Dr Tooley does indeed make a good case - for example showing how even "slum dwellers" in India have funded good schools themselves, offering much better education than the government schools.
Sadly the government of India has learnt nothing from this - and seeks to further expand the government school (and government welfare) system, borrowing vast sums of money (and undermining the future of the economy) to do so.
As for the communities of the poor in the cities - their homes are being destroyed (by force) by the government, in order to make way for high rise (and expensive) flats and offices.
One of the upsetting things about getting older is that one finds that people do not learn from experience.
The same failed polices are tried again and again - and, indeed, expanded.
Politicians talk of "change" and "reform" - but they mean more of the same. For example, Barack Obama who has in the last six months committed the United States to borrow more money that it has borrowed in the last 30 years (i.e. T. Bills are junk bonds without the high interest rates offered by junk bonds), and whose idea of health "reform" is for the American government to take control of the half of medical care that is does not already have total control of.
Perhaps one day people like the Oxford Libertarians will be able to get the message of liberty to most people - for if most people reject statism the politicians will be forced back.
I should have pointed out how much I admire the late Lord Peter Bauer and Dr Kealey.