International Comparison Program (ICP)

1. International Comparison Program (ICP) Overview of 2003 Round Workshop Goals and Objectives Fred Vogel, Global Manager

2. Workshop Goals and Objectives • Establish global and regional responsibilities—who does what • Agree on timetable • Implement Memoranda of Understanding • Review technical issues for the ICP • Review funding issues • Team Building

3. Overview of the Agenda • Overview of the ICP—the big picture • Management and coordination • The expenditure aggregates • Expenditure weights • Pricing concepts • Building the list

4. Goals • Clear understanding of roles and responsibilities of global, regional and national organizations • Agreement on timetable and activities to prepare for price collection • Foster open candid discussions

5. Basic Objectives of the ICP • Provide International Comparisons of GDP and Per Capita Expenditures

6. Why is this so Important? • Basic uses of official statistics • Make policy—who gets what • Guide investment decisions • Enhance competitive markets • Globalization of world economies requiring multilateral comparisons • Individual countries no longer can operate in a vacuum

7. The Problem • Need to articulate uses of PPP’s beyond as a research tool • Need to establish credibility in results • Need to provide timely, consistent, defensible results

8. Framework proposals • Link the ICP with national statistical activities (price collection, national accounts, household surveys); • Build national statistical capacity and help with marginal costs; • Provide competent coordination and governance at regional and global levels; • Invest in research to address technical issues

9. The Scope—Expenditures and Prices • Up to 220 Basic Headings • Need expenditure weights • Descriptions of items and prices • Household Consumption— up to 140+ • 2-3,000 items make up pricing lists • Price 1,000 +/- items to obtain national, annual, average prices • Items must be comparable across countries, representative within

10. Problems-Previous Round • Who was in Charge? • Not enough money • Insufficient documentation • Inflexible list of items to price • Lack of standards and procedures • Distrust-countries, regions, global levels

11. What’s New with this round of the ICP?

12. What’s New with this Round of the ICP? • Governance

13. Executive Board Global Office Tech Advisory Group Council Asia Pacific Africa CIS LAC West Asia Eurostat/OECD

14. What’s New with this Round of the ICP? • Research

15. Examples of Research Topics • Thirty years of Index Number Theory • Still debating • EKS vs. CPD for Basic Heading PPPs • EKS vs. G-K to Aggregate • Difficult to apply Statistical Theory on • Number of items to price in a basic heading • Selection of the items to be representative and comparable • Estimation of National Annual Averages

16. What’s New? • Memorandum of Understanding • Policy regarding • Data Collection • Data submission • Data sharing and review

17. What’s New? • Handbook • Tool Pack • Re-design web site, newsletter

18. What’s New? • Project Plan—timeline

19. Name Executive Board & Meet Nominate Technical Advisors Write New ICP Handbook Prepare MOUs with Regional and National Coordinators Develop Data Sharing & Access Policies Redesign website Feb 03 Feb 03 Mar 03 Mar 03 Mar 03 May 03 The timetable and work plan

20. Prepare training materials Prepare Basic heading list Workshop with Regional ICP Coordinators Regional Coordinators meet with National Coordinators to begin preparing list of products to price March 03 March 03 March 03 May 03 More timetable and work plan

21. Price list for Ring Comparison Global review of regional lists Prepare specs for Bills of Quantities, rents, equipment Agreements with countries on computing National, Annual Average Prices mid 03 Oct 03 Oct 03 Oct 03 More timetable

22. Final Product list prepared for regions and ring countries Train National Coordinators for price collection and Tool Pack Translate product lists Price collection begins Dec 03 Nov 03 Jan-Mar 03 Apr 04 More timetable and work plan

23. Overview of 2003 Round • Determine lowest level of GDP for which expenditure weights are available • Determine items to price • Collect Prices—2004—2005 • Data edit/analysis —2005 • Publish results—2006 • Evaluate process—2006 • Begin planning for next round--2007

24. What’s New? • Global Comparison—Ring Concept

25. Regional Vs Global Comparisons

26. Regional Vs Global Comparisons Africa LAC Asia Ring Euro-OECD W.Asia CIS

27. Latin America Asia Western Africa Africa CIS Europe Non EU Chile, Mexico, Brazil Indonesia, India, Korea Egypt, Oman S. Africa, Ethiopia, Cote-d’Ivore Russia, Kazakhstan Austria, UK, Portugal, Slovenia Australia, USA, Canada Ring Country Concept

28. What’s New? • Concentration on the “Main Thing”

29. The main thing is Emphasis on Product Classification What to Price How many to price Where to price Data Analysis, Quality control Expenditure weights The main thing

30. Guiding Principles • Transparency • Open Dialogue • Document Decisions • Timeliness • Early Warning Capabilities • Abide by time tables • Simplicity • Minimize Bureaucratic requirements • Ensure Transparency and Timeliness

31. Guiding Principles • Defensible • Statistical Practices Clear and Explainable • Sustainable • Integrate ICP & National Statistics Programs • Availability • Between countries within regions • Between countries and regional coordinator

32. Requirements • Time:only 390 days before price collection begins April 1, 2004 • People:Experience with prices and national accounts • Money: Equipment, data collection, travel, training

33. Thanks for Listening ?????????? Questions ???????????