C A R I B B E A N               C O M M U N I T Y                 S E C R E T A R I A T

THIRTY- FIRST MEETING OF                                         

THE STANDING COMMITTEE OF

CARIBBEAN STATISTICIANS                                         SCCS/2006/31/2

 

Port-of-Spain, Trinidad                                                                                          

6-8 November 2006                                                            27 October 2006

 

 

REVIEW OF PROJECT OUTPUTS

CARICOM Secretariat Statistical Unit – Implementation of

Trade in Services Statistics Project of 2005

 

 

1.         AN OVERVIEW OF THE PROJECT

 

The Meeting will recall that the Caribbean Community Secretariat executed developmental work to strengthen capacity in the compilation of statistics on international trade in services in 2004/2005.  The project was funded under a United States Agency for International Development project Caribbean Trade and Competitiveness Programme (CTRADECOM), which enabled the recruitment of Consultants to provide technical assistance to CARICOM Member States.  In-country technical assistance was provided for six Member States, which were: Barbados, Belize, Jamaica, Saint Lucia, St. Vincent and the Grenadines and Trinidad and Tobago.  National workshops were held in Belize and St Vincent and the Grenadines and a regional workshop was held in Barbados.

 

This Paper presents a review of the 2004/2005 Project, focusing on the following outputs:

 

(i)         The Document, Common Guidelines for the Development of Statistics on International Trade in Services in the CARICOM Region;

 

(ii)                           The Sampling and Survey Methodology;

 

(iii)                         Classification Systems; and

 

(iv)                          Conduct of workshops for stakeholders.

 

The Paper also looks at the Action Plan of the Regional Statistical Work Programme (RSWP), highlighting activities that were recommended to be implemented, to improve statistics in this area.

 

2.          A REVIEW OF THE PROJECT OUTPUTS

 

2.1       Preparation of Common Guidelines

 

The document, Common Guidelines, was essentially aimed at providing a common approach for data collection on International Trade in Services and Investment flows.  The document attempted to provide operational guidelines for the improvement of Statistics in International Trade in Services consistent with the Manual of Statistics on International Trade in Services (Manual) and its application in a regional setting.

 

Proposed Content of the Common Guidelines

 

Among the issues required to be addressed in the Common Guidelines were, coordination/agency responsibilities, elaboration of a common classification system, preparation of a common questionnaire, guidelines for the setting-up and maintenance of a Register of Business Establishments; short-term service indicators and data quality mechanisms for continuous monitoring of the quality of the data.

 

Refinement of the Common Guidelines

 

The Common Guidelines commences with the recognition of the Manual as the main document outlining the conceptual framework for the compilation of statistics on International Trade in Services.  While the Guidelines highlighted some of the core elements in the Manual, the importance of the 1993 System of National Accounts (1993 SNA), not only as it relates to Foreign Affiliate Trade in Services Statistics but also the potential of being able to improve the estimation of statistics on the production of services, is not adequately articulated in the guidelines.  More focused inclusion of the various aspects such as Classification, Sampling, Financial Sector issues and Information Technology are also required in the refinement of the document.

 

There is need to include a prototype questionnaire and more detailed guidelines for the building of a Register of Business Establishments. A method of compiling FATS Statistics was incorporated in the Common Guidelines.  Some refinement is possible.  A method of deriving broad-based estimates for obtaining information in services by modes of delivery was also included.  How to obtain statistics by trading partners, imports, exports and intra-regional/rest of the world was not included in the Common Guidelines.

 

Some of the major gaps in the data were identified and recommendations for filling those gaps were included.  These were somewhat broad-based and therefore do not qualify as detailed guidelines that Member States can make operational.  There was an absence of information on the compilation of short-term service indicators.

 

2.2       Review and Compilation of Existing Data on Worksheets to        Compile Statistics on Trade in Services and on Investment Flows and Development of Methods to fill the Data Gaps identified

 

Generally, the activity to review the worksheets was well executed.  However, despite the efforts to conduct this activity utilising a common approach, the Project outputs were not produced utilising a standardised format and there were differences in the content of the reports and in the presentation of the results.   In addition, it was not always clear as to the status of availability of the detailed data i.e. It was not clear whether “0.00” meant “zero”, “not applicable”, or “applicable but no data available”.  An analysis of the data on the worksheets subject to the constraints indicated is attached to this Review.

 

2.3       Sampling and Survey Methodology – Survey, Methods of            Estimation and Imputation for Non-response

 

It was anticipated that a generic sampling methodology and questionnaire would have been prepared.  The report of the sampling expert provided useful information that could also be incorporated more fully in the Common Guidelines. However, the Member States involved in the Project received technical assistance from the Consultants with respect to sampling survey design.

 

2.4       Conducting of National/Regional Workshops to Sensitise and Inform Users, Producers and Suppliers of Statistics

 

The conduct of the national and regional workshops were executed quite successfully and the major outputs of these processes are summarised in the Common Guidelines.  There is need for Member States to continue the thrust of conducting at the national level, seminars, workshops for stakeholders to enable the process of developing these statistics and to fill the gaps identified.

 

3.         MAJOR GAPS IN THE DATA COLLECTED – A REVIEW OF  THE WORKSHEETS

 

The identification of the gaps in the data is limited due to the lack of a consistent approach in determining whether for the respective categories, there is no data available, the category is not applicable or that the value is zero. Table I provides information on the gaps in the data. Some of these gaps are discussed below.

 

A new sub-category suggested under transportation was, all inclusive Cruise packages.  This can be included in order to monitor its importance to the Region. Data Gaps also included Vehicle/vessel rentals with operator/crew and cargo handling as well as allied services of storage, warehousing, freight agency and brokerage.

 

Under Travel, the main data gaps are Business Travel on the credit side, expenditure by season, border workers and Other Business Travel.  There were also gaps in the areas of Health and Education expenditure for some Member States.

 

With the exception of Trinidad and Tobago, data gaps exist for the category Construction for the other participating Member States.  It was indicated that this activity was not applicable to St. Vincent and the Grenadines.

 

Under Computer and Information services, there are data gaps under the sub-category information services for all of the Member States except Belize and Saint Lucia (debit).  This sub-category was also not applicable to St. Vincent and the Grenadines.  There are data gaps for all of the Member States in the category News Agency Services, except for Saint Lucia.

 

Other Royalties and Licence Fees

 

Data gaps exist for all of the Member States except the debit entry for Belize, Saint Lucia and St. Vincent and the Grenadines.

 

Miscellaneous Business Services

 

There were numerous data gaps identified for the sub-categories of Miscellaneous Business Services for six Member States and these are summarised in Table 1. Among the data gaps were Legal Services, Accounting, Auditing Bookkeeping and related services,  Research and Development, Architectural, Engineering and other technical services.

4.         A REVIEW OF THE QUESTIONNAIRE ADMINISTERED – AN UPDATE OF THE SITUATIONAL ASSESSMENT OF 2001/2

Balance of Payments Manual Version 5 – BPM5 and the Extended Balance of Payments in Services (EBOPS)

 

All of the six Member States compile balance of payments in accordance with the BPM5 Compilation Guide. However, there are gaps in some of the data categories.  With respect to the Extended Balance of Payments in Services (EBOPS) format, in all cases some of the details required for the EBOPS compilation are available on the worksheets.   In the case of Jamaica, the details are available on the questionnaire but are not captured in the spreadsheet.  Similar to the 2001 Project, the Project of 2005 also recommended that there be adjustments in the questionnaire to take into consideration the gaps in the EBOPS format.  It was also pointed out that some of the gaps may require a research programme.

 

Central Product Classification for Production (CPC) and Trade in Services

 

All countries indicated that there were no immediate plans to introduce the CPC level disaggregation in the compilation of existing data on Trade in Services.  Belize and Saint Lucia indicated that they currently use the CPC to collect data in the area of production/Supply and Use Tables.  Belize indicated that the response was very poor.

 

Direction of Trade in Services: Sources of Exports/Imports by Country of Origin /Destination

 

In the case of Barbados, this information is asked, but the response is poor.  It was not clear in the case of Trinidad and Tobago whether this information was available for Trade in Services.

 

Mode of delivery

 

Information is not available by Mode of delivery for any country.  The Manual on International Trade in Services (MITS) provides an approach by which this information can be estimated and this was also contained in the Final Report of the Consultants.

 

Sales disaggregated by Domestic and Export Sales

 

This was not collected with production data in any Member State with the possible exception of Trinidad and Tobago.  Belize indicated at the time of conducting this Project, its intention of introducing this approach in 2005.

 

Tourism Satellite Accounts

 

Trinidad and Tobago was the only country indicating that there were attempts at developing a TSA.  Jamaica indicated that the TSA development may be undertaken under an existing project.

 

Foreign Affiliate Trade in Services/Foreign Direct Investment

 

Inward Fats, Ownership structure of FATS, FATS by ICFA Categories were only produced by Trinidad and Tobago.

 

Foreign Direct Investment, intra-regional component was not published by any Member State.  FDI by type and Industry was available for Trinidad and Tobago.

 

Some information was available for Jamaica.

 

Register of Business Establishments

 

Designated Officer to Update Register

This was only available for Trinidad and Tobago along with foreign/local ownership.

 

5.         CONCLUSIONS

 

Based on the gaps identified and the technical assistance provided there is need for Member States to continue the process of identification of sources of data to improve the existing deficiencies in Statistics on International Trade in Services, as well as in Foreign Direct Investment flows.   This developmental work should aim at providing the necessary details required by policy makers at the regional and national level for negotiations and for informing policy.

 

The Secretariat is in the process of updating its International Trade in Services Report utilising available details from the Services component of the Balance of Payments, albeit with the existing gaps.

 

 While this area is one identified for support under the Ninth European Development Fund, the Secretariat urges Member States to provide the resources to enable the continuation of the developmental work in this area of statistics.

 

ACTION REQUIRED

 

The Meeting is invited to:

 

(i)                 consider the review of the Developmental Work in Trade in Services from the 2005 Project;

(ii)            suggest mechanisms through which  this area of statistics can be improved utilising existing resources.

 

 

 

 

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