1. Twelfth Meeting of the Advisory Expert Group on National Accounts
Practical Guide on Harmonization Between Balance of Payments and National Accounts
Twelfth Meeting of the Advisory Expert Group on National Accounts
27-29 November 2018, Luxembourg
Lourdes Erro (Central Bank of Uruguay), Giovanni Savio (ECLAC) *
* The views expressed reflect the opinions of the authors only and do not necessarily reflect those of the authors’ organizations

2. Presentation Outline
Regional Working Group (RWG) on BoP and NA Harmonization
The approach: Integrated Economic Statistics
Organization of the Guide
Chapter 1: Conceptual compliance
Chapters 2 and 3: Statistical production process
Chapter 4: Institutional arrangements
Conclusions

3. 1. The RWG
The underlying methodology and concepts for NA (2008 SNA) and BoP (BPM6) are consistent
But: large differences remain in practice
An initial evaluation of BoP and NA data presented at the 2016 UN-ECLAC National Accounts Seminar showed large inconsistencies
Countries expressed interest in further working to better understand the reasons for such inconsistencies and improve the harmonization in practice
They created an RWG with this purpose
During the 11th meeting (Dec. 2017) the AEG stressed the importance of the harmonization and supported regional initiatives developed in LAC and Europe
The Guide is the main outcome of the activities of the RWG

4. 1. The RWG Work carried out from July 2017 to July 2018 AEG
RWG on Harmonization BOP - NA
Argentina
Colaboration from other Experts (IMF, Eurostat)
Work carried out from July 2017 to July 2018
Brasil
Colombia
Annual Seminar on National Accounts (ECLAC)
Costa Rica
RWG
Guatemala
Nicaragua
UN-ECE Meeting of the Group of Experts on NA
Uruguay
COORDINATION
Technical Support: UNSD UN-ECLAC
AEG
Venezuela
Participants were for each country: one expert on NA and one expert on BOP

5. 2. The approach of Integrated Economic Statistics (…)
The Group adopted the approach of Integrated Economic Statistics to review reasons for lack of harmonization, look for best practices and make recommendations
Building blocks
1. Conceptual compliance
(Use the same conceptual framework )
2. Statistical production process
(Follow a coherent process of statistical production in both systems) 
3. Institutional arrangements
(Institutional setting of the coordination)
UNSD, DESA, NY 2013

6. 3. Organization of the Guide

7. 3. Organization of the Guide …

8. 3. Organization of the Guide …

9. Chapter 1: Conceptual compliance
USE THE SAME CONCEPTUAL FRAMEWORK
POTENTIAL ELEMENTS FOR INCONSISTENCIES
Although the frameworks are conceptually consistent, there are differences in wording, emphasis and topics covered, which might generate different interpretations in compilers and results not totally aligned
The Guide focuses on special issues that were introduced by 2008 SNA and BPM6 to achieve consistency
Those cases are discussed in Chapter I, Section C of the Guide
Different moments of 2008 SNA and BPM6 implementations at the national level

10. Chapter 1: Conceptual compliance
CONTRIBUTIONS AND RECOMMENDATIONS
The Guide presents:
correspondence tables between accounts, codes and denominations of BoP and the RoW account (from BoP to RoW and from RoW to BoP)
changes that were introduced by 2008 SNA and BPM6 to achieve, amongst others, consistency:
center of predominant economic interest
change of residence
goods for processing
merchanting
branches of non-resident units
multi-territorial companies
special purpose entities
The Guide recommends to pay attention to the coordinated implementation of these special issues

11. Chapter 1: Conceptual compliance
CONTRIBUTIONS AND RECOMMENDATIONS
The Guide recommends:
to coordinate common times for the implementation and publication of data following BPM6 and 2008 SNA, so as to minimize differences due to this reason
although
probably this could delay implementation for some recommendations

12. Chapters 2-3: Statistical Production Process
FOLLOW A STATISTICAL PRODUCTION PROCESS COHERENT WITH EACH OTHER, FROM DATA SOURCES TO DISSEMINATION
POTENTIAL ELEMENTS FOR INCONSISTENCIES
Business registers:
no common business registers
different scope and classification of institutional units
different frames for sampling
Data sources and data processing:
uncoordinated and inconsistent use of data
different coverage
different methods used in data processing (e.g. imputations for underreporting, estimations of flows denominated in different currencies, adjustments for valuation, etc.)
Integration of statistics and accounts:
use of different reconciliation frameworks
Dissemination and communication:
uncoordinated policies of dissemination, release calendars and revision
policies

13. Chapter 4: Institutional arrangements
COORDINATION HAS TO BE INSTITUTIONALLY SET
POTENTIAL ELEMENTS FOR INCONSISTENCIES
Obstacles in coordinating the compilation process and reconciling discrepancies (greater in countries where BoP and SNA are compiled in different institutions)
Lack of established institutional mechanisms: Working Groups, Committees, MoUs etc.

14. Chapter 4: Institutional arrangements
RECOMMENDATIONS
For the compilation of BoP and NA to become an integrated statistical process, an appropriate institutional framework is required
Most important guidelines might be:
To maintain a clear vision of the integrated process (institutionally agreed)
To agree on a clear division of tasks : who does what, as well as the institutional responsibilities in the process
To formalize mechanisms of coordination and governance (committees, working groups, MoUs, service agreements, etc.)
To use planning and management tools, such as the establishment of a Medium-term Strategic Harmonization Plan

15. 5. Conclusions
The Guide, as such, is not in its final form: it is also in the process of translation to English
The experience of the RWG allowed to identify some best practices, also based on regional case studies, and to make some concrete recommendations
But there is still a lot of space for improvement, especially in concrete applications at the regional level
The most valuable experience was the exchange of concrete good practices of harmonization applied at the country level