Also a lot of companies still need face to face. I am a freelancer myself and I don't feel threatened by outsourcing.
"Normal" Web-Programming isn't something you need to study CS for...
Try to learn how to write good specs and pay those people yourself for stuff you don't wanna do.
Don't let yourself become commoditized!
Not to mention, integrity is just one of the many problems. So, I don't see why you should be worrying.
These days, first world is synonymous with 'developed', third with 'developing' and second doesn't really have a meaning.
By the definition posted bellow they are all 1st world countries. In what I consider a 3rd world country most citizens don't have access to clean water, "proper" housing, health-care, etc... and $12 is closer to a weekly salary. And I'm pretty sure the lowest standard of living is much worse (and affects higher percentage in population) in India or all of the South America than it is in Ukraine.