KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN

1. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES XXIII-rd Ukraine-Polish-Slovak Scientific Seminar ROADMAP of Crucial Reforming the System of State Statistics in Ukraine Igor G.MANTSUROV

2. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES PREAMBLE According to conclusions of the Adapted Global Assessment of National Statistical System, which has been carried out by representatives of European Commission, European Free Trade Association and European Economic Commission for Europe in 2011, statistics in Ukraine was recognized being largely in line with European standards, and the information produced by state statistics bodies also is recognized as a product of high quality.

3. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES According to international experts’ estimates, the institutional environment, within which the State Statistic bodies function, largely corresponds to statistical standards, including the Fundamental principles of the UN official statistics, European Statistics Code of Practice as well as the Compendium of statistical requirements of Eurostat.

4. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES However, the expert group recommended to harmonize legislation in the sphere of statistics and related areas with the EU legislation to create a unified legal base for the state bodies authorized to compile statistical information (hereinafter - producers of statistical information), and forming an integrated national system of official statistics with assigning the coordinating role to the State Statistics Committee.

5. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES CONCEPTUAL RECOMMENDATIONS 1. Harmonization of Ukraine’s legislation in the sphere of statistics with the EU legislation 2. Establishing an institutionally independent system of the State Statistics of Ukraine as required by the European standards 3. Changing institutional structure of the current system of the State Statistics according to the best practices of the UN/European statistics 4. Harmonization of statistical methodology in Ukraine in line with the methodology of international statistical recommendations and guidelines.

6. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 5. Development and implementation of advanced methods and forms of data gathering according to the best practices of the European statistics and methodology of the UN specialized agencies and international organizations 6. Improving the system of collection and processing statistical information by drastically eliminating the use of paper-based information carriers and shifting exclusively to electronic media carriers 7. Changing proportion of the number of employees in the central office and that in regional statistical offices

7. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 8. More efficient statistical data and information protection 9. Introduction of advanced educational programs for staff, based on the best European and international practices 10. Providing free access to statistical data users and raising openness of public statistics 11. Improving the system of financial support to the reforms

8. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 1. Harmonization of Ukraine’s legislation in a sphere of statistics with the EU legislation PROBLEM It should be noted, in particular, that the Law of Ukraine № 5463-VI, adopted by Verkhovna Rada of Ukraine on October 16, 2012, violated the principle of professional independence of the State statistical activity.

9. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES GREAT CONCERN In a joint letter of the Head of the EU Delegation to Ukraine, Resident Representative of the International Monetary Fund in Ukraine and Country Director of the World Bank Group in Belarus, Moldova and Ukraine dated September 5, 2014 № 2014/9 / 5-8, there has been expressed their concern regarding ill-defined status of the State Statistics Service of Ukraine, and stated, that after signing the Association Agreement between Ukraine and EU, according to which Ukraine would undertake implementation of international and European standards in statistics, the professional independence of the State Statistics Committee becomes even more important.

10. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES SOLUTION Within the next three-four months, changes in the Ukraine’s legislation in the sphere of statistics should be put BY THE UKRAINIAN PARLIAMENT in compliance with the EU legislation.

11. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 2. Establishing an institutionally independent system of the State Statistics of Ukraine GREAT CONCERN It should be noted that the international community expressed several times its concern regarding the fact that SSSU was put at risk by the administrative reform that subordinated institutionally, organizationally and methodologically the SSSU to the Government.

12. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES SOLUTION In order to change the situation, the following actions have to be done: - financial independence should be achieved: budget should be established by the parliament; - audit of professional activities and staff qualifications should be performed by the UN-EC independent committees; - audit of financial activities should be carried out by the Accounting Chamber; - practice of the SSSU reporting on regular basis to Parliament and/or to public should be implemented on a quarterly basis.

13. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 3. Changing institutional structure of the current system of the State Statistics according to the best practice of the European statistics Switching to the use of electronic data carriers will enable transition from a three-level hierarchical nature of organizational structure of the state statistics bodies (district, regional and central) to two-level structure (regional and central level).

14. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 6. Improving the system of collecting and processing statistical information by drastically eliminating the use of paper-based information carriers and shifting exclusively to electronic media carriers For the time being, to perform its functions, the State Statistics Service annually prints million copies of forms of statistical reporting, thus spending UAH millions, loosing time to deliver reporting forms to respondents and regional statistical offices etc.

15. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES SOLUTION Ambitious objective is to raise this level up to 95 percent in two years. To keep the positive dynamics of growth of electronic reporting, it’s necessary to provide respondents with ability to submit statistical and financial statements electronically using free software; to develop this, the State Statistics Service would need financial support to update and upgrade the system of electronic reporting.

16. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 8. Changing proportion of the number of employees in the central office and its regional statistical offices Implementing electronic data carriers and changes in the institutional structure should result in a substantial reduction in the number of employees and the ratio of the number of employees in the central and regional statistical offices. According to the best practices of the European countries, the optimal ratio of the number of employees of the first level (central office) and that of the second level (regional statistical offices) is in the range of 25-30% (first level) and, respectively, 75-70% (second level). Actually in Ukraine, this ratio is about 5 to 95 percent.

17. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES SOLUTION The development of the modern system of the State statistics should provide for a substantial reduction in the total number of staff with a parallel increase in the share of staff working in the central office. This increase in the share should be due to the increase in the number of analysts and methodologists of high European and world level.

18. KIEV NATIONAL ECONOMIC UNIVERSITY named after Vadym HETMAN RESEARCH INSTITUTE FOR SYSTEM STATISTICAL STUDIES 9. Introduction of advanced educational programs for staff, based on the best European and international practices To keep the positive dynamics of growth of electronic reporting, it’s necessary: i) to improve the system of staff training through the development of the regulatory framework and developing methodological basis for improving professional qualifications of employees of the state statistics n; ii) to develop infrastructure to provide professional training in the state statistics bodies; • iii) to introduce new forms and methods of training