Overview of the current status of classifications work in the region Based on the survey for the workshop and findings of Global Assessments

Background Close cooperation with the Interstate Statistical Committee of the Commonwealth of Independent States (CISSTAT) in developing the system of national classifications CISTAT has provided training, expertise, and translations of classifications in Russian Several NSOs have benefited from EU TACIS programmes and related programmes also in classifications A number of EU countries have provided bilateral support with classifications, changes of classifications, backcasting and data linking

What are global assessments? Carried out with Eurostat and EFTA To provide a clear picture of the state of development of official statistics in a country To help the national authorities to better programme development of statistics To help international donors to programme statistical cooperation To assess the technical aspects of the statistical system in the country To assess compliance with international standards, such as classifications

Recently published global assessments 2008 Kazakhstan (year when published) 2009 Armenia 2010 Azerbaijan 2012 Kyrgyzstan 2012 Ukraine 2013 Belarus 2013 Georgia 2013 Moldova 2013 Tajikistan

Armenia – classifications used Classifications currently in use: NACE rev.2 approved in 2009 CPA approved and used since 2011 ISCO approved in 2009, COICOP approved in 2012 FEACN applied since 2007 (Foreign Economic Activity Commodity Nomenclature, rev. 4) COFOG, ICSE-93 and ISCED-97 in use Changeover to NACE Rev.2 began in 2007 Previously NACE Rev.1 and OKED-2 of CISSTAT at 5-digit level NACE Rev. 2 in the BR from 2010 and NA from 2012 PPIs moved to CPA (from CIS classification) in 2009

Armenia – issues/challenges Extension of the glossary of terms on classifications and the related metadata The small number of experts dealing with classification issues Absence of a clear program for training of experts and users – consultant support needed Translation of the detailed description of goods into the national language Time series usually re-calculated 1-2 years back, depending on available resources

Armenia – GA assessment in 2009 Making good progress in implementing international classifications into national system of classifications Classification systems used are broadly consistent with international guidelines Implementation of CPA 2008 should be accelerated Improved user communication More frequent and regular information on changes in classifications Need for methodological training on classifications and their use

Azerbaijan – classifications used The Law on Official Statistics: obligatory for institutions, enterprises, and organizations to use international classifications for the exchange of information NACE used in business statistics since 1997 NACE Rev. 2 implemented as of 2010 (IFNT 2008) National product classification int. comparable since 2000 Now in use MNT 2009 = CPA 2008 List of industrial products SMST 2009 = PRODCOM (since 2010) COICOP in use since 2002 National Classification of Employment is based on ISCO-88 A number of correspondence tables have been prepared Now revising explanatory text for the product classification and preparing transition keys between HS – SITC rev4 – BEC

Azerbaijan – issues/challenges Up-to-date classifications used NSO has organized workshops on the application of classifications for respondents and tax authorities The assignment of NACE-codes to enterprises is a responsibility of the Ministry of Taxes NSO monitors NACE coding by quality surveys (carried out in 2004, 2006 and 2008 etc.) We should aim at the fullest compliance of product classification with the classification of activities!

Azerbaijan – GA assessment in 2010 The classification system is in line with international standards and recommendations Further activities are foreseen for improved and more efficient use of classifications A database on classifications is available to all respondents for downloading any classifications Adding search tools and explanatory notes was recommended

Belarus – classifications used National Classification based on NACE 1.1 → towards NACE Rev. 2 (now in SBS, in BR 2013) National Classification based on CPA 2002 → towards CPA 2008 Standard International Trade Classification (MSTK rev. 4/SITC rev. 4) Commodity Nomenclature of Foreign Economic Activity of the Customs Union (TN VED TC/FEACN CU), based on GS 2007/HS 2007 (KFOGU) COFOG, (KIPC) COICOP and (MSKO-97) ISCED-97 and (MSKZ) ISCO-88 also used International Statistical Classification of Diseases and Related Health Problems (MKB-10/ICD-10)

Belarus – coordination Several institutions are responsible for classifications: Belstat, the State Committee for Standardisation (Gosstandart), the Ministry of Labour and Social Protection, the Ministry of Education, and the State Committee on Property A uniform approach to developing classifications: Agency responsible for the development and maintenance of a national classification prepares a new version and sends it to all stakeholders for agreement After it is agreed, Gosstandart adopts a resolution Belstat takes a decision on its use in statistical practice Belstat generally initiates the implementation of a new classification in economic practice as well

Belarus – issues/challenges Adapting NACE and CPA to national circumstances, product standards and laws Need to harmonize the use of classifications within the government Lack or late receipt of methodological materials in Russian Methodology questions with certain activities (e.g. services, tourism) Guidance needed on recalculation of 6-10 years by using coefficients and on the surveys for calculating the coefficients Coding enterprises in BR, when micro-data is missing for earlier classifications Determining the value added for the individual stages of a vertically integrated process Specific questions about classifying certain activities or products Consistency needed for product and activity classification

Belarus – GA assessment in 2013 National classifications are based on international and interstate classifications taking into account national circumstances Strengthen the coordination role in developing new versions of classifications for state statistical activity Move as quickly as possible to classification of economic activities NACE rev. 2 to ensure comparability In business surveys for statistical year 2012 both the current and the new versions Economic Activity Classifications are used simultaneously

Georgia – classifications used The Charter of the NSO: among its objectives is to create and implement statistical classification systems NACE rev 1.1 and national 5-digit level (GNC 001-2004) in economic and business statistics, prices, wages and agricultural statistics Public administration widely applies NACE CPA (1996) is used as the adapted national version (CPA 002-99) COFOG is used for statistics on the government sector HS (2012), SITC rev.2 and BEC rev.2 and national extension used in external trade statistics ISCO-88, ICSE-93, ISCED-97 COICOP is also used for statistics on household consumption (consumer prices, household survey) The International Statistical Classification of Diseases and Related Health Problems, 10th Revision is in use

Georgia – issues/challenges No unit in charge of classifications, IT Division maintains a database Notable time lag in updating classifications – due to resources Ongoing revisions: NACE rev. 1.1 → rev. 2, ISCO-88 → 08, CPA later Economic surveys are non-mandatory: trade-off between needed information and quality that can be achieved Institutional independence of Geostat and official adoption of classifications (now going through the government) Involvement of other agencies: scope, extent and coordination Geostat has launched a working group on NACE and the changeover will be advanced in cooperation with Statistics Sweden Implementation in BR and business statistics’ survey to start in 2014, followed by national accounts in 2015 – recalculation for 3-5 years back How long to keep both versions of NACE? Recoding 1-to-1 / 1-to-many? The transition will be a good chance for updating NACE codes The website offers limited information on classifications

Georgia – GA assessment in 2013 The changeover to NACE rev.2 should be accelerated The stepwise transition to NACE rev.2 has to be planned carefully throughout all divisions of Geostat Coherence in using classifications across the national statistical system is a crucial issue for comparability of related statistical results A timetable for the changeover has to be agreed among all producers of official statistics and users of the NACE codes The transition plan has to cope with changes in data collections, adaptations in compilation practices Training in understanding and using NACE rev.2 should be offered in particular to other producers of official statistics A classification database as well as correspondence tables would support harmonised application of classifications Metadata should be presented which explain the classifications and guide their use

Kazakhstan – classifications used CPA 2008 used since 2009 (CPA in general since 2002) In 2009, surveys revised according to NACE rev. 2 NACE Rev. 2 codes to BR in 2008 (NACE Rev. 1.1. since 2004) As of 2010, data collected for SBS, sectoral statistics and NA in NACE Rev. 2 and CPA 2008 COICOP used for the Household Budget Survey, Price Statistics and Purchasing Power Parities (enhanced 8-digit) In the context of 2008 SNA, in 2012 approved: Classification of financial assets; and that of nonfinancial assets COFOG, COPNI, etc. ISCO-88, ICSE, ISCED-97 are used For exports and imports "Commodity Nomenclature for Foreign Economic Activity of CIS Countries" in line with HS and CN Uniform Budget Classification consistent with the GFSM 1986

Kazakhstan – issues/challenges Detailed description of international and national statistical classifications available in Russian New classifications usually implemented in less than 2 years Time series for 1998-2009 recalculated in 2011-2012, recalculation of 1990-1997 is planned for 2013 Based on both micro-data and conversion coefficients What is the difference between classes 64.20 "Activities of holding companies" and 70.10 "Activities of head offices“? Explanations needed for subtypes of CPA 2008 classification For example, production of alcohol from edible raw material with alcohol concentration of over 80% was in the old CPA included in food industry, but the CPA 2008 includes this in chemical industry (code 20.14.74) As a result, all factories for the production of  alimentary alcohol were moved from food industry to chemical industry

Kazakhstan – GA assessment in 2008 Many classifications of the European Statistical System introduced It would be important to set up a classification server for the statistical production process It should include the present classifications, the former classifications, transition keys, links between the classifications and links to other administrations that shall help to support a nation-wide harmonization of classifications The server could possibly be used by other public agencies Often classifications used in administrative registers differ from international classifications Interaction with register keepers could help Transition to new classifications needs time and resources – and training of staff

Kyrgyzstan – classifications used A web page on national and international classifications The main computing center has the task of harmonizing classifications National classifications are used e.g.: State Classification of the Kyrgyz Republic Types of Economic Activity (GKED, version 3) in line with NACE (since 2011) and using CIS-STAT classification as a model State statistical classification of products (GSKP) based on CPA and PRODCOM (since 2012) State Classification of Individual Consumption by Purpose (KIPTS) BR is dual coded in GKED 2 and 3, recalculating series Planning a release in the new GKED in the second half of 2013 Internationally consistent classifications: ICSE, ISCO, ISCED and COICOP

Kyrgyzstan – issues/challenges Some challenges in classifying units to particular sectors of the activity classifications: 10.51 Dairies and cheese 11.07 Soft drinks, production of mineral water and other bottled water 13.99 Manufacture of other textiles The more detailed new classification has led to a significant increase of work Encountered various problems and inconsistencies in the transition between the old and the new version of product classification

Kyrgyzstan – GA assessment in 2012 In general classifications used are consistent with international standards Some national classifications, e.g. the classification of products and that for occupations should be updated to new versions Recent efforts in further harmonizing national classifications internationally are important Update to NACE rev.2 will be necessary More metadata about the methods and classifications are needed Coverage of all business activities across NACE requires improvements, especially for small businesses

Moldova – classifications used NACE rev.2 (CAEM rev. 2) came into force on January 1st 2010 Dual coding of the SBS survey -> SBR -> SBS & STS statistics Annual surveys in 2013 in NACE rev. 2 and monthly in 2014 Adoption of the CSPM classification (CPA 2008) in 2013 Adoption of PRODMOLD (PRODCOM ) in 2013 COICOP and ISCO in use Statistical regions in line with NUTS to produce regional GDP by 2014 National Accounts sectorization internationally comparable Comprehensive documentation on classifications is published COFOG not yet implemented, but the existing classification, used by the Ministry of Finance, is not significantly different SITC and the Combined Nomenclature of Goods (HS/CN) are used in foreign trade statistics, but coordinated by the Ministry of Economy ISCO is coordinated by the Ministry of Labour, and ISCED by the Ministry of Education together with the NSO

Moldova – issues/challenges The Division of Statistical Infrastructure, with 10 staff members, is responsible inter alia for the development, implementation and maintenance of statistical classifications Not enough financial resources for special additional survey to support recoding of units in the new classification Uses existing surveys for SBS and bookkeeping reports, estimates Problems in keeping time series consistent (back-casting) How many years back to take data in a new classification in: Statistical business register, structural business statistics, short term statistics, national accounts Which methods are considered best for calculating previous years in the new classifications in: Statistical business register Structural business statistics Short-term statistics National accounts

Moldova – GA assessment in 2013 Making good progress in implementing international classifications Classification systems used are broadly consistent with international guidelines Implementation of NACE rev. 2 as planned in 2013 is strongly supported by the assessment Implementation of CPA 2008 should be targeted as soon as possible The NSO should coordinate all classifications used in statistics Clear procedures for updating the economic activities of entities (who is responsible, which sources can be used, when is information available) must be developed and implemented

Mongolia – classifications used International Standard Industrial Classification (ISIC) rev.4 Improved official adoption in 2011 Time series recalculation for 1990-2013 in 2011-2013 using dual coding and coefficients with benchmarking BR dual coded based on conversion tables and surveys In STS use of dual coding planned for 2013 Central Product Classification (CPC 2.0) Classification of Individual Consumption According to Purpose (COICOP) Classification of the Function of Government (COFOG) Classification of the Purposes of NPISH (COPNI)

Mongolia – issues/challenges Different types of outsourcing and interpreting the ownership principle cause problems Section J ”Information and communication” is problematic New terminology: holding company, head office, ancillary units, R&D and intellectual property Problems in linking some of the ISIC 3.1 groups to ISIC 4 Develop survey questionnaires for new sectors and updated sectors Update previous time series, recalculating process Usage of newly updated classifications Update CPC at a more detailed level Manufacturing service index for GDP and other NA’s estimations Mining support service activities for GDP and other NA’s estimations

Russian Federation – classifications used NACE rev. 1.1 used since 2007 (NACE Rev. 1 since 2001) Project for a changeover to NACE Rev. 2 on-going in 2013 National NACE Rev. 2 extended to 6-digit level OKPD = national classification of types of economic activities, products and services in line with CPA 2002 used since 2007 Project for a changeover to CPA 2008 on-going in 2013 National CPA 2008 extended to 8-digit level Russian classification of occupations (OKZ-93) Project for a changeover in line with ISCO 2008 in 2014 COICOP, the classification of institutional units (SNA-93) and the national classification of speciality by education (OKSO-2003) are also used

Russian Federation – issues/challenges To agree on classifications with the relevant ministries and implement changes to legal acts Examine, adopt and implement the new versions of classifications Review changes needed in statistical tools Recording of new codes in BR Creation of transition keys NACE Rev. 1.1 and 2 CPA 2002 and 2008 The NSO will stop applying, by 1 January 2015, NACE Rev. 1 and NACE Rev. 1.1, (OKDP) national classifier of types of economic activities, products and services, (OKUN) classifier of services rendered to the public, (OKP) products classification and (OKPD) product classification derived from CPA

Tajikistan – classifications used The Methodology and Classification Department is in charge ISIC 3.1/NACE 1.1 used in economic and business statistics In BR since 2000, dual coding available In SBS since 2010 Common Classification of Economic Activities (CCEA rev. 2), which structurally corresponds to NACE rev. 2, was developed in 2010 Implementation Plan for CCEA rev. 2 was developed Draft Classification of main products (9-digits) harmonized with CCEA rev. 2 was developed Population census applies ISIC 4/NACE rev.2, and the CIS-STAT 1993 recommendation on statistical classifiers and ISCO-88 The economic census of 2010 applied ISIC 4/NACE rev.2 COICOP, COFOG, HS, ISCO-88, ICSE-93 and ISCED-97 are in use International Classification of Diseases (ICD-10) in the vital register

Tajikistan – issues/challenges Long delays in changing to new versions of classifications hamper international comparability > causeS challenges for the coherence Resources are needed for updating classifications of economic statistics to NACE Rev.2 and CPA 2008 lack of qualified professionals > training for producers and users lack of funding Difficulties with recalculation of time series > 2 years will be calculated Lack of Russian translations of International classifications Coordination within TAJSTAT and with other producers There is no specific unit in charge of the Statistical Business Register Small production entities, individual entrepreneurs and informal economy are not well covered

Tajikistan – GA assessment in 2013 In general the international classifications are followed It is recommended that the NSO reinforces the role of the Methodological and Classification, including in quality monitoring International classifications should be implemented faster to maintain comparability of statistics The national classification of economic activities (OKVED) was recently revised to NACE rev 1.1 as of 2011, while NACE rev 2 would be available but the national product classification is not yet up-to-date with CPA 2008 The use of the updated classifications should be planned without delays for surveys and adjustment of data processing To maintain consistency this implementation should be well coordinated throughout the NSO and with providers of administrative data Some information on classifications is lacking, for example for CPI and PPI. There should be a systematic approach to metadata.

Ukraine – classifications used Law on State Statistics: one of the main tasks of the statistical bodies is to comply with international standards National classifications are based on : ISCE, ISCO, ISCED National Classification of Economic Activities was harmonized with NACE (rev. 1.1) at the class level, now NACE rev. 2 National classification of individual consumption by purpose is based on COICOP National classifications in line with NACE rev. 2 and CPA 2008 in used as of 2011/2012 Nomenclature of industrial products based on PRODCOM - additional 2 digits nationally since 2013 National customs classification of goods is based on HS / CN - additional 2 digits nationally

Ukraine – issues/challenges Coordination of the changeover to new classifications in the statistical system Reducing response burden as the guiding principle All activities of the classification update were done using existing tools and capabilities Some delay in updating the classifications, but a carefully organized and programmed process across different statistics Extensive user consultations were carried out and the process was transparent to users during the implementation

Ukraine – GA assessment in 2012 Many statistical classifications up-to-date as compared to international classifications – NACE Rev. 1.1 and CPA 2002 have now been updated NSS was working towards NACE rev. 2 aiming at gradual implementation by 2014 It is recommended to harmonize the Ukrainian Classification of Foreign Trade in Goods with the latest international classifications Coverage of all business activities across NACE requires improvements, especially for small businesses Metadata on classifications available on the website

Uzbekistan – classifications used National classification of economic activities, GCEA-2 Gradually implemented by 2014 in parallel – based on NACE rev.2 Classifications of goods, services, assets: CPA, FEACN (CN), COICOP, NPP (national nomenclature of industrial products), OKUVD (national classification of services), KOF national classification of the main funds (fixed assets) CPA2008 will be approved in 2013, implemented 2013-2015 COICOP 1999 – will come under review in 2014 Recalculations combining micro-data and coefficients Classifications for population statistics: ISCO, ICD, ISCED Regional nomenclatures: SOATO, Countries in the world; Functional classifications of the SNA Classifications of type of enterprise by the number of employed, classification of small enterprises and microenterprises, etc.

Uzbekistan – issues/challenges Action plan on the implementation of parallel calculations on the basis of GCEA-2 for 2012-2015 National methodological guidelines have been prepared for GDP and IIP calculation in the new classification Parallel use in statistical calculations of both classifications will be necessary for a long time Existing national classifications of industrial products and services were too or not enough disaggregated Correspondence tables are a necessity Some difficulties in interpreting the new activity and product classifications

Turkmenistan – issues/challenges What kind of classification are used? What are your main challenges with classifications currently? Plans to implement new versions of international classifications?