This was not an issue, as all institutions used to had their own entry exams. Then they got together and convinced government to create standardized test that w

This was not an issue, as all institutions used to had their own entry exams. Then they got together and convinced government to create standardized test that would allow to create standard that they can trust and judge entrants by. When you do grade inflation the institutions will loose trust in the grade quickly and revert back to internal testing.