1.    It has been widely recognised that key economic variables for many countries throughout the world fall well short of international recommendations. This is also true for many SPC member countries and territories, and it is of particular concern that national planning agencies in the region are basing their analyses and policy advice on information which is often neither timely nor reliable. The lack of development of economic statistics has been noted widely, and there is no doubt that a great many resources have been allocated to trying to remedy the problem. But it has also been clear that many projects have failed to achieve sustainable results, with key economic indicator series falling in quality and often lapsing completely.

2.    The 11^th Regional Meeting of Heads of Statistics in Nouméa in 1997 included a session titled "Economic statistics – a greater effort required?" The working paper focused on the continuing priority of developing in-country capability and the need to improve the availability of economic information about the region. There was no doubt that some member countries and territories had made significant improvements to their economic statistics since 1997, but was clear that there was still a great deal of scope for improvement. This was borne out by the statement from the July 2000 Forum Economic Ministers Meeting: "We agreed on the need for substantial improvements in statistical collection, analysis and dissemination to strengthen policy development and monitoring, increase transparency and foster private sector development in Forum Island countries….". The same problems that affected Forum member NSOs also affected some other SPC members, and needed to be addressed on a regional basis.

3.    In early 2000 SPC management approved a proposal that consultancy fees earned by the Statistics Programme from national accounts consultancies performed for the ADB be retained by the Programme and used to fund a technical meeting to address the general issue of economic statistics throughout the region. As a result of this initiative a "Technical meeting on economic statistics in the Pacific" was scheduled to be held in Nouméa from 16–18 August 2000, immediately prior to the 12^th Regional Meeting.

7.    The SPC Statistician welcomed participants, noting the number of representatives from relevant agencies in addition to NSOs. He suggested that the meeting should be relatively informal in the interests of generating the level of full and open discussion needed to identify the problems which have contributed to the perceived problems with economic statistics in the region. The meeting then agreed to adopt the draft agenda (Agenda Item 2) and proceeded to Agenda Item 3.

Agenda Item 3: Expected outputs from the meeting

8.    Working Paper 1: Expected outputs from the Meeting was presented, noting the interest in improving economic statistics stated at the 11^th Regional Meeting of Heads of Statistics and re-stated in the Communiqué from the Forum Economic Ministers Meeting (FEMM) in Niue in July 2000. It was also noted that the technical meeting was funded with SPC Executive approval from Statistics Programme earnings from an ADB national accounts consultancy in Samoa.

9.    The Statistician reminded delegates that the main purpose of the meeting was to identify major deficiencies in economic statistics in the region, and to devise strategies to address those deficiencies. It was also noted that the importance of appropriate statistics was publicly recognised by FEMM at the July meeting in Niue.

10.    The Statistician invited comment on any of the action points in WP.1, and asked for views on a review process to monitor progress resulting from decisions of the meeting.

11.    There was general agreement that there appears to have been little in the way of articulated or coherent past strategies for development of statistics in the Pacific. To date, objectives have tended to be broad, with emphasis on single projects. It was also clarified that it was intended to identify problems by looking initially at deficiencies in particular items, rather than attempting to address ‘economic statistics’ as a single item.

12.    PFTAC recommended that the strategies should be long-term/sustainable, encompassing specific and practical solutions, with a need to co-ordinate both technical and funding-related strategies.

13.    The meeting endorsed the proposed aims of identifying deficiencies in economic statistics throughout the region and recommending specific strategies aimed at resolving those deficiencies.

Agenda Item 4: Review of official economic statistics in the region

14.    One of the main issues raised in Working Paper 2: Economic statistics in the region: status assessment was: "If economic statistics are regarded as important, why are they not better than they are (especially in view of the resources which have been allocated to them)?"

15.    Issues raised in discussion included data reliability (i.e., revisions which alter the original picture); co-ordination between Central Banks and NSOs where relevant, and the use of recent success stories (such as Samoa and the Cook Islands) as examples which might provide guides for future development. The point was also made that, in addition to taking account of timeframes and quality when setting specific goals, the effectiveness and efficiency aspects of data compilation need to be addressed. Other issues raised were funding strategies and the recruitment and retention of appropriately skilled staff.

RESOLUTIONS ARISING FROM AGENDA ITEM 4

16.    The meeting recommended that:

1. Any resolutions to the main meeting should include formal strategies for the development of economic statistics;

2. Strategies for improving economic statistics should address relevance, effectiveness, efficiency, reliability and timeliness;

3. Strategies should be compatible with skills and funding levels needed to ensure implementation and sustainability;

4. Future sessions should consider specification of a framework such as the GDDS for assessing the statistical development needs of PICs; and

5. Strategies should assign highest priority to achieving improvements in GDP and related measures; trade; other BOP; employment; production indicators

18.    The meeting recommended that:

1. All systems proposed for developing economic statistics should be assessed for sustainability before work begins, and again before handover;

2. Assessments should be against a set of high/low risk criteria similar to those listed in paragraph 38 of Working Paper 3;

3. The SPC Statistics Programme should provide advice in assessing sustainability for particular projects whenever requested to do so by NSOs;

4. NSOs be actively involved in approving the selection of any external consultants for projects aimed at improving official economic statistics;

5. Staffing selection for technical assistances should whenever possible consider including staff from Pacific Island NSOs;

6. NSOs consider developing National Statistics Councils where they do not already exist;

7. Economic statistics strategies be regularly re-assessed to ensure that they continue to reflect government priorities.

19.    Working paper 4: Administrative data sources – are they being used effectively? was presented and discussions called for.

20.    The importance of using administrative data in the production of economic statistics was strongly endorsed by the statisticians of the region.

21.    Whilst a number of NSOs have regular access to the majority of the data they are seeking, other NSOs outlined difficulties in obtaining administrative data, particularly where their legislation did not specifically empower the NSO to acquire such information. In some countries, ministerial direction was necessary to overcome a lack of co-operation from other agencies.

22.    It was raised that a lack of understanding by some agencies of the importance and value of economic statistics and how administrative data is utilised in the compilation of such data may contribute to the lack of co-operation in supplying data to the NSO.

23.    The use of administrative data, while attractive because of the relatively low collection costs, may not always be sustainable given possible reforms within government or changes in government policy. Further, gaps and coverage issues with administrative data necessitate the development of a strong relationship between the NSO and other agencies if the data problems are to be successfully resolved. Options may include the out-posting of staff, or encouraging co-operation by providing support and advice to agencies in the management of such problems.

RESOLUTIONS ARISING FROM AGENDA ITEM 6

24.    The meeting:

1. Recommended that the use of administrative data be increased wherever appropriate

2. Noted the extent to which data collected for other purposes often do not meet NSO needs, and recommended developing more active links with other agencies with a view to :

3. Recommended that NSOs consider providing support to other relevant agencies in the interests of improving the range and quality of administrative data available to NSOs

4. Noted the issues associated with NSO finding problems in administrative data, and recommended that NSOs take the lead where ever possible in resolving differences between official data sources

5. Recommended that NSOs lead discussions with other agencies to establish a central national business register

25.    The meeting was in broad agreement with the points raised in Working Paper 5: Technological advances – potential for improving economic statistics, and discussion centred mainly on the advantages of using commonly available software, particularly where existing IT skills could be used for processing large collections previously regarded as requiring specialist skills and tools.

RESOLUTIONS ARISING FROM AGENDA ITEM 7

26.    The Meeting recommended that:

1. NSOs continue to take advantage of the use of affordable technology, including increased use wherever appropriate of commonly available software;

2. any planning for major projects involving the NSO should take into account the processing experience of other NSOs in similar projects;

3. NSOs review existing economic collections with a view to improving efficiency and the quality and timeliness of outputs by taking advantage of technological improvements; and

4. NSOs review their backup and documentation procedures with a view to improving the physical security of key economic data and associated systems.

27.    All official delegates gave informal presentations on recent developments and problems in official economic statistics in their office. Delegates also described linkages between the NSO and other agencies. It was clear that, despite their underlying commonality of purpose, there is a wide range of statistical systems and different levels of development. Clearly there has been some significant progress in recent years. However, while some developments now in place will support the continued development of official economic statistics, there is still considerable scope for further improvement.

28.    There were also presentations from the Reserve Bank of Vanuatu and Bank of PNG.

29.    Vanuatu and FSM had submitted formal country statements.

30.    Given the inter-relationship between Agenda Items 9 and 10 there was only brief discussion after the presentation of Working Paper 6: Other agencies – their needs and priorities, and it was agreed that the drafting of resolutions would be postponed to be done in conjunction with resolutions for Agenda Item 10. The Statistician then presented Working Paper 7: Potential for increased inter-agency co-operation.

31.    Discussion centred on the provision of support to other agencies as a means of fostering increased co-operation, and the benefits of having a central national business register. The meeting endorsed the principle of assisting other agencies from whom data was being sought, particularly in terms of providing advice that would promote the development of increased commonality in technology as well as data items and standards.

32.    It was recognised that the concept of a single central business register had different implications for member NSOs, mainly in relation to matters of scale. There was general agreement on the broad aim. Even though there were differences in the way such an aim might be achieved in practice by different NSOs, the meeting supported the idea that NSOs were the most appropriate agencies to lead discussions aimed at promoting this idea as a national benefit.

RESOLUTIONS ARISING FROM AGENDA ITEMS 9 AND 10

33.    The meeting:

1. recommended that NSOs maintain active links with major users, with emphasis on ensuring that users are aware of key data issues

2. recommended that NSOs strengthen their support by providing quality statistical reports to Ministers

3. endorsed the concept of a central business register for each national statistical system, and recommended that NSOs play a lead role in trying to achieve this goal

4. recommended that relations between NSOs and partner agencies be strengthened, in particular by NSOs providing relevant training and advice related to the use of common technology, data items and standards

5. noted with appreciation the SNZ decision to set up a formal process for funding two PIC training attachments per annum at SNZ

6. recommended that SPC continue to develop PacStats as a tool for improving regional communication, particularly between NSOs. To help achieve this:

34.    The Statistician introduced a discussion paper on a draft proposal for setting up short-term production measures. There was considerable interest in the potential of this proposal, and the meeting endorsed the suggestion that the Statistician produce a more detailed proposal for circulation to NSOs.

35.    Working paper 8: Medium-term objectives for economic statistics was then presented. Discussion opened on whether 3 years was an appropriate timeframe for reviewing progress in improving economic statistics. There was general agreement that it was a suitable period for assessing whether there had been improvement in key economic statistics.

36.    The PFTAC delegate presented an information session on the use of the IMF’s GDDS in assessing statistics, and introduced a draft questionnaire prepared by PFTAC for use in the region.

37.    The meeting proceeded to discussion of whether there should be an agreed set of key data items for the development of broad strategies and, if so, what the content should be. There was general agreement that the items on the draft list were appropriate, and discussion then centred on additional items to be considered for inclusion.

38.    The meeting noted that statistics such as GFS and monetary statistics are important in their own right, but agreed that they should not be added to the list of key economic statistics as they are not generally the responsibility of NSOs

39.    The session concluded with a presentation by the SNZ delegate of the Economic Statistics Strategy developed by SNZ.

RESOLUTIONS ARISING FROM AGENDA ITEM 11

40.    The meeting recommended that:

1. unemployment be added to the draft list of data items presented in paragraph 7 of working paper 8, (Annex 1) and the resulting list be used as the key economic statistics for assessing improvements in NSO outputs;

2. NSOs adopt the practice of publicly releasing scheduled dates of release for major economic statistics;

3. donor agencies recognise that additional resources will be required by NSOs to achieve significant improvements in the key items;

4. international agencies take the resolutions from this meeting into account when considering any economic statistical developments in the region; and

5. the SPC Statistics Programme prepare a report for the 12^th Regional Meeting of Heads of Statistics assessing the extent of improvements to economic statistics in the region.

41.    The meeting discussed the combined list of resolutions from all sessions, and agreed on a list of 19 key resolutions to forward to the 12^th Regional Meeting of Heads of Statistics. It was noted that all resolutions made during the meeting were still regarded as important and would be retained for the final report.

42.    The meeting selected 19 key resolutions to highlight for the report to the 12^th Regional Meeting of Heads of Statistics. These are shown below in the order in which they were passed ie, they have not been prioritised.

RESOLUTIONS ARISING FROM AGENDA ITEM 12

43.    The meeting:

1. Recommended that strategies for improving economic statistics address relevance, effectiveness, efficiency, reliability and timeliness;

2. recommended that strategies be compatible with skills and funding levels needed to ensure implementation and sustainability;

3. Recommended that all systems proposed for developing economic statistics be assessed for sustainability before work begins, and again before handover;

4. Recommended that NSOs be actively involved in approving the selection of any external consultants for projects aimed at improving official economic statistics;

5. Recommended that staffing selection for technical assistances consider, whenever possible, including staff from Pacific Island NSOs;

6. Recommended that NSOs consider developing National Statistics Councils where they do not already exist;

7. Recommended that economic statistics strategies be regularly re-assessed to ensure that they continue to reflect government priorities;

8. Noted the extent to which data collected for other purposes often do not meet NSO needs, and recommended developing more active links with other agencies with a view to :

9. Recommended that NSOs consider providing support to other relevant agencies in the interests of improving the range and quality of administrative data available to NSOs;

10. Noted the issues associated with NSO finding problems in administrative data, and recommended that NSOs take the lead, wherever possible, in resolving differences between official data sources;

11. Recommended that NSOs review existing economic collections with a view to improving efficiency and the quality and timeliness of outputs by taking advantage of technological improvements;

12. Recommended that NSOs review their backup and documentation procedures with a view to improving the physical security of key economic data and associated systems;

13. Recommended that relations between NSOs and partner agencies be strengthened, in particular by NSOs providing relevant training and advice related to the use of common technology, data items and standards;

14. Noted with appreciation the SNZ decision to set up a formal process for funding two PIC training attachments per annum at SNZ;

15. Recommended that SPC continue to develop PacStats as a tool for improving regional communication, particularly between NSOs. To help achieve this:

16. Recommended that unemployment be added to the draft list of data items presented in paragraph 7 of Working Paper 8, and the resulting list be used as the key economic statistics for assessing improvements in NSO outputs;

17. Recommended that NSOs adopt the practice of publicly releasing scheduled dates of release for major economic statistics;

18. Recommended that international agencies take the resolutions from this meeting into account when considering any economic statistical developments in the region; and

19. Recommended that the SPC Statistics Programme prepare a report for the 12^th Regional Meeting of Heads of Statistics assessing the extent of improvements to economic statistics in the region

OTHER RESOLUTIONS WERE AS FOLLOWS:

44.    The meeting also recommended that:

1. any resolutions to the Regional Meeting include formal strategies for the development of economic statistics;

2. future sessions (of the technical meeting) consider specification of a framework such as the GDDS for assessing the statistical development needs of PICs;

3. strategies assign highest priority to achieving improvements in GDP and related measures trade other BOP employment production indicators;

4. assessments (of project sustainability) be against a set of high/low risk criteria similar to those listed in this meeting report;

5. the SPC Statistics Programme provide advice in assessing sustainability for particular projects whenever requested to do so by NSOs;

6. the use of administrative data be increased wherever appropriate;

7. NSOs lead discussions with other agencies to establish a central national business register;

8. NSOs continue to take advantage of the use of affordable technology, including increased use wherever appropriate of commonly available software;

9. any planning for major projects involving the NSO take into account the processing experience of other NSOs in similar projects;

10. NSOs maintain active links with major users, with emphasis on ensuring that users are aware of key data issues;

11. NSOs strengthen their political support by providing quality reports to Ministers;

12. the meeting endorsed the concept of a central business register for each national statistical system, and recommended that NSOs play a lead role in trying to achieve this goal; and

13. recommended that donor agencies recognise that additional resources will be required by NSOs to achieve significant improvements in the key items.

45.    The SNZ delegate presented a demonstration of the Economic Statistics Strategy developed by SNZ and a demonstration of the PC-based SPROCET system developed for all aspects of business surveys.

Adoption of the report