March 2013 UNECE Statistical Division 1 Overview of the current status of classifications work in the region Based on the survey for the workshop and findings.

March 2013 UNECE Statistical Division 1

Overview of the current status of classifications work in the region

Based on the survey for the workshop and findings of Global Assessments


Background

Close cooperation with the Interstate Statistical Committee of the Commonwealth of Independent States (CISSTAT) in developing the system of national classifications

CISTAT has provided training, expertise, and translations of classifications in Russian

Several NSOs have benefited from EU TACIS programmes and related programmes also in classifications

A number of EU countries have provided bilateral support with classifications, changes of classifications, backcasting and data linking


What are global assessments?

Carried out with Eurostat and EFTA To provide a clear picture of the state of development of

official statistics in a country To help the national authorities to better programme

development of statistics To help international donors to programme statistical

cooperation To assess the technical aspects of the statistical system

in the country To assess compliance with international standards, such

as classifications


Recently published global assessments

2008 Kazakhstan (year when published) 2009 Armenia 2010 Azerbaijan 2012 Kyrgyzstan 2012 Ukraine 2013 Belarus 2013 Georgia 2013 Moldova 2013 Tajikistan


Armenia – classifications used

o Classifications currently in use:o NACE rev.2 approved in 2009 o CPA approved and used since 2011o ISCO approved in 2009, COICOP approved in 2012o FEACN applied since 2007 (Foreign Economic Activity

Commodity Nomenclature, rev. 4) COFOG, ICSE-93 and ISCED-97 in use

Changeover to NACE Rev.2 began in 2007 Previously NACE Rev.1 and OKED-2 of CISSTAT at 5-digit level NACE Rev. 2 in the BR from 2010 and NA from 2012

PPIs moved to CPA (from CIS classification) in 2009


Armenia – issues/challenges

o Extension of the glossary of terms on classifications and the related metadata

o The small number of experts dealing with classification issues

o Absence of a clear program for training of experts and users – consultant support needed

o Translation of the detailed description of goods into the national language

o Time series usually re-calculated 1-2 years back, depending on available resources


Armenia – GA assessment in 2009

Making good progress in implementing international classifications into national system of classifications

Classification systems used are broadly consistent with international guidelines

Implementation of CPA 2008 should be accelerated Improved user communication

More frequent and regular information on changes in classifications

Need for methodological training on classifications and their use


Azerbaijan – classifications used

The Law on Official Statistics: obligatory for institutions, enterprises, and organizations to use international classifications for the exchange of information

NACE used in business statistics since 1997o NACE Rev. 2 implemented as of 2010 (IFNT 2008)

o National product classification int. comparable since 2000 o Now in use MNT 2009 = CPA 2008o List of industrial products SMST 2009 = PRODCOM (since 2010)

o COICOP in use since 2002 National Classification of Employment is based on ISCO-88o A number of correspondence tables have been preparedo Now revising explanatory text for the product classification and

preparing transition keys between HS – SITC rev4 – BEC


Azerbaijan – issues/challenges

Up-to-date classifications used NSO has organized workshops on the application of

classifications for respondents and tax authorities The assignment of NACE-codes to enterprises is a

responsibility of the Ministry of Taxes NSO monitors NACE coding by quality surveys

(carried out in 2004, 2006 and 2008 etc.) We should aim at the fullest compliance of product

classification with the classification of activities!


Azerbaijan – GA assessment in 2010

The classification system is in line with international standards and recommendations

Further activities are foreseen for improved and more efficient use of classifications

A database on classifications is available to all respondents for downloading any classifications Adding search tools and explanatory notes was recommended


Belarus – classifications used

o National Classification based on NACE 1.1 → towards NACE Rev. 2 (now in SBS, in BR 2013)

o National Classification based on CPA 2002 → towards CPA 2008

Standard International Trade Classification (MSTK rev. 4/SITC rev. 4)

Commodity Nomenclature of Foreign Economic Activity of the Customs Union (TN VED TC/FEACN CU), based on GS 2007/HS 2007

(KFOGU) COFOG, (KIPC) COICOP and (MSKO-97) ISCED-97 and (MSKZ) ISCO-88 also used

International Statistical Classification of Diseases and Related Health Problems (MKB-10/ICD-10)


Belarus – coordination

Several institutions are responsible for classifications: Belstat, the State Committee for Standardisation (Gosstandart),

the Ministry of Labour and Social Protection, the Ministry of Education, and the State Committee on Property

A uniform approach to developing classifications: Agency responsible for the development and maintenance of a

national classification prepares a new version and sends it to all stakeholders for agreement

After it is agreed, Gosstandart adopts a resolution Belstat takes a decision on its use in statistical practice Belstat generally initiates the implementation of a new

classification in economic practice as well


Belarus – issues/challenges

o Adapting NACE and CPA to national circumstances, product standards and laws

o Need to harmonize the use of classifications within the governmento Lack or late receipt of methodological materials in Russiano Methodology questions with certain activities (e.g. services, tourism)o Guidance needed on recalculation of 6-10 years by using coefficients

and on the surveys for calculating the coefficientso Coding enterprises in BR, when micro-data is missing for earlier

classificationso Determining the value added for the individual stages of a vertically

integrated processo Specific questions about classifying certain activities or productso Consistency needed for product and activity classification


Belarus – GA assessment in 2013

National classifications are based on international and interstate classifications taking into account national circumstances

Strengthen the coordination role in developing new versions of classifications for state statistical activity

Move as quickly as possible to classification of economic activities NACE rev. 2 to ensure comparability In business surveys for statistical year 2012 both the current and the new

versions Economic Activity Classifications are used simultaneously


Georgia – classifications used

The Charter of the NSO: among its objectives is to create and implement statistical classification systems

o NACE rev 1.1 and national 5-digit level (GNC 001-2004) in economic and business statistics, prices, wages and agricultural statistics Public administration widely applies NACE

o CPA (1996) is used as the adapted national version (CPA 002-99) COFOG is used for statistics on the government sectoro HS (2012), SITC rev.2 and BEC rev.2 and national extension used in

external trade statisticso ISCO-88, ICSE-93, ISCED-97o COICOP is also used for statistics on household consumption

(consumer prices, household survey) The International Statistical Classification of Diseases and Related

Health Problems, 10th Revision is in use


Georgia – issues/challenges

No unit in charge of classifications, IT Division maintains a database Notable time lag in updating classifications – due to resources

o Ongoing revisions: NACE rev. 1.1 → rev. 2, ISCO-88 → 08, CPA later

o Economic surveys are non-mandatory: trade-off between needed information and quality that can be achieved

o Institutional independence of Geostat and official adoption of classifications (now going through the government)

o Involvement of other agencies: scope, extent and coordinationo Geostat has launched a working group on NACE and the

changeover will be advanced in cooperation with Statistics Swedeno Implementation in BR and business statistics’ survey to start in 2014,

followed by national accounts in 2015 – recalculation for 3-5 years backo How long to keep both versions of NACE? Recoding 1-to-1 / 1-to-many? The transition will be a good chance for updating NACE codes

The website offers limited information on classifications


Georgia – GA assessment in 2013

The changeover to NACE rev.2 should be accelerated The stepwise transition to NACE rev.2 has to be planned carefully

throughout all divisions of Geostat Coherence in using classifications across the national statistical system is

a crucial issue for comparability of related statistical results A timetable for the changeover has to be agreed among all producers

of official statistics and users of the NACE codes The transition plan has to cope with changes in data collections,

adaptations in compilation practices Training in understanding and using NACE rev.2 should be offered in

particular to other producers of official statistics A classification database as well as correspondence tables would

support harmonised application of classifications Metadata should be presented which explain the classifications and

guide their use


Kazakhstan – classifications used

o CPA 2008 used since 2009 (CPA in general since 2002)o In 2009, surveys revised according to NACE rev. 2

NACE Rev. 2 codes to BR in 2008 (NACE Rev. 1.1. since 2004)o As of 2010, data collected for SBS, sectoral statistics and NA in NACE

Rev. 2 and CPA 2008

o COICOP used for the Household Budget Survey, Price Statistics and Purchasing Power Parities (enhanced 8-digit)

o In the context of 2008 SNA, in 2012 approved:o Classification of financial assets; and that of nonfinancial assetso COFOG, COPNI, etc.

ISCO-88, ICSE, ISCED-97 are used For exports and imports "Commodity Nomenclature for Foreign

Economic Activity of CIS Countries" in line with HS and CN Uniform Budget Classification consistent with the GFSM 1986


Kazakhstan – issues/challenges

Detailed description of international and national statistical classifications available in Russian

New classifications usually implemented in less than 2 yearso Time series for 1998-2009 recalculated in 2011-2012,

recalculation of 1990-1997 is planned for 2013o Based on both micro-data and conversion coefficients

o What is the difference between classes 64.20 "Activities of holding companies" and 70.10 "Activities of head offices“?

o Explanations needed for subtypes of CPA 2008 classificationo For example, production of alcohol from edible raw material with alcohol

concentration of over 80% was in the old CPA included in food industry, but the CPA 2008 includes this in chemical industry (code 20.14.74)

o As a result, all factories for the production of alimentary alcohol were moved from food industry to chemical industry


Kazakhstan – GA assessment in 2008

Many classifications of the European Statistical System introduced

It would be important to set up a classification server for the statistical production process It should include the present classifications, the former

classifications, transition keys, links between the classifications and links to other administrations that shall help to support a nation-wide harmonization of classifications

The server could possibly be used by other public agencies Often classifications used in administrative registers differ

from international classifications Interaction with register keepers could help

Transition to new classifications needs time and resources – and training of staff


Kyrgyzstan – classifications used

A web page on national and international classifications The main computing center has the task of harmonizing

classifications National classifications are used e.g.:

o State Classification of the Kyrgyz Republic Types of Economic Activity (GKED, version 3) in line with NACE (since 2011) and using CIS-STAT classification as a model

o State statistical classification of products (GSKP) based on CPA and PRODCOM (since 2012)

State Classification of Individual Consumption by Purpose (KIPTS) o BR is dual coded in GKED 2 and 3, recalculating series

o Planning a release in the new GKED in the second half of 2013 Internationally consistent classifications: ICSE, ISCO, ISCED and

COICOP


Kyrgyzstan – issues/challenges

o Some challenges in classifying units to particular sectors of the activity classifications: o 10.51 Dairies and cheeseo 11.07 Soft drinks, production of mineral water and

other bottled water o 13.99 Manufacture of other textiles

o The more detailed new classification has led to a significant increase of work

o Encountered various problems and inconsistencies in the transition between the old and the new version of product classification


Kyrgyzstan – GA assessment in 2012

In general classifications used are consistent with international standards

Some national classifications, e.g. the classification of products and that for occupations should be updated to new versions

Recent efforts in further harmonizing national classifications internationally are important

Update to NACE rev.2 will be necessary More metadata about the methods and classifications are

needed Coverage of all business activities across NACE requires

improvements, especially for small businesses


Moldova – classifications used

o NACE rev.2 (CAEM rev. 2) came into force on January 1st 2010o Dual coding of the SBS survey -> SBR -> SBS & STS statisticso Annual surveys in 2013 in NACE rev. 2 and monthly in 2014

o Adoption of the CSPM classification (CPA 2008) in 2013o Adoption of PRODMOLD (PRODCOM ) in 2013 COICOP and ISCO in use Statistical regions in line with NUTS to produce regional GDP by 2014 National Accounts sectorization internationally comparable Comprehensive documentation on classifications is published COFOG not yet implemented, but the existing classification, used by

the Ministry of Finance, is not significantly different SITC and the Combined Nomenclature of Goods (HS/CN) are used in

foreign trade statistics, but coordinated by the Ministry of Economy ISCO is coordinated by the Ministry of Labour, and ISCED by the

Ministry of Education together with the NSO


Moldova – issues/challenges

The Division of Statistical Infrastructure, with 10 staff members, is responsible inter alia for the development, implementation and maintenance of statistical classifications

o Not enough financial resources for special additional survey to support recoding of units in the new classificationo Uses existing surveys for SBS and bookkeeping reports, estimates

o Problems in keeping time series consistent (back-casting)o How many years back to take data in a new classification in:

• Statistical business register, structural business statistics, short term statistics, national accounts

o Which methods are considered best for calculating previous years in the new classifications in:• Statistical business register• Structural business statistics• Short-term statistics • National accounts


Moldova – GA assessment in 2013

Making good progress in implementing international classifications Classification systems used are broadly consistent with international

guidelines Implementation of NACE rev. 2 as planned in 2013 is strongly

supported by the assessment Implementation of CPA 2008 should be targeted as soon as possible The NSO should coordinate all classifications used in statistics Clear procedures for updating the economic activities of entities (who

is responsible, which sources can be used, when is information available) must be developed and implemented


Mongolia – classifications used

o International Standard Industrial Classification (ISIC) rev.4o Improved official adoption in 2011o Time series recalculation for 1990-2013 in 2011-2013 using dual

coding and coefficients with benchmarkingo BR dual coded based on conversion tables and surveyso In STS use of dual coding planned for 2013

o Central Product Classification (CPC 2.0)o Classification of Individual Consumption According to Purpose

(COICOP)o Classification of the Function of Government (COFOG)o Classification of the Purposes of NPISH (COPNI)


Mongolia – issues/challenges

o Different types of outsourcing and interpreting the ownership principle cause problems

o Section J ”Information and communication” is problematico New terminology: holding company, head office, ancillary units, R&D

and intellectual propertyo Problems in linking some of the ISIC 3.1 groups to ISIC 4o Develop survey questionnaires for new sectors and updated sectorso Update previous time series, recalculating processo Usage of newly updated classifications o Update CPC at a more detailed levelo Manufacturing service index for GDP and other NA’s estimationso Mining support service activities for GDP and other NA’s estimations


Russian Federation – classifications used

o NACE rev. 1.1 used since 2007 (NACE Rev. 1 since 2001)o Project for a changeover to NACE Rev. 2 on-going in 2013o National NACE Rev. 2 extended to 6-digit level

o OKPD = national classification of types of economic activities, products and services in line with CPA 2002 used since 2007o Project for a changeover to CPA 2008 on-going in 2013o National CPA 2008 extended to 8-digit level

o Russian classification of occupations (OKZ-93)o Project for a changeover in line with ISCO 2008 in 2014

o COICOP, the classification of institutional units (SNA-93) and the national classification of speciality by education (OKSO-2003) are also used


Russian Federation – issues/challenges

o To agree on classifications with the relevant ministries and implement changes to legal acts

o Examine, adopt and implement the new versions of classifications o Review changes needed in statistical toolso Recording of new codes in BRo Creation of transition keys

o NACE Rev. 1.1 and 2 o CPA 2002 and 2008

o The NSO will stop applying, by 1 January 2015, NACE Rev. 1 and NACE Rev. 1.1, (OKDP) national classifier of types of economic activities, products and services, (OKUN) classifier of services rendered to the public, (OKP) products classification and (OKPD) product classification derived from CPA


Tajikistan – classifications used The Methodology and Classification Department is in charge o ISIC 3.1/NACE 1.1 used in economic and business statistics

o In BR since 2000, dual coding available o In SBS since 2010o Common Classification of Economic Activities (CCEA rev. 2),

which structurally corresponds to NACE rev. 2, was developed in 2010

o Implementation Plan for CCEA rev. 2 was developedo Draft Classification of main products (9-digits) harmonized with CCEA

rev. 2 was developedo Population census applies ISIC 4/NACE rev.2, and the CIS-STAT

1993 recommendation on statistical classifiers and ISCO-88o The economic census of 2010 applied ISIC 4/NACE rev.2 COICOP, COFOG, HS, ISCO-88, ICSE-93 and ISCED-97 are in use International Classification of Diseases (ICD-10) in the vital register


Tajikistan – issues/challenges

o Long delays in changing to new versions of classifications hamper international comparability > causeS challenges for the coherence

o Resources are needed for updating classifications of economic statistics to NACE Rev.2 and CPA 2008o lack of qualified professionals > training for producers and userso lack of funding

o Difficulties with recalculation of time series > 2 years will be calculatedo Lack of Russian translations of International classifications Coordination within TAJSTAT and with other producers There is no specific unit in charge of the Statistical Business Register Small production entities, individual entrepreneurs and informal

economy are not well covered


Tajikistan – GA assessment in 2013

In general the international classifications are followed It is recommended that the NSO reinforces the role of the

Methodological and Classification, including in quality monitoring International classifications should be implemented faster to maintain

comparability of statistics The national classification of economic activities (OKVED) was recently

revised to NACE rev 1.1 as of 2011, while NACE rev 2 would be available but the national product classification is not yet up-to-date with CPA 2008

The use of the updated classifications should be planned without delays for surveys and adjustment of data processing To maintain consistency this implementation should be well coordinated

throughout the NSO and with providers of administrative data Some information on classifications is lacking, for example for CPI and

PPI. There should be a systematic approach to metadata.


Ukraine – classifications used Law on State Statistics: one of the main tasks of the

statistical bodies is to comply with international standards National classifications are based on :

ISCE, ISCO, ISCED o National Classification of Economic Activities was harmonized with

NACE (rev. 1.1) at the class level, now NACE rev. 2 National classification of individual consumption by purpose is

based on COICOPo National classifications in line with NACE rev. 2 and CPA

2008 in used as of 2011/2012o Nomenclature of industrial products based on PRODCOM

- additional 2 digits nationally since 2013o National customs classification of goods is based on HS /

CN - additional 2 digits nationally


Ukraine – issues/challenges

o Coordination of the changeover to new classifications in the statistical system

o Reducing response burden as the guiding principleo All activities of the classification update were done using

existing tools and capabilitieso Some delay in updating the classifications, but a carefully

organized and programmed process across different statistics

o Extensive user consultations were carried out and the process was transparent to users during the implementation


Ukraine – GA assessment in 2012

Many statistical classifications up-to-date as compared to international classifications – NACE Rev. 1.1 and CPA 2002 have now been updated

NSS was working towards NACE rev. 2 aiming at gradual implementation by 2014

It is recommended to harmonize the Ukrainian Classification of Foreign Trade in Goods with the latest international classifications

Coverage of all business activities across NACE requires improvements, especially for small businesses

Metadata on classifications available on the website


Uzbekistan – classifications usedo National classification of economic activities, GCEA-2

o Gradually implemented by 2014 in parallel – based on NACE rev.2o Classifications of goods, services, assets:

o CPA, FEACN (CN), COICOP, NPP (national nomenclature of industrial products), OKUVD (national classification of services), KOF national classification of the main funds (fixed assets)

o CPA2008 will be approved in 2013, implemented 2013-2015o COICOP 1999 – will come under review in 2014

o Recalculations combining micro-data and coefficientso Classifications for population statistics: ISCO, ICD, ISCEDo Regional nomenclatures: SOATO, Countries in the world;o Functional classifications of the SNAo Classifications of type of enterprise by the number of employed,

classification of small enterprises and microenterprises, etc.


Uzbekistan – issues/challenges

o Action plan on the implementation of parallel calculations on the basis of GCEA-2 for 2012-2015

o National methodological guidelines have been prepared for GDP and IIP calculation in the new classification

o Parallel use in statistical calculations of both classifications will be necessary for a long time

o Existing national classifications of industrial products and services were too or not enough disaggregatedo Correspondence tables are a necessity

o Some difficulties in interpreting the new activity and product classifications


Turkmenistan – issues/challenges

What kind of classification are used? What are your main challenges with classifications currently? Plans to implement new versions of international classifications?

March 2013 UNECE Statistical Division 1 Overview of the current status of classifications work in the region Based on the survey for the workshop and findings.

Documents

o classifications

international classifications

o nace

azerbaijan classifications

armenia classifications

o national classification

unece statistical division

belarus classifications