This one is the hardest for me to digest. But I’ve seen it first hand a couple of times (here in Sweden), so impossible for me to dismiss.
Personally I think it’s an incentives problem, but one consisting of a lack of negative consequences. Once incompetence (and sometimes what I’d even call malevolence) reaches a certain level feedback mechanisms are overwhelmed: those who do care can no-longer impose negative consequences on those who don’t. Their boss doesn’t care either, their careers progress just the same, they make the same money, their jobs are just as secure. It snowballs from there.
At least here in Sweden it’s taboo to say it, but I think we just need to get back to individual negative consequences for not caring.