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Developments In International Activity

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  • 1. Developments in International Activity and Product Classifications : Towards ISIC revision 4 and CPC version 2 Bill Cave OECD Statistics Directorate
  • 2. Overview
    • Introduction to ISIC
    • Making sense of the proposed ISIC Revision 4
    • Where are the regional classifications going?
    • What about products?
    • Discussion points
  • 3. What is ISIC?
    • International Standard Industrial Classification of All Economic Activities (ISIC)
    • One of UN family of international reference statistical classifications
    • Original ISIC 1948
    • Revision 1 1958, Revision 2 1968, Revision 3 1989
    • Minor Revision 3.1 2002, Revision 4 planned for 2007
    • To be a standard classification of productive economic activities
    • To classify economic entities (units) according to the activity they carry out
  • 4. Why a new revision of ISIC?
    • ISIC revision 3 was published in 1989
    • minor updating done in 2002 (rev 3.1) almost no 4 digit boundaries were changed
    • relevance – how to classify new internet, ICT, and content activities; biotech; etc.
    • not sufficiently used so lack of international comparability
    • But for analysts continuity is desirable – value long time series
  • 5. Regional classifications and ISIC rev 3
    • NACE derived from ISIC - corresponds at most detailed level
    • ANZSIC, NAICS, CSIC, JSIC are related classifications
    • Great difficulty to compare Europe, with N America, China and Japan at 2 digit level especially for services
  • 6. Structure of ISIC rev 3
  • 7. ISIC rev 3 Structure
  • 8. Making sense of the proposed ISIC rev 4 draft structure
    • ?
  • 9. Design principles & priorities for ISIC rev 4
    • Improve international comparability
      • convergence of regional classifications
      • E.g. NAICS/NACE/JSIC/ANZSIC/CSIC
      • engage more countries and regions in ISIC design
      • target for international comparability at least at 2 digit level
    • Relevance
      • Information sector, internet Telecoms
      • OECD ICT definition
      • environmental services
      • new technologies
      • growing business service sector
      • health services
      • Agriculture
    • Continuity
    • Level of detail for an international classification?
  • 10. ISIC Rev 4 Draft
  • 11. What’s new?
    • New groupings
      • 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
      • all the above
      • human health services
  • 12. Information and communication sector
    • 53 Publishing
      • 531 publishing books, periodicals (ex manufacturing)
      • 532 software publishing (ex IT services)
    • 54 Motion picture & sound recording
      • 541 Motion picture activities
      • 542 Sound recording activities (inc music pub ex manuf)
    • 55 Broadcasting
      • 551 Radio and TV
      • 552 Cable and other subscription programming
    • 56 Telecommunications
    • 57 IT services, ISP, web search and other information service activities
  • 13. Water supply; sewerage, waste management and remediation activities
    • 35 Water collection and supply
    • 36 Sewerage
    • 37 Waste collection, treatment and disposal activities, materials recovery
      • 371 waste collection
      • 372 waste treatment and disposal
      • 373 materials recovery
    • 38 Remediation activities and other waste management services
  • 14. Agriculture, forestry and fishing
    • 01 Crop and livestock production, hunting and related activities
      • 011 production of cereals and other field crops
      • 012 production of permanent crops
      • 013 market gardening, horticulture, production of other crops
      • 014 production of animals
      • 015 mixed farming
      • 016 support services to agriculture and post-harvest crop activities
      • 017 hunting, trapping and related services
    • 02 Forestry and logging
    • 03 Fishing and aquaculture
      • 031 fishing
      • 032 aquaculture
      • 033 support services to fishing and aquaculture
  • 15. Manufacturing
    • 10 food products
    • 11 beverages
    • 12 tobacco products
    • 13 textiles
    • 14 wearing apparel
    • 15 leather and related products
    • 16 wood and wood/cork products (not furniture)
    • 17 paper and paper products
    • 18 printing and reproduction of recorded media
    • 19 coke and refined petroleum products
    • 20 chemicals and chemical products
    • 21 pharmaceuticals
  • 16. Manufacturing continued
    • 22 rubber and plastic products
    • 23 other non-metallic mineral products
    • 24 basic metals
    • 25 fabricated metal products except machinery
    • 26 computers and electronic products
    • 27 electrical equipment
    • 28 machinery and equipment
    • 29 motor vehicles
    • 30 other transport equipment
    • 31 furniture
    • 32 manufacturing n.e.c.
    • 33 repair, maintenance and installation of machinery and equipment
  • 17. Real estate, rental and leasing activities
    • 62 real estate
      • 621 real estate activities with own or leased property
      • 622 real estate activities on a fee or contract basis
    • 63 rental and leasing
      • 631 renting transport equipment
      • 632 renting of other machinery and equipment
      • 633 renting of recreational/sports/personal/household equipment
      • 634 leasing of non-financial intangible assets
  • 18. 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
  • 19. Administrative and support activities
    • 71 Employment activities
      • 711 employment placement agencies; 712 temporary help activities
      • 713 human resource provision and management
    • 72 Travel agencies; tour operators; and other reservation services
    • 73 Investigation and security activities
    • 74 services to buildings and landscape activities
      • 741 facilities support; 742 cleaning; landscape care and maintenance
    • 75 office administrative, business support and other support activities
      • 751 office admin and business support;
      • 752 call centres
      • 753 other business support n.e.c.
  • 20. Human health and social work
    • 77 human health activities
      • 771 hospital activities
      • 772 medical and dental practices
      • 779 other human health activities
    • 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
  • 21. Arts entertainment and recreation
    • 80 Dramatic arts, music and other arts and entertainment
    • 81 museums, preservation of historical sites, botanic and zoological gardens, nature reserves
    • 82 gambling and betting activities
    • 83 sports activities, amusement and recreation activities
      • 831 sports activities - inc operating sports facilities and clubs
      • 832 other amusement and recreation activities
  • 22. Section S Other service activities
    • 84 activities of membership organisations
      • 841 business, employer, professional organisations
      • 842 trade unions
      • 843 other membership organisations
    • 85 repairs of computers and personal and household goods
      • 851 repair of computers and communication equipment
      • 852 repair of personal and household goods
    • 86 other service activities
      • 8601 washing and dry-cleaning of textiles and furs
      • 8602 hairdressing and other beauty treatment
      • 8603 funeral and related activities
      • 8609 other service activities n.e.c.
  • 23. The ISIC revision mechanism and process
      • The revision is ultimately controlled by UN Statistics Commission = (Heads of National Statistics Offices)
      • Directed by UN Expert Group on Economic and Social Classifications = (experts from about 30 countries and international organisations)
      • Work done by Technical Sub-group of Expert Group = (8-10 countries, plus Eurostat, UNSD, OECD,IMF, ILO, FAO, some others)
      • 2004 Consultation – see over
  • 24. ISIC Revision Process approximate timetable
    • Worldwide consultation closed 15 November 2004
    • Need top-top structure for national accounts reporting
    • TSG meets February 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
  • 25. ISIC Rev 3 v Rev 4?
  • 26. Where are the regional classifications going?
  • 27.
    • NAICS minor revision 2007
    • NACE plans to remain derived from ISIC
    • ANZSIC 06 - a version of NAICS
    • China SIC and Japan SIC introduced IC sectors in 2002 converged with ISIC and NAICS but retained significant national features
      • expect convergence to continue after next revision
    • Others? India, Mercosur, Russia
    Regional Classifications
  • 28.  
  • 29. What about products? CPC
    • UN Central Product Classification (CPC) is being revised in 2007
    • Central classification but with links to activities where possible
    • Structure will be broadly unchanged
    • Considering new information product section
      • (between goods and services)?
    • Issue: Non-financial assets and services flowing from their use (Canberra II)?
    • Close relation to HS for transportable goods?
    • More detail for services
  • 30. CPC version 1.1  version 2.0
    • 0 Agriculture, forestry and fisheries
    • 1 Ores, minerals, electricity, gas and water
    • 2 Food products, textiles, apparel
    • 3 Other transportable goods (excluding metal, machinery and equipment)
    • 4 Metal, machinery and equipment
    • 5 ( Information products ) and construction services
    • 6 Distribution, lodging, catering, transport and utilities distribution services
    • 7 Financial, real estate, rental and leasing services
    • 8 Business and production services
    • 9 Community and personal services
    Community, social and personal services Business and production services Financial, real estate, rental and leasing Distribution, lodging, food serving, transport, utilities distribution (Information products and) Construction services Metals , machinery and equipment Other transportable products except metals, machinery and equipment Agriculture, forestry, fisheries
  • 31. CPC Revision Approximate Timetable
    • Proposals requested by UNSD in 2004 by 10 October
    • UN TSG will draft new CPC by Spring 2005
    • Worldwide consultation 2005
    • Finalise CPC version 2 in 2006
  • 32. Over to you
    • Questions for discussion?
    • Is China SIC 2002 implemented in
      • Business register
      • Surveys
      • National accounts?
    • Is product classification used in China’s production surveys? (which classification?)
    • Do you have questions or comments regarding ISIC or CPC?
  • 33. Thank you for your attention

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