No, we don't, but the alternatives are worse.
Universities at least apply some meritocratic standards. If we bypass universities, there will be some other gatekeeper, it will be worse: mostly an "old boys network" and corrupt, pay-to-play advancement.
Seems like the country was more competently governed before the current university system, though. If its job is to gate keep incompetence out of leadership it is failing spectacularly.