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Special Survey Areas

Special Survey Areas. Global Office . 5 th Regional Coordinator’s Meeting October 5-6, 2011 Washington DC. Special Survey Areas. Presentation Outline. . Changes to GCL. . Water. . Machinery and Equipment . . Construction and Civil Engineering . .

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Special Survey Areas

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  1. Special Survey Areas Global Office 5th Regional Coordinator’s Meeting October 5-6, 2011 Washington DC

  2. Special Survey Areas Presentation Outline  Changes to GCL  Water  Machinery and Equipment  Construction and Civil Engineering  Fast Evolving Technology Products  Private Health  Private Education

  3. Changes to GCL Between April and October 2011, a few modifications were made to the ICP Global Core items list - Most important changes concerned Basic Heading “Passengers transport by air” Other changes/clarifications were made, when needed, to the following categories: 1 Food and clothing 2 Health Services 3 Housing and related goods and services 4 Transport 5 Recreation and culture 6 Miscellaneous goods and services

  4. Changes to GCL On Passengers transport by air, due to internal complexity of travel services industry worldwide, the Global Office, following recommendation from ICP regions, decided to lay more emphasis on return tickets to various destinations with tickets in low season at the cheapest options - Necessary amendments were made and regions have been informed in order to incorporate them in their regional lists Global list of items have been developed for Machinery and Equipment Goods, Construction, Housing, Education, Compensation of employees

  5. Water Available survey materials for the specific Water survey include the following: - Collection Form of Water Tariff (English) (Arabic) (French) (Spanish) - Operational Guide Chapter (English)

  6. Water The 2011 Global Core List for Household Consumption Survey of the International Comparison Program is designed to collect cost associated with water consumption through direct pricing of three items under Basic Heading 1104411 In addition to the Global Core List, the Global Office has developed a special form to collect important structural information to understand the formation of water tariffs in the countries These calibration information will support prices collected for Water Supply basic heading covering Global Core List and Regional items

  7. Machinery and Equipment Available survey materials for the Machinery and Equipment survey include the following: - Survey guidelines for Machinery and Equipment Goods (English) (Arabic) (French) (Spanish) - Operational Guide Chapter (English) - Machinery and Equipment Goods product catalogue (English) - ICP-Kit Machinery and Equipment Goods Module (English) - User Guide for the ICP-Kit Module (English)

  8. Machinery and Equipment The list of items for Machinery and Equipment Goods comprises eight different Basic Headings including a total of 77 products and 177 items - All prices, costs and fees should be submitted for one unit and the order quantity must be indicated - A new version of the ICP Kit and a product catalogue have been redesigned to reflect these requirements - Updated materials for price collection of Machinery and Equipment Goods have been circulated and data will be collected through November 2011

  9. Construction and Civil Engineering Available survey materials for the Construction and Civil Engineering include the following: - A Paper describing the approach, titled as “A New Approach to International Construction Price Comparison” (English) (Arabic) (French) (Spanish) -  ICP Construction Price Survey Form (English) (Arabic) (French) (Spanish) -  Construction Materials Catalogue (English) (Spanish) - Operational Guide Chapter (English) - Additional Guidance 1 (FAQs) (English) - Presentation (English)

  10. Introduction 3 Basic Headings 3 Categories of Input Resources 50 Input Resources Materials Materials Materials 38 38 38 Materials & Products Materials & Products Materials & Products Residential Building Construction and Civil Engineering Equipment Equipment Equipment Equipment items Equipment items Equipment items 5 5 5 Labor Labor Labor Labour services Labour services Labour services 7 7 7 Non-Residential Building Civil Engineering

  11. Approach in brief Construction and Civil Engineering PPPs are calculated in 4 steps: 1 An unweighted CPD is to be used to calculate PPPs for the 3 sub-headings: 1 Materials 38 items Importance Relevance Each BH has thus three sub-heading PPPs 2 Equipment 5 items 3 Labor 7 items 2 BH PPPs will be calculated as weighted averages of the sub-heading PPPs using Resource Mixes as weights ! Resource Mixes are typical proportions of resources (Materials, Labor and Equipment) used in construction projects relating to the 3 BHs (Residential and Non-residential building and Civil engineering work) 3 BHs PPPs based on the input prices will be adjusted to outputs using mark-ups and allowances for professional fees collected in the price survey 4 National construction PPPs are calculated by aggregating BH PPPs using expenditures on construction BHs as weights

  12. Importance The 38 material resources are allocated to the 3 BHs based on their relevance Example Sheet roofing and sanitary ware appear only in Residential and Non-residential building BHs In addition each item is to be classified as important (1) or not important (0) for each BH (R, NR, C) - Importance means readily available and in common use No Price Price Price 0 1 0 - Only prices of important items are used in the calculation of sub-heading PPPs Important Not Important Available Not Available

  13. Pricing Rules (1) Materials included in the construction survey have been selected on the basis of their common use across countries - However these are not always available in all countries - in this case there is two options: 1 Prices are not provided for the material in question 2 Alternative material is priced Clay bricks Alternative bricks Copper pipe Steel pipe Concrete blocks Plastic pipe - In general, prices should not be provided for materials that need to be specially produced or imported ! Alternative description is to be noted; comparability to be verified during the validation

  14. Pricing Rules (2) Prices provided should be those paid by construction contractors to their suppliers materials and products Prices paid after discounts, including all non-recoverable taxes and respectively excluding all recoverable taxes, such as the Value Added Tax (VAT) equipment Rental charges paid to hire companies or internal hire rates labor Cost to the contractor of employing the workers - In addition the provided prices should be for items that are commonly available and commonly used in the country; not for “special” items Countries are requested to provide annual and national ‘average’ prices: Annual averages Prices that are an average over the survey year (mid-year prices are acceptable) National averages Prices across the country, across different types and sizes of projects

  15. Fast Evolving Technology Products Available survey materials for the Fast Evolving Technology Products include the following: - Note describing the approach, titled as “Fast Evolving Technology Products” (English) (Arabic) (French) (Spanish) - Item specifications in SPD format (English) - Presentation (English) - Operational Guide Chapter (English)

  16. Introduction Technology products such as audio-visual, office and information processing equipment pose unique challenges for ICP price collection and PPP computation. These are related to: - Short life cycles and the overall fast changing nature of these products - Introduction of new models according to a different schedule across the countries or regions - Tendency of consumer electronics companies to create market fragmentation by introducing models with minor variations for certain groups of countries or even for individual countries As a result standard ICP practices cannot produce satisfactory PPPs The issue of fast evolving technology relates mainly to the Audio-visual, photographic and information processing equipment BH (3 OECD BHs)

  17. Approach An approach to resolve this problem is based on the following four main elements: Focus on products with wide availability, low number of alternative models for the same product type, and relatively long lifespan or with replacement models which can be clearly identified 1 Improve the item specifications so that they list the key price determining factors and indicate a product series instead of a single model 2 Use the whole scope of the basic heading(s) 3 4 Collect brand and model information for validation purposes Based on the four elements, the Global Core List (GCL) is being revised to include 16 new items

  18. Implementation The 16 new GLC items are covering the following product types: 1 item Photographic equipment 1 item Equipment for the reproduction of sound 4 items Equipment for the reception and reproduction of pictures 1 item Equipment for the reproduction of pictures 9 items Information processing equipment - Regional Coordinators can add additional regional items to their regional lists following the approach, if needed - Prices for these items are to be collected in the remaining months and quarters (Q3 and Q4) of 2011 - The treatment of these items is the same as for any other GCL item - The oldGCL and regional items can either be kept or deleted depending on the results for previous quarters

  19. Item Specifications Item specifications define the series for the given brand and the key price determining parameters for the product Brand: Brand X Series: Series Y Model: e.g D255E-13639 Type: netbook computer Screen size: 10.1” Processor: Atom N455 Installed memory: 1 GB Hard disc: 250 GB Wireless connectivity: Wi-Fi (WLAN), Bluetooth Exclude: 3G/4G models Number of units: 1 Unit of measurement: piece SPECIFY: brand and model Reference to an actual model code is not made directly; it is included only as an example Model code can differ across countries for exactly the same product and change quickly even within a country due to possibly very minor changes with actual product Series are more universal and stable The key product features Clearly listed to facilitate the price collection and to assist the price collectors and shop assistants in finding comparable models at the national market Prices brand and model is to be written down for validation purposes

  20. Private Health Available survey materials for the Private Health include the following: - Operational Guide Chapter (English) (Arabic) (French) (Spanish) - Item specifications in SPD format (English) (Arabic) (French) (Spanish) - Presentation (English)

  21. Introduction (1) Basic Headings relating to health products and services are split into household and government expenditures - Household expenditure consists of: 7 BHs 6 BHs Price surveys Pharmaceutical products BH Other medical products BH Therapeutic appliances BH Medical Services BH Dental services BH Paramedical services BH 1 BH Reference PPPs Hospital services BH - Government expenditure consists of: 12 BHs 11 BHs Reference PPPs 1 BH Input approach Compensation of employees BH

  22. Introduction (2) Despite being a comparison resistant area, the overall survey process follows normal household consumption price surveys: - Regional item lists consist of both Global Core List items as well as region specific items Price collections are to be carrier out quarterly in order to establish sound annual average prices - - Normal 2011 ICP routines are to be followed on importance All reported prices are to be full market prices; this is the total amount the seller or service provider receives for the specified product or service - Full market price = Price paid by an individual + Potential government subsidy or insurer/NGO contribution - Prices and resulting PPPs are to be validated at country, region and global levels

  23. Pharmaceutical Products The GCL includes 43 internationally essential drugs, that are indentified based on the following main parameters: Active Substance Dosage Quantity Product examples In addition distinction is made between: Branded drugs Medicines produced and sold by their innovative pharmaceutical companies Referred as “Original” or “International brand” Generic drugs Identical, or bioequivalent medicines, to an existing brand-name medicine in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use referred as “Generic” or “Generic brand”

  24. Out-Patient Services Out-Patient Services covers 3 BHs and 12 GCL items - Items include services such as sight test examination, extraction of a tooth and standard blood test - Prices are to be collected only from private service providers ! Public service providers is covered by the BHs relating to Health expenditure by government; different comparison approaches are employed for these BHs Private (market) producers Establishment whose all or most of output is market production Provide all or most of its output to others at prices that are economically significant Public (non-market) producers Establishments owned by government units or NPISHs that supply goods or services free, or at prices that are not economically significant, to households or the community as a whole Most of their activity will be undertaken on a non-market basis

  25. Private Education Available survey materials for the Private Education include the following: - Private Education Guidelines (English) (Arabic) (French) (Spanish) - Private Education - Survey Questionnaire (English) (Arabic) (French) (Spanish) - Presentation on Private Education in the ICP 2011 (English) - Operational Guide Chapter (English)

  26. Introduction to Private Education Country Survey Global Level • Private Education under HHC  collection of private tuition fees • Involves data collection by countries • Regional PPPs computed by Regional Coordinators then linked to Global PPPs • Quantity indicators (Number of students) • Quality adjustment factors (scores, absenteeism, background, etc.) • No data collection by countries • Data compiled centrally by the Global Office, with the help of consultants • Regional and Global PPPs computed centrally by the Global Office, with the help of consultants • Public Education under Government  collection of compensation of employees working in the public education sector + productivity adjustment

  27. Survey Frame /Data Requirements Survey Frame Locations Capital city and several other areas (including both urban and rural) Types of Schools All types of private schools e.g. Low-cost / High-cost schools, etc. Number of Observations Number of Observations At least one per area At least five in the capital city Data Requirements The average prices for annual tuition of private schools Worksheets 3.1-3.7 All raw data and metadata Worksheets 3.1-3.7 General education indicators Worksheet 1

  28. Item List Specifications are provided in the SPD format in the operational material 1.4.02

  29. Technical Issues in Pricing Detailed Guidance is provided in the operational manual 1.4.01- guidelines

  30. THANK YOU

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