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  1. 1. Developments in International Activity and Product Classifications : Towards ISIC revision 4 and CPC version 2 Bill Cave OECD Statistics Directorate
  2. 2. Overview <ul><li>Introduction to ISIC </li></ul><ul><li>Making sense of the proposed ISIC Revision 4 </li></ul><ul><li>Where are the regional classifications going? </li></ul><ul><li>What about products? </li></ul><ul><li>Discussion points </li></ul>
  3. 3. What is ISIC? <ul><li>International Standard Industrial Classification of All Economic Activities (ISIC) </li></ul><ul><li>One of UN family of international reference statistical classifications </li></ul><ul><li>Original ISIC 1948 </li></ul><ul><li>Revision 1 1958, Revision 2 1968, Revision 3 1989 </li></ul><ul><li>Minor Revision 3.1 2002, Revision 4 planned for 2007 </li></ul><ul><li>To be a standard classification of productive economic activities </li></ul><ul><li>To classify economic entities (units) according to the activity they carry out </li></ul>
  4. 4. Why a new revision of ISIC? <ul><li>ISIC revision 3 was published in 1989 </li></ul><ul><li>minor updating done in 2002 (rev 3.1) almost no 4 digit boundaries were changed </li></ul><ul><li>relevance – how to classify new internet, ICT, and content activities; biotech; etc. </li></ul><ul><li>not sufficiently used so lack of international comparability </li></ul><ul><li>But for analysts continuity is desirable – value long time series </li></ul>
  5. 5. Regional classifications and ISIC rev 3 <ul><li>NACE derived from ISIC - corresponds at most detailed level </li></ul><ul><li>ANZSIC, NAICS, CSIC, JSIC are related classifications </li></ul><ul><li>Great difficulty to compare Europe, with N America, China and Japan at 2 digit level especially for services </li></ul>
  6. 6. Structure of ISIC rev 3
  7. 7. ISIC rev 3 Structure
  8. 8. Making sense of the proposed ISIC rev 4 draft structure <ul><li>? </li></ul>
  9. 9. Design principles & priorities for ISIC rev 4 <ul><li>Improve international comparability </li></ul><ul><ul><li>convergence of regional classifications </li></ul></ul><ul><ul><li>E.g. NAICS/NACE/JSIC/ANZSIC/CSIC </li></ul></ul><ul><ul><li>engage more countries and regions in ISIC design </li></ul></ul><ul><ul><li>target for international comparability at least at 2 digit level </li></ul></ul><ul><li>Relevance </li></ul><ul><ul><li>Information sector, internet Telecoms </li></ul></ul><ul><ul><li>OECD ICT definition </li></ul></ul><ul><ul><li>environmental services </li></ul></ul><ul><ul><li>new technologies </li></ul></ul><ul><ul><li>growing business service sector </li></ul></ul><ul><ul><li>health services </li></ul></ul><ul><ul><li>Agriculture </li></ul></ul><ul><li>Continuity </li></ul><ul><li>Level of detail for an international classification? </li></ul>
  10. 10. ISIC Rev 4 Draft
  11. 11. What’s new? <ul><li>New groupings </li></ul><ul><ul><li>Information and communication sector </li></ul></ul><ul><ul><li>water supply, sewerage, waste management and remediation </li></ul></ul><ul><li>More tabulation categories for services </li></ul><ul><ul><li>professional technical, and business services </li></ul></ul><ul><ul><li>administrative and support services </li></ul></ul><ul><ul><li>real estate, rental and leasing services </li></ul></ul><ul><ul><li>art, entertainment and recreation </li></ul></ul><ul><li>More divisions ( to increase international comparability) </li></ul><ul><ul><li>for new groupings and growing services </li></ul></ul><ul><ul><li>in manufacturing and construction </li></ul></ul><ul><ul><li>all the above </li></ul></ul><ul><ul><li>human health services </li></ul></ul>
  12. 12. Information and communication sector <ul><li>53 Publishing </li></ul><ul><ul><li>531 publishing books, periodicals (ex manufacturing) </li></ul></ul><ul><ul><li>532 software publishing (ex IT services) </li></ul></ul><ul><li>54 Motion picture & sound recording </li></ul><ul><ul><li>541 Motion picture activities </li></ul></ul><ul><ul><li>542 Sound recording activities (inc music pub ex manuf) </li></ul></ul><ul><li>55 Broadcasting </li></ul><ul><ul><li>551 Radio and TV </li></ul></ul><ul><ul><li>552 Cable and other subscription programming </li></ul></ul><ul><li>56 Telecommunications </li></ul><ul><li>57 IT services, ISP, web search and other information service activities </li></ul>
  13. 13. Water supply; sewerage, waste management and remediation activities <ul><li>35 Water collection and supply </li></ul><ul><li>36 Sewerage </li></ul><ul><li>37 Waste collection, treatment and disposal activities, materials recovery </li></ul><ul><ul><li>371 waste collection </li></ul></ul><ul><ul><li>372 waste treatment and disposal </li></ul></ul><ul><ul><li>373 materials recovery </li></ul></ul><ul><li>38 Remediation activities and other waste management services </li></ul>
  14. 14. Agriculture, forestry and fishing <ul><li>01 Crop and livestock production, hunting and related activities </li></ul><ul><ul><li>011 production of cereals and other field crops </li></ul></ul><ul><ul><li>012 production of permanent crops </li></ul></ul><ul><ul><li>013 market gardening, horticulture, production of other crops </li></ul></ul><ul><ul><li>014 production of animals </li></ul></ul><ul><ul><li>015 mixed farming </li></ul></ul><ul><ul><li>016 support services to agriculture and post-harvest crop activities </li></ul></ul><ul><ul><li>017 hunting, trapping and related services </li></ul></ul><ul><li>02 Forestry and logging </li></ul><ul><li>03 Fishing and aquaculture </li></ul><ul><ul><li>031 fishing </li></ul></ul><ul><ul><li>032 aquaculture </li></ul></ul><ul><ul><li>033 support services to fishing and aquaculture </li></ul></ul>
  15. 15. Manufacturing <ul><li>10 food products </li></ul><ul><li>11 beverages </li></ul><ul><li>12 tobacco products </li></ul><ul><li>13 textiles </li></ul><ul><li>14 wearing apparel </li></ul><ul><li>15 leather and related products </li></ul><ul><li>16 wood and wood/cork products (not furniture) </li></ul><ul><li>17 paper and paper products </li></ul><ul><li>18 printing and reproduction of recorded media </li></ul><ul><li>19 coke and refined petroleum products </li></ul><ul><li>20 chemicals and chemical products </li></ul><ul><li>21 pharmaceuticals </li></ul>
  16. 16. Manufacturing continued <ul><li>22 rubber and plastic products </li></ul><ul><li>23 other non-metallic mineral products </li></ul><ul><li>24 basic metals </li></ul><ul><li>25 fabricated metal products except machinery </li></ul><ul><li>26 computers and electronic products </li></ul><ul><li>27 electrical equipment </li></ul><ul><li>28 machinery and equipment </li></ul><ul><li>29 motor vehicles </li></ul><ul><li>30 other transport equipment </li></ul><ul><li>31 furniture </li></ul><ul><li>32 manufacturing n.e.c. </li></ul><ul><li>33 repair, maintenance and installation of machinery and equipment </li></ul>
  17. 17. Real estate, rental and leasing activities <ul><li>62 real estate </li></ul><ul><ul><li>621 real estate activities with own or leased property </li></ul></ul><ul><ul><li>622 real estate activities on a fee or contract basis </li></ul></ul><ul><li>63 rental and leasing </li></ul><ul><ul><li>631 renting transport equipment </li></ul></ul><ul><ul><li>632 renting of other machinery and equipment </li></ul></ul><ul><ul><li>633 renting of recreational/sports/personal/household equipment </li></ul></ul><ul><ul><li>634 leasing of non-financial intangible assets </li></ul></ul>
  18. 18. Professional, scientific and technical activities <ul><li>64 legal and accounting activities </li></ul><ul><ul><li>641 legal; 642 accounting </li></ul></ul><ul><li>65 holding companies, management and management consultancy activities </li></ul><ul><ul><li>651 holding companies; 652 head offices; 653 management and management consultancy </li></ul></ul><ul><li>66 architecture and engineering activities </li></ul><ul><li>67 scientific research and development </li></ul><ul><ul><li>N.B. 6711 research and experimental development in biotech </li></ul></ul><ul><li>68 advertising and market research </li></ul><ul><li>69 photographic and other prof, scient, and technical activities </li></ul><ul><li>70 veterinary activities </li></ul>
  19. 19. Administrative and support activities <ul><li>71 Employment activities </li></ul><ul><ul><li>711 employment placement agencies; 712 temporary help activities </li></ul></ul><ul><ul><li>713 human resource provision and management </li></ul></ul><ul><li>72 Travel agencies; tour operators; and other reservation services </li></ul><ul><li>73 Investigation and security activities </li></ul><ul><li>74 services to buildings and landscape activities </li></ul><ul><ul><li>741 facilities support; 742 cleaning; landscape care and maintenance </li></ul></ul><ul><li>75 office administrative, business support and other support activities </li></ul><ul><ul><li>751 office admin and business support; </li></ul></ul><ul><ul><li>752 call centres </li></ul></ul><ul><ul><li>753 other business support n.e.c. </li></ul></ul>
  20. 20. Human health and social work <ul><li>77 human health activities </li></ul><ul><ul><li>771 hospital activities </li></ul></ul><ul><ul><li>772 medical and dental practices </li></ul></ul><ul><ul><li>779 other human health activities </li></ul></ul><ul><li>78 residential care services </li></ul><ul><ul><li>781 nursing care facilities </li></ul></ul><ul><ul><li>782 residential mental health and related services </li></ul></ul><ul><ul><li>783 community care facilities for the elderly </li></ul></ul><ul><ul><li>789 social work activities with accommodation </li></ul></ul><ul><li>79 social work activities without accommodation </li></ul>
  21. 21. Arts entertainment and recreation <ul><li>80 Dramatic arts, music and other arts and entertainment </li></ul><ul><li>81 museums, preservation of historical sites, botanic and zoological gardens, nature reserves </li></ul><ul><li>82 gambling and betting activities </li></ul><ul><li>83 sports activities, amusement and recreation activities </li></ul><ul><ul><li>831 sports activities - inc operating sports facilities and clubs </li></ul></ul><ul><ul><li>832 other amusement and recreation activities </li></ul></ul>
  22. 22. Section S Other service activities <ul><li>84 activities of membership organisations </li></ul><ul><ul><li>841 business, employer, professional organisations </li></ul></ul><ul><ul><li>842 trade unions </li></ul></ul><ul><ul><li>843 other membership organisations </li></ul></ul><ul><li>85 repairs of computers and personal and household goods </li></ul><ul><ul><li>851 repair of computers and communication equipment </li></ul></ul><ul><ul><li>852 repair of personal and household goods </li></ul></ul><ul><li>86 other service activities </li></ul><ul><ul><li>8601 washing and dry-cleaning of textiles and furs </li></ul></ul><ul><ul><li>8602 hairdressing and other beauty treatment </li></ul></ul><ul><ul><li>8603 funeral and related activities </li></ul></ul><ul><ul><li>8609 other service activities n.e.c. </li></ul></ul>
  23. 23. The ISIC revision mechanism and process <ul><ul><li>The revision is ultimately controlled by UN Statistics Commission = (Heads of National Statistics Offices) </li></ul></ul><ul><ul><li>Directed by UN Expert Group on Economic and Social Classifications = (experts from about 30 countries and international organisations) </li></ul></ul><ul><ul><li>Work done by Technical Sub-group of Expert Group = (8-10 countries, plus Eurostat, UNSD, OECD,IMF, ILO, FAO, some others) </li></ul></ul><ul><ul><li>2004 Consultation – see over </li></ul></ul>
  24. 24. ISIC Revision Process approximate timetable <ul><li>Worldwide consultation closed 15 November 2004 </li></ul><ul><li>Need top-top structure for national accounts reporting </li></ul><ul><li>TSG meets February 2005 </li></ul><ul><li>Revised draft goes to UN Expert Group June 2005 </li></ul><ul><li>Final draft goes to UNSC December 2005 for approval </li></ul><ul><li>Prepare full publication </li></ul><ul><li>Publish early 2007 </li></ul>
  25. 25. ISIC Rev 3 v Rev 4?
  26. 26. Where are the regional classifications going?
  27. 27. <ul><li>NAICS minor revision 2007 </li></ul><ul><li>NACE plans to remain derived from ISIC </li></ul><ul><li>ANZSIC 06 - a version of NAICS </li></ul><ul><li>China SIC and Japan SIC introduced IC sectors in 2002 converged with ISIC and NAICS but retained significant national features </li></ul><ul><ul><li>expect convergence to continue after next revision </li></ul></ul><ul><li>Others? India, Mercosur, Russia </li></ul>Regional Classifications
  28. 29. What about products? CPC <ul><li>UN Central Product Classification (CPC) is being revised in 2007 </li></ul><ul><li>Central classification but with links to activities where possible </li></ul><ul><li>Structure will be broadly unchanged </li></ul><ul><li>Considering new information product section </li></ul><ul><ul><li>(between goods and services)? </li></ul></ul><ul><li>Issue: Non-financial assets and services flowing from their use (Canberra II)? </li></ul><ul><li>Close relation to HS for transportable goods? </li></ul><ul><li>More detail for services </li></ul>
  29. 30. CPC version 1.1  version 2.0 <ul><li>0 Agriculture, forestry and fisheries </li></ul><ul><li>1 Ores, minerals, electricity, gas and water </li></ul><ul><li>2 Food products, textiles, apparel </li></ul><ul><li>3 Other transportable goods (excluding metal, machinery and equipment) </li></ul><ul><li>4 Metal, machinery and equipment </li></ul><ul><li>5 ( Information products ) and construction services </li></ul><ul><li>6 Distribution, lodging, catering, transport and utilities distribution services </li></ul><ul><li>7 Financial, real estate, rental and leasing services </li></ul><ul><li>8 Business and production services </li></ul><ul><li>9 Community and personal services </li></ul>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
  30. 31. CPC Revision Approximate Timetable <ul><li>Proposals requested by UNSD in 2004 by 10 October </li></ul><ul><li>UN TSG will draft new CPC by Spring 2005 </li></ul><ul><li>Worldwide consultation 2005 </li></ul><ul><li>Finalise CPC version 2 in 2006 </li></ul>
  31. 32. Over to you <ul><li>Questions for discussion? </li></ul><ul><li>Is China SIC 2002 implemented in </li></ul><ul><ul><li>Business register </li></ul></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>National accounts? </li></ul></ul><ul><li>Is product classification used in China’s production surveys? (which classification?) </li></ul><ul><li>Do you have questions or comments regarding ISIC or CPC? </li></ul>
  32. 33. Thank you for your attention