Transcript m4InformalSector

THE INFORMAL SECTOR
in the 1993 SNA, Rev.1
EG
A
IVO HAVINGA, UN Statistics Division
CAROL CARSON, Project Manager
AEG Meeting
Frankfurt, 30 January – 8 February 2006
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Plan of the presentation
1. Context: Why is the informal sector an important issue for
the update of the 1993 SNA?
- policy relevance
- calls for statistical guidelines
- substantial developments since 1993
2. Definition of the informal sector: differences between the
ICLS (ILO) concepts of employment in the informal
sector/informal employment and the SNA framework
3. Draft annotated outline of a chapter on the informal sector
in the 1993 SNA, Rev.1
4. Work plan to prepare the recommendations on the informal
sector
--with sections 3 and 4 “for information”
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Thus far in the update process
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Conclusions of the AEG December 2004 meeting
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confirmed the importance of the informal sector
noted that coverage needs to be closely defined
advised that extended text should be added to 1993
SNA
Feedback from regional meetings in 2005
UNESCAP (April), UNECLAC (October), UNECA
(November)
Consultations with ILO and the Delhi Group
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Context: Policy relevance of
measurement of the informal sector
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Links to development objectives on…
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income generation,
employment creation and
poverty reduction
and to the design and monitoring of targeted support
programs
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Informal sector’s contribution to non-agricultural GDP
 27 percent in northern Africa
 41 percent in Sub-Saharan Africa
 29 percent in Latin America
 31 percent in Asia
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Context: Selected developments in
methods and practice since 1993
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Papers of Delhi Group on Informal Sector Statistics
UN handbook Household Accounting: Experience in
Concepts and Compilation, Volume 1: Household
Sector Accounts
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Measuring the Non-observed Economy: A Handbook
by OECD, IMF, ILO and CISSTAT
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UNECE manual Non-observed Economy in National
Accounts
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Context: Calls for guidelines
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Issue in the work on the 1993 SNA; placed on the
research agenda
Statistical Commission 2004 reiterated
collaboration between UNSD and the Delhi Group
on informal sector
Forthcoming publication Surveys of Informal Sector
and Informal Employment
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Collaborative effort of ILO and members of Delhi
Group
Chapter on uses of informal sector data for national
accounts purposes
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Questions
1.
… confirm that there are strong reasons why
guidance on the treatment of the informal sector
should be added to the updated 1993 SNA?
2.
… agree that there seems to be a substantial body of
methodological literature and of practical
experience available to serve as a foundation on
which to prepare guidance on the treatment of the
informal sector within the national accounts
framework?
3.
…recommend any other sources to be consulted, or
do they commend any in particular of those
mentioned?
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Definition of the informal sector
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Differences between ICLS and SNA:
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in
in
in
in
terminology
segmenting the economy
the use of enterprise-based criteria
the universe of household enterprises
--key points, with questions on each
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Terminology
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The ICLS use of “sector” does not
match the definition in the SNA.
The word “informal” has several
meanings:
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May imply a formal-informal sector
distinction between household
enterprises.
Can refer to exhaustiveness of data
collection practices as well as a production
unit with specific characteristics.
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Terminology (cont.)
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The ICLS use of “households” is
narrower than the meaning in the
national accounts framework.
National accountants consider the
“formal” segment of enterprises to be
confined to institutional sectors other
than the household sector.
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Question
4. Should the different meanings of
“sector,” “informal,” “households,”
and “formal” be clarified and
explained in the updated SNA?
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Segmenting the economy
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ICLS uses non-registration to
identify informal enterprises within
household enterprises; in many
countries this may coincide with
lack of legal status and of accounts.
ICLS refers only to production units
that engage labor as input; national
accounts refer also to those that do
not use labor inputs.
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Question
5. … agree that the updated SNA should
describe the differences between
the ICLS and SNA definitions of the
types of production units and where
possible reconcile the differences?
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Use of enterprise-based criteria
 Criterion

for market production
SNA: market producers are those that sell
“most or all” of their production on the
market at economically significant prices.
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ICLS: uses the phrase “some or all”.
 Conceptual
and practical
advantage of “some or all” criterion.
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Use of enterprise-based criteria
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Possible grouping for macroeconomic
statistics on the informal sector:
Household enterprises with employment
Enterprises with market production
Informal sector enterprises
Other household enterprises
Enterprises with only production for own
final use
Household enterprises without employment
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Questions
6.
…agree that there are advantages to the ICLS
“some or all” criterion in identifying market
producers? If so, could it be developed as an
application for analytical and policy oriented
purposes? Which option is preferred—in the core
household production account or in a
supplementary presentation?
7.
…views … on the question of comparability? Should
further attempts be made … to identify
groupings of household enterprises, including the
informal sector, in the SNA household production
account that have a greater degree of
international comparability, especially to facilitate
the preparation of macroeconomic indicators on
household production that are internationally
comparable and consistent with the SNA?
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Universes of household enterprises
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With and without labor input (SNA)
versus with labor inputs (ICLS) (noted
above)
All economic activities (SNA) versus
non-agricultural activities (ICLS)
…
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Question
8. Should a bridge table be developed,
in coordination with the ILO and Delhi
Group, between the informal sector
special cases and their SNA
counterparts for inclusion in the
updated SNA?
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Draft outline of chapter
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Introduction
The informal sector: a broad
statistical perspective
Definition of the informal sector
Other concepts
Measurement
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Questions
9. Are there relevant topics that are missing
from the outline?
10. …views … about the approach of tracing
with broad brush strokes the evolution of
the subject as a frame within which to
explain differences in terminology and
differing analytical needs?
11. …views … about the balance struck
between being too much and too little?
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Work plan, 2006: key elements
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AEG sub-group
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Collaboration with ILO and Delhi Group
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Forums to test preliminary drafts (e.g.,
UNECE April, Delhi Group, regional
meetings)
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Questions
12. Are there AEG members who would like to
volunteer for the sub-group to be set
up to provide advice and review progress
on the development of a recommendation
on the informal sector?
13. Are there forums—groups or meetings—
in addition to the Delhi Group whose views
should be sought or that can be used to
test preliminary proposals?
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Thank You
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