How are they responsibly incentivizing good behavior? What do their reds want from the government?

Their reds would like more experiments that don't cripple them or kill them. They are incentivizing good behavior because their reds can safely report crimes and problems and so on. 

They can have some air artifacts for, like, at least managing to not be terrible in the same way as everyone else.

Awww.

Like, points for nonconformity, but. Wow.

What?

Okay look she is an alien and she's not impressed with "they're reds" as an explanation for segregation, let alone beating them up (common) or blinding some to see what they do (this one place, points for originality).

But it helped them improve their understanding of blindness, which helped them treat other blind people more effectively.

And she's glad they're not doing it just for kicks, and they can have some air artifacts.

Fine.

They should let her know if they ever switch to entirely harmless experiments!

Sure, they can do that!

Great, she's sure her auditors will be happy to swing by again.

Ugh.

Anybody else?

One more place! They don't have red districts, they have their reds living way underground with a tunnel network that lets them pop up where they're needed.

...well, that makes it easy for Shadows to get there.

Yep!

Shadows bring auditors!

These reds don't deal with much random violence but they really miss seasons.

Oh right, those. Would this country like to hire some rainforest Shines who've learned the seasons trick to train some more Shines, and then pay or trade for that with those Shines, so their reds can have seasons?

How much would that cost?

Depends on the Shines, but she can come up with a ballpark.

Ugh. Fine.

Yay! She will help them source the Shines. Air artifacts, introductions to Shadows, extra seats in next class of mages.