International Forum on Monitoring National Development: Issues and Challenges Beijing, People’s Republic of China September 2011 Bernard Williams Assistant Statistician International Accounts and Financial Statistics Branch Macroeconomics and Integration Group Australian Bureau of Statistics 1

The ABS … is Australia’s official national statistical agency. … has the authority to conduct statistical collections. … has obligations to publish and disseminate compilations and analyses of statistical information, and to maintain the confidentiality of information. …ensures formulation, and compliance with, standards for the carrying out by official bodies of operations for statistical purposes. 2

Use of Standards in Australia The ABS is a strong contributor to the development of international standards e.g. –2008 System of National Accounts (2008SNA) –Balance of Payments Manual version 6 (BPM6). 3

Use of Standards in Australia (continued) International standards are the starting point. Departures from standards must be: –few in number & demonstrate a significant benefit or avoidance of an unwarranted cost –carried through to all accounts/statistics –enable a straightforward reconciliation with the standard where feasible –implemented after extensive consultation and publicity. 4

Measuring Development Well structured and coherent set of macroeconomic statistics are essential –e.g. by participating in the International Comparison Program.

Measuring Development (continued) International organisations should ensure standards are fit for purpose, scalable and reasonabe to implement. –SNA Friends of the Chair Group trying to understand barriers preventing earlier adoption of revised standards e.g. 1993SNA 2008SNA.

Measuring Development (continued) Additional measures can extend the core set of macroeconomic statistics but must be coherent –e.g. SEEA

GDP A measure of market production useful in managing the macroeconomy. It is well known but its limitations as a measure of overall progress are not well understood. Need to also consider measures of income, consumption and household wealth.

Data needs of Australian Commonwealth Departments Timeliness Coherence (consistency with other information, both ABS and non-ABS) Reliability Compatibility with foreign data Information to assist interpretation Easy electronic access to data upon release.

Data needs of Australian Com’lth Departments (continued) Key datasets included in IMF’s SDDS: –National accounts –BoP and IIP –Consumer and Producer Prices –Labour market –Government operations and debt –Merchandise trade –Population estimates.

Data needs of Australian Com’lth Departments (continued) Also require: –Distributional data –Regional data These datasets require many high quality inputs.

The Australian Treasury’s wellbeing framework Five dimensions: –Freedom and opportunity –Consumption possibilities –Distribution –Risk –Complexity.

The Australian Treasury’s wellbeing framework (continued) Most policy reforms involve trade-offs within or between the dimensions. –These trade-offs can be complex and multidimensional. –Decisions ultimately made by the political process.

The relationship with one agency Data collection - ABS censuses & surveys - Surveys by others, HILDA - administrative collections, ATO, APRA, Customs … Data integration & analysis by the ABS Data integration & analysis by the Agency Policy analysis by the Agency Statistical advice data definitions, units rules, class’ns, standards, data quality. International practices Analytical frameworks, data requirements

Modelling frameworks integrate many series Input-output tables Government Finance Labour Force Demography Energy supply & use State & Territory regional disaggregation of national aggregates Model benchmark data base Supported by historical trends data on: - Demography - Productivity - Terms of trade - Labour market … Benchmark data Economic & demographic projections to 2050