1. 17-19 October 2012, Pretoria, South Africa
Towards Implementation of the 2008 SNA in Africa: Importance, Challenges, and Road Map
Xiaoning Gong
Chief, Economic Statistics and National Accounts Section
African Centre for Statistics (ACS)
United Nations Economic Commission for Africa (UNECA) at
Seminar on Developing a Programme for the Implementation of 2008 SNA and Supporting Statistics in Southern Africa,
17-19 October 2012, Pretoria, South Africa

2. Presentation Outline
Importance of the System of National Accounts (SNA)
Current Status of SNA in African Countries
Road Map towards Implementation of SNA 2008

3. Importance of SNA
National Accounts are, arguably, one of the most important modern tools of economic analysis and policy making:
Systematic and strong base of macroeconomics
Application of double-entry accounting principle
International standard methodology
Mathematization and computerization of the work
Complete picture of whole economic process
High relevance and orientation of current policies
At least four Nobel Prices in economics were awarded to persons who contributed to the development of NA: Simon Kuznets, Richard Stone, Wassily Leontief, and Jan Tinbergen.
Application of macro-econ: The Great Depression and the Second World War rekindled interest in macroeconomic theorizing. Most importantly, the work of Keynes (especially his General Theory) was accepted as guiding by most of those working on the new systems of national accounting.
Double entry bookkeeping technique goes to the heart of the new system. The systematic application of modern tenets of macroeconomic theory to NA seemed to require the introduction of the DEB. It permits relating flows of expenditures to incomes, production to consumption, or savings to investments.
Increased policy orientation: Policy needs for aggregate economic measurement. The two outstanding demands came from the calamities of the Great Depression and the Second World War both of which engulfed most countries in a profound way.
Portrayal of the whole economic process: It is comprehensive and detailed. National accounting work today provides for the relating of all such macro-econ efforts to each other.
Internationalization of methodological development: Since WWII, it witnessed unprecedented international interaction and cooperation in respect of developing national accounts.
Mathematization and computerization of the work: input-output system of Wassily Leontief and the econometric work of Jan Tinbergen. Computers became all pervasive and an integral part of statistical works on national accounting practically everywhere.

4. Importance of SNA: Chinese GDP in USD

5. Current Status of SNA in African Countries
Limited Human, Financial, and Technical Resources
Weak Capacity and Statistical Infrastructure
Unharmonious National Accounts Systems in the Continent
Inconsistency and Incompleteness in the Data Coverage of the Economy
Early Stages in the Development of National Accounts

6. Limited Human, Financial, and Technical Resources
National Accounts in Africa is mainly compiled by
National Statistical Offices (89%)
Other Ministries & Central Banks (11%)
Average number of NA Statisticians per country = 8
High turnover rate: 4 professional staff have left from the NA Department in the last five years
Half of the countries: “Number of PC available in NA Department” < “Number of National Accounts staff”

7. Weak Capacity and Statistical Infrastructure
Relied mostly (60%70%) on Administrative Records to meet the minimum requirement datasets for National Accounts
Analytical capacity, dissemination, and networks with users and respondents:
On average, it takes 5 months to release the first estimate
The final estimate takes around 17 months
Advance release calendar exists only in about half of the countries

8. Unharmonious National Accounts Systems in the Continent
ISIC
SNA
CPC

9. Inconsistency and Incompleteness in the Data Coverage of the Economy
According to ICP-Africa 2005, the following areas have not been well captured:
Imputed rents of owner-occupied dwellings
Own-account production and consumption
Informal sector
Non-profit institutions and civil societies
State and local government, and
Aid agencies

10. Early Stages in the Development of National Accounts
20% of the total African countries have reached only to Milestone 1: Basic Indicators of GDP at Current and Constant Prices; Final Expenditures on GDP and GDP by Industry.
65% have so far reached to Milestone 2: to produce additional economic aggregates of GNI, and other primary indicators; External Account of Primary Income and Current Transfers, Capital and Financial Accounts for the Rest of the World.
15% (eight) African countries have reached to Milestone 3: Production Account for All Institutional Sectors; while Income Accounts, Capital Accounts, and Financial Accounts for General Government.

11. Road Map towards Implementation of SNA 2008
SNA Regional ProDoc: Scheme
Contents of main activities and
Roles played by AGNA members

12. SNA Regional ProDoc: Scheme
Institutional Strengthening
Advocacy Campaign
Methodological Development
Training
Technical Assistance
Monitoring, Evaluation and Reporting

13. Methodological Development
To develop a set of manuals/handbooks/guides for implementation of SNA 2008
To discuss and find solutions for technical issues and challenges in the implementation of SNA 2008 in Africa
To be carried out by Task Force Teams of AGNA
Methodological Development
Countries
RECs
Pan-African Inst. 13

14. Capacity Building: Training
Self-training of AGNA through Task Teams working on technical issues
Regional seminars/workshops/meetings to disseminate Manuals/Handbooks/Guides
Training of national accountants at national levels by AGNA members
Training
Countries
RECs
Pan-African Inst. 14

15. Capacity Building: Technical Assistance
Provided by Pan-African Institutions, RECs, Regional National Accounts Advisors upon the request of Member States
To countries: lagging behind in the implementation of the 1993 SNA, ICP Africa 2005 non-participating countries, and Fragile and Small Developing countries
Technical Assistance
RECs
Pan-African Inst. 15

16. Institutional Strengthening
Through AGNA, to establish commonly agreed timelines, procedures, and standards in the Continent, e.g.:
To compile NA statistics according to timeline in respect of the national, sub-regional, and regional requirements
To optimize and rationalize production and analysis of NA
To develop training programs and modules of NA
To set up national accountant’s profile
Institutional Strengthening
Countries
RECs
Pan-African Inst. 16

17. Advocacy Campaign
To organize advocacy at continental, sub-regional, and national levels: e.g. through DG meetings, Conference of Ministers, Summits of Heads of States, and parliaments
Prepare advocacy materials and tools to publicize and sensitize the usefulness of NA statistics in policy- and decision-making for governments and publics
Advocacy Campaign
Countries
RECs
Pan-African Inst. 17

18. Monitoring, Evaluation and Reporting
To develop tools, framework, and procedure of and to carry out monitoring, evaluation and reporting activities for the implementation of the 2008 SNA
It is to be conducted by Pan-African Institutions, RECs, and Member States at the Continent, sub-regional, and national levels
Peer review among countries
Monitoring, Evaluation and Reporting
Countries
RECs
Pan-African Inst. 18

19. Summary Importance of the System of National Accounts (SNA)
one of the most important tools of economic analysis and policy making
Systematic application of macroeconomic theory
Portrayal of the whole economic process
Current Status of SNA in African Countries
Limited resources and weak capacity
Not harmonious and inconsistent and Incomplete Coverage
At an early stage of the development of national accounts
Road Map towards Implementation of SNA 2008
Six activities and
Work together by sharing responsibilities among AGNA

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