'Free' is the web

I came across a very interesting video on Chris Anderson talking about the long tail and the Freemium business model. He also speaks about the importance of privacy going down as people are jumping onto Web 2.0 to have their little celebrity niches. Like this blog for example. He mentions a business model that is presently successful - the western world creates designs and the developing world does the work for less. Charlie counters him by asking - what if the developing world catches up on design skills? Born in a developing country, I know that while education in science and engineering is great, there is little to no emphasis on business and entrepreneurship. This is  just a matter of time to change (let me know if you have current examples) and leads me to wonder if the direction of outsourcing will change then! Anyway check out the video.