Statistical Reform of China: Goals, Priorities and Measures

Statistical Reform of China: Goals, Priorities and Measures

 

Li Deshui

Commissioner

National Bureau of Statistics of China

 

I. Brief Overview

 

The Chinese government made the historical decision in 1978 to re-orient the focus of work to socialist modernization construction. With the progress of the economic reform and opening to the outside world, official statistics of China developed in the course of restoration and reform.

 

Statistics in China has undergone fundamental changes through the reform and development over the last 26 years.

 

a) Improvement in Openness and in Providing Statistical Services  Statistical agencies has provided consultancy information for decision-making and monitoring to the governments, and to the society through mass media such as TV and radio programs, newspapers and magazines, based on the rich statistical data collected from statistical surveys. These services has provided important basis for the scientific decision-making by the governments, the sound management of business and the participation of public affairs by citizens. China’s participation in GDDS in April 2002 marked a new stage of openness of China’s official statistics, characterized by the building of information dissemination system which was more transparent, standardized and convenient for access

 

b) Establishment of New National Account System  In the field of national account statistics, China has made the transition from the materials production system (MPS) which suited the centrally planned economic system to the new national economic accounting system suitable for the socialist market system. The current National Economic Accounting System of China 2002 is based on the 1993 SNA of the United Nations. Regular mechanism for the revision of annual and quarterly GDP figures has been introduced. Statistical agencies also started researches and experiments on green GDP accounting focusing on issues such as resources and environment. NBS began pilot exercise on ICP by participating on experimental basis in the ICP projects organized by the United Nations

 

c) Development of Scientific Statistical Survey Methods  China has successfully conducted 3 population censuses, 2 industrial censuses, 1 agriculture census, 1 census on service industries and 2 censuses on basic units since 1978. Preparation for the first national economic census is under way at present. Sampling methods are used in statistical surveys to collect information on population, households, small industrial and commercial establishments, farm products and prices.

 

d) Improvement of Statistical Indicators and Standards  Statistical indicators and standards used under the centrally planned economy are gradually replaced by indicators and standards that conform to the socialist market economy.

 

e) Initial Establishment of Legal Framework for Statistics  Legal framework for statistics is in place, with the Statistics Law as the leading legislation, supplemented by administrative regulations, local statistical legislations and statistical regulations by other ministries.

 

f) Development of Informatics System for National Statistics  All statistical agencies at and above county-level use computers to process statistical data they collect, data banks for important statistics are developed, and national statistical information network and statistical information network of some provinces, cities and counties are in operation.

 

g) Strengthening of Statistical Agencies with Qualified Staff  Statistical offices have been set up in governments at and above county-level. The National Bureau of Statistics has 3 sample survey organizations under its direct management: Rural Survey Organization, Urban Survey Organization and Enterprise Survey Organization. The National Bureau of Statistics developed codes of statistical ethics, and mechanism for the examination, assessment and recruitment of statisticians are established.

 

II. Strategy for Reform and Development and Overall Goals

 

The Chinese government attaches great importance to the statistics work. The Decision of the CPC Central Committee on Issues Concerning the Improvement of Socialist Market Economic System, adopted by the 3rd plenary session of the 16th CPC Central Committee in October 2003, required “improving statistical system and monitoring system for the performance of the economy, strengthening the complimentary functions of and share of information between macroeconomic regulation departments, in order to improve macroeconomic regulation.” In November 2003, Chinese Premier Wen Jiabao called for “urgent improvement of statistical system and methodology in order to increase the accuracy, timeliness and scientific nature of statistical data, and to enhance the authority of official statistics”. The decision of the Chinese government to improve statistical management system and methodology in the course of developing socialist market economic system, and the recognition of improvement of official statistics as an important step in enhancing government macroeconomic regulation system has significant implication of guidance over the development of official statistics. China is now in the course of economic transition and great social changes, which brings about fundamental changes in the need for statistics, in respondents to statistical surveys and in the environment under which statistical agencies operate. Contents, methodology, management system, legal framework of statistics are improving and developing in order to adapt to such changes. As a large developing socialist country, China has its unique characteristics in basic national conditions, government management system and modes of economic development. Development of Chinese official statistics should concentrate on the Chinese situation and on the need for the development of socialist market economy while learning from advanced experience of other countries and conform to international practice.

 

The strategy and the overall goals of the reform and development of China’s official statistics are to provide efficient and quality statistical service to the governments, the public and the international community through:

 

--reforming the management system, improve the operation mechanism and enhance legal framework of statistics with the aim of meeting the requirements of the socialist market economic system, starting from the national conditions of China and its statistical practice while learning from advanced international experience;

 

--establishing a modern official statistical system that is embodied with Chinese characteristics and integrated with general international standards and recommendations; and

 

--improving the accuracy, timeliness and scientific soundness of statistical data and enhancing the authority of official statistics.

 

To achieve the above strategy and goals, following has been identified as the priorities for the development of China’s official statistics:

 

--Establishing and improving a government statistical system with centralized leadership and coordination and decentralized responsibility; strengthening the direct survey capability of NBS; strengthening the capability of management and coordination over provincial statistical offices and statistical offices of ministries, in order to build up a scientific, reliable and efficient statistical system that suits the conditions of China and is integrated with international practices and standards.

 

--Improving the national economic accounting system, integrating more closely with international statistical standards, and reforming survey methodology to develop a modern statistical survey system that better meets the needs of a socialist market economy and facilitate international comparison of statistical data.

 

--Reforming the statistical infrastructure on the basis of scientific use of statistical indicators and standards, by applying modern IT technology, such as computing equipment, network communications and data banks, in order to achieve full network environment for statistical design and for the collection, transmission, processing, management and dissemination of data with high efficiency.

 

--Improving statistical legislation, promoting the public awareness of statistics law, and enhancing enforcement of statistics law.

 

--Accelerating the training of high-quality professionals in statistics through job-oriented training and formal statistical education with the aim of training statisticians with modern knowledge on economics, statistics, information technology, and with professional ethics and innovation.

 

--Building up statistical services for macroeconomic management, for the international community and for the public in general by providing comprehensive, timely and accurate statistics that reflect national conditions and strength and trends of social and economic development, and by increasing the volume and frequency of dissemination of statistical information.

 

III. Measures to Achieve Development Strategy and Goals

 

1.    Improvement of Statistical Management System

 

a)    Strengthening the capability of NBS to conduct direct surveys

 

-- to reform the management system of the 3 survey organizations (rural, urban and enterprise surveys) directly under NBS

-- to consolidate forces and bring into full play the function of conducting independent statistical surveys, statistical reporting and statistical supervision

-- to build mechanism of collecting macroeconomic data on a timely and accurate basis, thus enhancing the capability of NBS in responding to emerging issues or breaking events

 

b)    Reforming and strengthening the management of NBS over statistical offices of local governments

 

To be achieved through:

-- stronger administration of higher-level statistical offices over those at lower level

-- supervision on the work of lower-level offices, focusing on the implementation of statistical laws, regulations and national statistical standards, as well as the quality of statistical data

 

c)    Providing guidance and coordination over statistical work of line ministries

 

-- Scientific division of work under centralized management and share of information

-- Survey projects by ministries to be either reviewed by NBS for approval or put for records

-- Mechanism for mutual provision of statistical data between agencies

 

d)    Promoting the role of non-governmental surveying institutions

-- Role of the China Association for Market Information and Research to regulate operation of non-government surveying institutions, making them important supplement to government statistics

 

2. Reform of Statistical Methodology and Standards

 

a) Establishment of scientific and efficient statistical survey system of international standards yet suites the conditions of China

 

-- Survey system composed of necessary and periodic censuses and regular sample surveys, supplemented by survey of key units and scientific estimation

 

-- New census program introduced in 2003:

   quinquennial economic census, conducted in years ending with 3 and 8

   decennial population census and agricultural census, conducted in years ending with 0 and 6 respectively

   consistency between regular surveys and the censuses

 

-- Use of sample surveys to be expanded in the regular survey programs, in particular, sample surveys on small business, on urban and rural households, on population and labor force and on business tendency.

 

-- Further study on sampling design to enable results of sample useful for data requirement at various levels of management

 Given the special features of political structure and economic management in China, and the fact that China is a country with large territory and extremely uneven in economic development, it is necessary to study how to make results of sample surveys useful for data requirement at various levels of management. Use of administrative records should be encouraged to reduce the respondent burden.

 

b) Improvement of statistical indicator system 

 

-- Statistical indicator system on economic, social, scientific development and environment of the society

 

-- Statistical monitoring system for the building up of a well-off society

 

c) Establishment of statistical standards system

 

--Contents and definition of statistical indications consistent with international standards

 

--General Data Dissemination System as a framework to organize statistical surveys and disseminate statistical data

 

--New product classification to be developed on the basis of revised industrial classification

 

3. Improvement of National Account Statistics

 

a) Improving national account system

 

       Implementation of National Economic Accounting System of China 2002

   GDP by industries and source data

   Quarterly GDP by production and by expenditure approaches

   Improving credibility of national accounts data

   Stock accounts (forest, land, minerals, water)

   Environment accounts

 

b) Improvement of compilation and dissemination of GDP figures

 

-- Mechanism for regular revision of annual GDP: preliminary estimates, revised estimates and final figures

-- Mechanism for regular revision of quarterly GDP: preliminary estimates, revised estimates and final figures

-- Release of GDP data together with methods of compilation to improve transparency

 

c) Improvement of regional GDP compilation

 

-- Improving regional GDP for better consistency between national and regional

GDP figures

-- Compilation of local GDP by statistical offices at higher levels

 

4. Development of Statistical Informatics System

 

a) Expansion of statistical informatics system

 

Expanding the network of national statistics to strengthen capability of data collection transmission, processing, management and dissemination capability, and to promote data sharing among government agencies

 

b) Development of national macroeconomic data bank

 

c) Enhancing the quality of source data through electronic data recording and transmission from enterprise

 

d) Promoting use of new technology in statistics

 

Use of optical/electronic technology, remote sensing, geographic information system (GIS) and hand-held data collection devices

 

5  Consolidation of Statistical Legislation

 

a) Improvement of statistical legislation

 

-- Draft of Census Law under discussion

 

-- Regulations on management of survey projects, statistical data, supervision of law enforcement and management of non-government survey institutions

 

b) Raising public awareness on statistical laws and regulations

 

-- Publicity campaign to raise the public awareness of importance of statistics, their rights and obligations, the value of their cooperation

 

-- Education on statistics laws and regulations targeted towards government officials to win their support to statistical work and their recognition of independence of statisticians in data collection

 

-- Education on statistics laws and regulations targeted at statisticians to organize statistical surveys by law

 

c) Improving law enforcement

 

Exposure and penalty when necessary of cases of violation of statistics laws

 

6. Strengthening on the Training of Statisticians

 

a) Speeding up training of statisticians with high quality

 

-- Training focused on statistics, economics, computer science, management and laws

-- Master degree programs for 15-20 employees and doctor degree programs for 5 professionals each year

-- Overseas training programs

 

b) Development of statistical education system with innovation for spreading and upgrading of statistical knowledge

 

       -- Lifetime education on knowledge upgrading and skill improvement

       -- Job oriented training to cover all official statisticians in 5 years

       -- Distant learning on statistics

       -- Statistical literacy programs for general public

 

c) Promotion of professional ethics

 

e)    Stimulating research on statistics and establishing a statistical innovation system

 

-- Statistical researches

-- Adaptation of international statistical methodologies and techniques

-- Expanding international cooperation in statistics

-- Application of results of statistical researches

 

7. Improvement of Statistical Services

 

a) Quick response mechanism for statistical information

 

b) Quality management system for national statistics

 

c) Statistical monitoring and analysis

 

d) Promoting wide public access to statistical information

 

-- More transparent data release program to improve trust of statistics by public

 and international community

-- Encouraging wider dissemination through mass media

-- Improving China Statistical Information Network (NBS website)

-- Construction of China Statistical Library

 

e) Better budgeting and cost management for statistical programs