The problem is this: how do you entrust that the right people are getting into any institution (college, jobs, etc). There are two broad approaches: standardized testing vs. application/interviewing. The Western mindset predominantly favours approach #2 in most contexts, with standardized testing being a factor only in college admissions (in my knowledge). Interviews and essays (to continue the college admissions theme) are good ways to get an insight into the mind of the prospective student, but the crux is that they are interpreted subjectively and not objectively. This keeps a window for bias to creep in. Harvard University had instituted standardized entrance exam; they later scrapped it because of those who passed the exam, a large portion were Jews[0]. Standardized testing is an approach to selection that avoids this kind of direct bias, which is why it was selected as a way to ensure that all communities receive the same opportunities to educate their children (not that this worked out in practice).
[0] https://projects.iq.harvard.edu/expose/book/cloak-meritocrac...