William Cave OECD Statistics Directorate

1. ISIC Revision 4: Top-top Structure for reporting data by activity:What are national accounting needs in revision of ISIC (and CPC)? William Cave OECD Statistics Directorate OECD National Accounts WP October 2004

2. ISIC rev 4: A Top-top Structure? What are OECD needs? • Eurostat proposal for an aggregation structure of revised ISIC and NACE • for reporting of national accounts data by activity • need for new high-level data reporting structure for OECD national accounts community • need to revise A6/A17/A31/A60 agggregations • What are SNA needs for revision of the Central Product Classification (CPC)? OECD National Accounts WP October 2004

3. What is ISIC? • International Standard Industrial Classification of All Economic Activities (ISIC) • One of UN family of international reference statistical classifications • The official activity classification of SNA • Original ISIC 1948 • Rev 1 1958, Rev 2 1968, Rev 3 1989 • Minor Revision 3.1 2002, Revision 4 planned for 2007 • To be standard classification of productive economic activities • To classify economic entities (units) according to activity they carry out OECD National Accounts WP October 2004

4. What is CPC? • CPC developed in 1980s and 90s principally to provide the first internationally agreed product list for goods and services. • For goods less detailed than trade products in Harmonised System • Used indirectly to help build economic statistics on output, prices and trade • Currently on CPC version 1.1 agreed in 2002 • Plan to revise CPC for 2007 • Proposals sought by UNSD for 10 October OECD National Accounts WP October 2004

5. Design principles & priorities for ISIC rev 4 • Improve international comparability • convergence of regional classifications • E.g. NAICS/NACE/JSIC/ANZSIC • engage more countries and regions in ISIC design • target for international comparability at least at 2 digit level • Relevance • Information sector, internet Telecoms • OECD ICT definition • environmental services • new technologies • growing business service sector • health services • Agriculture • Continuity • Level of detail for an international classification? OECD National Accounts WP October 2004

6. ISIC 3 and ISIC 4 top-level • ISIC 3 has 17 tabulation categories (sections) • ISIC 4 proposes 21 sections • ISIC 3 has 60 two digit divisions • ISIC 4 proposes 87 two digit divisions • UNSC agreed that target level for international comparability is (at least) two digit level OECD National Accounts WP October 2004

7. ISIC rev 3 Structure OECD National Accounts WP October 2004

8. ISIC Rev 4 Draft OECD National Accounts WP October 2004

9. What’s new? • New groupings • Information and communication sector • water supply, sewerage, waste management and remediation • More tabulation categories for services • professional technical, and business services • administrative and support services • real estate, rental and leasing services • art, entertainment and recreation • More divisions ( to increase international comparability) • for new groupings and growing services • in manufacturing and construction • all the above • human health services OECD National Accounts WP October 2004

10. The ISIC revision mechanism and process • The revision is ultimately controlled by UN Statistics Commission = (Heads of National Statistics Offices) • Directed by UN Expert Group on Economic and Social Classifications = (experts from about 30 countries and international organisations) • Work done by Technical Sub-group of Expert Group = (8-10 countries plus international orgns) OECD National Accounts WP October 2004

11. ISIC Revision Processapproximate timetable • Worldwide consultation closes November 2004 • TSG meet Spring 2005 • Revised draft goes to UN Expert Group June 2005 • Final draft goes to UNSC December 2005 for approval • Prepare full publication • Publish early 2007 OECD National Accounts WP October 2004

12. Regional Classifications? • NAICS minor revision 2007 • NACE plans to revise in 2007 - derived from ISIC • ANZSIC 06- related to NAICS • JSIC introduced IC sector in 2002 converged with ISIC and NAICS but constrained by ministries- • expect convergence to continue after next revision • Others? China, India, Mercosur, Russia OECD National Accounts WP October 2004

13. What are OECD’s current set of ISIC 3 NA data aggregations? • A6 • A17 = ISIC rev 3 Sections • A31 = ISIC rev 3 Sections + 15 manufacturing sub-sections • A60 = ISIC two digit divisions OECD National Accounts WP October 2004

14. Top-top structure for ISICEurostat proposal • National accounts needs fewer than 21 categories for reporting summary data by activity • Eurostat propose: • A6 becomes A9 • A60 becomes A65 (not A87) • Suggests a reordering of ISIC with Public Administration moving up OECD National Accounts WP October 2004

15. A6==>>A9? OECD National Accounts WP October 2004

16. Questions for delegates • Are Top-top A9 proposals suitable for data reporting in OECD & internationally? • Are A65 proposals useful for OECD reporting? • Should OECD or UN be proposing a set of data reporting aggregations? (A9/A21/A35/A87)? By when? • Should CPC revision address supply-use needs? OECD National Accounts WP October 2004

17. Thank you for your attention OECD National Accounts WP October 2004