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Ring Country Comparison. Moving from Regional Comparisons to the Global Comparison. Regional Emphasis of ICP 2004. The ICP2004 is organised on Regional lines: Africa, Latin America and Carribean, West Asia, Asia and the Pacific, CIS, OECD/Eurostat.

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Ring Country Comparison

Moving from

Regional Comparisons to the Global Comparison


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Regional Emphasis of ICP 2004

  • The ICP2004 is organised on Regional lines: Africa, Latin America and Carribean, West Asia, Asia and the Pacific, CIS, OECD/Eurostat.

  • The regional comparisons are at the core of ICP2004 Global comparison.

  • How will the regions be linked to produce a Global Comparison?


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Bridge Countries


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Ring Method: Multilateral

  • A group of about 15 countries from all regions will be selected as Ring Countries.

  • A separate PPP comparison will be made among these Ring Countries in exactly the same way as the regional comparisons.

  • The Ring Country comparison will provide link co-efficients to align the regions in order to obtain the Global comparison.


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Asia and the Pacific

West Asia

Ring Countries

OECD

Eurostat

Africa

CIS

Latin America

and Carribean


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Product List for Multilateral Ring Method

  • The Ring coordinators review the rgional lists and establish a « Ring Country List » including products from all regions.

  • This means that Ring Countries will be asked to price products from other regional lists.


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Ring Method: Closed Loop

  • In each Region, two countries undertake a bilateral comparison with countries from two other different Regions

  • Because the ring is a Closed Loop, there are alternative paths to compare countries from different Regions

  • Initially these alternative paths will give different results for comparisons of countries in different Regions

  • The alternative routes will be reconciled by reviewing the bilateral comparisons and, eventually, by an averaging process (EKS)


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C

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C

B

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C

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C

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C

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F


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Product List for Closed Loop Ring Method

  • The Ring Countries in each Region identify a Ring Country in another Region as their partner

  • The two partners exchange product lists and agree to price additional products from their partner’s list


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Outstanding Questions

  • Multilateral Ring or Closed Loop Ring?

  • Fixity

    • Will the relative positions established by the Regional Comparisons be preserved for the Global Comparison?

  • Ring Countries


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Ring Countries?


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India

Asia

Russia

CIS

Pakistan

Thailand

Kazakstan

Oman

West Asia

Australia

OECD

Korea

Jordan

France

Spain

Tunisia

Africa

Algeria

Argentina

South Africa

Brazil

ECLAC


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Workplan

  • TAG Review and recommend Process

    Prepare Criteria to select countries

  • Executive Board Approve

  • Ring Coordinator review country preliminary list of representative products

  • Determine countries with best match

  • Joint meeting countries, regional coords agree on ring price list by pair

  • Collect ring prices with regional prices


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