1. 1 Development of Regional Statistics through Cooperation with Central and Local Governments 14-16 October 2008 Bongho Choi Korea National Statistical Office SCORUS 26 th Biennial Conference, Shanghai

2. 2 Organization of KNSO – Headquarters  A Commissioner and a Deputy Commissioner  6 Bureaus (Planning & Coordination, Statistical Policy, Survey Management, Economic Statistics, Social Statistics, Statistical Information) - 33 Divisions  Statistical Training Center (2 Divisions)  Statistical Research & Development Institute (3 Divisions) * Number of Regular Staff-members at HQs : 621

3. 3 Organization of KNSO – Regional Offices  12 Regional Offices - Planning Division - Economic Statistics Survey Division - Social Statistics Survey Division - Agricultural Statistics Survey Division  65 Sub-regional Offices  Number of staff-members in Regional Offices as of 1 June 2007 : 2,502 - administration supporting staff : 13.9 % - interviewers with permanent status : 54.7 % - freelance interviewers: 31.6 %

4. 4 Geographic Units for Regional Statistics  Based on “ Administrative Units ” -Korea: 16 Provinces, 230 Cities/Districts/Counties, 3,500 Towns/Townships -U.S.A.: 50 States, 3,141 Counties -U.K.: 12 Regions, 440 Local Authority Districts, 8,800 Wards -Canada: 13 Province/Territory, 5,600 Census Sub-divisions -Japan: 47 Prefectures, 3,229 Cities/Towns/Townships * Not comparable due to large gaps between units and changes of boundaries over time.  Based on “ Statistically Defined Units ” - Korea: 311,827 Basic Units as of 2001 -U.S.A.: 7,020,924 Census Blocks as of 2000 -U.K.: 175,434 Output Areas as of 2001 -Canada: 52,993 Dissemination Area and 478,707 Blocks as of 2001 -New Zealand: 38,350 Mesh Blocks as of 2001 * These are relatively stable, but takes a lot of time and efforts to delineate.

5. 5 Why Regional Statistics are Important? - In the past, policies were implemented on the basis of national averages. - However, different regions have different natural resources, quality of infrastructure and overall level of development. - Consequently, policy-implementation without taking into consideration of the regional differences tends to fail. - Regional statistics are indispensable for systematic analysis by different regions. This would contribute the overall development for the whole country.

6. 6 What kinds of data are needed? 1) Statistics to show regional differences – GRDP, Household Income, Prices, Occupation/Industrial structure, Unemployment rate, Poverty level, etc. 2) Statistics on strategic industries each local government fosters – Industries on Bio, IT, Knowledge-based, Tourism, Traditional, Creative, Culture, Environment, Logistics, Materials, etc. * However, these are not compatible with the “standard industrial classification”. 3) Statistics to show the performance of each local government has achieved – especially, statistics on the outcome (welfare, educational level, health status, satisfaction, etc.).

7. 7 Regional Statistics Needed: Example of Australian Bureau of Statistics  Demography (size & structure of population, migration)  Quality of Life - Services (demand, availability, accessibility, affordability, quality) - Well-being (employment, health, housing, income, assets) - Specific population groups (foreign laborers, youth, older persons, women, persons with a disability)  Community Strength - Human capital (education, skills, leadership, training infrastructure) - Social capital (social networks, community activities, trust, safety, sense of belonging) - Information networks  Economic Growth - Structure (industry, labor market, turnover, journey to work) - Performance (production, consumption, turnover, employment, investment, income and earnings) - Links (imports, exports) - Barriers (labor force skills, infrastructure, innovation, environment)  Environmental Issues

8. 8 Regional Statistics Needed: Example of Statistics New Zealand AreaIndicators Output - GRDP - Number of establishments by industry Education- Illiteracy rate, Educational attainment, Teacher/Pupil ratio Employment - Employment by industry and occupation - Labor force projection Use of Energy - Production of energy by type (electricity, gas) - Use of energy for heating and cooking - Use of energy by kinds and industry - Turnover and consumption of energy by type Environment - Expenditure for environmental protection by institutions - Statistics on commuting - Sewage by kinds and statistics on renewal - Statistics on air, land and water Population & Public Health -Internal migration, population projection, life expectancy, IMR, In-patients and discharge by major diseases

9. 9 Regional Statistics Needed: Example of Statistics New Zealand Area Indicators Social Cohesion - Participation in community and leisure activities - Utilization of social welfare facilities, use of Internet - An agreed set of quality of life indicators Tourism - Number of local and foreign visitors, duration of stay, impact on local economy Housing - Number of houses by type, number of beds - Household projection Income and Welfare - House price per income - Household expenditure - Household income by source of income - Household income by demographic characteristics Transportation - Commuters by origin-destination - Means of transportation - Accidents and casualties by causes Agriculture - Production by crops, living stocks by kinds - Turnover by type of farms

10. 10 Demand for Regional Data: Example of U.K.  Productivity - Investment, Skills, Innovation, Competition, Enterprises  Flexibility - Indicators of flexibility on labour, capital and product market  Welfare and Re-distribution - Assess to public services - Allocation of public funding, Data on public sector activities in the regions  Estimates of Regional Prices  A Set of Indicators on Quality of Life - Social and environmental factor, Relative performance of rural areas - Information on poorer neighbourhoods  GRDP, Population, including Internal Migration

11. 11 Sources of Regional Statistics in Korea - Censuses Title Method of Data Collection Main Characteristics Quinquennial Population and Housing Census Mixed (Self- administration + Face-to-Face + Internet) Demographic information, information on household and housing condition Annual Census on Basic Characteristics of Establishments Face-to-FaceBasic characteristics of establishments (number of establishments and employees) Annual Census on Mining & Manufacturing (for 5 employees & more) Face-to-FaceMining, Manufacturing, Electricity, Gas and Waterworks industries Quinquennial Agricultural & Fishery Census Face-to-Face + Self–administration All of the holdings, private or institutional Quinquennial Census on Wholesale, Retail Trade and Services Sector Face-to-Face + Internet Kind of business activities, hours worked, etc.

12. 12 Source of Regional Statistics in Korea - Sample Surveys CycleTitle of surveysSpatial units data available (sample size) 5 yearNational Survey of Household Assets- Provinces (32,000 households) AnnualSocial Statistics Survey- Provinces (32,000 households) Basic Agricultural Statistics Survey- Provinces (60,000 farm households in 3,058 enumeration districts) Rice Production Survey - Cities/Counties Nut Production Survey- Provinces Construction- Provinces Transportation- Provinces Wholesale and Retail Trade and Services - Provinces MonthlyEconomically Active Population Survey - Provinces (32,000 households) Farm Household Economy Survey- Provinces (3,200 farm households)

13. 13 Source of Regional Statistics in Korea – Processed and Registration CycleTitle of statisticsSpatial units data available 5 yearPopulation Projection- Provinces AnnualGross Regional Domestic Product- Provinces Vital Statistics based on Vital Registration System - Cities/Districts/Counties QuarterlyInternal Migration based on Resident Registration System - Cities/Districts/Counties MonthlyIndices on Industrial Production, Shipment and Inventories - Provinces Consumer Price Indices- 38 Cities

14. 14 Statistics Given High Priority for Development in Korea Areas in statisticsTarget of spatial units Responsible agency Statistics on household income annually ProvincesKNSO Population estimates annually Cities/Counties/DistrictsKNSO Gross Regional Domestic Product annually Cities/Counties/DistrictsEach provincial government Labor Force Survey quarterly Cities/Counties/DistrictsKNSO together with each local government Output Indices on Service Industries quarterly ProvincesKNSO together with each local government Social Statistics Survey annually Cities/Counties/DistrictsEach lower-level local government Statistics on TourismCities/Counties/DistrictsEach provincial government Statistics on agriculture sector annually Cities/CountiesEach lower-level local government

15. 15 Availability of Sub-national Unemployment Statistics CountryPeriodicitySpatial Units AvailableMethod of Compilation KoreaMonthly Only for 16 provinces Labor Force Survey (32,000 households) U.S.A.Monthly For 7,200 areas, including all counties Model-based estimates (Local Area Unemployment Statistics program) CanadaMonthly For provinces, 27 large cities, 73 economic regions Labor Force Survey (54,000 households) AustraliaMonthly For 8 states, 77 statistical regions Labor Force Survey (28,600 private and 1,900 non-private dwellings) U.K.Quarterly For local authority districts (440) Model-based estimates using surveys and claimants counts

16. 16 Availability of Sub-national GRDP Country Spatial units for which data are available Agency responsible for producing Upper layer Lower layer KoreaAvailable for 16 Provinces Under development- KNSO for provincial data. - Each Provincial Government for cities/counties U.S.AAvailable for 50 States Experimental figures are available for 363 Metropolitan Areas Bureau of Economic Analysis U.K.Available for 12 Regions Available for 37 sub- regions and 133 local areas Office for National Statistics JapanAvailable for 47 Prefectures Available for some cities/towns/townships Each Prefecture Government

17. 17 Availability of Sub-national Statistics on Household Income CountryPeriodicitySpatial Units AvailableMethod of Compilation KoreaQuarterly Only at the national level Survey (8,700 households) U.S.A.Monthly For states, counties, school districts Model-based estimates (Small Area Income & Poverty Estimates program) CanadaAnnually For provinces, metropolitan areas Survey (15,000 households) Australia5-yearly For 8 states Survey (14,545 households) U.K.Annually For 12 regions, 37 sub- regions, 133 groups of unitary authority Estimates from taxation data and survey of personal income

18. 18 Some problems associated with Regional Statistics in Korea  Lack of Available Regional Statistics - No data on unemployment, GRDP, household income & expenditure, poverty level, health status, safety, job vacancy, etc.  Weak Statistical Manpower at Local Governments. - Each of 16 Provinces has a statistical section with only 6 staff- members. - Each of 234 Cities/Counties/Districts has a statistical section only with 1~3 staff-members, but they also do other work.  High Perception on the Importance of Statistics, but Low Investment to Develop Regional Statistics by Local Governments.

19. 19 Model for Development of Regional Statistics  Type 1: UK Model (Highly centralized at ONS) – Korea’s option - UK ONS plays a central role to develop regional statistics in collaboration with other ministries and local governments. - 82.2 million Pound for 5 years (2001/02 ~ 2005/06)  Type 2: Model of Australia, Canada, USA (Both are active) - Both National Statistical Office (Headquarters plus Regional Offices) and Local Governments are active in producing regional statistics.  Type 3: Japan Model (Highly centralized at Local Governments) - Each 46 Prefectures has a Statistics Division with each about 50 staff- members.

20. 20 Framework for Development of Regional Statistics Development by KNSO and/or Central Governments Development by KNSO's Technical Assistance to Local Governments Demand for Regional Statistics Identification of data gaps · Efforts are being made through seminars, individual contacts Conduct of demand survey · Survey is done through provincial governments Developing of Regional Statistics KNSO's selection of local governments for providing technical assistance Expansion of sample sizes and/or utilization of administrative data, etc. · KNSO and central governments Division of roles · KNSO : Provision of technical assistance · Local governments : Maintaining statistical surveys Utilization Dissemination of regional statistics Construction of Database (by the end of 2008) · e- indicator system for local governments

21. 21 KNSO’s Strategy to Develop Regional Statistics  Direct Development by KNSO 1) Development of a large-scale Annual Labor Force Survey - Sample size : 180,000 households in 8,797 Enumeration Areas - Survey period : 20 Oct. 2008 – 1 Nov.2008 - Survey periodicity : Annual - Number of interviewers recruited : 1,823 persons - Spatial units targeted : Cities/Counties

22. 22 KNSO’s Strategy to Develop Regional Statistics  Direct Development by KNSO 2) Development of GRDP for Cities/Counties/Districts - Target year for completion : 2009 - Agency responsible : Each Provincial Government - Role of KNSO : Providing technical assistance - Role of Ministry of Government Administration and Local Autonomy : Overall supervision - Spatial units targeted : Cities/Counties/Districts

23. 23 KNSO’s Strategy to Develop Regional Statistics  Direct Development by KNSO 3) Development of Household Income & Expenditure - Target year for completion : Not yet fixed - Agency responsible : KNSO - Spatial units targeted : Provinces - Methods : Studies are undergoing

24. 24 KNSO’s Strategy to Develop Regional Statistics  Development through Cooperation with Central governments - Korea Center for Disease Control : Statistics on health status of residents at provincial level by increasing the sample size by three times for its survey on National Health and Nutrition - Ministry of Labor : Statistics on job vacancies, shortage of laborers at provincial level by increasing the sample size from 12,000 to 32,000 establishments - Ministry of Culture & Tourism : Statistics on tourism at the level of Cities/Counties/Districts through cooperation with each Provincial Government

25. 25 KNSO’s Strategy to Develop Regional Statistics  Development through Cooperation with local governments - KNSO has provided technical assistance to Local Governments, including conduct of pilot survey, sample selection, questionnaire design, data processing, etc. (KNSO has secured budget of 1 million US dollars on an annual basis)

26. 26 Statistics Developed jointly by KNSO & Local Governments during July 2005~July 2008 Title of SurveyPeriodicity Local Governments Labor Force SurveyQuarterly 7 Cities/Districts/Counties Labor Force Survey for sub-provincial level Quarterly By 2 Provinces Survey on Service IndustriesQuarterly By 2 Provinces Survey on Provincial TourismAnnually By 2 Provinces Survey on Visitors for sub-provincial level Quarterly By 2 Provinces Social Statistics SurveyAnnually By 1 Province, 16 Cities/Districts/Counties Mining & Manufacturing SurveyQuarterly By 2 Cities Wholesale & Retail Trade SurveyQuarterly By 2 Cities Basic Agricultural Statistics SurveyBiennially By 2 Counties Survey on Livestock FarmingAnnually By 1 County Survey on Crops and CowsAnnually By 1 County

27. 27 Application of Small Area Estimation Techniques  First Study was done during 2002~2004 to find the possibility of producing overall unemployment rates for 230 Cities/Counties/Districts.  Second study was done in 2005 to find the possibility of producing statistics on household income and expenditure by main components for 16 Provinces.  Conclusion : It is still premature for the KNSO to produce official statistics through the application of the small area estimation techniques.

28. 28 Appendix-UK London City’s Statistical Work

29. 29 Appendix - Example of Canada British Columbia Government

30. 30 Appendix - Example of Australia’s Queensland Government

31. 31 Appendix - USA Minnesota State’s Statistical Site

32. 32 Appendix - USA’s Portal Site for Regional Statistics

33. 33 Appendix - Japan Kyoto Prefecture’s Statistical Division

34. 34 References  Australian Bureau of Statistics, Information Development Plan for Rural and Regional Statistics, ABS Catalogue No. 1362.0, 2006.  EUROSTAT, Urban Audit, Methodological Handbook, 2004 Edition.  Kingsley, G. Thomas, Neighborhood Indicators: Taking Advantage of the New Potential, The Urban Institute, Oct.1998.  McWin, Marion and Daniel Elazar, Small Area Estimation in Official Statistics, Room Document for APEX 2 Meeting, Sept., 2006.  Gennari, Pietro, Towards international comparison of regional disparities in Asia and the Pacific, PPT version, presented at APEX 2 Meeting, Sept., 2006.  Smith, Jeffrey and Alton Hollett, Getting the most out of small area data, IAOS 2006, Ottawa, July 2006.  Social Exclusion Unit, Bringing Britain together: a national strategy for neighborhood renewal, Sep.1998.  Social Exclusion Unit, Report of Policy Action Team 18: Better Information, 2000.  Avrom Bendavid -Val, Regional and Local Economic Analysis for Practitioners, Praeger, 1983.  Statistics New Zealand, Review of the Statistical Needs of Local Government, 2001.  Trutzel, Klaus, How to Best Organize Regional Statistics – Some Views from Practical Experience in a Federal State