UN List of Industrial Products United Nations Statistics Division 9/18/2018

History UN list of industrial products was developed in the framework of 1973 world programme on Industrial Statistics Scope of world programme organization and conduct of industrial inquiries indicators to be compiled 1. The UN List of Industrial Products was developed in the framework of the 1973 world programme on Industrial statistics. The world programme itself had a wide scope; it dealt with the organization and conduct of industrial inquiries and indicators that were going to be compiled in the framework of this programme. 9/18/2018

History World programme made provisions on: collection of information according to uniform procedures compilation of this information in a uniform manner The aim of the world programme was: to guide and coordinate national activity in industrial census-taking broaden the scope and improve the comparability on industrial statistics Provision was made in the programme not only for the collection of information according to uniform procedures but also for the compilation of this information in a uniform manner and for its subsequent publication in a standard form. The aim of the programme was to guide and coordinate national activity in industrial census-taking with a view to broadening the scope and improving the comparability of the statistical information on industry available on an international basis. 9/18/2018

Purpose The UN List of industrial products served as: A guide in reporting and collecting data on major industrial products for all countries and areas A tool to observe and compare industrial production on a worldwide basis The list represents a pure form of product statistics physical quantity production data 2. This list was just a part of this programme. This list was prepared to be used as a guide in reporting and collecting data on major industrial products for all countries and areas of the world. The list was a tool among others, to observe and compare industrial production on a worldwide basis. The data collection process based on it, consists of the purest form of product statistics; the data collected have been and are physical quantity production data within the national boundaries of each country and area; therefore the data collected are to a great extent a very reliable source for evaluating industrial production within a country and for comparing industrial production among countries and areas. 9/18/2018

Criteria Only a selective list, not comprehensive Main criteria for inclusion were: current or prospective importance of the commodity in the international economy balance within the industrial sector importance of the commodity within the group to which it belongs 655 items (ST/STAT/Ser.M/54/II) 4. The products selected at the time it was developed, represent well an overall, worldwide balance of the existing economic structures of different countries and of their major outputs. Since the major purpose of the list was to be used as a comparability tool, it was thought that a well selected list could better serve that purpose, rather than a comprehensive one. The current or prospective importance of the commodity in the international economy has been the main criterion for inclusion in the list, while at the same time giving proper consideration to the balance within the industrial sector and the importance of the commodity within the group it belongs.   9/18/2018

Definition and coding Products were defined based on: explanatory notes of BTN (CCC, 1955) early version of SITC national practices and comments received Products were grouped and coded according to industries (ISIC Rev.2 - 4 digits), with a running numbering for individual products (2 additional digits), e.g. 2302-01 “Copper ore” 5. At that time the only product classifications existing were the trade classifications, therefore the definitions of the products of the list were largely based on the Explanatory Notes of the Brussels Tariff Nomenclature (Customs Cooperation Council, Explanatory Notes to the Brussels Nomenclature, Brussels 1955) and adapted and modified on the basis of national practices and comments received. (SITC has existed since 1951,SITC rev1 came out in 1961; why the list was not based on SITC but on BTN? UNSD is the custodian of SITC whereas CCC of BTN.) 9/18/2018

Definition and coding Data collection and measurement issues embedded in: coding system definitions of products measurement units Example: 2301-01 – “Iron ores and concentrates, gross weight” 2301-01M – “Iron ores and concentrates, metal content” This list of products had to address primarily data collection issues, therefore it was thought that the codes given to the products should also reflect the way the data was going to be measured. According to the specifics of the products, there could be different ways that the data could be measured. So the data measurement issues were embedded to a great extent in the definitions of the products. For example for minerals, if the production was measured in metal content an M was added to the code, and if it was measured in gross weight it was just the plain code. An other example of collection and measurement issues embedded in the coding system: 3843-07 “Passenger cars, assembled from imported parts” 3843-10 “Passenger cars, produced”. 9/18/2018

Data collection UNSD collects physical data on the annual production of commodities Data is collected through UN questionnaire on commodity production statistics sent yearly to NSO-s Major publication: Industrial Commodity Statistics Yearbook annual publication, contains data for the latest 10 years Other publications: United Nations Statistics Yearbook Monthly Bulletin of Statistics 10. Since that time, the Statistical Office of the United Nations and than the United Nations Statistics Division, has been collecting yearly physical data on the production of the commodities of this list. These data are collected through the UN Questionnaire on Commodity Production Statistics sent yearly to National Statistical Offices worldwide. The industry section of UNSD maintains the Commodity Statistics Database, which is of course updated and amended yearly and which during the last few years has also been available for sale. 9/18/2018

Need for revision Changes in the economic structure, new products The content of 1973 list has become out of date has to be complemented with new products not necessarily completely altered Changes in underlying classifications 12. Since that time many changes have happened in the economic structure of many countries. New products have emerged, which the existing list does not cover. So the 1973 list has become out of date in respect of its contents, in the sense that its contents has to be complemented but not necessarily completely altered. We will elaborate more on this a little latter. 9/18/2018

Revision goals Reflect products representative of today’s industries Based on current classifications (CPC, HS) Consider national product lists (!) Update of supporting methodology Applicable for calculation of price indices No “clean slate” approach 13. Changes have happened also on the theoretical side, new tools have been developed. CPC, the central product classification was developed by the Statistical Office of the United Nations; CPC provisional in 1990, CPC Ver.1.0 in 1997 and CPC Ver. 1.1 in 2002. All the three versions have almost the same content on the goods (products or commodities ) part. CPC was meant to be used for all statistics requiring product detail and to bring together all the product classifications, i.e. to be used as a means for harmonizing them. 9/18/2018

Considerations Original purposes for developing a list of industrial products still relevant today Ensure a smooth transition from the “old” to the “new” list preserve as many time series as possible but the work may entail redefinition of some products removal of irrelevant products 17. The purposes for which the list was originally developed in 1971, are still relevant nowadays, therefore they will be used as a guidance, while aiming at the two main goals mentioned in paragraph 16.   18. While pointing out those two main goals, we are aware that the past is important also, therefore we would like to ensure a smooth transition from the “old” list to the “new” one in many respects. As mentioned above, the UNSD has historical data on the production of industrial commodities dating back from 1950. We want to make sure that wherever possible, we can ensure the continuity of these series, not only for the sake of a historical treasure but also because certain products, like for example minerals, have been and are important. But, this work may as well entail the redefinition of many products and also the removal of some which might not be relevant any more on a well-balanced worldwide basis. These two issues will be elaborated further latter. 9/18/2018

Work criteria Work will be performed by evaluating: the link to CPC/HS for each product of the existing list the “history” of the existing list a rank from 0 to 10 (0-best, 10-worst) is attached to each product present industry coverage trade data and national production data to be used as a source new products to be added (high-tech, pharmaceuticals) 19. How is this work going to be performed in practical terms? Broadly, these three directions will be followed but connected to each other: a.       the link to CPC/HS for each product of the current list b.      the “history” of the current list; ( For this a rank from 0 to 10 ( 0-worst and 10-best) was attached to each product. This ranking was developed based on criteria which reflect the response on the individual products, the purposes for which the list was originally developed and its structure.) c.       industry coverage ( The representative products for each industry will be determined using HS trade data as source.) o       add new products which the existing list does not cover   9/18/2018

Consultation The draft of the new list to be circulated for input among NSO-s International organizations interested in product related data 21. When a draft for the new list will be available, it will be circulated among the national statistical offices and international organizations which are interested in product related data, in order to receive their input. And finally, any comments or suggestions from the participants of this workshop will be very much appreciated. 9/18/2018