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Adoption of System of National Accounts 1993 in Latin-America and the Caribbean

DEPE - CEPAL

Joint Eurostat-UNSD Conference on National Accounts in the Context of

Development Cooperation

Luxemburg6 – 8 may 2008

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Overview Some features of National Accounts in Latin America:

an overview Old and new challenges What to do

Presentation Summary

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Every three years ECLAC requests Latin American countries to respond to a questionnaire that helps establish progress in the adoption of SNA 1993.

This questionnaire provides a quantitative overview of tables and instruments created by every country.

Unfortunately, it does not provide information on the “quality” of the work being carried out

Questionnaire and answers

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In 2007:

33 countries with a GDP of 2609 340 million USD (2000), 22 mention to have adopted the SNA 93

Representing 66.7% of countries in LAC

And 97.6% of total GDP

2001 = 4 countries

2003 = 10 countries

2007 = 22 countries

LAC- SNA 93Country 2001 2003 2007

GDP 2005 (Thousand USD)

Latin-America

Argentina 183 196

Bolivia 9 441

Brasil 882 330

Chile 118 182

Colombia 144 586

Costa Rica 19 973

Cuba 46 162

Ecuador 37 187

El Salvador 17 070

Guatemala 27 285

Haiti 4 154

Honduras 9 757

México 767 222

Nicaragua 4 855

Panamá 15 465

Paraguay 7 473

Perú 79 466

Rep. Dominicana 33 542

Uruguay 16 615

Venezuela 144 823

Total 4 10 16 2 568 784

The Caribbean

Antigua & Barbuda 873

Bahamas 5 869

Barbados 3 006

Belize 1 111

Dominica 299

Grenada 554

Guyana 826

Jamaica 9 715

Saint Lucia 438

St. Kitts & Nevis 445

St. Vincent & The Grenadines 850

Suriname 1 481

Trinidad & Tobago 15 089

Tatal 0 0 6 40 556Latin-America and the Caribbean 4 10 22 2 609 340

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LAC: Overview of progress in adoption of SNA 1993

Classification of accounts according to the progress of SNA 93 adoption

I Published on the Internet (and possibly paper)P Published only on paperC Compiled, unpublishedE In preparation

NNot developed / not reported or no information available

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LAC: Overview of SNA 93 Adoption

Country and SNA VersionGlobal

Supply and Demand

GDP by industries

ExpenditureSupply and use table

Goods and services

Income Generation

account

Allocation of primary

income Account

Secondary Dist.

Account

Capital Account

Financial Accounts

Balance

Argentina 93 C I I I N I N N N N NBolivia 68 I I I I N N N N I N NBrazil 93 I I I I I I I I I N NChile 93 I I I I I I I I I I NColombia 93 I I I I I I I I I N NCosta Rica 93 I I I I I I I I I N NCuba 93 I I I C C C C C E E NEcuador 93 I I I I E E E E E N NEl Salvador 68 I I I C N N N N C C NGuatemala 93 I I I I I I I I I I EHaiti 68 I I I N N N N N N N NHonduras 93 I I I I I I I I I I IMexico 93 I I I I I I I I I I NNicaragua 93 I I I I C I N N N N NPanama 93 I I I C I I I I N N NParaguay 93 I I I I C I I N N N NPeru 90 I I I I C I N N N N NDominican Republic 93 I I I C C C I N N N NUruguay 68 / 93 I I I P N P N N N N NVenezuela (Bolivarian Republic of) I I I I I I I I I I I

Anguilla 68 C I I N N N N N N N NAntigua & Barbuda 68 C I I N N N N N N N NNetherlands Antilles 93 C I C C C C C C C N NAruba 68 C N I N N N N N N N NBahamas 93 C I I N N N N N N N NBarbados 68 C I I N N N N N N N NBelize 93 C I I N N N N N N N NDominica 93 C I I N N N N N N N NGrenada 68 C I I N N N N N N N NGuyana 68 C I I N N N N N N N NJamaica 68 P P P N N N N N N N NSaint Lucia 68 C I I E N N N N N N NSt. Kitts & Nevis 93 C I I N N N N N N N NSt. Vincent & The Grenadines 68 C I I N N N N N N N NSuriname 93 C I C N N N N N N N NTrinidad & Tobago 93 I I I E C C C C C C N

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Diverse and heterogeneous progress in the adoption of SNA93 in Latin America and the Caribbean

Generally speaking, LAC countries have supply and use tables, GDP by type of expenditure and industry, and components of value added.

Most of the countries identify public expenditure in health and education, making it possible to calculate actual household consumption.

A limited number of countries have institutional sector accounts, and mostly on net lending.

No country publishes asset - liability balance sheets for all institutional sectors.

Almost all countries have product disaggregates of gross fixed capital formation; and a few countries present gross fixed capital formation indicating geographic origin (national or imported)

Assessment

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Few countries have been able to distribute the financial intermediation services indirectly measured (FISIM) by institutional sector and industry of use.

From a methodological and statistical point of view there is significant progress in the harmonization of information between the rest of the world accounts and the balance of payments.

Most countries use Customs information, make adjustments for non recorded market and in some cases, when available, information about maquila and free zone is quantified and incorporated.

Unfortunately the situation in Caribbean countries is precarious.

Assessment

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It is difficult to measure quality in national accounts

The existing limitations of basic statistics are the main cause of some inconveniences in the calculation of national accounts in Latin America.

Examples:Non-recorded activities are very important and are frequently improperly measured, especially the Services Few records exist on the financial information of enterprises.

Other limitations include:The lack of continuity in teams in national accountsUnawareness of SNA 93 rev. 1Lack of research about specific topics (maquila, informal sector, natural assets)

Quality

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Two level- extensive training program for national accounts teams, on SNA 93 Rev 1. Level 1: General and theorical course for new staff involved in

elaborating national accounts. Level 2: Specific and practical course, for those resposible for

the synthesis and analysis of the consistency of results of the national accounts.

Coordination of technical assistance missions to countries to assess and implement topics of SNA 93 Rev. 1.

Identification of minimum topics of SNA 93 to use as a baseline to implement in the region.

Translation of SNA 1993 Rev. 1 into Spanish, publication and dissemination.

Reflections:What can be done in LAC

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Creation of a horizontal cooperation program that facilitates the exchange of experiences and specific methodologies among national accountants in the region (this would facilitate the harmonization and international comparison of national accounts)

Institutional strengthening of national accounts teams.

Support research in the application of SNA 93 concepts, its satellite accounts and new methodological guidelines.

Reflections:What can be done in LAC