1 Classification of natural assets: implication of the update of the 1993 SNA and possible issues to address Alessandra Alfieri and Ivo Havinga London Group (New York, June 2006)

2 Overview BackgroundBackground Definition of assets in 1993 SNA and SEEADefinition of assets in 1993 SNA and SEEA Changes in the 1993 SNA Rev.1 asset classification and impacts in the SEEA-2003Changes in the 1993 SNA Rev.1 asset classification and impacts in the SEEA-2003 Proposal for aligning the classification of natural resources in the 1993 SNA Rev.1 with SEEA- 2003Proposal for aligning the classification of natural resources in the 1993 SNA Rev.1 with SEEA Terminology issuesTerminology issues Presentation issuesPresentation issues

3 Background 1993 SNA update considered the issue of classification of assets1993 SNA update considered the issue of classification of assets AEG recommended that 1993 SNA and SEEA-2003 be aligned, in particular for classification of natural resourcesAEG recommended that 1993 SNA and SEEA-2003 be aligned, in particular for classification of natural resources Requested the editor and UNSD to do itRequested the editor and UNSD to do it

4 Main changes in the 1993 SNA Rev.1 asset classification Replace tangible non-produced assets with natural resourcesReplace tangible non-produced assets with natural resources Replace intangible non-produced asset and split it in contracts, leases and licenses and goodwill and marketing assetsReplace intangible non-produced asset and split it in contracts, leases and licenses and goodwill and marketing assets Record Land improvements as GFCF of buildings and structures and not under landRecord Land improvements as GFCF of buildings and structures and not under land Align terminology of natural resources with SEEA-2003Align terminology of natural resources with SEEA-2003

5 Differences in terminology between 1993 SNA Rev.1 and SEEA-2003 Natural resourcesNatural resources SNA – includes including landSNA – includes including land SEEA – both cultivated assets and tangible non-produced assets, no land identified separatelySEEA – both cultivated assets and tangible non-produced assets, no land identified separately

6 Differences – Mineral and energy TerminologyTerminology SNA: Subsoil,SNA: Subsoil, SEEA: Mineral and energySEEA: Mineral and energy SNA: Coal, oil, mineral gasSNA: Coal, oil, mineral gas SEEA: Fossil fuelsSEEA: Fossil fuels Definition of reservesDefinition of reserves Suggest to expand asset boundary to probable and possible?Suggest to expand asset boundary to probable and possible? Expansion of asset boundary to non-renewable resources?Expansion of asset boundary to non-renewable resources?

7 Non-cultivated biological resources TerminologyTerminology SNA: Natural forestsSNA: Natural forests SEEA: TimberSEEA: Timber SNA: Wild stocks of fish and aquatic mammalsSNA: Wild stocks of fish and aquatic mammals SEEA: Aquatic resourcesSEEA: Aquatic resources ConceptualConceptual Fish stocks outside the EEZFish stocks outside the EEZ High seas, if country has access rightsHigh seas, if country has access rights

8 Water resources SNA Rev.1: Expansion of asset boundarySNA Rev.1: Expansion of asset boundary TerminologyTerminology SNA: Aquifers, OtherSNA: Aquifers, Other SEEA: Surface water, Ground waterSEEA: Surface water, Ground water

9 Other natural resources TerminologyTerminology SNA: Radio spectra + other resourcesSNA: Radio spectra + other resources SEEA: Atmospheric ecosystemSEEA: Atmospheric ecosystem EcosystemsEcosystems Should the SNA mention that natural resources can be classified twice (according to whether they provide goods natural resources or services ecosystems)?Should the SNA mention that natural resources can be classified twice (according to whether they provide goods natural resources or services ecosystems)?

10 Differences in presentation Order in presentation of natural resourcesOrder in presentation of natural resources SNA: land, subsoil, non-cultivated biological resources, water, otherSNA: land, subsoil, non-cultivated biological resources, water, other SEEA: Mineral and energy, soil, water, biological resources, LAND (separate from natural resources), EcosystemsSEEA: Mineral and energy, soil, water, biological resources, LAND (separate from natural resources), Ecosystems

11 Differences in presentation (2) 1993 SNA Rev.1SEEA-2003 Inventories Work in progress Work in progress on cultivated assets Plantations Non-cultivated Natural forests Biological resources Timber resources Cultivated Non-cultivated Grouping of produced and non-produced assetsGrouping of produced and non-produced assets The SEEA-2003 does not make explicit the distinction between fixed asset and inventory

12 Why differences in presentation? PerspectivePerspective SNA groups the items according to how to value themSNA groups the items according to how to value them SEEA groups them according to the resourceSEEA groups them according to the resource Should SNA and SEEA have the same presentation in the asset classification?

13 Questions to the LG? Do you agree with: 1.Would you like to see an Annex in the SNA explaining the difference between SNA and SEEA asset classification? 2.Dropping the item recreational land from both the SNA and SEEA? 3.Mentioning in the SNA the category ecosystems, although not in the classification?

14 Questions to the LG? (2) 4.Should the SEEA align its classification with the SNA? a.In terms of order (land, mineral and energy, etc. or mineral and energy, land, etc.)? b.In terms of grouping (by produced, non-produced, or by type of resource)?