As intended. There is no better way to influence someone's behavior than when they have the feeling of constantly being watched. It's about control.

Credit reporting exists nearly everywhere. Regulations vary by region, but the general collecting and reporting of credit information is legal most places.

Many of the places where people think they don't have a "credit score" are just places where credit worthiness is quantified differently, or local regulations don't have the same transparency requirements that exist in the US.