I'd like to class myself as a not-too-bad PHP programmer, but technically i am located in Europe (the UK - but seeing as most of us Brits hate mainland Europe...).
I think the problem with finding a decent programmer is that, as you mentioned, there are those in developing countries who can do the same job for $0.02 - and seeing as $0.02 isn't even going to buy me a slice, let alone a loaf, of bread, there's little basis to compete on other than quality; and far too often people think with their wallets instead of their heads.
