Essential SNA

1. Essential SNA Project being developed from 2011 to 2013

2. Background • May 2008: Eurostat organised in conjunction with the Statistical Division of the UN, a high-level conference on national accounts in the context of development cooperation which concluded by endorsing the “Luxembourg Recommendations” (LR). • LR were then passed on to the Inter-secretariat Working Group on National Accounts (ISWGNA) which in 2009 formulated an Action Plan for implementation of SNA2008 which included improving national statistical systems. • One way to achieve such improvements is by providing support focused on the collection and processing of basic source data.

3. Background • At the end of 2007, only 10 per cent of small island developing states (SIDS) and least developed countries (LDCs) were able to provide the seven tables of the minimum requirement data set (MRDS) defined in the report of the ISWGNA to the thirty second session of the Statistical Commission1. • Further study undertaken by ISWGNA highlighted the need to strengthen the statistical production process that precedes the integration of the data into national accounts, namely in the collection and processing of basic source data and the institutional context, the so-called Pre-SNA Phase.

4. Why • In line with the ISWGNA task of preparing manuals and handbooks Eurostat prepared the Handbook “Essential SNA: building the basics” which focuses on the pre-SNA phase and which became available by the end of 2010. • Currently, the second 2011 edition is available.

5. What is Essential SNA • Essential SNA is a project that aim at a successful implementation of the System of National Accounts (SNA) in the Least Developed Countries, micro-states and other countries that have not implemented SNA yet. • It also seeks to help those countries in adapting and improving their statistical systems. • The project is being developed from March 2011 to February 2014

6. How • Handbook “Essential SNA” • The handbook is based on and is fully compatible with Volumes I and II of SNA 2008. • The handbook is particularly relevant for Small Islands and Developing States and Least Developed Countries to produce the most essential tables for a"minimal" implementation of SNA. • The handbook has been divided into several chapters, each focusing on a key issue.

7. How – The handbook • Introduction – Introduction explains the background of the project and the main contents of the handbook • Chapter 1 – System of national Accounts offers a short introduction to the national accounts system, and in particular the 2008 SNA, stressing the importance for a country of national accounts. This chapter aims to provide arguments for implementing national accounts, providing Chief Statisticians with the tools for justifying the need to allocate human and financial resources to this activity. • Chapter 2 - Building the SNA presents the guidelines for drafting a national strategy for implementing the SNA and compiling national accounts, these can be adapted to the specific situation in each country.

8. How – Handbook • Chapter 3 - Basic concepts outlines who the stakeholders in an economy are and how they are grouped; the kind of actions they undertake and how these are translated into national accounts indicators; the purpose of their actions and how the SNA describes and evaluates these actions to obtain the main aggregates. The main aggregates of the SNA are presented in the second section of the chapter and introduce users to the main results that national accounts provide. • Chapter 4 - Statistical infrastructure for national accounts outlines the statistical bases needed for compiling national accounts, set out in 3 sections: the basis (business register and classifications), the statistical sources and the administrative data sources

9. How – Handbook • Chapter 5 –Continues with the review of the statistical infrastructure for national accounts and outlines the administrative data sources. • Chapter 6 –Is on the Informal sector and provides general guidelines for identifying and assessing the informal sector, a phenomenon found in many developing countries. The first section presents a general overview of the non-observed economy and the place of the informal sector within it. Criteria for identifying the informal sector, measurement methods and the main sources used for estimating it are to be found in the second section. • Chapter 7 – On volume measures addresses the conceptual background of price and volume measures in national accounts, the main data sources and methods used for annual estimates.

10. How – Handbook • The handbook is a list of references to other manuals and documents to provide guidance for users interested in further developing the topics covered by the handbook. The references can be found at the end of each chapter. Boxes ‘To find out more…’ complete the above-mentioned list of references, providing supplementary information for users of the handbook.

11. How – Update of the Handbook • Update of the handbook • The first 2010 edition has been updated to the current 2011 edition. The update consisted in the revision and adaptation taking in account issues not covered before as well as new information relevant for users (such as volume measures). A new update will be made during 2012 and will be made available in the beginning of 2013. • The update process has included the maintenance and development of a wiki version of the handbook • The handbook will be translated into Spanish and French (during 2012)

12. How – Workshops and coaching field tests • Under the project, two one-week either sub-regional or national events (seminars or workshops) plus one coaching field-test of one week will be organised and held, each year (from 2011 to 2013). The locations/beneficiary includes all of the ACP/ALA countries. • The workshops will present comprehensive theoretical and practical issues for the implementation of the 2008 SNA in the developing countries. The participants will receive detailed knowledge on various issues useful to meet the international requirements in the field of national accounts. The situation existing in each country will be presented and discussed.

13. How – Workshops and coaching field tests • The coaching field-tests consist of technical meetings to undertake a comprehensive needs analysis with respect to the Handbook Essential SNA: Building the Basics in order to assess the specific requirements and prepare tailor-made tools and other material that will be used in the country. • Events • Workshop, Belize, November 2011 • Coaching Field Test, Vanuatu, December 2011 • Workshop, Addis Ababa, February 2012 (in partnership with UNECA)

14. How – Forum Discussion • The project website has a discussion forum where it will be posted one methodological paper per month on different topics related to the handbook. Users can discuss themes related with the handbook and the monthly methodological papers. • Discussion forum available: • The 2008 SNA implementation strategy • Situation of the infrastructure necessary for national accounts compilation • Non-observed economy • Informal Sector and Gender Issues

15. Already available on line!! How – e-learning • E-learning • An e-learning tool was created during 2011, with the main contents of the handbook. It is being disseminated on CIRCA, on EUROSTAT website and in other websites from EUROSTAT partners. • The target group of the e-learning course are statisticians, technicians or others collaborators working in NSO from Least Developed Countries, micro-states, other countries that have not implemented SNA and countries that are adapting and improving their statistical systems.

16. Where to find • The handbook http://epp.eurostat.ec.europa.eu/portal/page/portal/international_statistical_cooperation/thematic_activities/statistics_by_subject/essential_sna

17. http://tinyurl.com/EurostatEssentialSNA

18. For more information about this project: Susana Martins Eurostat | European Commission Unit A6 - Statistical Cooperation Tel. (+352) 4301-35078 - Fax : 4301-32769 Susana.martins@ec.europa.eu