Interstate Statistical Committee of the Commonwealth of Independent States ( CIS STAT ) The work of the CIS STAT on statistical classifications of economic activities and products with international counterparts E.V. Mochalova Consultant CIS STAT UN seminar on international statistical classifications March 2013, Chisinau, Moldova

2 The work of the CIS STAT on the harmonization of the statistical classifications with international counterparts CIS STAT and National Statistical Offices of the Commonwealth countries using in their activities classifications taking into account developments by UN, Eurostat, ILO and other international organizations, as well as new classifications or new versions of the existing classifications. To help National Statistical Offices of the Commonwealth countries, in CIS STAT developed model classifications of Economic Activities (GCEA) and products (SCP) according to the international examples. The goal was to create in the CIS countries national classifications harmonized not only with their international counterparts but also comparable between themselves, as having the same base.

3 The work of the CIS STAT on the harmonization of the statistical classifications with international counterparts Stages in developing model statistical classification of economic activities (GCEA) 1. GCEA-1 and explanations (on the basis of UN classification– ISIC (rev.3) – year 1995; 2. GCEA-2 and explanations(on the basis of EU classification– NACE (rev.1) – year 1996; 3. GCEA-3 and explanations (on the basis of EU classification- NACE (rev.2) – year 2008 All versions of GCEA are harmonized with the international counterparts ( ISIC or NACE) at the 4 digit level and only differ in the additional 5 digit level, which takes into account national aspects (according to the national classifications if necessary the code was extended to the 6 and 7 digit level). These versions were recommended to the National Statistical Offices as model statistical classification for the development of their national classification of economic activities.

4 The work of the CIS STAT on the harmonization of the statistical classifications with international counterparts Stages in developing model statistical classification of products (products and services) (SKP): 1. SKP-1 and explanations (on the basis of EU classification– CPA (rev. 1998), PRODCOM (rev. 1999) and TN FEA CIS (rev. 1996) – year 2000; 2. SKP-2 and explanations (on the basis of EU classification– CPA (rev. 2008), PRODCOM (rev. 2009) – year Both versions of SKP are harmonized with the CPA at the 6 digit level and with PRODCOM at the 8 digit level. To reflect national aspects in SKP used 9 digit level( in national classifications if necessary the code is extended to the 10 – 12 digit level). These versions were recommended to the National Statistical Offices as model statistical classification for the development of their national classification of products. Model classifications GCEA and SKP could be found at the CIS STAT website: «Methodology» section, under «Classifications for the CIS countries».

5 National classification systems National classification systems of the CIS countries include: National classifications (classifications that have a status of the state standard), that are created and maintained by the national statistical office, and by sectoral ministries and departments; Classifications used in statistical registers of the national statistical offices (classifications of types of enterprises, type of activity, administration, ownership, legal forms, civil divisions, countries, currencies, products, etc.)

6 Classification of economic activity First step in the creating of the national classification of economic activity by the CIS member states – choice between classifications: Developed by the UN Statistical Division (ISIC and СРС); European classifications (NACE and СРА). Given the fact that in the EU classifications the industrial origin of products is fully comparable to the codes of activity and products at 4 digit level, the preference was given to EU classifications.

7 Classification of economic activity National classifications of economic activity of the CIS member states (as of beginning of 2013) Used in statistical practice national classification based on NACE (rev. 2) Used in statistical practice national classification based on NACE (rev. 1.1) AzerbaijanBelarus ArmeniaRussia KazakhstanTurkmenistan Kyrgyzstan Moldova Tajikistan Uzbekistan Ukraine

8 Classification of products National classifications of products of the CIS member states (as of beginning of 2013) Used in statistical practice national classification based on CPA-2008 Used in statistical practice national classification based on CPA-2002 AzerbaijanBelarus ArmeniaMoldova KazakhstanRussia KyrgyzstanTajikistan UkraineTurkmenistan Uzbekistan

9 Problems in development and implementation of the classifications Problems encountered during the development and implementation of international classifications in the national statistical practice of the CIS member states: Methodology: development of conversion keys from already existing to newly introduced classifications; capturing collective activities (space exploration, investment processes, innovation etc.); recalculation of time series, etc.; Terminology: translation errors that related to the linguistic features of a language, or national characteristics; absence in many national languages of new concepts and terms used in international classifications; Financial: approval of state programs for the budget funding of the development and implementation of the new classifications; Technical: provision of the technical equipment for specialists; Information: improvement of KEOI statements, review and revisions of KEOI etc.; provision for automated introduction of interconnected national classifications; Organization: create regulatory framework, that will govern procedure of development and implementation in the national system of the interconnected classifications; create in national statistical offices special structural departments (division, service), that will work with classifications, and training of specialists; the lack of quick translation into Russian and national languages of the latest international classifications or their revised versions etc.

10 Classifications harmonization problems Problems encountered in the process of harmonization of the national classifications in the CIS member states: Problems related to the certain discrepancies in the international classifications themselves, for example between NACE, rev. 2 and CPA-2008 concerning the division of retail trade on retail trade in non-specialized stores and retail trade in specialized stores; Problems of discrepancies of the national statistical classifications between themselves at the last digit level, related to the national aspects of the country for example, In the State Classification of Economic Activity of the Republic of Uzbekistan under class «Raising of sheep and goats» taking into account country specialty introduced subclass «Karakul breed of sheep», and in the class «Raising of other animals» - subclass «Silkworm breeding».

11 List of 10 most demanded by the national statistical offices of the CIS member states classifications, for the preparation by CIS STAT of the model statistical classifications harmonized with the international counterparts № by priority Name of the classification (name of the basic international classifications) 1.Classification of Economic Sectors (based on the UN SNS -2008) 2.Statistical classification of waste (based on the EWC EUROPEAN WASTE CLASSIFICATION FOR STATISTICS (VER.4)) 3.Classification of fixed assets (COF) (based on the: CPA-2008, Classification of structures – Eurostat 1997, IFRS – International financial reporting standards – 16 «Property, buildings and equipment» and etc.) 4.Statistical classification of the financial assets (CFA) (based on the UN SNS -2008) 5.Classification of activities and services in tourism (based on NACE-2008 and CPA-2008) 6.Classification of products (goods and services) (based on the CPA-2008 and PRODCOM-2009) 7.Nomenclature of industrial products (goods and services) (based on PRODCOM-2009 and 2011) 8.Classification of environmental protection activities and expenditure (KDZOOS) (based on CEPA CLASSIFICATION OF ENVIRONMENTAL PROTECTION ACTIVITIES AND EXPENDITURE 2000) 9.Classification of scientific and technological activities (based on NACE-2008 and FOS FIELD OF SCIENCE AND TECHNOLOGY CLASSIFICATION 2007) 10.Classification of consumer spending by purpose (KRPC) (based on COPP-1999 – CLASSIFICATION OUTLAYS OF PRODUCERS BY PURPOSE 1999)

12 Thank you for your attention