3rd world countries are not my competition. They can't understand my 1st european language. They can't be that good at English due to some reasons. Quality of their services often lacks (India is the most obvious). All my employers knew about this and they were never hired. It's not that hard to find someone who pays well, but it's easy to be lazy here. There's nobody watching (except AI and algos).
You hire someone for $400 and in 2 or 3 months they're fired. They are most likely to be hired for temporary, ad hoc tasks while I can be a dev, writer and more.
Maybe get uneducated and poor people out of your calculations.
In my country people make $1.2k on average, but people say $2k is f*king low. I guess $4k is decent and $10k is awesome. Your country is something you can relate to. Other measurements don't make much sense.