Adoption of System of National Accounts 1993 in Latin-America and the Caribbean

1. Joint Eurostat-UNSD Conference on National Accounts in the Context of Development Cooperation Adoption of System of National Accounts 1993 in Latin-America and the Caribbean Luxemburg 6 – 8 may 2008 DEPE - CEPAL

2. Presentation Summary • Overview • Some features of National Accounts in Latin America: an overview • Old and new challenges • What to do

3. Questionnaire and answers Every three years ECLAC requests Latin American countries to respond to a questionnaire that helps establish progress in the adoption of SNA 1993. This questionnaire provides a quantitative overview of tables and instruments created by every country. Unfortunately, it does not provide information on the “quality” of the work being carried out

4. LAC-SNA 93 2001 = 4 countries 2003 = 10 countries 2007 = 22 countries In 2007: 33 countries with a GDP of 2609 340 million USD (2000), 22 mention to have adopted the SNA 93 Representing 66.7% of countries in LAC And 97.6% of total GDP

5. LAC: Overview of progress in adoption of SNA 1993

6. LAC: Overview of SNA 93 Adoption

7. Assessment • Diverse and heterogeneous progress in the adoption of SNA93 in Latin America and the Caribbean • Generally speaking, LAC countries have supply and use tables, GDP by type of expenditure and industry, and components of value added. • Most of the countries identify public expenditure in health and education, making it possible to calculate actual household consumption. • A limited number of countries have institutional sector accounts, and mostly on net lending. • No country publishes asset - liability balance sheets for all institutional sectors. • Almost all countries have product disaggregates of gross fixed capital formation; and a few countries present gross fixed capital formation indicating geographic origin (national or imported)

8. Assessment • Few countries have been able to distribute the financial intermediation services indirectly measured (FISIM) by institutional sector and industry of use. • From a methodological and statistical point of view there is significant progress in the harmonization of information between the rest of the world accounts and the balance of payments. • Most countries use Customs information, make adjustments for non recorded market and in some cases, when available, information about maquila and free zone is quantified and incorporated. • Unfortunately the situation in Caribbean countries is precarious.

9. Quality It is difficult to measure quality in national accounts The existing limitations of basic statistics are the main cause of some inconveniences in the calculation of national accounts in Latin America. Examples: • Non-recorded activities are very important and are frequently improperly measured, especially the Services • Few records exist on the financial information of enterprises. Other limitations include: • The lack of continuity in teams in national accounts • Unawareness of SNA 93 rev. 1 • Lack of research about specific topics (maquila, informal sector, natural assets)

10. Reflections: What can be done in LAC • Two level- extensive training program for national accounts teams, on SNA 93 Rev 1. • Level 1: General and theorical course for new staff involved in elaborating national accounts. • Level 2: Specific and practical course, for those resposible for the synthesis and analysis of the consistency of results of the national accounts. • Coordination of technical assistance missions to countries to assess and implement topics of SNA 93 Rev. 1. • Identification of minimum topics of SNA 93 to use as a baseline to implement in the region. • Translation of SNA 1993 Rev. 1 into Spanish, publication and dissemination.

11. Reflections: What can be done in LAC • Creation of a horizontal cooperation program that facilitates the exchange of experiences and specific methodologies among national accountants in the region (this would facilitate the harmonization and international comparison of national accounts) • Institutional strengthening of national accounts teams. • Support research in the application of SNA 93 concepts, its satellite accounts and new methodological guidelines.