Reforming China’s Statistical

System: Opportunities and

Challenges

Datuk R. Chander

May 2004
The Legacy of the Past
Statistical system geared to collecting data
to meet the needs of central planning;
Statistical system served data needs of
Government in planning, implementing and
monitoring development;
The emphasis on target setting and plan
fulfillment; the limited role of prices
The MPS framework and use of
comprehensive reporting as a key
statistical tool
A hierarchical organizational structure

May 2004
Features of the System

Isolation from the Rest of the World

Limited role of global standards
Secrecy and absence of data
dissemination
An organizational structure patterned
on the USSR – the pyramid and
compartmentalization

May 2004
Decades Two of Reforms
Investment in Physical Infrastructure
Human Resource Development
Adoption of International Standards
Extension of Data Gathering
Maximization of Technical Cooperation with
partners
A New Legal Framework
Greater transparency and dissemination

May 2004
What Has Changed?
The private sector’s new role in a
market economy;
The Government’s new role: I)
creating the macro economic
conditions for growth; I) poverty
eradication and providing safety nets
III) incentives for private sector
development
Demand for new data
May 2004
Changed Emphasis
More extensive economic data –
national accounts, capital flows;
prices;
Emphasis on poverty and social up
liftment;
Greater dissemination; a more
transparent approach;
Application of IT; gradual adoption of
some international standards
May 2004
The System Remains in Transition

Partial moves towards reform

China has yet to fully adopt
international standards and
classifications
Continued reliance on “complete”
reporting
Reform of basic structure of the
system has not been attempted
May 2004
Issues And Challenges
Incomplete reforms
A larger work load
Problems of non-response and
misreporting – data quality and credibility
Organizational rigidities linked with “mirror”
arrangements and compartmentalization
Tensions with users – old vs. new
requirements
A question of culture: data revisions; faith
in surveys
May 2004
A New Policy Vision
The statistical system should also be improved to
enhance monitoring of economic performance and
facilitate information sharing among economic
regulation departments of the Government.”

Central Committee of the Communist Party of China: Third Plenary Session of the 16th CPC
Central Committee Session. Oct 14th 2003

May 2004
The Reform Agenda
Acknowledgement of weaknesses & needed
reforms
Reforms to cover methodology; institutional
reforms including the integration of the three
survey organizations; NBS internal structure;
reassessment of relationships between
components of the statistical system; improvement
of data quality.
Moving away from complete reporting towards use
of sample surveys;
Greater client orientation.

May 2004
The Approach to Reforms

Cautious approach outlined by NBS

Changing the culture – engaging
stakeholders – users, staff, all levels
of the system;
Are the reforms adequate?
Absence of an over-arching design
The cost implications not quantified

May 2004
Reforms: From Policy To Action

Accelerating Reforms: Need for a detailed strategy;

Developing a comprehensive Statistical Master Plan to guide
change and serve as a business plan
SMP objectives:
Defining a relevant work program
Reduced respondent burden
Effective statistical information management and data
sharing
Comprehensive quality management systems
Adequately trained and motivated staff
An efficient, well managed, flexible organization
Redefining functions of the component parts of the
statistical system

May 2004
Key Contents of SMP
The World Bank’s Guidelines for
preparation of SMP under its STATCAP
initiative
The Five Pillars of a SMP:
Organizational Development and Restructuring
Investing in Physical Infrastructure
Investing in Statistical Infrastructure
Data Development and A Core Work Program
Data Management & Dissemination : Role of IT

May 2004
Organizational Development and
Restructuring
Streamlining the organizational set-up of China’s statistical system
`Reallocation of responsibilities
National Advisory Council
Restructuring of NBS and PBS
Building of institutional management systems
The sub-components for establishing modern management
systems:
Financial Management and Planning
Human Resources Management
Document Management System
Quality Management
Strengthening of the system of staff training and re-training
Users’ education strategy- Improvement of relations with
respondents and data providers
Revising the Statistical Law

May 2004
A New Structure for NBS

A new organizational structure grouping functions : Matrix

Management: functional orientation
Statistical infrastructure: Sampling frames, business registers and
classifications.
Methodology and Design: Sample design, experimentation and
questionnaire design.
Field Operations: Data collection: a national survey network
IT Function: Development and management of institutional databases
and metadata bases; technical support to operating divisions.
Operating Departments: Household surveys, enterprise surveys; price
statistics national accounts; external trade and financial statistics; social
statistics; demography.
Data dissemination and client support.
Management Services: Strategic planning; Finance and Budgeting;
Human resource management including training; External Relations.
Restructuring PBS

May 2004
A Business Plan
A relevant work program
Reduced respondent burden
Effective statistical information
Comprehensive quality management
systems
Adequately trained and motivated staff
An efficient, well managed, flexible
organization

May 2004
Investing in Physical Infrastructure

Much achieved
Further investment in IT; particularly
in software and networks
Set up amortization fund to finance
future replacement of hardware

May 2004
Investing in Statistical Infrastructure

1 Development of Household Sample

Frame based on area units
2 Enterprise Register
3 International Standards &
Classifications: link to comparability, global
data quality (GDDS)
4 Support for user Interactions : role of
user groups
5 Review of Statistical Legislation &
revisions

May 2004
Data Development : A Core Work
Program
The focal point of the data collection modernization is (i)
development and implementation of multi-purpose sample
household surveys; (ii) integration of the existing enterprise
surveys; (iii) revision of data collection periodicity; and (iv)
introduction of sampling methods into enterprise surveys.
Streamlining of current data collection processes by:
reorientation of data content towards topical issues;
reduction in the length of questionnaires and improvements in their
design;
reduction in sample sizes through increased use of stratified
sampling procedures;
consolidation of requests for annual data into a single integrated
annual survey;
consolidation of requests for sub-annual data into a single
integrated survey;
These efforts are likely to enable the reallocation of resources and
permit the collection of new data sets and reduce respondent
burden and result in improved response rates

May 2004
A Framework for Data Development

The 1993 SNA as an organizing

framework for collection of economic
data; new classifications
Integration and harmonization;
The institutional sectoring in the SNA
as a tool for sharing responsibilities
between parts of the system;

May 2004
The Institutional Sectors

Rest of the World (DAB)

Government Sector (MoF)
Financial Corporate Sector (DAB)
Non-Financial Corporate Sector (CSO based on IBES)
Households (CSO based on HIES)
Non-Profit Institutions Serving Househols (CSO)

May 2004
Key Surveys
Integrated Business Enterprise Survey: Based on
Commercial Accounting Concepts
Household Income and Expenditure Survey
A monthly Production Survey
Price Statistics
Quarterly Labor Force Survey
Business Expectations Survey
Compilation of Leading Indicators
Indices of Production

May 2004
The National Accounts

A new orientation based on 1993

SNA: NBS role: stepping back from
the “Hybrid” system
Supply & Use Accounts
Institutional Sector Accounts
Quarterly National Accounts
Regional National Accounts: NBS vs. PBS

May 2004
Social Statistics & Poverty
The Millennium Development Goals as a
framework
The use of administrative data and HIES
The importance of partnership: Ministries,
Provinces etc.,
Calculating Poverty Lines; the need for
adopting international guidelines.
Analysis of Poverty: the tools and data
sources
May 2004
Managing Data & Dissemination :
Role of IT

Changing the culture: data sharing;

publication of revisions; reaching out
to users
Clear policies and standards
concerning access
Promoting confidence in data integrity
via meta data
Networks
May 2004
Managing Change
The next step: Prepare a SMP

Implementation of SMP will lead to:

Better Coordinated Statistical System

Effective Resources use
Greater Client focus and more policy relevant
data
Safe guard statistical integrity
Create long term sustainable capacity building

May 2004
Engaging International Partners

SMP would help identify areas for

cooperation
Cooperation should extend beyond
knowledge transfer to application of
knowledge
Need for greater donor coordination
Donors need to look at the overall
evolution of the statistical system.
May 2004