Transcript AC.141/22

A general look on the
non-observed economy
in Iran
The statistical centre of Iran (SCI) has been trying hard to
have a complete coverage of economic production.
The exhaustiveness of production accounts is a goal for
this centre, but there has been difficulties in accounting for
some types of non-observed activities.
However, there are some works done in pursuit of
decreasing the missing data. Here is brief description of the
most important works which have been done in this
respect.
One approach of categorizing
the activities in non-observed
economy of Iran, can be the following:
A- Productive activities performed in households.
B- Productive activities without a determined location and
those which are itinerant.
Gathering
information from non-observed economy of
Iran from households is easier, so most of the information
in this area are gathered from different household surveys.
Most of the non-observed activities which are itinerant or
without a location, are service producers. The value
estimation for many of them is difficult and complicated.
The main problem is that the statistical population for each
activity of this category is unknown. The variety of activities
is much more in this category, besides the problem of
determining the border line between legal and illegal
activities.
The situation of economic activities in respect of nonobserved economy in Iran.
1- Agriculture
There is no considerable problem of non-observed
agricultural activities. Statistical population of agricultural
holdings is known, and the necessary information are
gathered from relevant surveys. Agricultural production
of households for own final use are compiled from the
results of the household budget surveys.
2- Mining and quarrying
The unlawful extraction of sand is probable in the rural
areas of Iran. Government is trying to have more control
on this activity like other mining activities. So the
importance of this kind of non-observed activity is getting
less.
3- Manufacturing
Considerable manufacturing activities are done in the nonobserved economy of Iran. SCI has tried to get the information
of these activities by different household surveys, general
census of manufacturing, cooperation with the handicraft
organization of Iran, and some other manufacturing surveys.
Most of the non-observed manufacturing activities of Iran are
performed in the households. These activities are mostly
weaving textiles, weaving rugs and different kinds of carpets,
weaving baskets and mats, making apparel and foodstuff, etc.
Household budget surveys have the highest importance in
providing the information.
4- Construction
Construction activities in non-observed economy of Iran
is also considerable. Since the information is gathered
from different institutional sectors by expenditure
approach, the hope exists that there is no missing
information about production. Problem exists in respect
of the number of people engaged in construction works,
because the non-observed labor force do not have a
definite location. General idea of expert group in Iran is
that almost 50 percent of the labor force engaged in
construction works in this country is non-observed.
5- Restaurants, Hotels, and trade activities
Activities similar to restaurants and hotels, and also trade
activities exist in the informal sector of national economy
of Iran.
Restaurant and hotel and part of the trade activities of
informal sector are performed in households. There is no
important difficulty in getting the information of these
activities from household budget surveys, but the other
part of the trade activities which don’t have a definite
location is not easy to be investigated. The statistical
population of this part is unknown.
6- Transportation
Among the transportation activities, transport of
passengers via road has considerable importance in
the informal sector of the economy of Iran.
The purchasers of informal transport services are
mainly households. The use of other institutional
sectors from these services is negligible. Production
value of this part of transport production is indirectly
measured by special questions which were put in the
current income and expenditure survey of households.
7- Financial affairs
Problem exists for the estimation of services rendered by
itinerant money changers.
These money changers do not have a definite location,
and their statistical population is unknown.
8- Education
The importance of education provided by private
teachers is becoming more in Iran. The estimation work
for the private teachers who teach in their own house is
not difficult, because the population of unincorporated
enterprises of this kind is known.
The population of private teachers who teach in places
other than their own house is not known. However the
questions relevant to the expenditures for private
teaching are asked in the household budget surveys.
9- Business and other services
The non-observed economy with respect to business
and other services contains a very extensive spectrum in
Iran. Because of the diversity of activities and other
difficulties, they are not covered in the national accounts.
The appropriate recommendations are required in the
national accounts.