I have been in India quite often the past few months, and the graduate team members of my company's partner in India are no more or less capable than the average Singaporean or Australian graduate. And they only earn US$500 a month. That's pretty scary isn't it. They write well, present well, have excellent research and communications skills.....
Generally people in poorer countries have more drive and hunger to break out of the poverty trap. When Singapore was poor 40 years ago, my parents' generation had that huge drive to get educated and work hard to break out of the poverty cycle. Most of my parents' friends born from 1945 to 1960 had terribly impoverished childhoods, but nearly all of them today lead a very Western-level middle class lifestyle.
Then you have the people born in the 1970s and 80s who complain about foreigners stealing their jobs and why do they have to work so hard etc. Hey in SIN you have 6 days of child care leave for each kid under 12 (for women workers) and 6 days for fathers (flat) on top of 20 days of leave.
Not that I would personally complain about it if I had kids, but as my father said, when I was growing up and I was ill, he just took it out of his annual leave. These days parents get "extra" days of leave to tend to their children.
On a personal level it is great of course. But there are always those Indians who are as capable, earning $500 a month. So what would an MNC do?
Unfortunately, rapid economic development tends to give a society a huge sense of entitlement. (And I am guilty of it too).