Why can't we be reliable and professional?

I recently had a conversation with a client in the US who had hired an Indian vendor to do some research work and was gravely regretting her decision. Lured by the low bid, she chose to work with this vendor thinking he or she could deliver the goods she required. Unfortunately she was badly disappointed, with the vendor going MIA (not returning calls, responding to emails, not sticking to deadlines). furthermore, the vendor started making lame excuses for non-performance, trying to pin it on the client that she has crazy expectations.

this is not an isolated case. There are numerous, far too many for comfort, cases of Indian vendors behaving this way. in fact, the CEO of an MR firm in Delhi once told me that he was great in marketing but was weak in operations. it lives up to the Indian motto- talk big, deliver less. i've myself hired Indian vendors on multiple occasions-  logo design, writing, etc. and am constantly peeved at the sheer lack of commitment, communication and delivery. at the end of the day when they're fired, they shoot back saying it's your fault!

if you don't believe me, ask around- Indians are famous for this. switching off the phone, making excuses for their absence and what not. one time, i hired a logo designer who completely ignored whatever i said, and gave me something way too late, that i couldn't use.

despite the fact that we're one of the most educated races in the world, pride ourselves on our long history and culture, we still can't get our act straight. we're renowned for being late, we never follow up and we somehow still don't take quality seriously. so much so, i recall an IT vendor here who never bothered to send me an invoice for a payment i had already made, despite repeated calls and requests.
in fact, i've seen the same culture in banks (including HDFC and Kotak, although the latter is somewhat better), but somehow we have managed to grow at the second highest rate in the world. it's shameful that we will criticize other countries for whatever reason, but never bother to look inside!

what gives?