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Where I live schools are commonly for profit, so shareholders and bosses exert pressure to get higher grades.

It works, without the students learning more. Our universities are complaining that students arrive that can hardly read even though their grades say they are able to.

And yeah, we have standardised tests administered centrally so we can actually to some degree measure 'grade inflation' too, and know very well that employment/pay based on grading undermines whatever slim value grading would have otherwise.

Edit: Oh, and parents also exert such pressure.