Its a bit of a circle, if you list them, the chances of them creating debt elsewhere is reduced, making the amount owing by them to increase at a lower rate meaning the existing repayments are indeed catching up. Also that other person who now doesn't give credit is less likely to have walls close on him due to non payment, so the economy isn't so badly affected.

You are correct, it doesn't really benefit one self to do the listing, but it could help a fellow business somewhere along the line.