1. Improving the scope detail and quality of the national accounts AGNA Meeting 12 – 15 May 2015 Addis Ababa, Ethiopia, United Nations Statistics Division 1

2. 2 Outline Introduction Scope and Compliance Measures for the 2008 SNA Availability, timeliness of annual reporting from a global perspective. Compliance with the 1993 / 2008 SNA and ISIC Rev. 3.1 / 4. Scope of national accounts statistics reported to the UNSD. Template to design country action plans - Statement of strategy

3. For monitoring the implementation of the 1993 SNA the ISWGNA developed a set of six milestones to assess the scope of accounts that are compiled by countries. These milestones were later supplemented by three data sets describing (a) minimum set of accounts that need to be compiled; (b) a recommended set of accounts; and (c) a desired set of accounts. To assess the compliance with major 1993 SNA concepts the ISWGNA developed a set of questions. The quality of the national accounts dimension was assessed using the IMF quality assessment framework Introduction

4. The elements of the scope and compliance measures used for the 1993 SNA are deemed to be adequate to also assess the scope and compliance for the 2008 SNA. However, the need for more timely information to facilitate appropriate policy responses highlights the importance to include also the compilation of quarterly national accounts, which require some adjustments to the scope measure as reflected by the required data set measure. The compliance questionnaire was adjusted to reflect the 2008 SNA concepts for determining the conceptual adherence to the 2008 SNA. Scope and Compliance Measures for the 2008 SNA

5. 5 Availability, timeliness of annual reporting Almost all countries are reporting annual national accounts to UNSD, many countries with a time lag of more than one year. Most countries currently compliant with the 1993 SNA and ISIC Rev. 3.1, with some countries using the 1968 SNA. Many countries are not able to submit the minimum requirement data set (as defined by the UNSC) to the UNSD.

6. Number of countries reporting annually for the reporting period 2001 to 2013 6

7. 7 Total number of countries Number of countries that replied to the UN-NAQ At least once between 2009- 2013 NAQ 2012 NAQ 2013 NAQ 2013 with 2013 data available NAQ 2014 NAQ 2014 with 2014 data available UN Member States 193183 (95%)166165107 (65%)8743 (49%) Developed countries 4443 (98%)43 31 (72%)134 (31%) Developing countries 137130 (95%)11311266 (59%)6536 (55%) CIS countries1210 (83%)10 10 (100%)96 (50%) African countries 5449 (91%)414022 (55%)2110 (48%) Number of countries reporting annually and data availability

8. Number of countries reporting annually and data availability

9. Number of countries compliant with the 1968, 1993 and 2008 SNA 59 Member States have implemented the 2008 SNA Some Member States have opted to introduce certain aspects of 2008 SNA in a gradual implementation of the 2008 SNA 13% of Member States still use 1968 SNA (24% of African countries) 77 Member States are implementing or partially implementing ISIC Rev. 4. Total number of countries 1968 SNA compliant 1993 SNA compliant 2008 SNA compliant UN Member States 1932610859 Developed countries 441637 Developing countries 137259121 CIS120111 African countries 5413356

10. Number of countries submitting the tables of the MRDS GDPe C 1.1 GDPe K 1.2 GDPp C 2.1 / 2.4 GDPp K 2.2 / 2.5 GDPp detail 2.3 / 2.6 IEA Total 1.3 / 4.1 IEA RoW 4.2 UN Member States 193 168144177172136147101 Developed countries 44 43424443 4135 Developing countries 137 11593123119839658 CIS12 109 8 African countries 54 43374644253019

11. Per cent countries submitting the MRDS

12. 12 Scope of National Accounts Statistics Total number of countries MRDSMilestone Level Six or more tables Seven tables1 or higher 2 Seven tables submitted UN Member States 193120 (62%)93 (48%)169 (88%)93 (48%) Developed countries 4440 (91%)34 (77%)43 (98%)34 (77%) Developing countries 13771 (51%)51 (36%)116 (85%)51 (36%) CIS129 (75%)8 (67%)10 (83%)8 (67%) African countries 5422 (41%)18 (33%)43 (80%)18 (33%)

13.  a strategic planning frame work for the development of a statistics programme to meet policy needs  set of actions to accomplish statistical and institutional goals for the sustainable improvement of the statistics programmes Statement of strategy as template for country action plans

14.  Policy documents, NSDS, etc.  Regional strategic frameworks for statistical capacity building  Regulatory and institutional framework  Statistical infrastructure  Statistical operations Statement of Strategy – take into account

15.  Confrontation of  Goals – as determined by international recommendations and policy needs – compliance  Requirements to meet goals – administrative and survey resources  Current status – present practices  Actions – to remedy the shortcomings Consolidation of statistical requirements, assessments and actions

16. Required actions to be carried out:  Regulatory and institutional framework – strengthening the functioning of NSS, its programming, management and performance  Statistical infrastructure – strengthening the use of standards (2008 SNA), classifications (ISIC Rev 4), registers and frames  Statistical operations – strengthening of data collection, compilation, dissemination and analysis Statement of strategy

17.  Improve statistical legislation, code of conduct, service agreements for NSS  Comply with standards: 2008 SNA, ISIC rev 4, etc.  Upgrade of business registers and area frames  Extend use of administrative data  Increase periodicity and timeliness of data (price statistics, production and turnover surveys)  Integrate survey and questionnaire design of economic activity surveys (structural business statistics and short term business statistics)  Integrate survey and questionnaire design of household surveys (labour and income and expenditure surveys)  Extend coverage of enterprises (informal sector surveys etc. Examples of actions

18.  Indicates the interventions to be carried out with a timetable to mitigate data gaps.  Provides an information structure for monitoring and evaluating the implementation of the SNA.  Needs to be specific, measurable, relevant and be executed in a particular time scale.  Each of the required actions needs to include key features and key deliverables. Action plan

19. Integrated statistics approach  Scope of the statistics programme goes beyond the production of national accounts to also cover the statistical production process of basic statistics and to aspects of the institutional environment  It is, thus, based on an integrated statistics approach which  Produces statistics that present a consistent and coherent picture of economic activities for policy, business and other analytical uses  Uses common concepts, definitions, estimation methods and data sources for statistical reconciliation  Moves away from a narrow stove-pipe statistical production model to cross-functional holistic model 19

20. Integrated statistics approach  Common conceptual framework provided by the SNA  Institutional arrangements (legislative, organizational, budgetary, managerial and customer relationship arrangements) further support the environment for integration  Statistical production process as an integrated production chain from the collection of basic data to the dissemination of statistics 20 Building blocks

21. Integrated statistics approach 21 Institutional arrangements Institutional setting Management and internal policy Information, Communication Technology (ICT) Standards and methods Statistical infrastructure Data collection Data processing Data integration Registers and frames Surveys Inputs Macroeconomic accounts Household and demographic statistics Economic & environmental statistics Outputs / Dissemination Statistical operations

22. SNA implementation goals :  MRDS  Improve quality of NA Statement of strategy :  requires agreement by the national statistical system (data producer, provider and user), high political support and donor consultation  is basis for formulating a national implementation programme using an integrated statistics approach  is basis for actively seeking funding for implementation programmes from own sources and donors Conclusion

23. 23 Thank you sna@un.org http://unstats.un.org/unsd/nationalaccount/default.asp

24. NAQ Table Number Annual AccountsQuarterly Accounts GDP, value added and employment Nominal and volume measure of GDP by industry or by expenditure components Minimum requirement 1.1Expenditures of the GDP in current pricesMinimum requirement Optional Minimum Requirement 1.2Expenditures of the GDP in constant pricesMinimum requirement Optional Minimum Requirement 2.1Value added and GDP in current prices by industryMinimum requirement Optional Minimum Requirement 2.2Value added and GDP in constant prices by industryMinimum requirement Optional Minimum Requirement 2.3 Value-added components by industry, current pricesMinimum requirementRecommended Employment by industryMinimum requirementRecommended Scope of the implementation of the 2008 SNA: The Data Sets

25. NAQ Table NumberAnnual AccountsQuarterly Accounts Integrated accounts and tables, including integrated satellite accounts 1.3 / 4.1 Accounts for the total economy (until net lending) Minimum requirement Supply and use tableRecommendedDesirable 5.1 Cross-classification of output/value added by industries and sectors Recommended Tourism accounts, environmental accounts and other socio-economic accounts * Scope of the implementation of the 2008 SNA: The Data Sets

26. NAQ Table Number Annual AccountsQuarterly Accounts Purpose classification of expenditures 3.1 General government final consumption (and other) expenditure by purpose in current prices Recommended General government final consumption expenditure by purpose at constant prices * 3.2 Individual consumption (and other) expenditures by purpose in current prices Recommended Individual consumption expenditures by purpose at constant prices * Purpose classification of intermediate and final consumption across all sectors* Scope of the implementation of the 2008 SNA: The Data Sets

27. NAQ Table NumberAnnual Accounts Quarterly Accounts Institutional sector accounts (until net lending) 4.2Rest of the world accounts (until net lending)Minimum requirement 4.3 Non-financial corporations sector accounts (until net lending) Minimum requirementRecommended 4.4Financial corporations accounts (until net lending)Minimum requirementRecommended 4.5General government sector accounts (until net lending)Minimum requirementRecommended 4.6Household sector accounts (until net lending)Minimum requirementRecommended 4.7 Non-profit institutions serving households sector accounts (until net lending) Minimum requirementRecommended Financial accounts 4.1 – 4.7 Financial accounts for all sectorsRecommendedDesirable Balance sheets and other changes in asset accounts Balance sheets, revaluation and other volume changes in asset accounts for all sectors RecommendedDesirable Scope of the implementation of the 2008 SNA: The Data Sets

28. Scope of the implementation of the 2008 SNA: Milestones Implementation milestonesComplementary data systems SNA-related data and development Pre-SNA phases  Basic data on production, turnover, consumption, investment, exports and imports  Consumer and producer price indices  Balance of payments goods and services account  Monetary survey statistics Milestone 1. Basic indicators of gross domestic product (GDP) - Final expenditures on GDP current and constant prices - GDP by industry at current and constant prices  Supply and use table worksheets  Balance of payments: current, capital and financial accounts  Government finance statistics (GFS) transaction accounts Milestone 2. Gross national income and other primary indicators - For rest of the world, external account of primary incomes and current transfers - Capital and financial accounts  Capital stock statistics  International investment position  GFS transactions and stocks in assets and liabilities  Monetary and financial statistics  Quarterly national accounts  Regional accounts  Satellite accounts for environment and other satellite accounts  Input-output analysis

29. Implementation milestonesComplementary data systems SNA-related data and development Milestone 3. Institutional sector accounts: first step:  for all institutional sectors Production account  for general government Generation of income, Allocation of primary income, Secondary distribution income, Use of disposable income, Capital and financial accounts  Same as for milestone 2 Milestone 4. Institutional sector accounts: intermediate step 1:  for all institutional sectors Generation of income Allocation of primary income Secondary distribution of income Use of disposable income Capital accounts  Same as for milestone 2 Milestone 5. Institutional sector accounts: intermediate step 2:  for all institutional sectors Financial account  Same as for milestone 2 Milestone 6. Institutional sector accounts: final step:  for all institutional sectors Other changes in assets account Balance sheet  Same as for milestone 2 Scope of the implementation of the 2008 SNA: Milestones

30. Conceptual Compliance Questionnaire for the 2008 SNA Question: Does your country’s reported national accounts data currently include estimates for: YesNoPartlyna Elements affecting the level of GDP Gross capital formation (GCF)/output 1. the entire defence expenditure incurred by government included in the GCF? 2. consumption of fixed capital measured on all government fixed assets (airfields, roads, hospitals, docks, dams and breakwaters and other forms of construction except structures) including military weapon systems? 3. the expenditure on Research and Development included in the output and GCF? 4. all (successful and unsuccessful) mineral exploration expenditure capitalized? 5. purchases of computer software expected to be used for more than a year included in GCF? 6. expenditure on software development on own account expected to be used for more than a year and for sale included in GCF and output? 7. the expenditure on all databases expected to be used for more than a year, whether purchased on the market or developed in-house, included in the GCF and output?

31. Question: Does your country’s reported national accounts data currently include estimates for: YesNoPartlyna 8. expenditure on entertainment, literary or artistic originals included in the GCF and on their development included in the output? 9. expenditure on valuables included in the GCF? 10. the natural growth of cultivated forests included in output in GCF? 11. the output of financial intermediation services indirectly measured (FISIM) calculated on loans and deposits only using interest rates on deposits and loans and a reference rate of interest? 12. the output of FISIM allocated to users? 13. the production of all goods that are produced by households whether for sale or not —included in the output? 14. the activity of the own-account money lenders included in the output? 15. the value of output of goods and services produced by households and corporations for own final use, when estimated on cost basis, include a return to capital? 16. the output of non-life insurance services in the event of catastrophic losses estimated using adjusted claims and adjusted premium supplements? Conceptual Compliance Questionnaire for the 2008 SNA

32. Question: Does your country’s reported national accounts data currently include estimates for: YesNoPartlyna 17. the output of the Central Bank estimated separately for financial intermediation services, monetary policy services and supervisory services overseeing financial corporations? 18. the unit undertaking purely ancillary activity, located in a geographically separate location from establishments it serves, treated as a separate establishment? 19. the output of the activity of non-autonomous pension funds and unfunded pension schemes separately recognised? Volume estimates 20. volumes estimated using a chaining procedure on an annual basis? Social contributions/insurance 21. unfunded social contributions (for sickness, unemployment, retirement etc.) by enterprises imputed as compensation of employees and included as contributions to social insurance? 22. non-life insurance estimates include premium supplements rather than being based just on premiums less claims? 23. life insurance estimates include premium supplements rather than being based just on premiums less claims? Conceptual Compliance Questionnaire for the 2008 SNA

33. Question: Does your country’s reported national accounts data currently include estimates for: YesNoPartlyna Elements affecting GNI 24. reinvested earnings estimates included in the rest of the world account? 25. foreign workers’ remittances excluded from GNI? Elements not affecting the level of GDP/GNI Valuation of output 26.a output and value added measured at basic prices? a 26.b output and value added measured at producers’ prices? a 26.c value added measured at factor cost? a (not part of the 2008 SNA) 27. the goods for processing recorded on a net basis? Conceptual Compliance Questionnaire for the 2008 SNA

34. Question: Does your country’s reported national accounts data currently include estimates for: YesNoPartlyna Final consumption 28. government final consumption expenditure broken down into individual and collective consumption? Status of implementation of the 2008 SNA 29. the 2008 SNA has not been implemented in officially reported national accounts, when does the country plan to implement and release data based on the 2008 SNA? (Specify the year.) Conceptual Compliance Questionnaire for the 2008 SNA

35. Statement of Strategy  A strategic planning frame for the development of an economic statistics program that meets policy needs  Set of actions to achieve statistical and institutional goals for the sustainable improvement of the economic statistics capacity Consists of:  Policy documents, NSDS, etc.  Regional strategic frameworks for statistical capacity building  Regulatory and institutional framework  Statistical infrastructure  Statistical operations and takes into account:

36. Elements of a sound Statement of strategy /1  Legal mandate (Statistical Act)  International standards UN Fundamental Principles of Official Statistics 2008 SNA, BPM6, GFSM, ISIC Rev4 Mandate, is determined by national and regional policy objectives and underpinned by the regulatory and institutional framework  The efficient and timely dissemination of high quality national accounts and supporting economic statistics in response to policy needs in an interconnected regional and global economic environment Mission statement describes the purpose, users, outputs, markets, philosophy and basic technology

37. Elements of a sound Statement of strategy /2  Statistical professionalism  Independence and integrity  Customers oriented services  Respect and understanding for data suppliers  Value for money Values need to reflect the values and principles portrayed by the UN Fundamental Principles of Official Statistics to produce useful high-quality data

38. Elements of a sound Statement of strategy /3  Improving scope, quality and timeliness of economic statistics  Minimizing response burden  Increasing use of administrative data for statistical purposes  Achieving cost effectiveness using best practices  Raising public awareness and use of national accounts and economic statistics High-level objectives that represent the strategic accomplishments to be achieved

39. Elements of a sound Statement of strategy /4  Compile national accounts according to milestone two of MRDS  Develop a national hub for short-term economic statistics Specific goals to be set in order to achieve the high-level objectives  Regulatory and institutional framework – strengthening the functioning of NSS, its programming, management and performance  Statistical infrastructure – strengthening of use of standards (2008 SNA), classifications (ISIC Rev 4), registers and frames  Statistical operations – strengthening of data collection, compilation, dissemination and analysis With required actions to be carried out: For more information: http://unstats.un.org/unsd/nationalaccount/docs/stemplate.dochttp://unstats.un.org/unsd/nationalaccount/docs/stemplate.doc

40. Tools for development of Statement of Strategy /1  Overview of the national policy priorities and national plans  Overview of policy and statistical initiatives of international and regional organizations into a single framework Statistical System information - Country Fact Sheet to facilitate the assessment and assist in developing the statement of strategy Allows for collating information available at the national level and at various international organisations on the national statistics system

41. For more information visit: http://unstats.un.org/unsd/nationalaccount/cProfile.asphttp://unstats.un.org/unsd/nationalaccount/cProfile.asp

42. Tools for development of Statement of Strategy /2  Providing a clear picture of the state of development of a national statistical system: infrastructure, production processes, data availability…  Helping to set realistic and sustainable objectives in term of development of statistical capacities for the production of national accounts  Assessing the gap between where we stand and where we want to be  Allowing multilateral and bilateral donors to better design their technical assistance projects and enhance the coordination of their respective activities Diagnostic tools aim at improving the scope, detail, frequency and quality of the basic economic and supporting statistics required for the compilation of SNA by:

43. Tools for development of Statement of Strategy /3  is based on the widely used CES Classification of Statistical Activities  provides a structured presentation of statistical activities aimed at collecting, producing and disseminating data, developing standards, harmonization and implementation of statistics. Statistical activities are organized in five statistical domains  allows assessment of economic activities in terms of: This allows the Statistical productions process Institutional organization and Managerial aspects of official statistics UNSD proposes a generic diagnostic tool that: For more information: http://unstats.un.org/unsd/nationalaccount/docs/WG4_20DiagnosticTool.pdf and http://unstats.un.org/unsd/nationalaccount/docs/evaluation.dochttp://unstats.un.org/unsd/nationalaccount/docs/WG4_20DiagnosticTool.pdfhttp://unstats.un.org/unsd/nationalaccount/docs/evaluation.doc

44. Tools for development of Statement of Strategy /4  UNECE/ESCAP/Eurostat/EFTA Global Assessment of National Statistical Systems: http://www.unece.org/statcoop/ga.html http://www.unece.org/statcoop/ga.html  OECD Statistical System Assessments; e.g. Russia: http://www.oecd.org/std/Assessment-of-the-Statistical-System-and-Key-Statistics-of-the- Russian-Federation.pdfssessments http://www.oecd.org/std/Assessment-of-the-Statistical-System-and-Key-Statistics-of-the- Russian-Federation.pdfssessments  IMF Reports on the Observance of Standards and Codes: Data Modules: http://dsbb.imf.org/pages/dqrs/ROSCDataModule.aspx http://dsbb.imf.org/pages/dqrs/ROSCDataModule.aspx Other diagnostic tools have been developed that can complement or supplement the UNSD diagnostic tool Diagnostic tools and other statistical assessments should be ideally conducted on a regular basis in order to monitor progress and revise action plans

45. Consolidation and implementation  The Statement of Strategy should be prepared in full consultation with major policy makers and other national and international stakeholders  The Statement of Strategy should be an integral part of the existing and/or forthcoming national multi-year programs (e.g. NSDS)  High-level objectives and implementation plans should be articulated in existing statistical work programs (annual or biennium)  Assessment and diagnostic tools should be conducted on a regular basis in order to monitor progress and eventually update the work programs  Consult colleagues and stakeholders prior to any international and regional events and brief them after (outcome, follow-up, actions…) In order to successfully implement the 2008 SNA and related statistics strategy it is important to implement the following good practices