Report on the Implementation of the SNA 1993 in Africa 12/16/20151 UNECA Workshop on 1993 SNA November 2005

Contents I. Background and Assessment Methodology II Result of the UNECA Survey A. Compliance with the 1993 SNA B. Scope of Accounts and Tables III. Impeding Factors in the Implementation of the 1993 SNA A. Data Sources B. Institutional Issues IV UNECA Role in the Implementation of the 1993 SNA V. Points for Discussion

Measuring SNA 1993 Implementation 3 dimensions of SNA 93 implementation: Scope of accounts compiled: MRDS Compliance with concepts Quality

What is measured? NA Database records received by UNSD based on UN National Accounts Questionnaire (NAQ) Tables required: + GDP by type of expenditure in current and constant prices + Value added by kind of activity in current and const. prices = Milestone level Accounts for the Total Economy and the Rest of the World = Milestone level Components of Value Added by industry = Minimum requirement dataset (MRDS Minimum Requirement Dataset MRDS:

Scope: Data Availability in the ECA Region 1980s Almost 100 % of countries in Africa reported to UN National Accounts Questionnaire (NAQ) in 1986; 1990s Africa encounters a Statistical Divide between countries: some stopped reporting and some extended the scope of national account dissemination to the UN:  Significant drop in reporting: only 47 % (25 out of 53) of the African countries responded to the UN NAQ from 1992 to early 2003;  10 countries substantially extended their scope of reporting since 1992, of which 6 countries maintained the extended scope of the series after 1997 (i.e. Botswana, Lesotho, Mauritius, Namibia, South Africa, Tunisia)  3 countries are currently reporting a full set of institutional sector accounts (i.e. Botswana, Tunisia, and since 2003: Mozambique)

Two ways of 1993 SNA implementation… … and two groups of countries Major changes to 1993 SNA all at once: the majority of Western European countries and transition countries opted for this approach Step by step implementation Conceptual Compliance

 Idea: Focus on major conceptual differences between 1968 SNA and 1993 SNA, which affect GDP and GNI e.g.: - Is government defense expenditure on fixed assets that can be used for civilian purposes included in Gross Capital Formation ? - Does consumption of fixed capital CFC include CFC on all government fixed assets (roads, dams, hospitals, bridges, …) - … etc.  Mode of response: simple Yes / No – Evaluation Conceptual Questionnaire (CQ)  (=Self Assessment by National Statistical Institutes and Central Banks)

Compliance with 1993 Concepts in the regions of the world

Impeding factors Methodology An additional questionnaire module was developed to highlight factors that hindered the 1993 SNA implementation. The various impeding factors were: 1. institutional environment 2. staff resources 3. training, and 4. data sources

Compliance with the 1993 SNA Year Of Survey Number of Response Number of Countries Implemen ted the Concept Percentag e % %

MRDS and conceptual compliance So far, seven out of 28 countries both comply with the 1993 SNA concepts, country milestones and the MRDS. Moreover, some of the 1993 SNA implementers also compile the recommended data set of accounts including quarterly national accounts These 1993 SNA implementers include Botswana, Egypt, Morocco, Mozambique, South Africa and Tunisia.

MRDS and conceptual compliance Year of Survey Number of Response 1993SNA Implementer Percent age % %

1993SNA Implementers By reconciling survey results and country reports with database reporting, it is reasonable to state that around one fifth of African countries are 1993 SNA implementers software packages are consistent with the 1993 SNA concepts, and various stages comprise the compilation of certain sets of accounts, countries in advanced stages in the software are expected to be 1993 SNA implementers

Impeding Factors In the 1993 SNA Implementation Data sources A-Availability of sources: in several countries, some progress in availability of data sources, including Household survey Informal sector survey Agricultural survey Industrial survey Unemployment surveys Concern:methodology, scope, definitions, and frequency surveys consistency with the 1993SNA Efficient use of administrative records and Surveys

Impeding Factors In the 1993 SNA Implementation Data sources Availability of data sources is not the only concern processing these data into national accounts poses a challenge for compilers. The challenge is of particular concern when national accounts institutions are understaffed and resources limited. more consideration should also be focused on building capacity to process available data sources, including : creation of bridge tables and special interfaces between data sources and 1993SNA

Impeding Factors In the 1993 SNA Implementation Institutional Issues the number of national accountants fluctuates between three and twelve with the exception of Morocco, Nigeria, South Africa, Egypt, Tunisia, Cameroon, and Gabon with respectively 60, 57,38, 25, 20, 19 and 20 staff members in the SNA. Professional staff number from 3 to 6 in exceptional cases, ten professionals. Staff size and level may be related to the profile of national statistical agencies. From country to country: department, division or section may be in charge of compiling national accounts statistics.

1993SNA Implementers: Best Practices of Selected Countries Collaboration between the Reserve Bank and the Statistics on the compilation of financial sector accounts and GDP by expenditure. VAT database at the fiscal department is directly accessible by the Statistic Office From ten national accountants to almost sixty National Accountants Annual compilation of National accounts with the software application: long term investment

Partners`Initiatives on National Accounts Composed by two main activities : Financial Support : financing of project in compilation of National Accounts,including ICP- Africa in 51 countries and. Technical assistance (TA): Capacity Building activities including workshop, training and materials promotion (software and documents).

Partners`Initiatives on National Accounts:Conclusion Despite these joint effort through capacity building and funding, Implementation rates of 1993SNA remain low in Africa. Therefore mechanism and coordination of funding activities and the capacity building activities require to be reviewed The NSDS and Statistical Master Plans may be used as the major framework where donors and partners supports are channeled and harmonized to attain common targets

ECA and the Int`l organizations Role in The Implementation of 1993 SNA Advise on national statistical offices organization and management, including development of statistical master plans Conduct regular trainings and workshops on national accounts. Assist countries in the development of basic data, consistent with the 1993 SNA Assist with the processing of these basic data into national accounts Assist with various materials including documents and software

Points for Discussion Assessment methodology Recommendations to address the impeding factors in the implementation of the 1993 SNA Overall progress in the revision of the 1993 SNA The opportunity of the 1993 SNA revision to speed up its implementation in Africa