Although racism is rampant in many developing nations (and elsewhere) such a policy is not at all racist. It is driven by politics and economics. Expatriates of any persuasion cost more than locals because they usually earn more money and have accommodation provided etc. The better contracts offer assistance with school fees, and the really enlightened countries offer tax incentives. None of these goodies are available to locals.
When employers want to engage expats, they have to put up a case to immigration to show no suitably qualified or experienced local is available. In some countries there is a significant bond involved to guarantee that the expat will be sent home at the end of contract, or in the event of redundancy.
An expat is hired for his/her experience, not for his/her personal career development. If money must be spent on training to higher qualification, that money is - as it should be - allocated to locals.
Some places, like Singapore, did have policies of upgrading expat pilots from F/O to Captain - but only if they accepted local terms. A few very wealthy places - like the UAE - do provide a career path. Hong Kong is another possibility. But that won't last forever, so get in quick if you want an upgrade.
Expats are generally tolerated only for what they can bring to the company. It is all about what you can do for the country, not what the country can do for you.
A pity we are not as hard-nosed here.