No, but when there are end-a-rounds in the rules against nepotism, it can sure look like it. That and the general laziness of doing just enough to keep your job. Beyond that, as far as government institutions go, you'll usually find some percentage of the workforce that do good work and keep things running. But this is where the construct of everyone who wants a job should have a job and job protection falls apart. You'll usually find folks who want paychecks, not necessarily jobs. When minimum standards coming from the various levels of management end up being little more than a paperwork shuffle so each manager keeps themself from looking bad in the eyes of their boss, the institution can look inept to the point of wanton mismanagement.