I agree but by paying such low rates / salaries they don't get all the developers they need to do all the projects they would like to do (source: my experience in Italy, where there are more companies looking for developers than developers with spare time for them) and still those companies manage to keep going no matter if projects are delayed or cancelled. If they couldn't either they would close or find more money to spend. Of course that's great for those countries that can move faster, their advantage increases.