Cost is more than just cost of living.

I dont know what assumptions you have made regarding my source of income. But it seems to me that one of that assumption is that odesk is my only source of income, which is very wrong. oDesk or for that matter, all the freelance sites that I work combined on is not my primary or major source of income. My major source of income are my freelance projects outside the internet, my local clients. And from the local clients alone I earn approximately $1500 per month.So, you see, I can cover all of my software and hardware expenses in less that 2 months.

I am in oDesk because I want to expand my sources of income.

Now, why is my rate so less? Well u see I have been trying to get some assignments and have been actively bidding for the last 4 months. Initially my rate was set at $11. 2.5 months into bidding I did not even get a single interview. I dont mind not getting hired if I am not the right person, but I was not even getting an interview. Even after I tweaked my profiles, and cover letter(included details explanation of how I will implement the requirements). So, I checked out another suggestion from the members in the forum. To reduce the rate till I get sufficient work history. Once I reduced the rates, I started getting interviews.
So, you see, instead of blaming the providers, you must understand the buyers here wont hire newbies unless your rates are low.

That said this is never going to be my rates, because I actually lose money on my current rate. This is only till I get sufficient work history. I have set a time of 9 months. And if in 9 months, I am not able to command a satisfactory rate in oDesk, then it is a goodbye to oDesk from me.

Takereal,

I see that you charge $25 an hour so whats your point? 

This is about the profesionalism of my chosen profesion, if I had a brain tumor I wouldnt hunt around for some backyard guy to operate I would want the best surgeon with the best facilities in the land, I wouldnt ask how much or expect him to lower himself to the standard of the guy in his garage.

Most of the work we do is either a companies presentation to the world, or a productivity application that will become critical to a companies day to day operations.  Why is Odesk creating a mindset that its not only OK to search for the "cheapest" bidder when developing your business critical software (your brain surgeon) its the intelegent thing to do.

We owe it to our industry, our clients and ourselves to make sure that the standards we set in our chosen field is of the highest standard.  So yes bring on the police checks, make sure the provider can meet his financial requirements and make sure that the tools of his trade are not stolen.

rant ended.