Copyright 2010, The World Bank Group. All Rights Reserved. The Statistical System Features and characteristics of statistical systems Part 1 Strengthening Statistics Produced in Collaboration between World Bank Institute and the Development Data Group (DECDG)

Copyright 2010, The World Bank Group. All Rights Reserved. National Statistical System The National Statistical System (NSS) consists of all statistics- producing entities functioning under the direct responsibility of the government of a country The core of the system consists of the National Statistical Office (NSO), statistical units in line ministries or specialized agencies and other organizations (for example the Central Bank) The ‘wider’ NSS also includes the users of statistics and the providers of basic data (persons, households, enterprises, institutions etc.); without data providers and data users the NSS would not exist The statistics produced by the NSS are called ‘official statistics’ Official statistics are financed by and under political and administrative control of governments 2

Copyright 2010, The World Bank Group. All Rights Reserved. NSS – core and wider system A system is defined by the elements constituting the system The nature of the system is defined by the relations between these elements The core statistical systems consist of all the statistics producing entities (independent units) The wider system also includes the data providers and the users In collaborative systems the elements work together on the basis of consensus and equal basis. In a hierarchical system one organization basically sets most of the rules Most statistical systems are a mixture of these two types 3

Copyright 2010, The World Bank Group. All Rights Reserved. Position of the NSO Usually there is one institution playing a key role in the NSS: the National Statistical Office (NSO) The NSO may be part of a government department, in an administrative and political sense The NSO may also have a more independent status as an agency or institute ‘Independence’, however, is always relative NSOs are largely financed from public funds In an administrative sense, they are therefore accountable to political entities The ‘political master’ of the NSO is often a minister, but other reporting relationships also exist (e.g. the president, or parliament) 4

Copyright 2010, The World Bank Group. All Rights Reserved. Types of statistical systems National statistical systems may be organized in different ways Basically, there are two types of systems: Centralized statistical systems, dominated by an NSO that is responsible for the production of most official statistics Decentralized statistical systems in which there are several institutions (ministries, agencies, etc.) producing statistics Even in centralized systems, the central bank is normally an important and independent producer of statistics 5

Copyright 2010, The World Bank Group. All Rights Reserved. Types of decentralization There are two basic types of decentralization: Functional decentralization: apart from the NSO, statistics are also produced by government departments, each for their own area of competence – ministries, agencies, central banks, and other institutions Regional decentralization: apart from the NSO, statistics are also produced by regional governments 6

Copyright 2010, The World Bank Group. All Rights Reserved. Forms of regional decentralization Regional decentralization may have two forms: Regional statistical offices are relatively independent from the NSO; this is particularly the case in federally structured countries In other systems, regional offices may just be charged with data collection (and sometimes data processing and dissemination), under the supervision of the NSO The supervision in the latter model may be: Direct: regional offices are subordinate to the national office and completely controlled by the NSO, and the staff is NSO staff; this is called a ‘vertical system’ Indirect: regional offices are subordinate to regional administrations and cooperate with the NSO on the basis of legal provisions or agreements; this is called a ‘horizontal system’ 7

Copyright 2010, The World Bank Group. All Rights Reserved. Characteristics of good statistical systems Good statistical systems are characterized by four core elements: ‘Independence’: the system must have a ‘widely acknowledged position of professional independence’ Relevance: the system must produce the statistics the users need Credibility: the system must produce statistics that are generally perceived to be reliable Coordination: the system produces statistics that are comparable across domains and over time 8

Copyright 2010, The World Bank Group. All Rights Reserved. Professional independence To be sufficiently independent the NSO must have the authority to: Make professional decisions about methodology Make professional decisions about staffing: appointment and promotion of statistical staff must be based on qualifications, not on bureaucratic rules Release statistical information without prior clearance, based on predetermined release schedules Explain statistics to legislature, media and the public Decide about priorities 9

Copyright 2010, The World Bank Group. All Rights Reserved. Release of information Decisions about the release of statistics must be made by the Chief Statistician A release calendar prevents delayed publication of politically unwelcome statistics Some important releases may be seen by a select number of government officials before publication, but the number should be very restricted and the time interval between pre-release and release very short; arrangements must be made public 10

Copyright 2010, The World Bank Group. All Rights Reserved. Setting priorities Given the available budget, decisions on priorities in statistical programs should in principle rest with the NSO (cost effectiveness) However, such decisions must always be based on broad support in society and politics (demand) Data needs to be provided that meets the user priority needs. (user needs) Moreover, there may be legal restraints; certain statistics may be required by law, e.g. the Population Census or the Consumer Price Index (legally obliged) Those surveys should be done that produce the best quality outcomes. (quality assurance) 11

Copyright 2010, The World Bank Group. All Rights Reserved. Relevance Statistical systems must be user-driven Tools to ensure relevance are: Securing advance information about user needs (e.g. through a user council) Programs that adapt relatively easily to changing needs Maintaining some flexible capabilities for ad hoc requests Becoming part of the international statistical network is important to keep abreast of new developments in statistics Users need to be informed. Most data series should be time series and not changed. 12