Labor Migration & Regional Integration in Asia Pacific beyond the Borders

1. Labor Migration & Regional Integration in Asia Pacific beyond theBorders Ernesto Rangel Francisco Mares APEC Study Center Universidad de Colima, México Eppur si muove Galileo Galilei

2. Contents • Introduction • Framework • Regional Integration Initiatives • Final reflection

3. Introduction • Migrationovertheexistence of thehumanrace has been a dailypractice in search of better living conditions. However, sinceitsinceptionnationstateshavesoughttoprotecttheirinterests, oftenimpedingthe free movement of labor betweenregions, as a kind of protectionism in theirdomestic labor markets.

4. One of the central aspects that contributed to the promotion of labor migration in the Asia Pacific, has been the formation of nodes of concentration of knowledge, science and technological development, which attracts labor force with different skill levels from different latitudes.

5. Under the approach of the knowledge society, we aim to identify the poles of attraction of skilled or not work force, and the areas of expulsion, which allow highlighting the fact of labor migration in the region from an economic and social development perspective, thus showing that exceeds the neoclassical theoretical restriction of mobility of labor. Such mobility on several occasions however, is recognized as illegal; however that kind of mobility is coming from the patterns of attraction beyond the territorial boundaries of each of the economies. • Strictly speaking, we talk about a problem that needs addressing in order to seek better integration under the aegis of economic cooperation.

6. Undertheseconsiderations, thispaperseekstodetecttheflows of labor in the Asia Pacific, particularly in agreements as TPP, NAFTA, which can be extended tootherinitiatives of regional organizationsuch as ASEAN + associatedwithenterprisenetworks, basedonthefactthatthey are possessinguniquetechnology and knowledgegeneration, thusconstitutingveryattractivepolesformigration. • Itisassumedthatthegenerators of knowledge, lead toanappropriatespaceforthemobility of labor (braindrain, the marketing of educationalservices, theagricultural labor market and migration "illegal" forexample, havebeenconsiderate as forms of labor mobility), evenbeyondpublicpolicydesignedtoaddressthisissue.

7. This interest is focused on the fact that there are insufficient studies in APEC, particularly in the Human Resources Development WG and Labor & Social Protection Network, appearing the reality that labor migration is much more representative of what neoclassical theory assumes with severe restrictions to the economic labor factor compared to the mobility of capital generating social problems which paradoxically solve others. • In this sense, authors argue that state intervention to prevent the free movement of labor is opposed to the creation of integrated regional markets and ignores the reality facing the labor in the international arena.

8. Framework • Approaching from the theoretical perspective to a debatable subject is at least desirable to consider the theory of economic integration proposed by Bela Balassa (1964). This theory sees firstly economic integration as a process involving several stages, which explains without major problems many FTAs in the region, which at the moment leading to the spaghetti bowl. Particularly in the context of this theory the neoclassical version of factor mobility detect various economies restricting labor mobility as economic factor against the free capital flows in the Asia Pacific Regions. • The proposed open regionalism and economic cooperation in Asia Pacific is also a framework to consider the labor migration issue.

9. Paul Krugman (1995; 1999), presentsthechallengesfacing labor whenrequiredtotraveltoothercountries, theserestrictions are givenmuchbythelimitationsimposedbyeconomies of labor attractive. • PECC & ABAC Studies

10. Regional Integration Initiatives • As part of the efforts of States in the Asia Pacific region to promote economic integration and cooperation, we can identify initiatives that bring together countries with dissimilar economic growth rates, size of their economies, status or stages of economic development, forms of political organization and production, natural resource endowments and different cultures that lead to very specific worldviews. • Despite all this, and shock of reality which represent phenomena such as globalization, impose a sense of common good and progress through joint cooperation, at least in the liberalization of trade and investment, recently identified and unquestioned until today (, as real levers for economic growth and development (see chart,1).

11. Chart, 1. Benefits from FTAs to U.S. Exports, 2010Source: International Trade Administration, http://trade.gov/fta/ May 13th, 2012.

12. Chart, 2. Four indicators on Labor force and migration in TPP economies, 2010.Source: World Bank, www.databank.worldbank.org, May 10th, 2012

13. Chart 3. Net Migration in TPP economies, 2010.Source: World Bank, www.databank.worldbank.org May 10th, 2012.

14. Table 4. Bilateral Remittances on TPP membersThese data are estimated using assumptions and arguments as explained in Ratha and Shaw (2007).

17. Final Reflection • We conclude that APEC has to rethink the labor migration as regional integration factor without ignorance of reality, as there are movements of population with great benefits and social possible solutions for the economic cooperation and development of the economies members. • In the authors´ opinion APEC could develop some studies as PECC and ABAC did, in order to put behind the closed border and liberalize labor as economic factor. • APEC has special interest in Human Resource Development in order to facilitate the work force qualification; it has very specific networks, so it is possible to contribute for a better connection among the economies. Initiatives as TPP could be considered a next generation agreements, including the labor factor that anyway is moving across the borders.

18. Thank you! Спасибо! Gracias!