1. 1 Health Accounts Meeting 30 Sept – 1 October 2004 Developing Activity and Product Classifications for the Modern Economy: What about health services? Isaac Lagnado OECD Statistics Directorate

2. 2 Health Accounts Meeting 30 Sept – 1 October 2004 ISIC and CPC What is ISIC? proposed ISIC rev 4 structure and health services What is CPC? current CPC v 1.1 for health Process and timing

3. 3 Health Accounts Meeting 30 Sept – 1 October 2004 What is ISIC? International Standard Industrial Classification of All Economic Activities (ISIC) To be a standard classification of productive economic activities To classify economic units according to the principal activity they carry out

4. 4 Health Accounts Meeting 30 Sept – 1 October 2004 Why do we need a new ISIC Improve international comparability convergence of regional classifications e.g. NAICS/NACE/JSIC/ANZSIC engage more countries and regions in ISIC design target is to obtain international comparability at least at 2 digit level Improve relevance Information sector, internet, Telecoms OECD ICT definition environmental services new technologies growing business service sector health services Tourism Agriculture Assure continuity. Analysts need long time series

5. 5 Health Accounts Meeting 30 Sept – 1 October 2004 What’s new? New groupings are proposed –Information and communication sector –water supply, sewerage, waste management and remediation More tabulation categories for services –professional technical, and business services –administrative and support services –real estate, rental and leasing services –art, entertainment and recreation More divisions ( to increase international comparability) –for new groupings and growing services –in manufacturing and construction –human health services

6. 6 Health Accounts Meeting 30 Sept – 1 October 2004 Professional, scientific and technical activities 64 legal and accounting activities –641 legal;642 accounting 65 holding companies, management and management consultancy activities –651 holding companies; 652 head offices; 653 management and management consultancy 66 architecture and engineering activities 67 scientific research and development –N.B. 6711 research and experimental development in biotech 68 advertising and market research 69 photographic and other prof, scient, and technical activities 70 veterinary activities (formerly with health and social work)

7. 7 Health Accounts Meeting 30 Sept – 1 October 2004 Human health and social work 77 human health activities –771 hospital activities –772 medical and dental practices –779 other human health activities (includes paramedic activities and medical testing) 78 residential care services –781 nursing care facilities –782 residential mental health and related services –783 community care facilities for the elderly –789 social work activities with accommodation 79 social work activities without accommodation

8. 8 Health Accounts Meeting 30 Sept – 1 October 2004 ISIC revision mechanism UN Statistics Commission ) ( UNSC) ) (Heads of National Statistics Offices) UN Experts Group on Economic and Social Classifications UN Experts Group on Economic and Social Classifications (experts from 30 countries and international Organisations) Technical sub-group of Expert Group (TSG) (8-10 countries inc. Eurostat, N. America, Japan, Australia, India, France, NL, Argentina, plus UN, IMF, others)

9. 9 Health Accounts Meeting 30 Sept – 1 October 2004 ISIC Revision 4 Consultation approximate timetable Worldwide consultation closes November 2004 TSG meet spring 2005 Revised draft goes to UN Expert Group June 2005 Final draft goes to UNSC December 2005 for approval Prepare full publication Publish early 2007

10. 10 Health Accounts Meeting 30 Sept – 1 October 2004 NAICS minor revision 2007 NACE plans to remain derived from ISIC ANZSIC 06- a version of NAICS JSIC introduced IC sector in 2002 converged with ISIC and NAICS but constrained by ministries- –expect convergence to continue after next revision Others? China, India, Mercosur, Russia What about Regional Activity Classifications ? (relate to ISIC to varying extents)

11. 11 Health Accounts Meeting 30 Sept – 1 October 2004 What are the ISIC issues for OECD? international comparability reflect modern economy continuity of time series analytically useful groupings Information and Communication Technologies (ICT) Health High-tech New Trade links …

12. 12 Health Accounts Meeting 30 Sept – 1 October 2004 Revision of CPC Central Product Classification developed in 1980s and 90s principally to provide the first internationally agreed product list for goods and services. Adopted by UN officially in 1998 Designed for goods less detailed than trade products in Harmonised System Used indirectly to help build economic statistics on output, prices and trade Currently on CPC version 1.1 agreed in 2002 Plan to revise CPC for 2007

13. 13 Health Accounts Meeting 30 Sept – 1 October 2004 CPC version 1.1 and Health Services 93 Health and social services –931 human health services 9311 - Hospital services 9312 - Medical and dental services –93121 - General medical services –93122 - Specialized medical services –93123 - Dental services 9313 - Other human health services –932 veterinary services –933 social services 9331- Social services with accommodation 9332 - Social services without accommodation (For full descriptions go to UNSD or Ramon Classification webpages)

14. 14 Health Accounts Meeting 30 Sept – 1 October 2004 Detailed Classification Webpages UNSD http://unstats.un.org/unsd/cr/registry/regcs.asp? Cl=16&Lg=1&Co=933 Eurostat Ramon http://europa.eu.int/comm/eurostat/ramon/

15. 15 Health Accounts Meeting 30 Sept – 1 October 2004 CPC issues for OECD Updating of services descriptions More detail on services generally ICT services Health services – links to health accounting Links with industry, trade and price classifications Make use regional product classifications such as –North American Product Classification System (NAPCS) –Australia and New Zealand ANZSPC –Europe CPA Facilitate future analytical work Improve infrastructure of industry and services statistics

16. 16 Health Accounts Meeting 30 Sept – 1 October 2004 Approximate CPC revision timetable Proposals for new CPC products to UNSD 10 October 2004! UN TSG produces draft of new CPC winter 2004 Draft sent for worldwide consultation in 2005 Finalise in 2006 Submission to UNSC for final approval 2007

17. 17 Health Accounts Meeting 30 Sept – 1 October 2004 Over to you Any questions or comments? Proposals and comments to STD.servstat@oecd.org so that we can advise the UN Thank you for your attention