It is hard to objectively judge as there is a danger of 'rose tinted glasses' appearing in musing about 'how it was better 20 years ago' but friends also comment to me in a similar vein re the roads and driving skills.
My rose tinted glasses tell me that in the past pilots pretty well always had substantial pre airline experience. Whether that was in the military, or GA, doesn't matter all that much. Cadets existed, but even they were normally pushed out to GA to gain experience before being allowed into the airliners.
Now, we have people with minimal time going straight into the right hand set of large aircraft. This will work to a degree, especially as those aircraft do tend to be very reliable. But, you don't have to look very far to find multiple examples of people who simply could not fly (Air Asia, AF447, Colgan, Asiana). These are the tip of the iceberg.
Now, I'm not saying they're all like that, but if it becomes more difficult to fill slots, the easiest way is to simply lower the bar. So, perhaps the odds start to increase. Of course, you don't have to be a foreign airline for this to be appealing.
As aviation continues to expand within and to/from nations such as mainland China, apart from the 'poaching' of Westerners as flight crew by offering attractive packages, are airlines in those sorts of countries employing Westerners (or engaging them on contracts) to act as check captains and other supervisory roles, or do they tend to have a preference to promote from their own nationality's ranks?
They may hire sim instructors from overseas. Supervisory people will be home grown. The numbers are a tiny proportion in any event, and won't make a difference either way.
Is engaging experienced Westerners, some of whom may have come up through flying for the RAF/ RAAF and so on a reasonable way to try to ensure that those flying internationally are extremely competent, rather than the oppsoite that was implied in the above comment?
Having a smattering of foreign ex military pilots does nothing for the overall competency of the airline. You need a comprehensive training and checking system, that vigorously weeds out those who can't, and ensures those who can, are properly trained. A visual approach should offer no difficulty at all, nor should a simple law reversion, but we've seen both of these take down aircraft in the last couple of years. From what I've heard from some of my friends who have flown overseas, the standard of training/checking can even vary depending upon whether you're a local or foreigner, with the locals avoiding the rough end.
Westerners aren't the only people who can fly, and you'll note that the examples I gave above included two western airlines. It's the attitude of the management that is the most important part of this equation, and whilst EVERYBODY, without exception, claims that safety is their first priority, my reading of the situation is that it comes a long way after any financial issues.