Carlos attends a school where the teachers often work longer hours, and where students come from a wide geographical area. the class sizes are also small. he knows that the school sets its own standards and receives private money and sponsors. carlos is attending a school.

Based on the description, Carlos is attending a: Charter schoool
Charter school is a form of privately owned school that receive some amount of government funding in order to do some social regulations.
Charter school tend to be considered as a non-profit  and does not have to follow the curriculum provided by governed owned schools

Japan's government is dictatorship.