Yep, I am somewhere else in the world but benefited (although somewhat indirectly) from a similar kind of process and it is ludicrously unfair, arbitrary, and there is almost no oversight of how decisions are actually being made.

The only effective system is one that is fair to all. You can't make up for socioeconomic differences this way. College isn't a magic pill if you are disadvantaged. And I would be genuinely surprised if it actually helped the people it is aimed to help because unfair systems are always co-opted by the people who have advantages.

Also, I went to school in the West with many students from Asia. They worked harder. That is it. It wasn't a fair sample, the school attracted kids who wanted to work and attend university in my country. But they out worked everyone else bar one or two people. I am not sure exactly what the allegation is here: that working harder is cheating?