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Resources and Funding of Official Statistics

Resources and Funding of Official Statistics. Olav Ljones SADC Work Shop 2- 6 Dec 2006, Luanda. Why planning ?. Characteristic of the output – official statistics Quality declaration Timely and punctual, Follow the release calendar Stability over time,

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Resources and Funding of Official Statistics

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  1. Resources and Funding of Official Statistics Olav Ljones SADC Work Shop 2- 6 Dec 2006, Luanda

  2. Why planning ? • Characteristic of the output – official statistics • Quality declaration • Timely and punctual, Follow the release calendar • Stability over time, • Internal consistence, coherence, etc • To run a NSO is a strict (military like) operation • But also be user oriented, relevant, catch new trends , • Combine running operations with development • We need to be like Superman or Spiderman, to balance costs and revenues

  3. The need for resources • Adequate level and stability and sustainable resources a prerequisite for official statistics. • Remember: Official statistics should be a pure public good • The possible sources: • Government centralized budget • Decentralized Government budget, from several ministries (Swedish model) • Project financing, user financing, market financing • International transfers • General transfers • In kind transfers, projects like official statistics • The financing of centralized and decentralized statistical systems raise different challenges. • Other institutions may be rich like the Central Bank • Statistics may loose in internal priority when it Is not the primary objective

  4. Comparison UN 10 Fundamental principles and EU Code of practice. • UN Fundamental Principles. Only obligations and quality claims, nothing is said about resources. • The rather new Eurostat Code of Practice for ESS (European Statistical system). • Principle 3 Adequacy of resources.

  5. Code of practice: Principle 3 • The resources available to Statistics authorities must be sufficient to meet European statistics requirements. • Indicators: • Staff financial and computing resources, adequate both in magnitude and in quality, are available to meet current European statistics needs. • The scope, detail and cost of European statistics are commensurate with needs. • Procedures exists to assess and justify demands for new European statistics against their costs. • Procedures exists to assess the continuing need for all European statistics, to see if any can be discontinued or curtailed to free up resources.

  6. Principle 10: Cost effectiveness • Resources must be effectively used

  7. The yearly work plan, the need for full integration of planning and budgeting • Invest in a integrated planning and budgeting system • Elements. Costs for existing staff, housing etc • Distribute resources to projects. • Operating existing statistics, to fulfill the release calendar etc • Planning, development of new statistics • International obligations • Existing development plans, like a new census new NA • New ideas – totally new projects • Cost reducing or improved quality of ongoing statistics • Other cost, IT equipment, House-rent. • Identify high priority projects with lack of resources • Balancing revenues and costs. Manpower adjustments. • The search for new financial resources

  8. Considerations • Maximize budget? No considerations? • If revenues are not stable – how to adapt to yearly variations? • Financing from users? • Who are willing to pay for a public good? • Private sector ? • Government? • International sources? • The need for a transparent pricing policy. • Cover (marginal costs) and no cross subsidizing • Transparency toward the public about user financing

  9. Considerations 2 • Is there a tradeoff between independency and financing from users? • The positive effect from user financing. Improved user contact. Introduce incentives and New Public Management thinking in the NSO. • Potential Crowding out. External financed project may have crowding out of projects in master plan with high priority, as a result. • Potential negative effects of a too complex financial model, building a consistent coherent official statistical system, reuse of data etc is a complete and complex matrix operation. Internal pricing should be avoided.

  10. How to integrate international resources in the work with budgets and plans? • Yearly and long term plans. The need for a Master plan and long term visions. • Ask for international commitments based on the Master plan. • Twinning arrangements? • The need for improved donor coordination. • Should international resources be used both for running of permanent statistics, and for development of new and big projects as census?

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