ISIC Revision 4 Toptop Structure for reporting data

ISIC Revision 4: Top-top Structure for reporting data by activity: What are national accounting needs in revision of ISIC (and CPC)? William Cave OECD Statistics Directorate OECD National Accounts WP October 2004 1

ISIC rev 4: A Top-top Structure? What are OECD needs? n n n Eurostat proposal for an aggregation structure of revised ISIC and NACE for reporting of national accounts data by activity need for new high-level data reporting structure for OECD national accounts community need to revise A 6/A 17/A 31/A 60 agggregations What are SNA needs for revision of the Central Product Classification (CPC)? OECD National Accounts WP October 2004 2

What is ISIC? n n n n International Standard Industrial Classification of All Economic Activities (ISIC) One of UN family of international reference statistical classifications The official activity classification of SNA Original ISIC 1948 Rev 1 1958, Rev 2 1968, Rev 3 1989 Minor Revision 3. 1 2002, Revision 4 planned for 2007 To be standard classification of productive economic activities To classify economic entities (units) according to activity they carry out OECD National Accounts WP October 2004 3

What is CPC? n n n CPC developed in 1980 s and 90 s principally to provide the first internationally agreed product list for goods and services. For goods less detailed than trade products in Harmonised System Used indirectly to help build economic statistics on output, prices and trade Currently on CPC version 1. 1 agreed in 2002 Plan to revise CPC for 2007 Proposals sought by UNSD for 10 October OECD National Accounts WP October 2004 4

Design principles & priorities for ISIC rev 4 n Improve international comparability – – n Relevance – – – – n n convergence of regional classifications E. g. NAICS/NACE/JSIC/ANZSIC engage more countries and regions in ISIC design target for international comparability at least at 2 digit level Information sector, internet Telecoms OECD ICT definition environmental services new technologies growing business service sector health services Agriculture Continuity Level of detail for an international classification? OECD National Accounts WP October 2004 5

ISIC 3 and ISIC 4 top-level n n n ISIC 3 has 17 tabulation categories (sections) ISIC 4 proposes 21 sections ISIC 3 has 60 two digit divisions ISIC 4 proposes 87 two digit divisions UNSC agreed that target level for international comparability is (at least) two digit level OECD National Accounts WP October 2004 6

ISIC rev 3 Structure OECD National Accounts WP October 2004 7

ISIC Rev 4 Draft OECD National Accounts WP October 2004 8

What’s new? n n n New groupings – Information and communication sector – water supply, sewerage, waste management and remediation More tabulation categories for services – professional technical, and business services – administrative and support services – real estate, rental and leasing services – art, entertainment and recreation More divisions ( to increase international comparability) – for new groupings and growing services – in manufacturing and construction – all the above – human health services OECD National Accounts WP October 2004 9

The ISIC revision mechanism and process § The revision is ultimately controlled by UN Statistics Commission = (Heads of National Statistics Offices) § Directed by UN Expert Group on Economic and Social Classifications = (experts from about 30 countries and international organisations) § Work done by Technical Sub-group of Expert Group = (8 -10 countries plus international orgns) OECD National Accounts WP October 2004 10

ISIC Revision Process approximate timetable n n n Worldwide consultation closes November 2004 TSG meet Spring 2005 Revised draft goes to UN Expert Group June 2005 Final draft goes to UNSC December 2005 for approval Prepare full publication Publish early 2007 OECD National Accounts WP October 2004 11

Regional Classifications? n n n NAICS minor revision 2007 NACE plans to revise in 2007 - derived from ISIC ANZSIC 06 - related to NAICS JSIC introduced IC sector in 2002 converged with ISIC and NAICS but constrained by ministries– expect convergence to continue after next revision Others? China, India, Mercosur, Russia OECD National Accounts WP October 2004 12

What are OECD’s current set of ISIC 3 NA data aggregations? n n A 6 A 17 = ISIC rev 3 Sections A 31 = ISIC rev 3 Sections + 15 manufacturing sub-sections A 60 = ISIC two digit divisions OECD National Accounts WP October 2004 13

Top-top structure for ISIC Eurostat proposal n n n National accounts needs fewer than 21 categories for reporting summary data by activity Eurostat propose: – A 6 becomes A 9 – A 60 becomes A 65 (not A 87) Suggests a reordering of ISIC with Public Administration moving up OECD National Accounts WP October 2004 14

A 6==>>A 9? Proposed Top-top A 9 breakdown The A 6 structure for ISIC rev 3 AB 1. Agriculture, hunting, forestry and fishing CDE 2. Industry including energy F 3. Construction GHI 4. Distributive trades, hotels and transport JK L to P A B, C, D and E F 5. Financial, real estate and business services 6. Other services. 2. Industry, including energy & waste management new ISIC rev 4 sections 4. Trade, transport, accommodation & food services G, H and J* 5. Information and communication K 6. Financial and insurance L 7. Real estate, rental and business activities M, N and O 8. Public admin, education and ** T , P and Q health 9. Other OECD National Accounts WPservices activities October 2004 15 U R, S and

Questions for delegates n n Are Top-top A 9 proposals suitable for data reporting in OECD & internationally? Are A 65 proposals useful for OECD reporting? Should OECD or UN be proposing a set of data reporting aggregations? (A 9/A 21/A 35/A 87)? By when? Should CPC revision address supply-use needs? OECD National Accounts WP October 2004 16

Thank you for your attention OECD National Accounts WP October 2004 17