Meritocracy is a system LKY based his beliefs upon and in fact,
he is a reflection of his own system. His merits squashed all
possible opposition, advancing him to a role of a father, the
lordship, and gives him invulnerability. 
What are the pros and cons of meritocracy then?
Pros
- Advancement to the next level of benefits is by merits not by
birth, wealth or class. Therefore, anyone who proves his abilities
will advance to the next level. Given more educational benefits
etc, more important roles to perform etc.
- This system will force all to be regimental, confined to strong
sense of competition for places, to fight for limited space and
thus, improve general awareness for improvements. In turn, this
will actually award important roles to capable people, avoiding the
possibilities of having slackers at the top.
Cons
- Slow developers and those failing to deliver will be contained in
a constant ratrace, living only on moderate conditions.