Cameroon experience for implementation of 2008 SNA 1 By: M. NEPETSOUN Department chief of synthesis and economic analysis EN/CSC2/2014/Pres/11

P LAN 2 I.Introduction II.Institutional organization III.implementation of 2008 SNA IV.Difficulties met when implementing the 2008 SNA V.Need for an assessment mission VI.Points to implement and requires technical assistance VII.Others needs of country

Introduction (1/2) 3 Cameroon always elaborates its national accounts using the System of National Accounts (SNA). - The system called " Coursier ", close to SNA 1948 was used to elaborate the first national accounts for the years 1959, , for Cameroon Oriental and national accounts for 1969 and The national accounts from 1971 used the SNA 1968; - Finally, the SNA 1993 was used to produce national accounts for the years 1989/90 to 2001/02 and the series I.

4 In order to break off the sequence of flash accounts started in 2002 with the passage of fiscal year to the calendar year, the National Institute of Statistics (NIS) made a choice in 2008 to implement a new base year of national accounts. This implementation allowed us to take into account the new international classifications (CITI Rév4), the new data sources, to correct errors that were not detected during the construction of the previous base, and to introduce some innovations of the 2008 SNA. Introduction (2/2)

5 II. Institutionnal organisation Directorate general of NIS Department of enterprise statistics Department of social and demographic statistics Department of Coordination and research Department of synthesis and economics analysis Institutionnal sector accounts Division of synthesis Division of national accounts Goods and services accounts Regional and flash accounts Definitive accounts quaterly, flash and regional accounts NPI satellite accounts Retropolation of national accounts Board of Directors - Chief of service - Executive Deputy director Division chief Department chief

III. 6 1.Calculation of the production of non-life insurance by using the adjusted allowances 2.calculation of financial intermediation services indirectly measured (FISIM) from deposits and loans by institutional sectors and a reference interest rate 3.Inclusion of databases, software and intangible products in gross fixed capital formation. 4.Consideration of the holding companies in financial activities 5.Creation of a sub-sector for NPIs Implementation of 2008 SNA (1/2) Given the national statistical information system and local resources available, five major points of the 2008 SNA were implemented

III. 7 Total contribution of these changes according to the 2008 SNA is -0.39%, mainly due to imported FISIM. Source of difference Value added in definitive accounts absolute difference (millions of F CFA) Relative difference * 2008 SNA ,39 Non-life insurance service ,02 FISIM ,44 Holding compagnies ,04 R&D, data base, licence, etc ,04 (*) Relative Difference = absolute difference/GDP according to the old base Tableau : different changes by source (GDP 2005 new base-GDP 2005 old base). Implementation of 2008 SNA (2/2)  Impact of these changes

IV. 8 Although the targets and actions were clearly identified, a formal strategy was not developed to elaborate the new base year Specifically, a study combined with a strategy to develop national accounts was not realized to highlight factors of success and failure, to identify strengths, weaknesses and the opportunities and threats (SWOT) analysis 1- Structural and institutionnal difficulties  Lack of formal strategy in the elaboration of a new base A specific strategy for the implementation of the 2008 SNA should engage all actors including data source providers and users of national accounts  Weakness of national statistical system  Poor communication for the results of national accounts 2- Statistical difficulties  Lack to access to data base (military expenditure, etc.)  Poor understanding of concepts and some definition relating to 2008 SNA  Poor coverage of economic field Difficulties met when implementing the 2008 SNA (1/2)

9 Methological difficulties. 3. Methological difficulties. some difficulties to implement methodologies exist, forcing the national accounting to make arbitration. In this idea, some specific aspects should be reviewed: (i)Arbitration between FISIM according to the 2008 SNA and the 1993 SNA; (ii)Estimation of the service of capital and its impact on operations and aggregates should be evaluated before its implementation in national accounts; (iii)Other aspects of goods and services produced by households for their own use and not included in the production field. (iv)In addition, the extension of the central framework should be continued, including the accounts of other changes in assets in the accumulation accounts and balance sheets. D IFFICULTIES MET WHEN IMPLEMENTING THE 2008 SNA (2/2) IV.

V. Need for an evaluation 10 On the scale of implementation of SNA International Monetary Fund (IMF), the development of the base year 2005 sets the Cameroon on level 5 However, as mentioned in the report of the Inter- Secretariat Working Group on National Accounts, these levels do not evaluate the conceptual and qualitative aspects. In this context, an assessment mission of the statistical system to be introduce into the database of the report on compliance methodologies and codes (Reports on the Observance of Standards and Code ROSCs) is necessary. Such a mission has been carried out to evaluate the implementation of the 1993 SNA in Cameroon by the IMF

VI. 11 In fact, on a list of 61 points concerning the changes of the 2008 SNA, only 5 major points were subject to a review during the development of the 2005 base: A HUGE TASK So, a strategy of implementation the 2008 SNA is necessary. BUT FINANCIAL DIFFICULTIES; LACK OF HUMAN RESOURCES; LACK OF INFORMATIONS (DATA) FORMAL PLAN - New base on national accounts in 2017 (general census on agriculture and livestock ( ), general census on enterprises (2015), Cameroon survey on household consumption (2014) - Continuation of the implementation of 2008 SNA A strategy is now conducted by AFDB, AU, UNECA and other regional institution. Action plans to implement 2008 SNA that requires technical assistance

VII. 12 Others needs to improve the quality of national accounts  Establish a permanent platform for dialogue between stakeholders in the collection, compilation, processing, analysis and dissemination of data sources for the compilation of national accounts. In order not to generate additional costs, this platform could be a committee within the National Statistics Council  Establish a permanent program capacity of national accounting juniors to improve the quality of products and to insure the succession by senior colleagues.  Create a National Committee to validate national accounts.

THANK YOU FOR YOUR KIND ATTENTION. 13