1995). The interpretivist view of special education and disability: The value of telling stories. Disability and democracy: Reconstructing special education for postmodernity. T. M. Skrtic. New York, Teachers College Press: 104-122. Marinósson, G. L. (2002). The response to pupil diversity by a compulsory mainstream school in Iceland. London: Institute of Education University of London.The paper is intended for a journal accepting material in English, preferably in Europe such as Nordisk Pedagogik (NERA), Scandinavial Journal of Educational Research, Scandinavian Journal of Disability Research, Disability and Society (UK), European Journal of Special Needs Education, European Journal of Educational Research (EERA), or the International Journal of Inclusive Education.
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