1. StatCap A new program for financing statistical capacity building

2. Overview Why statistical capacity building Why a new program StatCap
How it differs?
What will it finance?
Who are eligible?
How will it work?
M&E
Starting StatCap

3. Why statistical capacity building?
Agreement around the Millennium Development Goals
New emphasis on results expressed in the Monterrey consensus
In countries PRSP process has increased demand for data
Increased recognition of good statistics as element of good government
Importance of international statistical system increasingly recognized
A wide range of social, economic, demographic and environmental statistical data is needed to support the development process, to provide the evidence base for policy formulation, to support implementation, to monitor progress and to evaluate outcomes. A sophisticated international statistical system has been developed over the years to meet the needs of the development community, with a network of agencies compiling information and disseminating internationally comparable data. The quality of the output, however, is only as good as the source data, which originate from individual countries. Most of the data needed to monitor progress towards MDGs, for example, originate in national statistical systems, which must also provide data for national policy makers and the general public on a wide variety of topics. But the quality and availability of these data depend upon the capacity of institutions involved in national statistical systems, which are often undervalued and under-funded.

4. Why a new program? National statistical systems under pressure
Under-investment and a vicious cycle of poor performance and inadequate resources
Need to focus on both demand and supply
Need for a long-term approach
But focus on results and outputs
Many national statistical systems are caught in a vicious cycle where inadequate resources restrain output and undermine the quality of statistics, while the poor quality of statistics leads to lower demand and hence fewer resources. Sustainable improvement in the statistical systems of developing countries – true capacity building – requires programs to increase both the demand for and the supply of statistics. In other words, there must be a break in the cycle, encouraging countries to develop the capacity to conduct sophisticated statistical activities reflecting their own agenda and to make better use of these data in managing their development programs. StatCap has been designed to address this situation by providing substantial resources for both investment and current operations, based on a country-owned and developed strategy.
The need for action now is driven by the new demands for statistical data from the preparation of poverty reduction strategies, from the need to monitor progress towards the MDGs and by the new emphasis on implementation and results, post-Monterrey. While the World Bank and other donors have invested in statistical activities for many years, much of this investment has been piecemeal, uncoordinated and short-term, often as a component of another program. It has tended to focus more on meeting immediate demands of key users, rather than sustainable capacity building. To address these issues, StatCap is designed to enable countries to make significant investments in statistical capacity, to both improve efficiency and effectiveness in the future and finance the most urgent current statistical activities. It will be implemented using the principles of agreed by PARIS21 - an international consortium, sponsored by the UN, OECD, the World Bank, the IMF and the European Commission - of country ownership and donor coordination, adopting a long-term strategy, based on individual country needs and taking into account local conditions.

5. How StatCap differs?
A new WB lending multi-country program for statistical capacity building
System wide or focused on particular areas
An Adaptable Program Loan (APL), based on a sector wide approach
National projects will be phases of the APL
But projects may have several stages
Designed to be a simple, user-friendly lending program
StatCap will be a horizontal Adaptable Program Loan (APL), based on a sector wide approach. Under the APL, individual countries will obtain separate loans or credits to finance comprehensive or sectoral national statistical capacity building projects. National projects will be appraised and prepared for approval following normal provisions for investment lending*.
The program will treat specific country projects developed within the global framework as “phases” of a horizontal APL, with approval at the Vice President level. Countries may be grouped according to their readiness to undertake the initial set of assistance activities aimed at establishing capacity. The pre-conditions for countries to participate in the program will serve as the “triggers” in an APL for the start of a next phase. To support a long-term approach, countries may implement several linked projects, with the completion of the first serving as the trigger for the next, with appropriate indicators of success and agreed mechanisms for monitoring and evaluation.
* There are two other multi-country programs in the Bank now: HIV/AIDS prevention and control APLs for Africa and for the Caribbean region

6. What will StatCap finance?
Improving statistical policy and regulatory framework
Development of statistical infrastructure
Upgrading and developing statistical operations and procedures
Investment in physical infrastructure and equipment
Human resource development
A. Organizational development and management
А1. Streamlining the organizational set-up of the statistical system
A2. Building of institutional management systems
·         Financial Management and Planning
·         Human Resources Management
·         Document Management System
·         Quality Management
А3. Strengthening of the system of staff training and re-training
А4. Development of statistical data dissemination and users’ education strategy
А5. Improvement of relations with respondents and data providers
B. Statistical infrastructure
B1. Improvement of household sample frame;
B2. Establishment of the statistical register of enterprises and individual entrepreneurs;
B3. Introduction of the unified classification system;
B4. Improvement of legislative base of state statistical system.
C. Data development
Data collection modernization:
С1. Household sample surveys
С2. Integrated annual enterprise statistics
С3. Sub-annual surveys of economic activities are geared to upgrade data collection mechanisms.
The focal point of the data collection modernization is (i) development and implementation of multi-purpose sample household surveys; (ii) integration of the existing enterprise surveys; (iii) revision of data collection periodicity; and (iv) introduction of sampling methods into enterprise surveys. Streamlining of current data collection processes by:
Sub-components C4-C10 will allow to fully implement international standards in major data categories:
C4. National accounts
C5. Price statistics
C6. Government finance statistics
C7. Money and banking statistics
C8. Foreign trade and balance of payments
C9. Demography, social statistics and poverty statistics
C10. Other statistics
E. Introduction of modern information and communication technology
Information and communications technology (ICT) provides the backbone for efficiency gains and quality improvements and thus upgrading the ICT is a strategic theme. Procurement and development decisions will be made in accordance with a single, coherent and up-to-date ICT Strategy. They will include upgrading of: desktop hardware and software; internal computer network; database management and data processing systems; security, archiving and confidentiality protection systems; and data dissemination and exchange systems.

7. What will StatCap finance?
Ranges of indicative investments
Country size (millions of people)
Range (US$ mil) 1 10
8-12 20
15-25 50
25-35
100
30-50
1,000
Since project costs will be based on the situation in each country, and the strategic choices made in Statistical Master Plans, this analysis does not attempt to prescribe project costs. However, it is possible to make informed predictions, based on experience of existing capacity building projects. For example, the cost for a medium sized country of 20 million, over five years, is expected to be about $20 million, or $1 per capita. This roughly equates to the (empirically observed) expected cost of carrying out a full population census, which may be taken as a useful guide to estimate costs in smaller and larger countries. However, smaller countries will have higher relative costs compared to larger countries, because there will be economies of scale in larger countries – for example in the provision of consultancy support for the introduction of new techniques, or when conducting pilot surveys.

8. StatCap CANDIDATES
The Map is based on a “Statistical Capacity Score” for 125 countries[1], where a high score indicates a better compliance with good statistical practice.
The assessment includes the following 10 factors:
recent national accounts base year is within last 10 years;
(ii) compliance with the fifth edition of the Balance of Payments Manual;
(iii) vital registration system operating
(iv) SDDS subscription;
(v) population and
(vi) agricultural census within the last 10 years;
(vii) up-to-date reporting of the external debt;
(viii) export and import price (or unit values) indexes are compiled; (ix) the current CPI basket is less than 10 years old;
(x) sub-annual production index is compiled.
The underlying information is primarily data documentation in the 2002 WDI and August 2002 IFS.
A simple score based on what proportion of all criteria are satisfied places half of the countries at 40 percent or below and another one quarter between 41 and 60 percent. Many of the lowest scoring countries are in Sub-Saharan Africa, while those in the upper 20 percent are from the ECA and LCR.
[1] Excludes countries with a population below one million.

9. Eligibility criteria
Preparation of a National Statistical Development Strategy
National commitment and leadership
Willingness to comply with good statistical practice
Participation in global development and monitoring activities
1. National Statistical Development Strategy  
An eligible country would have a coherent national statistical strategy, prepared and owned by the country with broad involvement of key stakeholders, and have included financing for statistical development programs in the National Budget.
2. National commitment and leadership
An eligible country would have national commitment to have a strengthened statistical system. The country would also have on-going or planned public sector interventions in the area of use of statistical products to better design and manage policies, programs and resource allocation. It would also have a high-level leadership, including a well structured project management unit empowered to be proactive; a national leader/champion with sufficient stature to direct, coordinate, and oversee the implementation of strategy and action plan (e.g. National Statistical Council); an appropriate statistical legislation; evidence of current budgetary support for statistical development and provisions for statistical staff development and retention.
3. Willingness to comply with good statistical practice
An eligible country would have a commitment to use the internationally approved dissemination standards demonstrated by either aspiration to subscribe to the IMF Special Data Dissemination Standard (SDDS) or participation in the General Data Dissemination System (GDDS).
4. Participation in global development and monitoring activities
Participation of an eligible country in global development and monitoring activities, such as Poverty Reduction Strategy and Millennium Development Goals is a driver for the government to demand statistical information for policy decisions and progress monitoring. At the same time, it sets high national priorities to guide the development of national statistical programs.

10. How will StatCap work? Requires a Project Appraisal Document (PAD).
PAD will be based on a Statistical Master Plan (SMP) for the country
The SMP will cover the entire national statistical system, even if the project is to finance SCB in only one area
Participation in STATCAP will require the preparation of a Project Appraisal Document (PAD) using a standard template. The PAD will be based on interventions identified in a Statistical Master Plan (SMP) for the country. The SMP will cover the entire national statistical system and will draw on existing national strategies and capabilities, although the resulting Project may focus on specific sectors or take a comprehensive approach covering the entire statistical system. The SMP will provide the rationale for the proposed investment operation and supply the essential background information needed by the Task Team Leader to prepare the Project Appraisal Document (PAD). The structure of the SMP is designed to link directly to the preparation of the PAD.

11. Statistical Master Plan
Based on existing strategies and processes
Identifies strengths and weaknesses, opportunities and threats (SWOT)
Proposes an action plan
Action plan will cover
Statistical policy and the regulatory framework, management and organization
Statistical infrastructure
Statistical operations and procedures
Physical infrastructure and equipment.
The Statistical Master Plan covers the whole statistical system and would involve the evaluation of data users’ needs as well as data providers’ means, through a participatory process with national stakeholders and international donors. The Statistical Master Plan provides full evaluation of the existing state of the statistical system in the country, taking account of strengths and weaknesses, the extent to which the statistical system conforms to domestic data needs and international best practice in terms of standards and methodologies concerning data production and dissemination; sets out a viable, technically sound and user-oriented medium term work program with planned actions with roadmap and timetable, covering both data production and dissemination, and institutional reforms aimed at achieving cost effective and efficient statistical approaches, as well as key progress monitoring indicators for statistical improvements. The Statistical Master Plan should be validated through consultations with all major stakeholders and costed both in terms of domestic and external resources.

12. Monitoring and Evaluation
Identification of specific targets and indicators, according to goals set out in the SMP
Will use international standards
IMF’s GDDS/SDDS and DQAF
UN’s fundamental principles of official statistics
PARIS21 Indicators of statistical capacity building

13. Monitoring and Evaluation
Key performance indicators:
USER SATISFACTION
STATISTICAL QUALITY
RESPONDENT’S BURDEN
TIMELINESS
USER SATISFACTION
Rate of user satisfaction increases from x to y by end of program (include consultation, usefulness of products, etc.)
Targeted statistical products are easily accessible in relevant media with metadata and interpretation of findings, etc.
STATISTICAL QUALITY:
sound data sources used;
coverage of statistics improves or is more relevant
Increase in surveys response rates (e.g. from % to %)
RESPONDENT’S BURDEN
Increase in the rate of data provision of administrative statistics
TIMELINESS
Reduction in time lag between data collection and dissemination
Statistical outputs are released within the time limits and with frequency meeting GDDS/SDDS requirements

14. Trust Fund for Statistical Capacity Building
Can provide resources for the development of statistical development strategies
At present about 8 countries are preparing strategies and 4 more have applied for grants
TFSCB will be a major source of finance for the preparation of strategies and an SMP for countries participating in StatCap
Financial assistance for the preparation of the SMP and for country strategy processes may be available from the Trust Fund for Statistical Capacity Building (TFSCB) or other grant facilities.

15. TFSCB and SMP preparation
To facilitate the the process, TFSCB will develop
A template application for SMP funding from TFSCB (about $150,000)
Consultant’s guidelines for the SMP preparation
Fast track approval of SMP application