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Implications for the circulation of human capital

                             The challenge of managing the circulation of human
                     capital is immense, given that even at the UN level, there is

                     no agency or formal international cooperation mechanism
                     to regulate labor mobility. A mechanism to assist not only in

                     managing migration but also in steering temporary migration is
                     urgently required. It is important to note that sending countries
                     consider the transient migration of human capital services as

                     exports, exemplified by the case of the Philippines receiving
                     remittances from its citizens working overseas. Without the freer

                     mobility mechanism such as the MRA, circulation of human
                     capital will continue to be limited and will have implications
                     to the growing demographic challenges in the succeeding

                     decades.

                             ASEAN’s population is becoming older as average life
                     expectancy increases and fertility rates decline, eventually

                     leading to a contraction in relative size of the working-age
                     population. Projections for the next three to four decades

                     show labor forces in several economies shrinking dramatically.
                     This poses important challenges to sustain economic growth.
                     Dependent population in the future will mainly comprise the

                     elderly. This increases the fiscal burden of member states and
                     crowd out investments.







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