Presentation by UNECE

1. UNECE recommendations for the implementation ofthe 2008 System of National Accounts in the countries of Eastern Europe, Caucasus and Central Asia and South East Europe Presentation by UNECE

2. Overview of presentation • Background • Recommendations • UNECE activities in supporting the regional recommendations • Conclusions

3. Background • UNSC (40th session) adopted the 2008 SNA and supported the implementation strategy proposed by the ISWGNA • UNSC requested that particular circumstances of countries be recognized and emphasized the role of the UN Regional Commissions to facilitate implementation of 2008 SNA • ISWGNA developed global implementation guidelines which have to be adapted to the needs of each region • UNECE recommendations for EECCA and SEE countries • In line with global guidelines • Aim to help countries build their implementation plans in a coherent way • Aim to foster quality and international comparability of NA data

4. Background • The UNECE recommendations are based on varietyof source information collected from countries and broad consultation with country experts and partner organizations (CIS-STAT, EFTA, Eurostat, IMF, OECD, UNSD): • Two surveys on the current status and main challenges with the 1993 SNA (2010) and implementation plans for the 2008 SNA (2012) • Results of global assessments • Discussions at the Special Sessions of the Group of Experts on National Accounts: April 2010 and May 2012 • The Workshop “Implementation plans for the 2008 SNA in the EECCA and SEE countries” (Kiev, 29 November – 2 December 2011) • The recommendations were finalized in consultation with the CES Steering Group on National Accounts

5. Recommendations • The ISWGNA guidelines recommend three stages of implementation • The regional recommendations suggest a number of activities and a timeframe for each stage, which take into account the statistical and institutional capacity of statistical systems of UNECE countries, the needs of the main users and the required resources • The recommendations are available in English and Russian on the dedicated website: http://www.unece.org/stats/2008sna.html

6. Recommendations • Implementation of the 2008 SNA should not be left as sole undertaking of the NA Departments. It should be a strategic choice of the national statistical system of the country. • National Accounts are needed by: • Policy makers and government officials in order to base their economic policies • International organizations, donors, investors to define economic development and investment policies • Society to take economic and social decisions • The production (and revision) of national accounts is a resource intensive exercise and will require support from policy makers, government institutions, academia, businesses, in the form of resources, access to data sources, expertize.

7. STAGE 1 – Developing of national implementation strategies and detailed programmes for the 2008 SNA Prioritization of the main outstanding issues: 1993 and 2008 SNA Inclusion of the 2008 SNA implementation in the strategic plans for the development of national statistical systems Adoption of a detailed action plan for the 2008 SNA Ongoing consultation with the main stakeholders for the 2008 SNA implementation (Central Bank, Ministry of Finance, government, public, international organizations, other data users and concerned NSO departments) Involvement of stakeholders Communication & Dissemination Strategy STAGE 2 - Adaptation of classification frameworks, business registers and frames, surveys, administrative data sources and information technology infrastructure IT and staff resources Classification frameworks, business registers and frames, surveys, administrative data 2008 SNA implementation coordinated by the NSO • Adequate IT infrastructure and support • Recruitment and training policy • IOs role in staff training • Continuous review throughout the SNA implementation • Adoption of new relevant classifications and improvements in business registers • Review of related source statistics compiled by the statistical office • Review of related macroeconomic data sets compiled outside the statistical office • Use of administrative data sources STAGE 3 - Development of national accounts in accordance with the 2008 SNA 1 Basic indicators of GDP 2 GNI and other primary indicators 3-6 Institutional sector accounts

8. Recommendations • STAGE 1 – Developing of national implementation strategies and detailed programmes for the 2008 SNA: • Prioritization of the main issues: analysis of the most needed national accounts series and identification of the issues which are likely to have a greatest impact on these series • GDP and its main components • Integrated set of accounts and major indicators (GNI and Gross Saving) • Improvement of institutional sector accounts • Consultation with the main stakeholders for the 2008 SNA implementation: • Users: policy makers, government officials, forecasting agencies, central banks, international organizations, investors, donors, media • Data (resource) providers: Central Banks, Ministries of Finance, Tax Authorities, Social Security Institutions, supervisory institutions

9. Recommendations • STAGE 1 – Developing of national implementation strategies and detailed programmes for the 2008 SNA: • Inclusion of the 2008 SNA implementation in the strategic plans for the development of national statistical systems • or annexes to existing long-term (5-year) strategic documents • Adoption of a detailed action plan for the 2008 SNA • the overall strategy → short and medium term action plans • Assessing the availability of data and new data needs • Matching required outputs with resources: available data, timing, human, funding, IT

10. Recommendations • STAGE 2 - Adaptation of classification frameworks, business registers and frames, surveys, administrative data sources and information technology infrastructure: • Adoption of new relevant classifications and improvements in business registers (coverage of private and small businesses) • Review of related source statistics compiled by the statistical office. Main concerns: • Development of sampling techniques and proper coverage of private businesses, particularly in short-term business surveys • Coverage of services in SBS: methodology and data sources • Development of new short-term indicators for services • Development of price indices for double deflation method: particularly PPIs for industry and services branches (including industrial services), exports and imports price indices. • Coherence of bookkeeping standards with international guidelines

11. Recommendations • STAGE 2 - Adaptation of classification frameworks, business registers and frames, surveys, administrative data sources and information technology infrastructure: • Review of related macroeconomic data sets compiled outside the statistical office • Central Banks: financial and monetary statistics, coordinated implementation of BPM6 with 2008 SNA • Ministries of finance: the new GFSM 2012 is in line with 2008 SNA • Use of administrative data sources • Important to avoid increase in response burden • Inventory of available administrative data sources • The NSO requires the power to negotiate and secure information from government organizations and non-government organizations • IT and staff resources

12. Recommendations • STAGE 3 - Development of national accounts in accordance with the 2008 SNA: priorities set up by countries in their implementation programmes • Basic indicators of GDP - Milestone 1 • GNI and other primary indicators - Milestone 2 • Institutional sector accounts: Milestones 3 to 6 • In line with the six milestones developed by the ISWGNA

13. Recommendations Basic indicators of GDP - Milestone 1 General issues: • Measurement of services, including financial services: • Constant prices: output deflators, double deflation, chain linking • Exhaustiveness of GDP • Measurement of the government sector: accruals, coverage • Balancing in a supply and use framework • Improved measures of GFCF and consumption of fixed capital • Seasonal adjustments methods for quarterly national accounts

14. Recommendations Basic indicators of GDP - Milestone 1(cont) and specific 2008 SNA issues: • linked to financial services: FISIM, Output of the Central Bank, insurance services, • linked to fixed assets: expenditure on R&D, military expenditure, mineral exploration, databases and software • linked to informal and illegal activities, • new classifications ISIC Rev4/NACE Rev.2 • goods for processing, merchanting • Breaks in the series; backcasting • Communicating the changes to users (overcome the perception of error)

15. UNECE Activities • The UNECE work with the EECCA and SEE countries involves the following groups of activities: • Surveys of national practices and implementation plans • Workshops and special sessions • Recommendations and other guidance on the implementation of the 2008 SNA • Promoting the implementation of internationally agreed standards and good practices also in other areas of economic statistics • A designated website with relevant documentation and training material for 2008 SNA Implementationhttp://www.unece.org/stats/2008sna.html

16. UNECE activities in supporting the regional recommendations

17. UNECE activities in supporting the regional recommendations

18. Conclusions and future work • UNECE will follow up and assist the countries on the progress with the issues identified as main priority for Milestone 1 • In 2014 the recommendations will be reviewed taking into account emerging data needs and the experience gained during the first stage of implementation of the 2008 SNA • The recommendations would be extended to gradually cover concrete issues related to milestones 2 - 6

19. Comments and suggestion can be send to gabriel.gamez@unece.org Thanks!