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D 1 C lassifications Sector 21-Sep-99 European System European System of of Classifications Classifications Eurostat Eurostat

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Page 1: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

European System of European System of ClassificationsClassifications

EurostatEurostat

Page 2: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

EUROPEAN EUROPEAN UNIONUNION

• 6• 9• 12• 15• - ??

Page 3: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

European Statistical

System (ESS) • the Statistical Programme Committee (SPC)

• the Committee on Monetary, Finance and Balance of payments Statistics (CMFB)

• the European Committee on Economic and Social Information (CEIES)

Page 4: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Less formal cooperation structures

• Partnership group of chief statisticians

• Joint training centre (TES)

• Leadership group (LEGS)

• Detachment of staff from National Institutes

Page 5: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Integrated Integrated statistical statistical

classificationsclassificationsActivities Products

Worldwide ISIC Rev. 3 CPC HS SITC Rev.3

EU level NACE Rev.1 CPA CN PRODCOM

Nationallevel

Nationalversions ofNACE Rev.1

Nationalversions of

CPA

National versionsof PRODCOM

Revision of A forcesrevision of B

Page 6: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

ISIC Rev.3 International Standard

Classification of All Economic Activities

ISIC Rev.2 ISIC Rev.3Level of

breakdownNumber ofheadings

Level ofbreakdown

Number ofheadings

Major Division 10 Section 17Division 34 Division 60

Major Group 72 Group 159Group 160 Class 292

Page 7: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

NACE Rev. 1 Statistical Classification of Economic Activities in the

European Community

Level of ISIC Rev.3 NACE Rev. 1Breakdown Number Coding Number CodingSections 17 A-Q 17 A-QSubsections - - 31 CA-DN*Divisions 60 01-99 60 01-99Groups 159 011-990 222 01.1-99.0Classes 292 0111-9900 503 01.11-

99.00

Page 8: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

The 5239 The 5239 Christmas treeChristmas tree

ISIC NACE NACEAustria

NACEDenmark

Other retailsale inspecialisedstores

Books,newspapersstationery

Books and newspapers Books, newspapersstationery

Stationery

Other Computers, softwaretelecommunicationequipment

Computers, officemachinery and software

office machineryTelecommunicationequipment

Other Pornography

Other

Page 9: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

SPC, NSI and FEBISPC, NSI and FEBI

National Association

Company

European Association

SPC

D1

NSI

?Economists?

?Academics?

Page 10: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

CPC Central Product

ClassificationVersion 1.0

Level ofbreakdown

Number ofheadings

Goods Construction

Services Total

Section 5 1 4 10Division 39 3 27 71Group 184 14 95 294Class 735 62 253 1162

Subclass 1136 89 586 2093

Page 11: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

CPA Statistical classification of products by activity in the

European Economic Community

Level ofbreakdown

Number ofheadings

Goods Construction Services TotalSection 5 1 11 17Division 33 1 26 60Group 125 5 90 220Class 266 17 209 492

Category 636 42 268 946Subcategory 1533 100 670 2.303

Page 12: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Basic Product Basic Product ClassificationsClassifications

• HS Harmonised commodity description and coding system

• CNCombined Nomenclature

Page 13: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Lessons learnedLessons learnedThe Positive The Positive

SideSide• The geographic area of application is growing far

beyond the borders of EU• The advantages of a harmonized system are

acknowledged by all• The detail of NACE Rev.1 is close to the optimal

level• National transformation of NACE Rev.1/CPA have

caused no major problems

Page 14: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

And the bad…..And the bad…..

• Lack of solid methodological base • Good tools are a prerequisite for a successful

implementation• CPA of limited use in transportable goods.• Aggregates used for publication are not

compatible

Page 15: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

……more bad more bad newsnews

• The aggregates of NACE Rev.1/CPA are not optimal– Lack of aggregates which existed in the old classifications.

– The levels with 2-digit and 2-letter cannot serve all purposes

– Data at the 3-digit level is not always available

– An intermediate level of around 100-120 positions is missing.

Page 16: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Sector specific Sector specific problemsproblems

• Construction.• Non-specialized trade.• Textiles • ECSC.• Detail in services (or lack of same)

Page 17: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

The hardest partThe hardest part

• The implementation of a new classification takes a very long time

• Cost

Page 18: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

The FAMILY IThe FAMILY I

• Economic activities Reference

• ISIC

• Derived

• NACE

• Related

• ANZSIC

• NAICS

• Products• Reference

• CPC

• HS

• Derived

• CPA

• CN

• PRODCOM

• SITC

• Related

• Trade in Services

Page 19: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Evolution Evolution Short-term pragmatic Short-term pragmatic maintenance of the maintenance of the

systemsystem

• Pragmatic because of lack of time

Mechanisms

• Operation 2002

• Operation 2007

Page 20: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Convergence Convergence Medium term pragmatic Medium term pragmatic

convergence with convergence with North America and North America and

JapanJapan

• 2000 - 2015

Page 21: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

REVOLUTION REVOLUTION Long term revolution Long term revolution international, regional international, regional

and national and national classificationsclassifications

• 2015+Mechanisms

• Precondition:Advanced research

• UN Expert Group

Page 22: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

Interim solutionsInterim solutions

• Collection of all proposals

• Nomination of best practice

• Wide circulation of information

• Proactive encourage large scale testing

Page 23: European System of Classifications Eurostat EUROPEAN UNION 6 9 12 15 - ??

D1 Classifications Sector 21-Sep-99

THE ENDTHE END