Developments In International Activity

NBS-OECD National Accounts Workshop 6-10 December 2004

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Developments in International Activity and Product Classifications :

Towards ISIC revision 4

and CPC version 2

Bill Cave

OECD Statistics Directorate


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Overview

Introduction to ISIC

Making sense of the proposed ISIC Revision 4

Where are the regional classifications going?

What about products?

Discussion points


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What is ISIC? International Standard Industrial Classification of All Economic

Activities (ISIC) One of UN family of international reference statistical

classifications Original ISIC 1948 Revision 1 1958, Revision 2 1968, Revision 3 1989 Minor Revision 3.1 2002, Revision 4 planned for 2007 To be a standard classification of productive economic activities To classify economic entities (units) according to the activity

they carry out


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Why a new revision of ISIC?

ISIC revision 3 was published in 1989 minor updating done in 2002 (rev 3.1) almost no 4 digit

boundaries were changed relevance – how to classify new internet, ICT, and content

activities; biotech; etc. not sufficiently used so lack of international comparability But for analysts continuity is desirable – value long time

series


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Regional classifications and ISIC rev 3

NACE derived from ISIC - corresponds at most detailed level

ANZSIC, NAICS, CSIC, JSIC are related classifications

Great difficulty to compare Europe, with N America, China and Japan at 2 digit level especially for services


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Structure of ISIC rev 3ISIC Rev 3Tabulation Categories Divisions Groups ClassA Agriculture, Hunting, Forestry 01-02B Fishing 05C Mining and quarrying 10-14D Manufacturing 15-37NA categories:DA Manufacture of food products, beverages and tobacco 15-16DB Manufacture of textiles and textile products 17-18DC Manufacture of leather and leather products 19DD Manufacture of wood and wood products 20DE Manufacture of pulp, paper, publishing and printing 21-22DF Manufacture of coke, petroleum products & nuclear fuel23DG Manufacture of chemicals, and man-made fibres 24DH Manufacture of rubber and plastic products 25DI Manufacture of other non-metallic mineral products 26DJ Manufacture of basic metals and metal products '27-28DK Manufacture of machinery and equipment n.e.c. 29DL Manufacture of electrical and optical equipment 30-33DM Manufacture of transport equipment 34-35DN Manufacturing n.e.c. 36-37E Electricity, Gas and Water Supply 40-41F Construction 45Services: G Wholesale and Retail Trade 50-52H Hotels and Restaurants 55I Transport, Storage and Communication 60-64J Financial Intermediation 65-67K Real Estate, Renting and Business Activities 70-74L Public Administration and Defence 75M Education 80N Health and Social Work 85O Other Community, Social and Personal Services 90-93P Private Households with Employed Persons 95Q Extra-territorial Organisations 99


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ISIC rev 3 StructureISIC Rev 3Tabulation Categories Divisions Groups ClassA Agriculture, Hunting, Forestry 01-02B Fishing 05C Mining and quarrying 10-14D Manufacturing 15-37E Electricity, Gas and Water Supply 40-41F Construction 45Services: G Wholesale and Retail Trade 50-52H Hotels and Restaurants 55I Transport, Storage and Communication 60-64J Financial Intermediation 65-67K Real Estate, Renting and Business Activities 70-74L Public Administration and Defence 75M Education 80N Health and Social Work 85O Other Community, Social and Personal Services 90-93P Private Households with Employed Persons 95Q Extra-territorial Organisations 99


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Making sense of the proposed ISIC rev 4 draft structure

?


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Design principles & priorities for ISIC rev 4

Improve international comparability– convergence of regional classifications– E.g. NAICS/NACE/JSIC/ANZSIC/CSIC– engage more countries and regions in ISIC design – target for international comparability at least at 2 digit level

Relevance– 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?


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ISIC Rev 4 DraftISIC Rev 4 Draft May 2004Tabulation Categories Divisions Groups ClassA Agriculture, Forestry, Fishing 01-03B Mining and quarrying 05-09C Manufacturing 10-33D Electricity, Gas, Steam and Air Conditioning Supply34E Water supply, sewerage, waste management and remediation '35-38F Construction 39-41G Wholesale and Retail Trade 42-44H Transport and Storage 45-50J Accommodation and food service activities 51-52K Information and communication 53-57L Financial and insurance activities 59-61M Real estate, rental and leasing activities 62-63N Professional, scientific and technical activities 64-70O Administrative and support service activities 71-75P Education 76Q Human Health and Social Work 77-79R Arts, entertainment and recreation 80-83S Óther service activities 84-86T Public Administration and Defence 87U Activities of households as employers plus undifferentiated household activities88-89V Extra-territorial Organisations 90

21 categories 87 divisions


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What’s new? 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


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Information and communication sector

53 Publishing– 531 publishing books, periodicals (ex manufacturing)– 532 software publishing (ex IT services)

54 Motion picture & sound recording– 541 Motion picture activities– 542 Sound recording activities (inc music pub ex manuf)

55 Broadcasting– 551 Radio and TV– 552 Cable and other subscription programming

56 Telecommunications 57 IT services, ISP, web search and other information service activities


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Water supply; sewerage, waste management and remediation activities

35 Water collection and supply

36 Sewerage

37 Waste collection, treatment and disposal activities, materials recovery– 371 waste collection

– 372 waste treatment and disposal

– 373 materials recovery

38 Remediation activities and other waste management services


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Agriculture, forestry and fishing

01 Crop and livestock production, hunting and related activities– 011 production of cereals and other field crops

– 012 production of permanent crops

– 013 market gardening, horticulture, production of other crops

– 014 production of animals

– 015 mixed farming

– 016 support services to agriculture and post-harvest crop activities

– 017 hunting, trapping and related services 02 Forestry and logging 03 Fishing and aquaculture

– 031 fishing

– 032 aquaculture

– 033 support services to fishing and aquaculture


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Manufacturing

10 food products 11 beverages 12 tobacco products 13 textiles 14 wearing apparel 15 leather and related products 16 wood and wood/cork products (not furniture) 17 paper and paper products 18 printing and reproduction of recorded media 19 coke and refined petroleum products 20 chemicals and chemical products 21 pharmaceuticals


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Manufacturing continued

22 rubber and plastic products 23 other non-metallic mineral products 24 basic metals 25 fabricated metal products except machinery 26 computers and electronic products 27 electrical equipment 28 machinery and equipment 29 motor vehicles 30 other transport equipment 31 furniture 32 manufacturing n.e.c. 33 repair, maintenance and installation of machinery and equipment


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Real estate, rental and leasing activities

62 real estate– 621 real estate activities with own or leased property

– 622 real estate activities on a fee or contract basis 63 rental and leasing

– 631 renting transport equipment

– 632 renting of other machinery and equipment

– 633 renting of recreational/sports/personal/household equipment

– 634 leasing of non-financial intangible assets


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Professional, scientific and technical activities

64 legal and accounting activities– 641 legal; 642 accounting

65 holding companies, management and management consultancy activities

– 651 holding companies; 652 head offices; 653 management and management consultancy

66 architecture and engineering activities 67 scientific research and development

– N.B. 6711 research and experimental development in biotech 68 advertising and market research 69 photographic and other prof, scient, and technical activities 70 veterinary activities


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Administrative and support activities

71 Employment activities– 711 employment placement agencies; 712 temporary help activities

– 713 human resource provision and management 72 Travel agencies; tour operators; and other reservation services 73 Investigation and security activities 74 services to buildings and landscape activities

– 741 facilities support; 742 cleaning; landscape care and maintenance 75 office administrative, business support and other support activities

– 751 office admin and business support;

– 752 call centres

– 753 other business support n.e.c.


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Human health and social work

77 human health activities– 771 hospital activities

– 772 medical and dental practices

– 779 other human health activities

78 residential care services– 781 nursing care facilities

– 782 residential mental health and related services

– 783 community care facilities for the elderly

– 789 social work activities with accommodation

79 social work activities without accommodation


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Arts entertainment and recreation

80 Dramatic arts, music and other arts and entertainment

81 museums, preservation of historical sites, botanic and zoological gardens, nature reserves

82 gambling and betting activities

83 sports activities, amusement and recreation activities– 831 sports activities - inc operating sports facilities and clubs

– 832 other amusement and recreation activities


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Section S Other service activities 84 activities of membership organisations

– 841 business, employer, professional organisations

– 842 trade unions

– 843 other membership organisations 85 repairs of computers and personal and household goods

– 851 repair of computers and communication equipment

– 852 repair of personal and household goods 86 other service activities

– 8601 washing and dry-cleaning of textiles and furs

– 8602 hairdressing and other beauty treatment

– 8603 funeral and related activities

– 8609 other service activities n.e.c.


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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 Eurostat, UNSD, OECD,IMF, ILO, FAO, some others)

2004 Consultation – see over


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ISIC Revision Processapproximate timetable

Worldwide consultation closed 15 November 2004 Need top-top structure for national accounts reporting TSG meets February 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


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ISIC Rev 3 v Rev 4?ISIC Rev 3 ISIC Rev 4 Draft May 2004Tabulation Categories Divisions Tabulation Categories Divisions ContinuityA Agriculture, Hunting, Forestry 01-02 A Agriculture, Forestry, Fishing 01-03 *B Fishing 05 B Mining and quarrying 05-09 *C Mining and quarrying 10-14D Manufacturing 15-37 C Manufacturing 10-33E Electricity, Gas and Water Supply 40-41 D Electricity, Gas, Steam and Air Conditioning Supply34

E Water supply, sewerage, waste management and remediation '35-38F Construction 45 F Construction 39-41 *G Wholesale and Retail Trade 50-52 G Wholesale and Retail Trade 42-44 *I Transport, Storage and Communication60-64 H Transport and Storage 45-50H Hotels and Restaurants 55 J Accommodation and food service activities51-52

K Information and communication 53-57 *J Financial Intermediation 65-67 L Financial and insurance activities 59-61 *

M Real estate, rental and leasing activities62-63K Real Estate, Renting and Business Activities70-74 N Professional, scientific and technical activities64-70

O Administrative and support service activities71-75M Education 80 P Education 76 *N Health and Social Work 85 Q Human Health and Social Work 77-79O Other Community, Social and Personal Services90-93 R Arts, entertainment and recreation 80-83

S Óther service activities 84-86L Public Administration and Defence 75 T Public Administration and Defence 87 *P Private Households with Employed Persons95 U Activities of households as employers plus undifferentiated household activities88-89 *Q Extra-territorial Organisations 99 V Extra-territorial Organisations 90 *

17 categories 60 divisions21 categories 87 divisions


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Where are the regional classifications going?


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NAICS minor revision 2007 NACE plans to remain derived from ISIC ANZSIC 06 - a version of NAICS China SIC and Japan SIC introduced IC sectors in 2002

converged with ISIC and NAICS but retained significant national features– expect convergence to continue after next revision

Others? India, Mercosur, Russia

Regional Classifications


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Section CSIC 2002 Divisions Section ISIC rev 4 Divisions

A Agriculture, Forestry, Fishing 5 A Agriculture, Forestry, Fishing 3B Mining 6 B Mining and quarrying 5C Manufacture 30 C Manufacture 24D Electricity, gas and water 3 D Electricity, gas 1

E Construction 4 EWater, sewage, waste management, recycling 4

F Transport, storage and post 9 F Construction 3

GInformation and computer services 3 G Wholesale and retail trade 3

H Wholesale and retail trade 2 H Transport and storage 5

IAccommodation and restaurants 2 J

Accommodation and Food service activities 2

J Finance and insurance 4 K Information and communication 5K Real estate 1 L Financial and insurance 3

LRenting and commercial services 2 M Real estate, rental and leasing 2

MResearch, technical services and geological surveying 4 N

Professional, scientific and technical 7

N

Water conservancy, environmental resource, public infrastructure 3 O

Administration and support services 5

O Residential and other services 2 P Education 1P Education 1 Q Human health and social work 3

QHealth, social security and welfare 3 R

Arts, entertainment and recreation 4

R Culture, sports and recreation 5 S Other service activities 3

SPublic administration and social organisations 5 T

Public administration and defence 1

T International organisations 1 UActivities of households as employers 2

V Extra-territorial organizations 120 95 21 87


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What about products?CPC

UN Central Product Classification (CPC) is being revised in 2007

Central classification but with links to activities where possible

Structure will be broadly unchanged Considering new information product section

– (between goods and services)? Issue: Non-financial assets and services flowing from their

use (Canberra II)? Close relation to HS for transportable goods? More detail for services


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CPC version 1.1 version 2.00 Agriculture, forestry and fisheries

1 Ores, minerals, electricity, gas and water

2 Food products, textiles, apparel

3 Other transportable goods (excluding metal, machinery and equipment)

4 Metal, machinery and equipment

5 (Information products) and construction services

6 Distribution, lodging, catering, transport and utilities distribution services

7 Financial, real estate, rental and leasing services

8 Business and production services

9 Community and personal services


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CPC Revision Approximate Timetable

Proposals requested by UNSD in 2004 by 10 October

UN TSG will draft new CPC by Spring 2005 Worldwide consultation 2005 Finalise CPC version 2 in 2006


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Over to you

Questions for discussion? Is China SIC 2002 implemented in

– Business register– Surveys– National accounts?

Is product classification used in China’s production surveys? (which classification?)

Do you have questions or comments regarding ISIC or CPC?


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