I'm fairly sure the quality of institutions in this day and age has almost nothing to do with participation trophies/equal ability propaganda, as this kind of thing rapidly gets torn to shreds as soon as one enters the job market.
I suspect it has a great deal to do with decades of people blaming government for their problems and increasingly less faith in government institutions, to the point of some politicians running on the idea that government doesn't work. It strikes me as difficult to get competent people for your organizations when the term "unelected bureaucrats" is used as an epithet, the pay is below equivalent work in the private sector, and the people at the top are selected for idealogical reasons instead of anything related to effectiveness, expertise or capability.
I suspect it has a great deal to do with decades of people blaming government for their problems and increasingly less faith in government institutions, to the point of some politicians running on the idea that government doesn't work. It strikes me as difficult to get competent people for your organizations when the term "unelected bureaucrats" is used as an epithet, the pay is below equivalent work in the private sector, and the people at the top are selected for idealogical reasons instead of anything related to effectiveness, expertise or capability.