Movement of Human Resources:
An Avenue for Regional
Integration
Tereso S. Tullao, Jr., Ph.D.
De La Salle University – Manila
August 2008

Introduction•World Bank Study––

Increased number of migrants in most net-labor importing countries
for the past two decades
1970s•–2000s•••Estimated 300,000 migrants within Southeast Asia
Approximately 4 million migrants in Southeast Asia
2 million foreigners are working in Northeast Asia

Contributing Factors––

The forces of globalization through the liberalization of services
Responses of individuals and countries to regional economic anddemographic asymmetries that produce differential impact on theregional labor markets.

Introduction•

Regional Labor and Demographic Asymmetries––

have the potential for contributing to regional advancement
movement of people is a very sensitive issue for receiving
countries•

Apprehensions of Receiving countries––•

Impact of the inflows of foreigners on their labor markets
Heavy pressures on social infrastructure

Risks involved in exporting manpower services on the sending
countries–––

Over-dependence on remittances from overseas employment
Overvaluation of the real exchange rateDisplacement of labor and domestic industries–Brain drain.

Framework of Analysis in theRegional Movement of People•

Trade Negotiation Perspective–Refers to the role of trade negotiations at various levels in
facilitating or restricting the flow of human resources
across the region.
••••–General Agreement on Trade in Services (GATS) under WTO
ASEAN Framework Agreement on Services (AFAS)
Asia Pacific Economic Cooperation (APEC)
Bilateral Agreements

Components of agreements entered into by countries atvarious levels of trade negotiations•••

Horizontal and sectoral commitmentsMarket access limitations
National treatment limitations

Framework of Analysis in theRegional Movement of People•

Labor Market Perspective––

Refers to the market drivers on the regional flow of human resources
From the sending countries side••–

From the receiving countries side•••–

Lethargic economic performance
Rapid population growth
Rapid economic growth
Slow population growth
Other effects of the demographic dividend

Domestic regulations•the institutions/agencies involved in the management of external flows ofhuman resources–•••Philippine Overseas Employment Administration

Taxes
Managing the cost of temporary labor migration
Programs for the protection of overseas workers.

Trade Negotiation Perspective
Institutional Drivers on the Movement of Human Resources

Multilateral Level

Regional Level

Bilateral Level

WTO / GATS

AFAS / APEC

FTA

•Horizontal / sectoral commitments on mode 4•Market access limitations•National treatment limitations

Movement of natural persons (Mode4)

Foreign direct investment(Mode 3)

Mutual recognition
agreement

Domestic regulation
Flow ofSending countries

Receiving countries
HumanResources

Labor foroverseas
employment

Managementof temporarylabormigrationPredeployment
Requirements

Sourcinglaboroverseas

Immigration policies

Managementof temporary
labor
migration

Preemployment
Requirements

Domestic regulation
Excess supply oflabor

Excess demandfor labor

Labor market

Labor market

Demand for labor

Supply of labor

Demand for labor

Supply of labor

Lethargic
economic growth

Rapid population
growth

Rapid economic
growthSlow population
growthLabor Market Perspective
Market Drivers on the Movement of Human Resources

Facilitating & Restraining Factors ofRegional Movement of Human Resources•

Trade Negotiation Perspective––AFAS Liberalization Measures
Measures in addressing the regulatory differences•

Regulatory Heterogeneity– Inadequate information– Capture•

Regulatory Homogeneity– Regulatory Convergence– Mutual Recognition– Regulatory Harmonization–Extension of preferential arrangements in AFAS

Facilitating & Restraining Factors ofRegional Movement of Human Resources•

Labor Market Perspective–Regional Economic Dynamism
•
•
•
•
•

–Significantly improved income of people
Improved standard of living
Expanded trade
Attracted Foreign Direct Investments (FDI)
Stimulated the flow of people across the region

Market Driven Factors••

Substantial rise in FDIRise of Global Production Networks (GPN)Facilitating & Restraining Factors ofRegional Movement of Human Resources•

Labor Market Perspective–Pressures of economic and demographicasymmetries••

Heightened the economic and demographic
asymmetries among the countries
Push factors for overseas employment– High paying jobs in economically advanced countries– Domestic economic problems– Rapid population growth•

Stringent immigration policies and pre-employment
policies– Immigration policies– Pre-employment policies

Conclusion and Recommendations•Establishment of mutual recognitionagreements••

Evaluate the capability of the service provider to render
the services in order to safeguard public interest and thewelfare of the consumers.
At the regional level:– improvements in market access on the movement of natural
persons can proceed through the establishment of MRAs on
specific professions and occupations.

Conclusion and Recommendations•

Lifting market access and national treatment
limitations•

Impediments to further trade in services through MNP– Limited market access– National treatment– Preference for traditional sources of supply•

Future rounds of negotiations under the AFAS
– Reduce the unbound commitments in various sectors andmodes of supply– Reduce the restrictions under Mode 3 and Mode 4– Further liberalization in Mode 3

Conclusion and Recommendations•De-linking of Mode 4 from Mode 3 in trade accords–Move towards regulatory homogeneity••••

Regulatory convergence
Mutual recognition
Regulatory harmonization.

Liberalization measures or management of temporary
migration––

Subjecting foreign workers to immigration laws and labormarket tests
Market perspectives––Exploiting the opportunities offered by the labor markets
Bilateral labor agreements should be pursued by concerned countries
to manage inflows and protect the overseas workers