REPUBLIC OF BELARUS

EXPERIENCE OF BELARUS IN THE NATIONAL ADAPTATION OF

CLASSIFICATIONS OF ECONOMIC ACTIVITIES

Olga Pintchuk, Chief of the department of statistical classifications of National Statistics Committee of the Republic of Belarus

REPUBLIC OF BELARUS

Work on the development and implementation of a new version of the Classification of Economic Activities (CCEA) in Belarus is organized according to the principles of the European Statistics Code of Practice :

• The new version of CCEA should reflect the sectorial structure of the economy considering the classification standards adopted by European countries, and the requirements of national legislation

• Statistical information prepared in accordance with the new version of CCEA, should maximally meet users needs, which will facilitate the decision making based on statistical information

Requirements for the development and implementation of a new version of the Classification

of Economic activities

REPUBLIC OF BELARUS

System of the classification of economic activities

ISICrev. 3.1

NACErev. 1.1

CCEA2006

ISICrev. 4

NACErev. 2

CCEA2011

World level

EU level

National level

being implementedcurrent

REPUBLIC OF BELARUS

Step 1 Evaluation of resources (2010)

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1. Labour force (experience, skills level)

2. Equipment (computers, software, ...)

3. Information (classifications, correspondence tables, ...)

1. Conducting of workshops and consultations, self-study of the methodological materials to compensate lack of professionals, who have experience in the development and the appropriate level of qualification, lack of educational programs

2. Purchase of computer equipment, the use of office software

3. Preferential use of the information available in the Internet (basic and national classifications and correspondence tables, implementation guides, ...)

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Development planning (2010 - 2011)

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1. Organizing the development work

2. Determining the key points of development:• necessity to develop the national version;• the basis for developing the classification• structure of the classification• criteria for allocating additional classification levels

3. Scheduling the development work

Step 2

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Development planning

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1. Organizing the development work

• Working groups were established:

Working Group of National Statistics Committee(6 experts from the department of statistical classifications and 32 experts from sectorial divisions);

interagency working group (23 heads and experts of sectorial government bodies and scientific organizations) under the leadership of the Minister of Economy

• Development of a new version of the classification within the work of interagency working group has guaranteed a practical orientation of the classification and enabled effective application in economic statistics

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Development planning

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2. Determination of the key points of development

• It was necessary to develop the National version of the Classification of Economic Activities

• NACE rev. 2 selected as the basis for development

• Decision that the structure should match the structure of NACE rev. 2 with the additional levels of detail

• Criteria for identifying the additional national levels of classification: groups should reflect the real type of activities in the country considering the current legislation

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Development planning

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3. Scheduling the development work of a new version of the CCEA

• Defining the new version of the classification and submitting it to the state authorities for consideration: March - August 2011

• Further development of the classification in view of the received proposals and a submission to the State Committee for Standardization for approval: September - November 2011

• Approval of the classification: December 2011

• Preparation and adoption of the Government decisions on the implementation of the new version of the classification in statistical production: March 2012

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Development of a basic project

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Problematic issues :

1. Lack of detailed methodological explanations about the groupings in the basic European classification, lack of clarifications on the classification of "borderline" activities (including in Russian)

It is desirable to obtain additional methodological materials and advice, workshops, seminars

2. Terminological difficulties during translation of the classification and the correspondence tables from English to Russian (for example, use of two terms "activities in the field of telecommunications" and "telecommunications")

Step 3

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Development of a basic project

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Problematic issues :

3. It was necessary to adapt the European classification according to the national specificities and legislation

National legislation requires effective application of the classifications in statistics as well as in economics e.g.:1.Licensed activity in the field of communication includes communication services (Division 61 of section K), radio and television (Division 60 of section K), postal services (Division 53 of section N).2.Manufacturers of products do not recognize the units that perform butchery (Division 10 of section C), mixing of components, not directed to change the properties of products (mixing of alcoholic beverages - Division 11 of section C), etc.

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Development of a basic project

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Problematic issues :

4. Certain discrepancies exist between economic activities and products in the classifications

For example, a product like mushrooms, can be produced by cultivation which relates to agriculture, or by collecting wild mushrooms, the activity related to forestry

It is desirable to develop methodological explanations which can clarify the existing discrepancies between the classifications and correspondence tables

РЕСПУБЛИКА БЕЛАРУСЬ

REPUBLIC OF BELARUS

Harmonization of the project

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Problems of the project harmonization :

Explanations of the methodology and new concepts of classification are needed continuously during the project

For example, there was the problem of coordination with sectorial ministries in terms of transferring telecommunications into new section "Information and communication" without postal activities

Wider consultation of the new standards, concepts of classifications between International sectorial organizations is desirable (eg, the International Telecommunication Union, ...)

Step 4

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Adoption of classification

New version of the classification NCEA approved by the Decree of the State Committee for Standardization of the Republic of Belarus, 5 December 2011 № 85

Government of the Republic of Belarus of April 4, 2012 № 302 approved measures to introduce a new version of the NCEA in economic and statistical practice and established the deadline for the transition to the new version - 1 January 2016 (due to necessity of the revision of legislation, forming the knowledge base required for the transition, and also taking into account existing in the republic approaches to the preparation of the 5 year development program)

Step 5

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Increasing details in the new version of NCEA

Current version of NCEA

New version of NCEA

Difference

Sections (А, В, …) 17 21 +4

Subsections (СА, СВ, …) 16 21 +5

Parts (01, 02, …) 62 88 +26

Groups (011, 012, …) 224 272 +48

Classes (0111, 0112, …) 514 615 +101

Subclasses (01111, 01112, …)

772 796 +24

Total 1605 1813 +208

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Introducing the classification into statistical production

Action plan to introduce the new version of NCEA in statistical production is approved by the decree of the National Statistical Committee from 17 December 2012 № 304 According to Eurostat recommendations, transition to the new version of NCEA is progressed in working groups:

Working group Classifications – development and harmonization of methodological support

Working group Statistics – ensuring introduction of the new NCEA in sectorial statistics

Working group Register – ensuring transition to the new NCEA in SBR Coordination group

Step 6

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Implementation of the new classification

• Tables of correspondence between new and current versions of NCEA are developed

• Based on the correspondence tables ratios of economic activities were calculated (1:1, 1: M, N: 1, N: M) for analytical work

• Guidance on the definition of the primary activities of units in the new NCEA was developed

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Practical guidance needed on the use of classification criteria based on value added

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Implementation of the new classification

• Conducting structural survey on the basis of the new and the current version NCEA - March 2013 (data on 2012)

• Implementation of the new version NCEA in the SBR - from June 2013

Planned use of double coding, based partially on surveys, partially by converting on the basis of coefficients

• Revision of statistical tools and development of sectoral nomenclatures based on the new version of products classification (based on CPA 2008) - from July 2013

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Practical advice needed on recoding the SBR (for enterprises with missing micro-data for two versions of the classification)

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Implementation of the new classification

• The development of alternative sets of economic activities – December 2013

• Recalculation of time series of indicators based on the new version NCEA – 2013, 2014

Currently examining the approaches for recalculation of time series. Recalculations based on conversion coefficients, calculated on the basis of the structural survey, has been planned.

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Recommendations on the formation of alternative sets of activities (services, tourism, ...) and products (investment, intermediate and consumer goods, audiovisual services, ...), as well as for the method of recalculation of time series are needed

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Using other classifications in statistical production

• National Classification of products based on CPA 2002 (a new version of the classification based on the CPA 2008)

• Commodity Nomenclature of foreign trade activities of the Customs Union on the basis of the HS 2007

• National occupational classifications based on ISCO-88

• National classification of occupations and qualifications based on ISCED 1997

• COICOP

• COFOG

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Thank you for your attention!