Developments in International Activity and Product Classifications : Towards ISIC revision 4 and CPC

1
Developments in International Activity and
Product Classifications Towards ISIC revision
4 and CPC version 2

• Bill Cave
• OECD Statistics Directorate

2
Overview

• Introduction to ISIC
• Making sense of the proposed ISIC Revision 4
• Where are the regional classifications going?
• What about products?
• Discussion points

3
What is ISIC?

• International Standard Industrial Classification
  of All Economic Activities (ISIC)
• One of UN family of international reference
  statistical classifications
• Original ISIC 1948
• Revision 1 1958, Revision 2 1968, Revision 3 1989
• Minor Revision 3.1 2002, Revision 4 planned for
  2007
• To be a standard classification of productive
  economic activities
• To classify economic entities (units) according
  to the activity they carry out

4
Why a new revision of ISIC?

• ISIC revision 3 was published in 1989
• minor updating done in 2002 (rev 3.1) almost no 4
  digit boundaries were changed
• relevance how to classify new internet, ICT,
  and content activities biotech etc.
• not sufficiently used so lack of international
  comparability
• But for analysts continuity is desirable value
  long time series

5
Regional classifications and ISIC rev 3

• NACE derived from ISIC - corresponds at most
  detailed level
• ANZSIC, NAICS, CSIC, JSIC are related
  classifications
• Great difficulty to compare Europe, with N
  America, China and Japan at 2 digit level
  especially for services

6
Structure of ISIC rev 3
7
ISIC rev 3 Structure
8
Making sense of the proposed ISIC rev 4 draft
structure

• ?

9
Design principles priorities for ISIC rev 4

• Improve international comparability
• convergence of regional classifications
• E.g. NAICS/NACE/JSIC/ANZSIC/CSIC
• engage more countries and regions in ISIC design
• target for international comparability at least
  at 2 digit level
• Relevance
• Information sector, internet Telecoms
• OECD ICT definition
• environmental services
• new technologies
• growing business service sector
• health services
• Agriculture
• Continuity
• Level of detail for an international
  classification?

10
ISIC Rev 4 Draft
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Whats new?

• New groupings
• Information and communication sector
• water supply, sewerage, waste management and
  remediation
• More tabulation categories for services
• professional technical, and business services
• administrative and support services
• real estate, rental and leasing services
• art, entertainment and recreation
• More divisions ( to increase international
  comparability)
• for new groupings and growing services
• in manufacturing and construction
• all the above
• human health services

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Information and communication sector

• 53 Publishing
• 531 publishing books, periodicals (ex
  manufacturing)
• 532 software publishing (ex IT services)
• 54 Motion picture sound recording
• 541 Motion picture activities
• 542 Sound recording activities (inc music pub ex
  manuf)
• 55 Broadcasting
• 551 Radio and TV
• 552 Cable and other subscription programming
• 56 Telecommunications
• 57 IT services, ISP, web search and other
  information service activities

13
Water supply sewerage, waste management and
remediation activities

• 35 Water collection and supply
• 36 Sewerage
• 37 Waste collection, treatment and disposal
  activities, materials recovery
• 371 waste collection
• 372 waste treatment and disposal
• 373 materials recovery
• 38 Remediation activities and other waste
  management services

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Agriculture, forestry and fishing

• 01 Crop and livestock production, hunting and
  related activities
• 011 production of cereals and other field crops
• 012 production of permanent crops
• 013 market gardening, horticulture, production of
  other crops
• 014 production of animals
• 015 mixed farming
• 016 support services to agriculture and
  post-harvest crop activities
• 017 hunting, trapping and related services
• 02 Forestry and logging
• 03 Fishing and aquaculture
• 031 fishing
• 032 aquaculture
• 033 support services to fishing and aquaculture

15
Manufacturing

• 10 food products
• 11 beverages
• 12 tobacco products
• 13 textiles
• 14 wearing apparel
• 15 leather and related products
• 16 wood and wood/cork products (not furniture)
• 17 paper and paper products
• 18 printing and reproduction of recorded media
• 19 coke and refined petroleum products
• 20 chemicals and chemical products
• 21 pharmaceuticals

16
Manufacturing continued

• 22 rubber and plastic products
• 23 other non-metallic mineral products
• 24 basic metals
• 25 fabricated metal products except machinery
• 26 computers and electronic products
• 27 electrical equipment
• 28 machinery and equipment
• 29 motor vehicles
• 30 other transport equipment
• 31 furniture
• 32 manufacturing n.e.c.
• 33 repair, maintenance and installation of
  machinery and equipment

17
Real estate, rental and leasing activities

• 62 real estate
• 621 real estate activities with own or leased
  property
• 622 real estate activities on a fee or contract
  basis
• 63 rental and leasing
• 631 renting transport equipment
• 632 renting of other machinery and equipment
• 633 renting of recreational/sports/personal/househ
  old equipment
• 634 leasing of non-financial intangible assets

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Professional, scientific and technical activities

• 64 legal and accounting activities
• 641 legal 642 accounting
• 65 holding companies, management and management
  consultancy activities
• 651 holding companies 652 head offices 653
  management and management consultancy
• 66 architecture and engineering activities
• 67 scientific research and development
• N.B. 6711 research and experimental development
  in biotech
• 68 advertising and market research
• 69 photographic and other prof, scient, and
  technical activities
• 70 veterinary activities

19
Administrative and support activities

• 71 Employment activities
• 711 employment placement agencies 712 temporary
  help activities
• 713 human resource provision and management
• 72 Travel agencies tour operators and other
  reservation services
• 73 Investigation and security activities
• 74 services to buildings and landscape activities
• 741 facilities support 742 cleaning landscape
  care and maintenance
• 75 office administrative, business support and
  other support activities
• 751 office admin and business support
• 752 call centres
• 753 other business support n.e.c.

20
Human health and social work

• 77 human health activities
• 771 hospital activities
• 772 medical and dental practices
• 779 other human health activities
• 78 residential care services
• 781 nursing care facilities
• 782 residential mental health and related
  services
• 783 community care facilities for the elderly
• 789 social work activities with accommodation
• 79 social work activities without accommodation

21
Arts entertainment and recreation

• 80 Dramatic arts, music and other arts and
  entertainment
• 81 museums, preservation of historical sites,
  botanic and zoological gardens, nature reserves
• 82 gambling and betting activities
• 83 sports activities, amusement and recreation
  activities
• 831 sports activities - inc operating sports
  facilities and clubs
• 832 other amusement and recreation activities

22
Section S Other service activities

• 84 activities of membership organisations
• 841 business, employer, professional
  organisations
• 842 trade unions
• 843 other membership organisations
• 85 repairs of computers and personal and
  household goods
• 851 repair of computers and communication
  equipment
• 852 repair of personal and household goods
• 86 other service activities
• 8601 washing and dry-cleaning of textiles and
  furs
• 8602 hairdressing and other beauty treatment
• 8603 funeral and related activities
• 8609 other service activities n.e.c.

23
The ISIC revision mechanism and process

• The revision is ultimately controlled by UN
  Statistics Commission (Heads of National
  Statistics Offices)
• Directed by UN Expert Group on Economic and
  Social Classifications (experts from about 30
  countries and international organisations)
• Work done by Technical Sub-group of Expert Group
  (8-10 countries, plus Eurostat, UNSD, OECD,IMF,
  ILO, FAO, some others)
• 2004 Consultation see over

24
ISIC Revision Processapproximate timetable

• Worldwide consultation closed 15 November 2004
• Need top-top structure for national accounts
  reporting
• TSG meets February 2005
• Revised draft goes to UN Expert Group June 2005
• Final draft goes to UNSC December 2005 for
  approval
• Prepare full publication
• Publish early 2007

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ISIC Rev 3 v Rev 4?
26
Where are the regional classifications going?
27
Regional Classifications

• NAICS minor revision 2007
• NACE plans to remain derived from ISIC
• ANZSIC 06 - a version of NAICS
• China SIC and Japan SIC introduced IC sectors in
  2002 converged with ISIC and NAICS but retained
  significant national features
• expect convergence to continue after next
  revision
• Others? India, Mercosur, Russia

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(No Transcript)
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What about products?CPC

• UN Central Product Classification (CPC) is being
  revised in 2007
• Central classification but with links to
  activities where possible
• Structure will be broadly unchanged
• Considering new information product section
• (between goods and services)?
• Issue Non-financial assets and services flowing
  from their use (Canberra II)?
• Close relation to HS for transportable goods?
• More detail for services

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CPC version 1.1 ? version 2.0

• 0 Agriculture, forestry and fisheries
• 1 Ores, minerals, electricity, gas and water
• 2 Food products, textiles, apparel
• 3 Other transportable goods (excluding metal,
  machinery and equipment)
• 4 Metal, machinery and equipment
• 5 (Information products) and construction
  services
• 6 Distribution, lodging, catering, transport and
  utilities distribution services
• 7 Financial, real estate, rental and leasing
  services
• 8 Business and production services
• 9 Community and personal services

31
CPC Revision Approximate Timetable

• Proposals requested by UNSD in 2004 by 10 October
• UN TSG will draft new CPC by Spring 2005
• Worldwide consultation 2005
• Finalise CPC version 2 in 2006

32
Over to you

• Questions for discussion?
• Is China SIC 2002 implemented in
• Business register
• Surveys
• National accounts?
• Is product classification used in Chinas
  production surveys? (which classification?)
• Do you have questions or comments regarding ISIC
  or CPC?

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Thank you for your attention