Georgia: Report on the Observance of Standards and Codes (ROSC)—Data Module
Author: International Monetary Fund
Publication Date:
27 May 2003
eISBN:
9781451814453
ISBN:
9781451814453
Language:
English
Keywords:
ISCR; CR; information; balance of payments; SDS website; government; terms and conditions; State program; contact information; ROSC data module; government access; Government finance statistics; Balance of payments statistics; Monetary statistics; Data dissemination
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This Report on the Observance of Standards and Codes (ROSC) provides a review of Georgia’s data dissemination practices against the IMF’s General Data Dissemination System (GDDS), complemented by an in-depth assessment of the quality of the national accounts, consumer price index, producer price index, government finance, monetary, and balance-of-payments statistics. Georgia has made good progress in improving its statistics in a number of areas. Nonetheless, substantial shortcomings are present in some statistical practices and databases. Some of these shortcomings could be addressed with current resources.

Abstract

This Report on the Observance of Standards and Codes (ROSC) provides a review of Georgia’s data dissemination practices against the IMF’s General Data Dissemination System (GDDS), complemented by an in-depth assessment of the quality of the national accounts, consumer price index, producer price index, government finance, monetary, and balance-of-payments statistics. Georgia has made good progress in improving its statistics in a number of areas. Nonetheless, substantial shortcomings are present in some statistical practices and databases. Some of these shortcomings could be addressed with current resources.

I. Introduction

1. The data dissemination module of this Report on the Observance of Standards and Codes (ROSC) provides a summary assessment of Georgia’s practices on the coverage, periodicity, and timeliness of the data categories against the IMF’s General Data Dissemination System (GDDS).1 It is complemented by an assessment of the quality of the national accounts, consumer price index, producer price index, government finance, monetary, and balance of payments statistics, using the Data Quality Assessment Framework (DQAF) developed by the IMF’s Statistics Department (STA). Although Georgia is currently not a participant in the IMF’s GDDS, this assessment is intended to help the authorities should they decide to participate. This report is based on publicly available information, as well as information provided prior to, and during, a staff mission from July 15–31, 2002.2

2. Section II provides an overview of the GDDS and an assessment of Georgia’s data dissemination practices against the GDDS. Section III presents a summary assessment of the quality of the principal macroeconomic datasets, following the dataset-specific assessment frameworks, but does not assess the sociodemographic datasets of the GDDS. Finally, Section IV sets out recommendations to achieve further improvements in Georgia’s macroeconomic statistics.

II. Data Dissemination Practices and the GDDS: Current Dissemination Practices

3. Georgia’s data dissemination practices are assessed against the GDDS. Where shortcomings are found, attention is drawn to efforts to address these issues in the current work programs of the relevant agencies.

4. Three main agencies produce official statistics in Georgia: (i) the State Department of Statistics (SDS) is responsible for compiling national accounts, prices, balance of payments, other economic, and socio-demographic statistics; (ii) the National Bank of Georgia (NBG) is responsible for compiling monetary statistics; and (iii) the Ministry of Finance (MOF) is responsible for compiling statistics on general government operations.

5. Georgia provides access to macroeconomic data and/or metadata through publications and the following internet websites:

Data Dimension: Coverage, Periodicity, and Timeliness

6. In general, Georgia meets the GDDS recommendations for the core comprehensive frameworks and recommended indicators for most macroeconomic statistics. The exceptions for the coverage dimension are (i) in the real sector, primary commodity and agricultural indices, and unemployment, (ii) in the external sector, public and publicly guaranteed external debt outstanding and public and publicly guaranteed debt service schedule, and (iii) in the fiscal sector, total government debt. With one exception, Georgia also meets, and in many cases exceeds, the GDDS recommendations for the periodicity and timeliness of disseminated data. The exception is the timeliness of data on labor market indicators (employment and wages/earnings). Text Table 1 below shows an overview of current practices regarding coverage, periodicity, and timeliness of macroeconomic data in Georgia compared to the GDDS recommendations.

Table 1.

Georgia: Overview of Current Practices Regarding Coverage, Periodicity, and Timeliness of Macroeconomic Data Compared to the General Data Dissemination System

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Italics indicate encouraged categories.

Cumulative year-to-date data, disseminated every month.

7. Georgia also meets some of the extensions encouraged by the GDDS. The exceptions in terms of the coverage of data are gross national income, capital formation and saving, government guaranteed debt, a share price index, private external debt not publicly guaranteed, reserve-related liabilities, and the international investment position.

Quality Dimension

8. The quality dimension of the GDDS is particularly important given that the primary focus of this system is on improvements in data quality over time. The assessment of quality in the GDDS is based on the dissemination of (i) documentation on methodology and data sources, and (ii) component detail and reconciliation with related data.

9. Georgia largely does not meet the recommendations on the quality dimension of the GDDS, as published documents contain limited information on the methodology used to compile macroeconomic statistics in Georgia and little component detail and reconciliation with related data.

Integrity Dimension

10. The GDDS recommends the disclosure of the legal framework that governs the collection, compilation, and dissemination of data, including information on the confidentiality of the collected data.

11. Georgia mostly meets the recommendations on the integrity dimension of the GDDS. The terms and conditions under which official statistics are compiled and disseminated in Georgia provide a legal framework that supports the integrity of the statistical system, but this information is not sufficiently publicized. Internal government access to the data prior to public release is not made public.

Access Dimension

12. Dissemination of official statistics is an essential feature of statistics as a public good. Ready and equal access are principal requirements for the public, including market participants. The access dimension of the GDDS is based on two practices that facilitate ready and equal access to data: (i) dissemination of advance release calendars; and (ii) simultaneous release of data to all parties.

13. Georgia does not meet the recommendations on the access dimension of the GDDS. Statistical agencies in Georgia do not always provide advance release calendars to users and, in most cases, the data are not released to all interested parties simultaneously, and prerelease to specified officials outside the data producing agency is not made public.

Plans for Improvement

14. The following is drawn from the plans for improvement of the three agencies, and is limited to projects being undertaken by them for which domestic funding is secured, or access to funding by international and bilateral donors is expected.

  • The SDS has proposed amendments to the Code of Administrative Offences to increase penalties for non, late, or incorrect response to statistical surveys.

  • In national accounts statistics, the SDS plans to improve the data sources for compilation of the quarterly estimates by collecting discrete rather than cumulative data. Also, it plans to undertake labor force surveys and a Census of Agriculture (both mostly dependent on donor financing). More computing resources will be provided to the regional and local statistical offices to facilitate the assessment and validation of data. The SDS also plans to disseminate national accounts data through its website.

  • In consumer and producer price statistics, the SDS plans to disseminate the indices through its website and to improve the presentation in the prices publications.

  • In government finance statistics (GFS), the MOF is undertaking a UNDP funded project to strengthen the MOF’s statistical and data compilation capabilities. This includes (i) obtaining new computer equipment and software; (ii) developing an intranet service to ensure the free flow of information; (iii) creating a central GFS database; and (iv) establishing a MOF website.

  • In monetary statistics, the NBG plans to strengthen ongoing efforts to fully adopt the Monetary and Financial Statistics Manual (MFSM), including improvements in the sectorization and classification of the accounts of the NBG and other depository corporations. The NBG also plans to expand the coverage of the depository corporations survey by including the nonbank depository corporations, and by including insurance companies and pension funds to construct a financial corporations survey in the longer term.

  • In balance of payments statistics, the SDS plans to complete a new quarterly survey of inward foreign direct investment, and an international investment position statement, and revise the migration-related data on the basis of the latest population census. The SDS also plans to disseminate balance of payment data on its website.

III. Summary Assessment of Data Quality

15. Since mid-2001, the IMF complements the GDDS elements of the ROSC data module with an assessment of data quality based on the IMF’s DQAF. The DQAF comprises a generic framework and a set of dataset-specific frameworks.3 The frameworks cover a set of prerequisites and five dimensions of data quality-integrity, methodological soundness, accuracy and reliability, serviceability, and accessibility.4

16. An assessment of six macroeconomic datasets (national accounts, consumer price index, producer price index, government finance, monetary, and balance of payments statistics) was conducted using the frame of reference provided by each dataset-specific DQAF. The information resulting from the application of this framework to the Georgian statistical system is presented below, following the structure of the DQAF. Conclusions are also presented in the form of standardized summary tables that assess data practices on a qualitative basis, using a four-part scale (See Table 2).

Table 2.

Data Quality Assessment Framework: Summary Presentation of Results

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Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observe; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS Criteria

17. With the exception of balance of payments statistics, Georgia’s macroeconomic statistics and statistical base are considered broadly adequate by the IMF to conduct effective surveillance. However, to supplement the official balance of payments data compiled by the SDS, the IMF uses staff estimates. For all other macroeconomic statistics, the IMF uses the official data compiled by the Georgian authorities. Only some of the data reported to the IMF for surveillance purposes are included in Georgia’s statistical publications The mission identified several shortcomings in some statistical practices that have the potential for detracting from the accurate analysis of economic and financial developments and the formulation of appropriate policies.

Prerequisites of Quality

This category in the DQAF identifies conditions within the agency in charge of producing statistics that have an impact on data quality. The elements within the category refer to the legal and institutional environment, resources, and quality awareness.

18. Except for balance of payments statistics, the SDS has an adequate legal and institutional environment for the production of statistics. The Law on Statistics (No. 1071 of 1997) clearly sets out responsibility for the relevant statistical work, provides for data sharing and coordination, calls for the SDS to take steps to ensure that appropriate statistical methodology and international statistical standards are followed by other government agencies that compile statistics, calls for protection of the confidentiality of individual responses, and makes legal provision for statistical reporting, including the authority to mandate the completion of statistical surveys. Under the Code of Administrative Offences (1999), penalties may be assessed for non, late, or incorrect response. Taken together with the Law on Budget Systems and Budgetary Powers, as amended (No. 249-IIs of 1999), and the Organic Law on the NBG (1995), responsibility for collecting and compiling official GFS and monetary statistics has been assigned to the MOF and NBG respectively, while the SDS retains responsibility for the dissemination of all official statistics. Financial penalties for late or incorrect response to statistical surveys are nominal, and have been applied mostly to ensure the registration of businesses and not the completion of statistical returns. To ensure the completion of statistical returns, the SDS relies on an agreement with the MOF under which the SDS district offices must verify the completion of the SDS statistical returns before completed tax returns are accepted by the MOF. Even so, nonresponse rates for statistical returns submitted by small and medium sized establishments are quite high. The SDS appears to lack authority over its regional offices when setting priorities in instances where they may be a conflict between regional and national needs (such as balance of payments statistics, where there is no regional need). This appears to have handicapped the collection of balance of payments statistics. Although the statistics laws provide explicit guarantees for the confidentiality of individual data, there is a potential conflict between the Law on Statistics and the Anti-Monopoly Law of Georgia. Confidentiality of individual data may also be compromised by the absence of aggregation rules in the SDS databases.

19. The staff and financial resources allocated to the SDS for the compilation of the national accounts and balance of payments statistics are inadequate. For price statistics, staff resources are adequate but financial and computing resources are inadequate. Computing resources for national accounts compilation are generally adequate but inadequate for balance of payments statistics. As a result of the lack of resources, a significant part of the work program is now financed from donor sources and reflects donor priorities. In particular, national accounts and balance of payments compilation have suffered from the switching of resources to other projects, high staff turnover, and poor motivation due to low salaries. The importance of quality awareness is underscored in the SDS mission statement and by various projects that have been initiated to assess quality issues (such as on techniques for measuring the nonobserved economy). However, there is no unit charged with oversight or guidance on quality issues and resource constraints have limited initiatives by staff to assess the quality of statistics (such as on the development of new data sources and statistical techniques). Although some measures have been taken to relax the timeliness requirements of data collection, the accuracy of statistics is still compromised by the over-emphasis on timeliness.

20. Under the Law on Budget Systems and Budgetary Powers, as amended (No. 249-IIs of 1999), the annual budget law, and specific decrees, the MOF has an adequate legal and institutional environment for the collection, processing, and dissemination of government finance statistics primarily for budget monitoring and management purposes. In practice, responsibility for dissemination of aggregated GFS has been assigned to the SDS. The MOF provides more detailed GFS data to government and specified individual or groups of users. After the most recent restructuring of the MOF, the responsibility for the compilation of GFS is not clearly defined, as it appears that two departments have now been assigned this task. Timely compliance by local governments in reporting data to the MOF is a problem, as these arrangements are not supported by specific laws. Financial resources are largely inadequate for the compilation of GFS, and recruitment and retention of qualified staff is a problem. Computing resources are generally adequate. Although quality awareness is generally good in the MOF, numerous and frequent changes in the organizational structure and executive management of the MOF, and the very short notice required for the reporting of GFS data, may potentially compromise the quality of data and the scope for quality control. Tradeoffs are being made between timeliness and the degree of detail of GFS disseminated.

21. Under the Organic Law of the NBG (1995), the NBG has an adequate legal and institutional environment for the collection, processing, and dissemination of monetary statistics. The NBG has assumed responsibility for the dissemination of monetary statistics through the immediate release of monthly data on its website, and subsequently in its quarterly Monetary and Banking Statistics Bulletin (MBSB). However, two divisions in the NBG compile separate sets of monetary statistics: one for dissemination and reporting to the IMF for surveillance purposes (using exchange rates set for the financial program), and another for inclusion in the IMF’s statistical publications (using actual exchange rates). While there may be no duplication of effort under this arrangement, it does not encourage the resolution of methodological differences between the two sets of data. Resources are adequate for the purposes of collecting, processing, and disseminating monetary statistics. Salaries are competitive compared with the rest of the public sector. Although the NBG does not have a mission statement for its statistical work, processes are in place to enhance quality awareness. The NBG exercises quality control at every stage of data production and dissemination. No formal user surveys are undertaken to obtain feedback on data quality.

Integrity

Integrity identifies features that support firm adherence to objectivity in the collection, compilation, and dissemination of statistics so as to maintain users’ confidence. Elements refer to the professionalism and ethical standards that should guide policies and practices, which should be reinforced by their transparency.

22. The Law on Statistics defines the role of the SDS as an independent data producing agency, supporting the compilation of national accounts, balance of payments, and price statistics on an impartial basis. Choices of sources and methods are based solely on professional statistical considerations. Regarding professionalism, staff are free from political or other influences in choosing the most appropriate sources and methods. The newly created SDS website draws attention to the terms and conditions under which statistics are collected, processed, and disseminated, and on the confidentiality of individual data. Staff are encouraged to comment on mis-interpretation of data in the media. However, with respect to transparency, the dissemination practices, which are not made known to the public, result in selected government agencies obtaining access to national accounts, balance of payments, and price statistics in advance of other users. The SDS statistical products are clearly identified as such, and advance notice is generally given about major changes in national accounts and prices (but not balance of payments) methodology. Press conferences are conducted in association with major statistical releases. Ethical standards are laid down in the code of conduct for civil servants and staff are aware of this.

23. In choosing the most appropriate sources and methods for GFS compilation, professionalism of MOF staff is somewhat constrained by the requirements of the budget laws. GFS are currently compiled to meet the needs of government—which are mostly for budget monitoring purposes, in line with the annual budget laws—and there appears to be insufficient recognition of user needs for GFS that correspond fully to international standards. Staff are encouraged to comment on mis-interpretation of data in the media. With respect to transparency, the terms and conditions under which GFS are compiled and disseminated, such as the fact that government has internal access to the data before dissemination, are not publicized. Ethical standards for MOF staff are laid down in the code of conduct for civil servants and staff are aware of this.

24. The statutory provisions under which the NBG compiles monetary statistics are adequate to support the independence of staff in the compilation of the statistics. Regarding professionalism, staff are free from political or other influences in choosing the most appropriate sources and methods. Staff are encouraged to comment on mis-interpretation of data in the media. Regarding transparency, the NBG Organic Law, which is available on its website, contains the terms and conditions under which statistics are collected, processed, and disseminated. Following approval of data, government agencies and senior management of the NBG have access to data prior to release. This access is not publicly identified. Changes in data classification, source data, and statistical techniques are announced simultaneously with the release of data. Advance notice is given only in the case of major changes. Ethical standards are laid down in the code of conduct for the staff of the NBG and staff are aware of this.

Methodological Soundness

Methodological soundness refers to the application of international standards, guidelines, and agreed practices. Application of such standards, which are specific to the dataset, is indicative of the soundness of the data and fosters international comparability. Elements refer to the basic building blocks of concepts and definitions, scope, classification and sectorization, and basis for recording.

25. Georgia’s macroeconomic statistics treat the Abkhasia and South Ossetia regions as part of the economic territory of Georgia. In practice, because of a lack of data, the coverage of national accounts, prices, government finance, monetary, and balance of payments statistics largely excludes economic and financial transactions in these regions.

26. National accounts statistics follow the concepts and definitions of the System of National Accounts 1993 (1993 SNA). Regarding the scope of the accounts, GDP estimates by production and expenditure are compiled and disseminated annually and quarterly. Volume measures of GDP are available only by the production approach. From the full sequence of accounts in the 1993 SNA, only the production and generation of income accounts are compiled and disseminated. The classification and sectorization used are in conformity with international standards. Regarding the basis for recording, the valuation rules used for recording stocks and flows are in accordance with international standards, except that the basic data for general government are on a cash basis.

27. The consumer price index follows the concepts and definitions recommended in the ILO guidelines for consumer price indices and in the 1993 SNA for household consumption. The scope of the CPI is broadly consistent with international standards, covering all resident households living in the major urban areas, and families of all sizes and income levels. However, households in other urban areas and rural areas are not covered, and owner-occupied dwelling services are not measured. The classification of consumption activity follows international standards. Regarding the basis for recording, the weights and prices used in the CPI are based on actual market transactions inclusive of discounts and trade and transport margins, and prices are recorded on an accrual basis.

28. The producer price index follows the 1993 SNA concepts and definitions. The scope of the PPI covers the mining, manufacturing, electricity, gas and water sectors. The classification and sectorization used in the PPI is consistent with international standards. The basis for recording is also consistent with international standards, and fully reflect transaction prices, valued at basic prices, and accrual reporting.

29. For government finance statistics, the annual budget laws are generally consistent with the analytic framework of the GFSM 1986, though the concepts and definitions of revenue, expenditure and financing in these laws differ from the international standards in some significant respects: revenue includes repayments of loans previously extended by government, expenditure includes amortization of foreign loans, and foreign financing is defined on a gross basis. Regarding the scope of GFS, cumulative year-to-date and annual GFS generally cover all cash activities of general government, except for general government spending agencies’ operations relating to own revenues collected in their “Special Accounts.”5 No data on domestic, and thus total, government debt are disseminated. The classification and sectorization systems followed in GFS are broadly consistent with international standards, with the exception of the economic classification of expenditure and lending minus repayments which includes significant misclassifications and nonstandard items. The basis for recording of GFS transactions is cash payments and receipts, which is in accordance with the GFSM 1986. Debt liabilities are recorded at nominal values (in accordance with the GFSM 1986, rather than at market values (GFSM 2001)).

30. Monetary statistics follow the concepts and definitions of the international standards in the MFSM. The scope is generally consistent with international standards, although nonbank depository corporations are not currently covered in the depository corporation survey because they are considered insignificant compared to commercial banks. Other financial corporations, such as insurance companies and pension funds are not covered in the financial corporations survey. The classification and sectorization is generally consistent with international standards, except that transactions are not derived from stock data, and accrued interest is only partly sectorized. The basis for recording is also generally consistent with international standards.

31. Balance of payments statistics follow the concepts and definitions of the Balance of Payments Manual, fifth edition. The scope is consistent with international standards, except that reinvested earnings are excluded. The classification and sectorization used are in broad conformity with international standards. Regarding the basis for recording, the valuation rules used for recording stocks and flows are in accordance with international standards, except that the source data for general government are on a cash basis.

Accuracy and Reliability

Accuracy and reliability identifies features that contribute to the goal that data portray reality. Elements refer to identified features of the source data, statistical techniques, and supporting assessments and validation.

32. The data sources available for the compilation of national accounts statistics are generally inadequate. The coverage of the business register is not comprehensive. In terms of value-added, the coverage of industry is good, the coverage of transport and communications is satisfactory, and the coverage of agriculture, retail trade, construction, catering and services is poor. However, with the exception of retail trade and catering, sample surveys are not used. Administrative sources are used to estimate the nonobserved economy, which mostly comprises unregistered enterprises, unrecorded activity by registered enterprises, and unincorporated enterprises. These data sources are poor. Data for imports and exports of services (taken from the balance of payments) are poor. A general weakness with the establishment and enterprise surveys is the lack of census data, which means that benchmarks are not available. However, the available data do approximate the definitions, classifications valuation, and time of recording required.6

33. The main weakness of the statistical techniques used for national accounts statistics is that the techniques used for the compilation of value-added at constant prices do not meet international standards. For surveys of enterprises and establishments, no assessment and validation of source data is undertaken by the districts and only limited efforts are made by the central office. Assessments of potential discrepancies of major intermediate data are undertaken, though supply and use tables are not sufficiently detailed to fully allocate the discrepancy between GDP estimated under the production and expenditure approaches. Revision studies are undertaken but not documented.

34. The data sources available for the compilation of the consumer and producer price indices are generally good, though there is some question as to whether the nonobserved economy is adequately represented in the weights and price collections. The producer price index suffers from deficiencies in the business register. The statistical techniques for both indices are generally sound, though the approach to assessing quality changes needs improvement. Processes followed to assess and validate source and intermediate data follow international standards for both consumer and producer price indices. The indices are final when first published and are not revised.

35. The data sources available for the compilation of government finance statistics are generally adequate. There is some scope for improving the coverage of general government units’ transactions (e.g., the degree of detail and activities in “Special Accounts”), and significant scope for the improvement in the local governments’ expenditure source data (degree of detail and classification structure). Central government source data, which are generally considered to be of high quality, are regularly assessed and validated, but due to lack of resources and/or constraints by existing laws governing relations between central and local government levels, no systematic efforts are made to address gaps in the source data. Because the data sources are generally comprehensive, there is no need to use statistical techniques. Missing data are not estimated. Revisions are always investigated, and reasons are documented.

36. The data sources available for the compilation of monetary statistics are generally adequate, but do not provide separate data for financial derivatives and the sectorization of securities, as these are currently not significant. The use of statistical techniques is adequate, being confined to automated checks in the NBG monetary database to identify processing errors. The assessment and validation of source data are also adequate, and comprise checking of reported balance sheet data against secondary sources. Revisions, which rarely occur, are always investigated. Reasons for revisions are not always documented.

37. The data sources available for the compilation of balance of payments statistics are inadequate. The SDS does not conduct balance of payments surveys (with the exception of the FDI survey, which has had a poor response, and a survey of transportation services), and is mainly dependent on administrative data sources (i.e., data collected by other agencies for their own purposes). The customs data for merchandise trade are especially deficient for the nonobserved economy and are not in accordance with international standards for trade statistics. The statistical techniques used are largely deficient, as are efforts to assess and validate source and intermediate data. Insufficient studies are undertaken of the direction and magnitude of revisions between preliminary and final data.

Serviceability

Serviceability focuses on practical aspects of how well a dataset meet users’ needs. Elements refer to the extent to which data are relevant, produced and disseminated in a timely fashion with appropriate periodicity, are consistent internally and with other datasets, and follow a predictable revisions policy.

38. In general, the SDS monitors the relevance of official economic statistics to government needs. Consultations are made mainly with representatives of government agencies and some academic institutions. The SDS has conducted two user surveys in the last two years aimed at a wider audience, including subscribers to its publications. However, there is no advisory group that systematically assesses the relevance of official economic statistics, nor an established process of review to assess how well user needs are being met.

39. The timeliness and periodicity of the national accounts statistics exceed the GDDS recommendations. Consistent time series for the annual data are available from 1996, but data for earlier years are not reconstructed for changes in methodology. Regarding revision policy and practice, the revisions of the national accounts by activity follow an established schedule, which is not publicized and is not generally known. Preliminary data are clearly identified.

40. For consumer and producer price indices, the timeliness and periodicity meet the GDDS recommendations. Both indices are consistent internally and over time. Regarding revision policy and practice, the indices are final when first published and are not revised. This policy is well-known to the public.

41. The MOF has no regular and formally established process of consultation with users on the relevance and usefulness of its government finance statistics, and feedback is obtained on an indirect ad hoc basis through individual user requests. The methodological basis and aggregated classification structure are not always sufficient to meet user needs, in particular for analytic purposes. GFS are disseminated with a timeliness and periodicity that exceed the GDDS recommendations. The data are internally consistent, and inconsistencies over time can be ascribed to changes in the budget laws. A consistent GFS time series is feasible, but not compiled. The revision policy and practice for GFS is not always clear: revisions to historical monthly series are not visible as only cumulative year-to-date data are disseminated, and preliminary data are not always clearly identified. Reasons for revisions are investigated, but only made public in response to individual user enquiries.

42. For monetary statistics, although the NBG has not established a formal process of consultation with users to obtain feedback on the relevance of its statistics, they are generally considered to be relevant. The timeliness and periodicity of published data exceed the GDDS recommendations, and the data are consistent internally and over time. Consistency checks between monetary and balance of payments statistics are conducted regularly, and with GFS occasionally. There is no revisions policy as monetary data are considered to be final.

43. A lack of response by the SDS to user needs on the relevance of balance of payments statistics has resulted in the NBG’s initiative in developing its own estimates. The periodicity of the data meets, and timeliness exceeds, the GDDS recommendations. The substantial movements in year-to-year errors and omissions indicate that data are not consistent over time. Regarding revision policy and practice, no attempt is made to document or explain revisions to the public, and preliminary data are not identified.

Accessibility

Accessibility deals with the availability of information to users. Elements refer to the extent to which data and metadata are clear and easily available and to which assistance to the user is adequate to help them find and use the data.

44. The presentation of national accounts statistics in SDS publications does not meet user needs for data accessibility. Insufficient detail is published and the publications are too selective, making it difficult to assemble the complete set of accounts over time. No data are included on the SDS website. The SDS responds to user requests for additional data usually for a charge. With the exception of the final annual data, preliminary and annual data are released according to a pre-announced schedule, which is published each quarter. In practice, there may be slippage in the release of data, and priority is given to sending data to government agencies a day or two ahead of the general release. Nonconfidential unpublished data are made available on request, although the availability and terms and conditions of this service are not made public. Regarding metadata accessibility, there is no publication on sources and methods and the summary textual material that is available is insufficient. Assistance to users is provided by the inclusion in statistical publications of contact persons. A list of publications is included in a catalogue on the SDS website.

45. For consumer and producer price indices, data accessibility is not adequate. Although the price index publications contain clear tables and charts of reasonably detailed time series, no analysis of current period changes is presented, and no data are included on the SDS website. There is a pre-announced schedule of publication release dates, though the dates are not always met, and there are no set embargo times. Priority is given to sending government agencies the data and, in practice, access by other users is delayed. Nonconfidential unpublished index numbers are made available on request, although the availability and terms and conditions of this service are not made public. Regarding metadata accessibility, there is no sources and methods publication, and the only descriptions of the price indices, which are contained in the SDS Yearbook, are inadequate. Assistance to users is provided by the inclusion of contact information in statistical publications. A list of publications on price indices is included in a catalogue on the SDS website.

46. The presentation of government finance statistics disseminated by the SDS and NBG largely does not meet user needs for data accessibility. The lack of detail, variations in methodology used, as well as lack of a GFS time series, do not adequately facilitate proper interpretation and meaningful comparisons of the data. In addition to the SDS and NBG dissemination media, GFS are disseminated in more detail to individual users in accordance with their requests. There is no dedicated GFS publication or website, but the SDS and NBG dissemination media are broadly adequate for the dissemination of GFS. Nonconfidential unpublished GFS are made available upon request, but the availability and terms and conditions of this service are not publicized. There is no pre-announced schedule of public release dates for GFS. In practice, users within government receive GFS before the general release. Regarding accessibility of metadata, no information, other than the annual budget laws and the Law on Budget Systems and Powers, as amended, exists on concepts, sources and methods of GFS compilation. No contact information on GFS is provided in any dissemination media to provide assistance to users, but individual and groups of users are generally aware of contact information.

47. The presentation of monetary statistics in NBG publications generally meets user needs for data accessibility. Monthly data are published electronically on the NBG website. Nonconfidential unpublished data are made available on request, although the availability, and the terms and conditions of this service are not made public. The dissemination format on the website is not user friendly. There is no pre-announced schedule of publication release dates. Priority is given to sending government agencies the data a day or two ahead of the general release. Regarding metadata accessibility, no information on sources and methods is included in the NBG publications. To provide assistance to users, contact information is provided on the NBG website and in the quarterly MBSB.

48. The presentation of balance of payments statistics in SDS publications does not meet user needs for data accessibility. Summary quarterly and annual data are released without any accompanying text, tables, and charts. No analysis of current period changes is presented and no data are included on the SDS website. There is a no pre-announced schedule of publication release dates. Priority is given to sending government agencies the data a day or two ahead of the general release. Regarding metadata accessibility, no information on sources and methods is included in the SDS publications. Specific contact information is given for assistance to users.

IV. Staff Recommendations

49. Based on the results of the data quality assessment, discussions with the Georgian authorities in the respective statistics-compiling agencies, and responses from data users, the measures below are proposed to further enhance Georgia’s adherence to international statistical standards. Recommendations are subdivided into “High priority” and “Other key recommendations.”

General Recommendations

High priority

  • Participate in the IMF’s GDDS.

  • SDS: Provide additional resources to improve the source data needed to compile macroeconomic statistics.

  • SDS/MOF/NBG: Create an advisory group representing users and producers of macroeconomic statistics charged with ensuring the relevance of the statistics.

  • SDS/MOF/NBG: Undertake a complete review of data dissemination policies in conjunction with users, addressing at least the following: (i) the presentation of statistical information (tables, text, charts, etc.); (ii) greater use of websites for the dissemination of official statistics; (iii) analysis of statistics (main features, commentary); (iv) advance release calendars indicating, at least, no-later-than release dates; and (v) publicizing the availability (including terms and conditions) of detailed unpublished statistics.

  • SDS/MOF/NBG: Introduce strict and unambiguous embargo arrangements to ensure the simultaneous release of data, or prerelease to a list of persons or officials holding designated positions within the government, but outside the agency producing the data, who have prerelease access to the data (such as for two working days), and the dissemination (such as on a website) of the schedule according to which they receive access.

  • SDS/MOF: Make the revisions policies and practices known to the public.

  • SDS/MOF: Make the SDC responsible for compiling trade statistics consistent with international standards for the coverage and valuation of goods crossing the customs frontier.

  • SDS: Significantly increase penalties for nonresponse to statistical surveys undertaken under the State Program of Statistics, apply the penalties selectively, and give them publicity.

  • SDS: Improve efforts to measure the nonobserved economy, particularly in respect of the sources of income and of expenditure.

Other key recommendations

  • Enhance the accessibility of all macroeconomic statistics by developing detailed metadata on sources, concepts, and methods used in their compilation, and publicize their availability.

National Accounts

High priority

  • Publish detailed annual and quarterly national accounts data for a run of years, including an analysis of revisions.

  • Take effective measures to improve the accuracy of the national accounts source data and the exhaustiveness of the business register.

  • Strengthen the statistical techniques used in the compilation of national accounts estimates by developing detailed supply and use tables and applying proper techniques in the compilation of GDP volume estimates.

Other key recommendations

  • Improve the scope of the national accounts statistics to comprise a full sequence of national accounts, covering the production, income, and capital accouns by institutional sector.

  • Compile volume measures of GDP by the expenditure approach (which will require the development of a system of price indexes for deflation).

Consumer and Producer Price Indices

High priority

  • Provide additional computer and financial resources and investigate means of electronic data transfer between the regional offices and the central office.

Other key recommendations

  • Review the techniques used for applying quality adjustments to product prices.

  • Expand the producer price index to include the output of the agricultural sector.

Government Finance Statistics

High priority

  • Identify clearly which division in the MOF is charged with responsibility for compiling GFS, and provide it with adequate resources.

  • Formally establish that the MOF will compile detailed GFS corresponding fully to international standards and in addition to existing GFS that correspond to the budget laws, and provide resources to facilitate this.

  • Clarify the responsibilities of the SDS and the MOF for the dissemination of GFS along the lines followed by the NBG for monetary statistics.

  • For GFS that correspond to international standards, ensure that concepts, definitions, classifications, and basis for recording of revenue and grants, expenditure and lending minus repayments, and financing are defined accordingly.

  • Expand the coverage of GFS, at least on an annual basis, to include the activities of government agencies relating to their own revenue sources received in “Special Accounts.”

  • Compile discrete monthly GFS in addition to existing cumulative year-to-date data.

Other key recommendations

  • Compile and disseminate a consistent annual GFS time series (e.g., five years) with appropriate explanations for inconsistencies and breaks in series (e.g., due to changes in the budget laws).

Monetary Statistics

Key recommendations

  • Publish monetary data consistent with the MFSM (as reported by NBG to the IMF’s Statistics Department) together with a supplementary set of key data that are used for monitoring the financial program with the IMF

  • Collect information on nonbank depository corporations to expand the coverage of the depository corporations survey, and complete the collection of information additional to the chart of accounts for commercial banks to comply with the sectoral classification of financial instruments recommended by the MFSM.

  • Collect information on insurance companies and pension funds to expand the coverage of the financial corporations survey.

  • Concentrate the compilation work of monetary statistics in one unit within the NBG.

Balance of Payments Statistics

High Priority

  • Publish detailed annual and quarterly balance of payments data for a run of years, including an analysis of revisions.

  • Expand basic data sources through the introduction of statistical surveys that are conducted with the full legal mandate of the SDS. For example:

    • Conduct a general balance of payments survey covering all large enterprises, aimed at collecting information on their major nonmerchandise balance of payments transactions (e.g., services credits and debits, investment income, trade credits, loans, and other financing).

    • Conduct a specialized survey for inward foreign direct investment.

    • Conduct specialized surveys for transport, communication, construction, and insurance services credits.

  • Establish new statistical techniques to estimate shuttle trade, income and expenditure of residents working abroad, and workers’ remittances.

  • Until the coverage of trade statistics can be improved, use adjusted partner country data for imports and export of goods. To this end, the SDS and SDC should reconcile bilateral discrepancies jointly with the customs authorities in the major partner countries

1

A detailed description of the GDDS can be found on the IMF’s Dissemination Standards Bulletin Board (DSBB) on the internet at http://www.dsbb.imf.org.

2

The mission team was headed by Mr. Simon Quin and included Ms. Maria Mantcheva, Messrs. Tobias Wickens and Jose Carlos Moreno (all STA), Messrs. David Collins and Christie Richards (external consultants), and Ms. Christian Dimaandal (STA—Administrative Assistant).

3

The Generic Framework is set out in Appendix I of the accompanying Detailed Assessments volume to this report.

4

Information on data quality can be found at the IMF website on the “Data Quality Reference Site” (http://dsbb.imf.org/dqrsindex.htm).

5

These operations are included in the 2002 annual budget law but at this stage it appears that source data will only be available on an annual basis.

6

Measurement of the nonobserved economy (which includes informal and hidden activities), which is estimated to comprise a third or more of economic activity and is one of the more active sectors in the economy, poses problems of estimation in economic statistics in respect of the sources of income and expenditure (especially cross-border) and in employment and production. Partly because of deficiencies in source data, none of these have been satisfactorily resolved.

Same Series

Other IMF Content

Other Publishers

Cover IMF Staff Country Reports
Georgia: Report on the Observance of Standards and Codes (ROSC)—Data Module
Author: International Monetary Fund
Volume/Issue:
Volume 2003: Issue 140
Publisher:
International Monetary Fund
ISBN:
9781451814453
ISSN:
1934-7685
Pages:
170
DOI:
https://doi.org/10.5089/9781451814453.002