1 1 Resources and Funding of Official Statistics Olav Ljones SADC Work Shop 2- 6 Dec 2006, Luanda

2 Why planning ? Characteristic of the output – official statistics Quality declaration Timely and punctual, Follow the release calendar Stability over time, Internal consistence, coherence, etc To run a NSO is a strict (military like) operation But also be user oriented, relevant, catch new trends, Combine running operations with development We need to be like Superman or Spiderman, to balance costs and revenues

3 The need for resources Adequate level and stability and sustainable resources a prerequisite for official statistics. Remember: Official statistics should be a pure public good The possible sources: –Government centralized budget –Decentralized Government budget, from several ministries (Swedish model) –Project financing, user financing, market financing –International transfers  General transfers  In kind transfers, projects like official statistics The financing of centralized and decentralized statistical systems raise different challenges. –Other institutions may be rich like the Central Bank –Statistics may loose in internal priority when it Is not the primary objective

4 Comparison UN 10 Fundamental principles and EU Code of practice. UN Fundamental Principles. Only obligations and quality claims, nothing is said about resources. The rather new Eurostat Code of Practice for ESS (European Statistical system). Principle 3 Adequacy of resources.

5 Code of practice: Principle 3 The resources available to Statistics authorities must be sufficient to meet European statistics requirements. Indicators: –Staff financial and computing resources, adequate both in magnitude and in quality, are available to meet current European statistics needs. –The scope, detail and cost of European statistics are commensurate with needs. –Procedures exists to assess and justify demands for new European statistics against their costs. –Procedures exists to assess the continuing need for all European statistics, to see if any can be discontinued or curtailed to free up resources.

6 Principle 10: Cost effectiveness Resources must be effectively used

7 The yearly work plan, the need for full integration of planning and budgeting Invest in a integrated planning and budgeting system Elements. Costs for existing staff, housing etc Distribute resources to projects. –Operating existing statistics, to fulfill the release calendar etc –Planning, development of new statistics  International obligations  Existing development plans, like a new census new NA  New ideas – totally new projects  Cost reducing or improved quality of ongoing statistics Other cost, IT equipment, House-rent. Identify high priority projects with lack of resources Balancing revenues and costs. Manpower adjustments. The search for new financial resources

8 Considerations Maximize budget? No considerations? If revenues are not stable – how to adapt to yearly variations? Financing from users? –Who are willing to pay for a public good? –Private sector ? –Government? –International sources? –The need for a transparent pricing policy. –Cover (marginal costs) and no cross subsidizing –Transparency toward the public about user financing

9 Considerations 2 Is there a tradeoff between independency and financing from users? The positive effect from user financing. Improved user contact. Introduce incentives and New Public Management thinking in the NSO. Potential Crowding out. External financed project may have crowding out of projects in master plan with high priority, as a result. Potential negative effects of a too complex financial model, building a consistent coherent official statistical system, reuse of data etc is a complete and complex matrix operation. Internal pricing should be avoided.

10 How to integrate international resources in the work with budgets and plans? Yearly and long term plans. The need for a Master plan and long term visions. Ask for international commitments based on the Master plan. Twinning arrangements? The need for improved donor coordination. Should international resources be used both for running of permanent statistics, and for development of new and big projects as census?