Almost laughably, those organisations sometimes then try to address the inadequacies of their minimum-rate development staff by dictating in detail how they should go about their jobs - as if they had a clue themselves!
To those organisations that I am describing, I would like to note, for the record, that I have personally (on too many occasions,) replaced teams of minimum-rate developers with developers whose day rates are 3 times that of the incumbents and still realised overall cost savings of greater than 50%. (Note that before-and-after comparisons of total development cost are much easier to draw than cross-project comparisons.) While this might keep me employed, (or run off my feet, more often than not,) that employment is (in light of the larger picture I have attempted to paint here,) gainful only to myself and hardly fulfilling. Perhaps it is time to consider another approach?
The only path to good software is through good software developers.