Joining the OECD: Consequences for the Statistical System

1. Joining the OECD:Consequences for the Statistical System Prof. Shlomo Yitzhaki, Israel Central Bureau of Statistics EU-Israel Sub-committee on Economic and Financial Affairs January 23rd, 2012

2. Background • The Israeli National Statistical System is rooted in the statistical units established in the Jewish Agency (1924) and in the British Mandate (1935). • The Israeli Central Bureau of Statistics was established afew months after the declaration of independence (1948). • The international statistical activity of ICBS has started early on as a policy to promote professionalism and integration. It was expanded rapidly when joining the UNECE in 1991, the Barcelona Process and Medstat Programme (since late 1990’s) and toward joining the OECD (since 2008).

3. ICBS and Eurostat • ICBS has participated in the three phases of Medstat and will be part of the “after MedStat” permanent regional activity, planned these days. • MoU was signed in July 2008, within the context of the European Neigborhood Policy. Data of priority sectors are sent to the EU database on a regular and timely basis. • ICBS is invited and participate in more and more EU statistical activities conducted by Eurostat or as a joint venture with other international organizations. • ICBS staff serve as short-term key-experts in Eurostat projects (still a limited phenomenon). • Two EU experts led the writing of twinning fiche to support the development of key issues in the Israeli statistical system. The twinning project will start toward the end of this year.

4. Implications of Joining the OECD • Accelerated development of statistics; • Change of priorities’ order when considering needs; • “Quality certification” of Israel statistics; • Intensive research of the Israeli economy and society; • Empowered national statistical system.

5. 1 Accelerated development of statistics • Joining the OECD and the globalization processes presented challenges to the production of • National accounts and especially financial statistics (ICBS and the Bank of Israel); • Balance of payments and especially foreign direct investment; • Labor market statistics, supply and demand; • Environmental statistics; • Migration statistics. • Many of the data series generated in the entire statistical system were harmonized and standardized to the international standards; • Alternative data sources were sought after, since the expansion of the surveys reached a declining marginal efficiency point (regarding management of operations and of workers) and since costs were running high.

6. 2 Change of priorities order when considering needs The navigator of statistics production was mainly external to the country: • OECD roadmap for Israel statistics (although the accession itself was a strategic objective of the state of Israel); • IMF recommendations in ROSC 2006; • Requirements of the Governor of the Bank of Israel; • The simultaneous conversion of classifications and guidelinesfor statistics led by he international organizations; • Other expressed local needs (like the demographic projections...).

7. 3 “Quality certification” of Israel statistics • Several reviews of the statistical system during the last years, reflected the weaknesses and allowed for focused improvement efforts; • Relevance, timeliness, comparability, frequency and availability – all these quality criteria were significantly improved and led to trusted data; • As a result, Israel statistics is published in the different media and their frequent use serves as an on-going quality assurance.

8. 4 Intensive research of the Israeli economy and society, based on measurable facts • Country Reviews • Economic Survey of Israel • Economic forecast • OECD Environmental Performance Review • Higher Education in Regional and City Development • Addressing challenges in the energy sector in Israel • Issues in private sector finance in Israel • How to improve the economic policy framework for the housing market in Israel • Israeli Child Policy and Outcomes • Reforming Policies on Foreign Workers in Israel • Israel: Monetary and Fiscal Policy • Policy Options for Reducing Poverty and Raising Employment Rates in Israel • Labour Market and Socio-Economic Outcomes of the Arab-Israeli Population • Benefits from the Liberalisation of Environmental Goods and Services: Case Study: Israel • and many more – in two years! =>> Data needs and data uses are increasing immensely.

9. 5 Empowered NSS • Achieving the very challenging goals marked as milestones in the roadmap required a coordinated work of the ICBS and its partners in the NSS. • The NSS as a system improved its functioning and professionalism as statistics supplier, while the partners in the system acknowledged the relative advantage of each. • The quality edge of the ICBS emphasized its role as the professional leader of the NSS. However, the harmonization of statistics to international standards allows the partners to adopt idependent routines.

10. Numbers • 88 listed new statistical activities stemming from the roadmap; • ICBS is conducting over 100 surveys, about 20% are new; • 1.1.2010: 859 employees (~ 250 interviewers) Today: 1144 employees (394 Interviewers – to be 600 by the end of 2012);

11. Forward Looking • Coordination between the international organizations is essential for the NSSs to be able to provide the global statistical needs; • New means of data exchange aim to reduce human involvement (SDMX); • Alternative data sources have to replace direct data collection from businesses and households; • A continuous independence of empowered ICBS is necessary for data integrity and for integrity in use.