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

2. Contents Introduction Framework Regional Integration Initiatives Final reflection

3. Introduction Migration over the existence of the human race has been a daily practice in search of better living conditions. However, since its inception nation states have sought to protect their interests, often impeding the free movement of labor between regions, as a kind of protectionism in their domestic 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. Under these considerations, this paper seeks to detect the flows of labor in the Asia Pacific, particularly in agreements as TPP, NAFTA, or any other initiatives of regional organization such as ASEAN +(+) associated with enterprise networks, based on the fact that they are possessing unique technology and knowledge generation, thus constituting very attractive poles for migration. It is assumed that the generators of knowledge, lead to an appropriate space for the mobility of labor (brain drain, the marketing of educational services, the agricultural labor market and migration "illegal" for example, have been considerate as forms of labor mobility), even beyond public policy designed to address this issue.

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 wht a paradox solving 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), presents the challenges facing labor when required to travel to other countries, these restrictions are given much by the limitations imposed by economies of labor attractive. PECC & ABAC Studies, show the benefits of labor movements and the costs to ignore them

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, 2010 Source: 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 members These data are estimated using assumptions and arguments as explained in Ratha and Shaw (2007). Remittance- receiving country (across) - Remittance- sending country (down) Australia Brunei Daruss alam Chile Malaysia New Zea lan d Peru Singapore United St at es Vietnam Australia 0 0 127 534 19 105 640 Brunei Darussalam 5 0 87 0 0 0 0 Chile 16 0 0 0 148 17 0 Malaysia 68 0 0 3 0 0 0 New Zealand 672 0 17 0 1 26 17 Peru 1 0 0 0 0 5 0 Singapore 0 0 1,129 0 0 14 0 United States 760 1 59 21 897 0 3,760 Vietnam 0 0 0 0 0 0 0 ESTIMATED REMITTANCE S IN 2010 4,335 5 1,576 685 2,494 3,122 7,215

15. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sendingcountry Receiving country BilateralRemittance 2010 (%millions of US$) Vietnam United States Singapore Peru New Zealand Malaysia Chile Brunei Darussalam Australia

16. 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.

17. Thank you! ! Gracias!