This fits my experience too.

The saying "pay peanuts, get monkeys" applies everywhere. I am not sure where I heard it but I recall even great developers in India, born and bred, are on six figure US income. Just because you can pay someone $1,000 a month doesn't mean they are actually doing the same work as somone on $10,000 a month.

And if they are really a great developer I would go so far as to say that they are being played and taken advantage of.