Session 1 Quality assessment of national accounts data

1. Session 1 Quality assessment of national accounts data Workshop on national accounts for Asian member countries of the organization of Islamic Conference Ankara, Turkey 1-2 December 2008 byDevi ManrajIMF Regional statistics advisordevimanraj@gmail.com

2. Good quality national accounts statistics • Importance of national accounts in the system of macroeconomic statistics • 1993 SNA provides conceptual framework for all macroeconomic statistics • Balance of payments • Monetary and financial statistics • Government finance statistics • Timely, accurate and reliable statistics in line with the United Nations Principles of official Statistics • High quality macroeconomic statistics to produce sound economic and monetary policies

3. Why implement the 1993 SNA? • To use internationally accepted recommendations and standards • To ensure consistency among the macroeconomic statistics • To enable cross-country and inter-temporal comparisons using same concept of • Residency • Classification • Recording and valuation of stocks and flows

4. What are the constraints to implement 1993 SNA? • Absence of a supportive legal framework • Lack of skill and expertise in national accounting • Inadequate financial and technical resources • Lack of self confidence in staff officers • Absence of leadership

5. What should be done? • Strengthen the legislation for NSOs to oversee and coordinate the national statistical system • Secure high level political commitment • Mobilize adequate human and financial resources • Request for technical assistance to improve methodology • Build self confidence of staff • Maintain trust and confidence in national accounts statistics

6. What should be done ? (continued) • Provide training and have a pool of trainers in national accounting methodology • Develop analytical skill of staff to interpret data • Encourage countries to join the Fund General Data Dissemination System (GDDS) • Encourage GDDS members to subscribe to the Fund Special Data Dissemination Standards (SDDS). For National Accounts is GDP and so much more ….!!

7. Assessment of quality of national accounts All countries broadly follow the 1993 system of national accounts For example, some countries : • Are still using the 1968 SNA terminology , not recording transactions at basic prices, not using international classification of activities and products • Do not regularly prepare GDP by the expenditure approach and do not use the Supply and Use Table framework • Do not have a data collection strategy- sample surveys/economic census/household expenditure survey/labur force survey • Do not have a systematic compilation/processing system • Do not document national accounting methodology

8. IMF Framework for assessment of data quality • IMF’s Data Quality Assessment Framework (DQAF) 2003, • To assess • Quality of the statistical institution • Quality of the process • Quality of the statistical product

9. For more details ….. • IMF’s Data Standards Bulletin Board (http://dsbb.imf.org/) • Focus: Dissemination of information describing a country’s current dissemination and compilation procedures for economic and social statistics and plans in place for their improvement. • IMF’s Reports on Observance of Standards and Codes (http://www.imf.org/external/np/rosc/index.htm) • Focus: Broad assessment of the quality of statistics based on current dissemination and compilation procedures and plans for their improvement. • IMF’s Framework Data quality Assessment framework (DQAF)at • http://dsbb.imf.org/dqrsindex.htm)