You get what you pay for.
That's not to say there aren't educated programmers that come from developing countries. Every once in a while a hard working family will be able to afford an education, and once they have that education, they usually fly stateside to make more money. They know that with their education they can be making way more money than 4400 USD a year. So they go and tack an extra digit to that paycheck, keep half and the other half is more than enough to either fly the family to the States or support them in India.
Here in Uruguay, South America (a popular but small outsourcing country) we have an even higher % of IT graduates per population than the US, (higher education is "free", as in, you don't have to indebt to hell - it's still not easy for a family to support an university student, but it's way easier than starting years into debt), so your "every once in a while" claim does not apply in this case. I don't know about India but I suspect the # of programmers is more than enough to hire some competent ones at far less than the US equivalent.
As someone with a degree, and making U$S 15000 (after taxes) a year, I know that I could be making WAY more money in a developed country (I know I would be taken at U$ 4000 / month by my mother's employers in Canada for instance), but you saying that everybody with a degree "usually" flies Stateside is a broad exaggeration... there aren't enough visas/green cards for even one tenth of graduates in my country. I've discarded the US as a place to emigrate to (though I'd like to).
Basically what it boils down to, they're going to get some guy who can talk the talk but not walk the walk. He'll agree to $4400 a year for as long as he can hold the job since he was only make $1000 a year back at his old job. Because anyone who knows what they're doing knows they are worth more.
You wouldn't find anyone trained here willing to work for U$S 4400 a year... but you could for something like U$S 8000 a year, which is still way less than you'd pay for in the US. We have more than 5000 programmers doing exactly that (Tata, the Indian outsourcing company, has a big outsourcing center here in Uruguay).
Heck, I personally would do it for U$ 20000 a year (a dollar goes a long way longer here than in the US, as long as you're not into cars or electronics) - so you could get what I consider equivalent work for much less money - in fact that is why trade works :) There are other problems inherent to outsourcing, but don't think that the main one would be programming skills (hiring, management, communications,etc...).