Colombia´s Country practice for the implementation of 2008 SNA Ana Victoria Vega A. Technical Director, National Accounts and Synthetic Statistics Division National Administrative Department of Statistics – DANE Colombia May, 2013

Colombia´s experience in the compilation of National Accounts Historical developments Colombia´s Central Bank (Banco de la Republica - BR) was in charge of the compilation of the official National Income Accounts Before 1970 In 1970, with a law assigning new responsibilities to Colombia’s Statistical Office (DANE), it was agreed that DANE would compile the official national accounts adopting SNA 1968´s recommendations; while setting up the system, the official data would be the BR’s figures BR would compile the financial accounts, consistent with DANE´s “real” accounts. France provided the required technical assistance. In 1970 National Accounts compiled by DANE were finally approved as Colombia´s official national accounts. At that time, the new series that was adopted covered the period, the financial accounts being compiled by BR. The price base was 1975 and the evaluation base year In 1983

Colombia´s experience in the compilation of National Accounts Historical developments Since under DANE´s responsibility, 4 bases have been compiled: Covering Covering Covering Covering 2000 – 2012 pr 2005 In 2013, preliminary exploratory works for a new 2015 base have been initiated.

Colombia´s experience in the compilation of National Accounts The scope of National Accounts Since DANE took up the responsibility of the compilation of National Accounts, the National Accounts covered not only complete goods and services commodity flow accounts, including supply and use tables, at current and constant prices, but also complete sectoral accounts, including financial accounts (under BR´s responsibility). The situation today Commodity flow balances at current and previous year’s constant prices in 369 products; Production accounts and supply and use tables at current and previous year´s constant prices in 369 products and 61 industries; FISIM is distributed among activities and as HFCE or IC Complete sectoral transaction accounts including financial accounts Availability of information Preliminary version (quarterly accounts) March n (n-1) Provisional version: March n (n-2) Final version:March n (n-3)

Colombia´s experience in the compilation of National Accounts Additionally, we compile or are in the process of compiling…. Quarterly National Accounts ( since st quarter 2013 to be released end of June 2013) Regional Accounts (by Departments) Back-casted series of Accounts (consistent series ) Satellite Accounts (in collaboration with Ministries…) Environmental Accounts Tourism Satellite Accounts ( ) Culture Satellite Accounts (new series underway) Health and Social insurance in Health Accounts (new series underway) Pension Satellite Accounts (underway) Satellite Accounts for the agroindustry Satellite Accounts for Household non-paid Work (underway)

Colombia’s NA compilation practice Main national policy challenges and implications for the scope and detail of the accounts and supporting statistics The measurement of the mining activity and of the reserve of ores minerals (part of non financial balance sheet…), making a difference between modern and traditional and small scale mining: compilation of complete production and institutional accounts; The effects of mining activity on the environment (environment accounts); The analysis and description of the financial activity, in particular that developed by non traditional actors (fund managers,..): typology, detailed integrated real and financial accounts;

Colombia’s NA compilation practice Main national policy challenges and implications for the scope and detail of the accounts and supporting statistics Within the accounts of financial and non financial companies, to separate and compare those foreign controlled (and relate with FATS statistics…); identification of transactions belonging to international trade in service Pension systems and pensions entitlements, including those (memo item) corresponding to social security funds; Employment and its productivity according to industry and forms of production (size, and forms of organization of the productive activity ) (PIPE policy..) Investment in civil works, Consumption of fixed capital by activity and sector: calculation of NVA and NOS

Requirements to improve the scope, detail and quality of NA Colombia’s NA compilation practice 1.Mining and its effects on the environment To open the classifications of NA products and activities to identify products and activities To develop registers of enterprises and establishments mostly in the case of small informal activities To develop the conceptual framework to study at the same time the different dimensions: products, activities, and institutional units, as well as FATS, capital stock and the environmental dimension Find or generate the associated information (anual, as well as monthly and quarterly indicators)

Colombia’s NA compilation practice Requirements to improve the scope, detail and quality of NA 2. Financial domain To state clearly the actual treatments and identify their limitations as compared with the recommendations included in 2008 SNA To review with the Superintendency of Finance and the Central Bank the implication of the application of the new recommendations To define how to operationalize a greater integration of the real and financial analysis (DANE compiles the «real» accounts, the CB compiles the «financial» accounts)

Colombia’s NA compilation practice Requirements to improve the scope, detail and quality of NA 3. Foreign controlled companies and FATS To collaborate with producers of foreign trade statistics on FATS To collaborate within DANE and CB to identify foreign controlled companies To study the information already available as administrative records To generate a questionnaire to collect the missing information To generate a pressure to convert this topic as a current topic within the statistical system

Colombia’s NA compilation practice Requirements to improve the scope, detail and quality of NA 4. The pension system and estimation of pensions entitlements To participate actively in the interinstitutional platform reviewing public finance statistics and their consistency among entities; To improve the institutional analysis and gain total coordination in the case of pensions which payments falls enterily under the government’s responsibility Calculation of pensions entitlements, even in the case of social security (pro- memoria item) To anticipate the effects of the reform of the pension system in course Treatment of specific types of transactions and funds associated with pensions

Colombia’s NA compilation practice Requirements to improve the scope, detail and quality of NA 5. Employment and productivity of labor To reinforce tasks already performed with the employment matrix to answer questions on labor productivity and its costs To breakdown activities according to forms of production and size of business Improve the Business Registers and coverage of structural statistics Improve the LFS to obtain consistent information overtime of its distribution by activities and change

Colombia’s NA compilation practice Requirements to improve the scope, detail and quality of NA 6. Civil works and investment in infrastructure To review the incidence of the mode of contracting whith entrepreneurs and the intruments used for the follow-up of the works with the reporting units To improve the present quarterly indicator in order to align it with the annual one 7. Fixed capital consumption by activities and institutional sector to improve the meaning of Value Added and Operating Surplus Presently, FCC is only calculated for Government, and globally Use the historical series of information on GFCF to generate a calculation of FCC

Colombia’s NA compilation practice Main statistical actions organized by priorities for gradual and phased implementation of 2008 SNA As explained, Colombia is well advanced in the implementation of basic National Accounts recommendations; In DANE, DSCN does not have much influence on the statistical priorities of the whole statistical system as NA are considered as one statistical operation among others;

Colombia’s NA compilation practice Main statistical actions organized by priorities for gradual and phased implementation of 2008 SNA The actions that have been taken to date: Revision of products and activities classifications and proposal for a totally consistent system with international classifications; Advance in the identification and treatment of auxiliary units; Proposal for a new method for the compilation of Production and Supply and use tables at current and constant prices; update of technical coefficients; Analysis of the social insurance system; The study of the implications of the new recommendations, their viability and definition of priorities

Colombia’s NA compilation practice Required support for the implementation of the SNA Conceptual support on the topics previously mentioned under the form of: Documentation Technical assistance on specific issues (the financial topic, civil works, balance accounts and CCF), and general review of the work done

Colombia’s NA compilation practice Required support for the implementation of the SNA Policy support: That NA requirements should be given more attention in the Statistical System: Coverage of structural statistics (presently, only big enterprises are included); review of scope of surveys on services Conceptual and operative coordination with other statistical operations (classifications, Business Registers) Comparability overtime of periodic observations Consistency among instruments (structural statistics, microestablishments, LFS including informal employment)

Colombia´s Country practice for the implementation of 2008 SNA Ana Victoria Vega A. Technical Director, National Accounts and Synthetic Statistics Division National Administrative Department of Statistics – DANE Colombia May, 2013