The document discusses proposed revisions to two United Nations statistical classifications: 1) The International Standard Industrial Classification of All Economic Activities (ISIC) is being revised from version 3 to version 4 to improve international comparability and relevance for new industries. Key changes include new groupings for information/communication and waste management. 2) The Central Product Classification (CPC) is also being revised from version 1.1 to version 2.0, considering a new section for information products. It aims to better classify non-financial assets and services related to their use.

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

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