Ali Alsamawi

The Employment Footprints of Nations

In this study, we present an analysis of the average wages paid for producing direct and indirect imports of nations using employment and income footprints. An employment footprint includes a countrys domestic employment and that occurring along the supply chains of, and hence embodied in, its imported goods and services. Our results allow us to group the worlds nations into “masters” that enjoy a lifestyle supported by workers in other countries and “servants” that support the lifestyle of master countries. We show that, in 2010, employment footprints of countries differed substantially from their own workforce footprints. Hong Kong, Singapore, the United Arab Emirates, and Switzerland occupy the top‐ranking positions of master countries, whereas many African and Asian countries are servants. Our findings show that the commodities that are “servant intensive,” such as electronics, agricultural products, and chemicals, tend to have complex supply chains often originating in third‐world countries. The quantification of these master‐servant relationships and the exposing of implicated supply chains could be of benefit to those concerned with their corporate social responsibility and committed to fairer trading or those developing policy around fair globalization.

The inequality footprints of nations: a novel approach to quantitative accounting of income inequality.

In this study we use economic input-output analysis to calculate the inequality footprint of nations. An inequality footprint shows the link that each countrys domestic economic activity has to income distribution elsewhere in the world. To this end we use employment and household income accounts for 187 countries and an historical time series dating back to 1990. Our results show that in 2010, most developed countries had an inequality footprint that was higher than their within-country inequality, meaning that in order to support domestic lifestyles, these countries source imports from more unequal economies. Amongst exceptions are the United States and United Kingdom, which placed them on a par with many developing countries. Russia has a high within-country inequality nevertheless it has the lowest inequality footprint in the world, which is because of its trade connections with the Commonwealth of Independent States and Europe. Our findings show that the commodities that are inequality-intensive, such as electronic components, chemicals, fertilizers, minerals, and agricultural products often originate in developing countries characterized by high levels of inequality. Consumption of these commodities may implicate within-country inequality in both developing and developed countries.

Quantitative accounting for social economic indicators

In this paper we consider the evolution of quantitative accounting of social indicators for measuring societal progress and sustainable development, with particular reference to economic analysis and social indicators. We examine the use of the System of National Accounts and introduce the concept of using input-output analysis for the development of social indicators. The use of satellite accounts for input-output analysis of environmental impacts and the development of environmental footprints has been well documented. The novelty of this paper is the use of a methodology frequently used to develop environmental indicators to quantify social impacts and to further the development of social footprints. We provide a case study of the use of social satellite accounts for labour, using multi-regional input-output analysis to develop a global inequality footprint for labour embodied in trade, and argue the case for the development of a system of social economic accounts, similar to the System of Environmental-Economic Accounts adopted by the United Nations Statistical Commission in 2012. This work contributes to the development of social valuation metrics as a means for measuring societal progress and developing sustainability indicators for use in management and decision-making.

Exporting water from the desert? An analysis of the virtual water content of Saudi Arabian agricultural exports

Abstract This study applies input-output analysis to evaluate and trace Saudi Arabia’s virtual water exports arising from exports of agricultural products. Saudi Arabia’s total virtual exports in 2011 were around 2.42 km3, mainly to neighbouring Arab countries. This amount is enough to meet the water demand of the country’s entire population. Agricultural exports seem economically beneficial only because they rely on groundwater; however, since the indirect cost of desalinating equivalent amounts of water for domestic purposes is much higher, a better strategy would have been to direct those water resources towards domestic needs.

A Social Footprint of Nations: A Comparative Study of the Social Impact of Work

Work is essential for most people to live a full and complete life. However, far from being an enjoyable pursuit, many people find work places them in vulnerable and even life threatening positions. More than half of the developing world’s workers (approximately 1.5 billion people) are classified as being in vulnerable employment, trapped in a cycle where low incomes limit the ability to invest in family and future generation’s health and education. No standard footprint methodology has yet been adopted to measure a nation’s social impact of work in a similar way to how environmental footprints measure a nation’s impact on the environment. Here we develop a method to measure the social footprint of nations by compiling eight indicators, ranging from employment to income to days lost due to accidents. We compare these data for the average worker across developed and developing nations. Our results demonstrate that as countries develop, work domestically has fewer negative social impacts and more benefits to individuals. However, as countries develop they also import more negative social impacts through global trade. This leads to developed nations having two very different social footprints of trade—one for domestic workers and one for international labour embedded in its imports. The development of a replicable and comparable social footprint methodology contributes to our understanding of issues surrounding inequality, the social impact of work, how to measure social impact and how we can communicate complex messages around embedded labour. More than half of the developing world’s workers are classified as being in vulnerable employment, trapped in a cycle where low incomes limit the ability to invest in family and future generations’ health and education. Empowering policy makers and business to make choices that mitigate some of these impacts through developing and communicating numerically sound information is a priority to address global inequality. Current measurement techniques vary and lessons learned from having divergent methodologies in environmental footprinting indicate that a robust social footprinting methodology is required. We introduce a methodology to create social footprints of nations measuring the social impact of work embedded in global trade. We show that as countries develop, problematic labour impacts are outsourced to developing countries.

Raising the International Poverty Line—A Comparison of Necessary Adjustments of Final Demand Spending in OECD and Non-OECD Countries

Using multi-regional input-output analysis, this chapter shows that the OECD countries would only need to spend about 0.36% more on final demand to ensure all workers’ earnings are at least as high as the international poverty line. Due to missing data for about 70 countries and the fact that the data only covers the workers and not their families and other people not participating in the workforce, this number is unfortunately only a lower bound. The poverty data used here includes about 25% of all people living in extreme poverty. Nonetheless, even if everyone living below the poverty line would be included, the additional spending on final demand by OECD countries would only need to be about 1.5% of the current (2010) spending on final demand in OECD countries.

Introduction to the Social Footprints of Global Trade

This chapter provides an introduction to social impacts in global supply chains. This introduction will examine state-of-the-art methods for accounting for social impacts in supply chains and explain in greater detail what MRIOA is.

Review of Social Accounting Methodologies

This chapter contrasts the MRIOA approach with popular methods for social supply chain analysis. Three popular methodologies used by business for social accounting in supply chains are identified—supplier social audits, third party verification or certification schemes, and procurement activities. The methodologies are not mutually exclusive, and often combinations of all three are used. All of these processes are used to assist business to maintain or promote certain social outcomes, generally relating to human rights and labour conditions, within multiple tiers of the supply chain.

Case Study—Assessing Social Impacts in the Seafood Industry

This chapter considers the need for fair and equitable information on social impacts and supply chains, so that scientific and evidence-based assessments of risk can be made.

Review of Social Metrics and Social Footprinting

In this study we used the Social Hotspot Database (SHDB) to investigating the social impact of trade in five countries (China, Brazil, India, Russia, and Madagascar). Five thematic areas have been covered in this chapter: Labour Rights and Decent Work; Health and Safety; Human Rights; Governance; and Community Infrastructure.