Module 1 Presentation: Official Statistics Modernization PDF

**1.1 Module 1 Presentation: Why we are transforming and modernizing official statistics** **Slide 1:** Official statistics play a crucial role in shaping decisions at all levels of society, providing a foundation for informed policymaking, research, and public discourse. The primary objective of...

**1.1 Module 1 Presentation: Why we are transforming and modernizing official statistics** **Slide 1:** Official statistics play a crucial role in shaping decisions at all levels of society, providing a foundation for informed policymaking, research, and public discourse. The primary objective of official statistics is to deliver high-quality data that meets the specific needs of diverse user groups. As we initiate on the process of transforming and modernizing the statistical system, the first critical step is understanding these user needs. In this module, we will focus on the key groups that are central to the use of official statistics: (1) government bodies, (2) international organizations, (3) the academic community, and (4) citizens and civil society organizations. Although many different users rely on official statistics, we will concentrate on these groups due to their significant impact on the statistical process. This module will explore methods for identifying and understanding the strategic needs of these key user groups. Additionally, we will discuss how these needs can be effectively prioritized and integrated into the transformation and modernization efforts of the official statistical system. By aligning the production of statistics with user demands, we ensure that the modernization process remains responsive, relevant, and capable of supporting decision-making in an ever-evolving world. **Slide 2: The process of transformation and modernization of the National Statistical Committee (NSC)** To start, it is essential to define what the process of transformation and modernization requires and what it includes. This process aims to align the NSC with international best practices, improve data quality, ensure timely and reliable statistics, and strengthen the NSC's role in evidence-based policymaking and development planning. The key components of this transformation and modernization process include: 1. **Institutional strengthening** - developing legal, regulatory, and organizational frameworks to ensure the autonomy, accountability, and transparency of the NSC. Strengthening the institutional capacity includes enhancing governance, leadership, and operational efficiency; 2. **Capacity building and human resources development** - training staff in statistical techniques, data analysis, and new technologies. This may involve partnerships with international organizations, workshops, and educational programs to enhance the skills and competencies of statisticians and other personnel involved in data production and analysis; 3. **Technological advancements** - implementing modern technologies and information systems for data collection, processing, and dissemination. This includes using digital tools for surveys, establishing data management systems, improving IT infrastructure to increase efficiency and accuracy; 4. **Adopting international standards and methodologies** - ensuring that data collection, analysis, and dissemination are aligned with internationally accepted methodologies and standards, such as those set by the United Nations, International Monetary Fund (IMF), and other international organizations. This enables the production of internationally comparable statistics; 5. **New Data Sources** - refer to non-traditional data streams that can be utilized to produce and enhance official statistics, complementing or replacing traditional data collection methods like surveys and censuses. These new sources provide opportunities for more timely, granular, and comprehensive data, aiding in the transformation and modernization of statistical systems. Key examples of new data sources include: Big Data, Administrative Data, Sensor Data, Web scarping, Social Media Data etc. 6. **Improving data quality and coverage** - enhancing data quality by adopting quality assurance frameworks, reducing response errors, and ensuring that data are representative and reliable. 7. **Data dissemination and communication** - modernizing the way data are shared with stakeholders, including policymakers, businesses, and the public. This includes developing user-friendly platforms, data visualization tools, and adopting open data practices to increase accessibility, transparency, and use of statistics. 8. **Engagement with Stakeholders**: Aligning statistical programs with national development priorities and international frameworks, such as the Sustainable Development Goals (SDGs). Ensuring that the NSI is resilient and capable of adapting to changes, such as emerging data needs during crises or the integration of new data sources (e.g., big data); 9. **Fostering International Cooperation**: Engaging with international organizations, other NSIs, and development partners to share knowledge, receive technical assistance, and collaborate on capacity development initiatives. This helps align national statistical systems with global trends and ensures comparability; 10. **Building Statistical Literacy** - promoting statistical literacy among policymakers, businesses, the media, and the general public to improve the understanding and effective use of statistical data. This includes workshops, publications, and public engagement initiatives. **Slide 3: Key User Groups** The transformation and modernization of official statistics involve a series of changes that will impact the data users have previously relied on. While these changes lead to improved data quality, particularly in terms of international comparability, they may also cause dissatisfaction among users who are accustomed to the previous data. To mitigate potential negative reactions, it is crucial to engage users from the beginning of the transformation process and keep them informed about any changes throughout the entire transition. There are four primary user groups that form the foundation of the official statistics system: 1. **Government and public institutions** -- ministries, agencies, and other state bodies rely on official statistics for decision-making at the national level. Accurate statistics enable the government to better understand economic, social, and demographic challenges and respond with appropriate strategies; 2. **International organizations** -- particularly important for developing countries, organizations such as the United Nations, the World Bank, and the International Monetary Fund depend on accurate and comparable statistics to assess a country\'s status and capacity. These data are essential in determining financial and technical aid, as well as evaluating progress towards international standards and development goals; 3. **Academic institutions** -- universities, research institutes, and other educational institutions use official statistics as a key source for scientific research and analysis. In turn, they educate future statisticians and promote the use of official statistics among students; 4. **Citizens and civil society organizations** -- official statistics provide citizens with insights into key social, economic, and political trends, helping them make informed decisions and participate actively in democratic processes. Civil society organizations use these data to analyze societal issues and advocate for change, while individuals use them to better understand daily life. Beyond these four key groups, other important stakeholders include the media and the business sector, whose needs for statistical data often reflect those of the previously mentioned groups. **Slide 4: Proactive Identification of Government Data Needs** The core purpose of the National Statistical Committee (NSC) is to provide data for all its users, with the government being its largest and most significant user. The national statistical institute can approach this task in two ways: waiting for the government to express its data needs or taking a proactive approach, where the NSC anticipates those needs. Given the scope and authority of the government, a proactive approach is more effective in accelerating the transformation of the statistical system towards the country\'s common goals. To better understand the government\'s needs and direct the development of the statistical system, do not wait for these needs to be explicitly stated. Instead, take the following steps: 1. **Analyze the government\'s multi-year work program** -- Key areas of development are often aligned with overarching goals, such as improving the quality of life, digitalization, or green transformation. By identifying these main goals, the statistical system can adjust its transformation and reorganization processes to meet these priorities; 2. **Analyze the government's foreign policy priorities** -- Official statistics are crucial for international negotiations and positioning the country within international organizations. For example, if Kyrgyzstan seeks membership in a particular international initiative, it must provide accurate and relevant data to meet the criteria and demonstrate the country\'s capacity. Different international organizations have specific data requirements, so it is essential to identify which statistical areas should be prioritized to support foreign policy objectives; 3. **Maintain regular dialogue with senior government officials** -- the director of the national statistics office should hold regular discussions with senior government leaders, both through formal and informal channels, to better understand current and future data needs and adjust the statistical system accordingly. By proactively identifying the government's data needs and foreign policy priorities, the National Statistical Institute can enhance its capacity and contribute to the country's long-term goals. **Slide 5: Understanding Government Needs (Montenegro Example)** Following the renewal of independence in 2006, Montenegro started on a parallel transformation of its socio-economic system and its national statistical system. The government's key priorities that shaped the transformation and modernization of the National Statistical Institute included: 1. **EU membership**: Montenegro aims to become a full member of the European Union by 2030; 2. **Improving the standard of living**: The government seeks to raise the standard of living to 80% of the EU\'s GDP level by 2030; 3. **NATO membership**: Montenegro became a full NATO member in 2017; 4. **Modernization of society**: Montenegro is advancing as a modern, digital society. How the National Statistical Institute responded to these priorities: 1. **Legislative changes**: Legal regulations concerning official statistics were adjusted, focusing on data protection, database security, and statistical process safety. Procedures for internal organization and communication were also improved to ensure control over every step in the production of official statistics. 2. **EU methodologies as a priority**: While complying to recommendations from international organizations like the UN and IMF, EU methodologies were harmonized. 3. **Focus on quality**: The statistical institute aligned with the fundamental principles of official statistics, especially regarding quality, as defined by the EU. 4. **National accounts, particularly GDP, were set as a top priority**. Accurate GDP data required surveys in all sectors, including agriculture, forestry, industry, construction, and trade. We proactively kept the government informed. Whenever new methodologies were introduced or existing ones modified, we provided the government with detailed information in advance. **Slide 6: Recommendations for Tracking Government Data Needs** Since the government is one of the largest and most important users of official statistics, and also finances its development to ensure reliable data for decision-making, the National Statistical Committee must be deeply committed to understanding its data needs. This can be achieved through the following recommendations: 1. **Regular dialogue with the government** -- Senior management of the National Statistical Committee should regularly engage in dialogue with the government, typically during budget planning for the upcoming year. However, if such dialogue is lacking or the statistical system has no direct access to the government, the NSC can identify data needs indirectly by analyzing the government\'s key work programs; 2. **Analysis of the government's work program** -- This analysis is conducted by senior management in collaboration with coordination departments. It defines the medium-term priorities for developing official statistics, in line with the state\'s development priorities. For example, if the government\'s priority is combating climate change, the statistical institute must include environmental research in its program; 3. Understanding needs versus desires - It is crucial to differentiate between the government\'s data needs and its political desires. When we talk about data needs, we refer to the data required to achieve specific goals, such as reducing violence against women. If this is a priority, the government will need data on women's positions through survey on violence. If the National Statistical Committee cannot provide these data, significant issues may arise. Once the NSC identifies the data needs, all further activities -- from selecting methodologies to conducting survey -- fall under its responsibility, free from political influence. This professional independence is guaranteed by the Law on Official Statistics, ensuring impartiality and high-quality data. **Slide 7: Understanding the Needs of International and Regional Organizations** One of the key aspects of transforming and modernizing the NSC is understanding the needs of international and regional organizations and initiatives. Based on the country's foreign policy priorities, it is essential to identify key organizations, including: 1. United Nations (UN) 2. Economic and Social Commission for Asia and the Pacific (ESCAP) 3. World Bank 4. International Monetary Fund (IMF) -- Data Dissemination System All these international institutions, as well as other initiatives, have their own databases that contain data collected from member states. It is therefore crucial that your country\'s data are included and available in these databases. Moreover, it is important to recognize the difference between organizations that simply collect data from a country and those that also control the quality of the data before publication. If an organization monitors data quality, they will provide feedback on areas for improvement, significantly advancing your statistical system. For Kyrgyzstan, we recommend focusing on the IMF\'s Data Dissemination System. Kyrgyzstan is already a member of the Special Data Dissemination Standard (SDDS), but a key next step would be joining SDDS Plus. Countries complying to SDDS Plus commit to meeting specific standards and providing information about their data and data dissemination practices -- metadata -- to the IMF, which in turn offers feedback on data quality. This would enable Kyrgyzstan to raise the transparency and quality of its data to international standards. **Slide 8: Understanding the needs of international and regional organizations (Experience of Montenegro)** In accordance with the strategic goal of Montenegro to become a member of the European Union, the key international statistical institution according to which the priorities of the development of statistical domains were defined was the Statistical Office of the EU - EUROSTAT. EUROSTAT collects data for all 27 members of the European Union, as well as for countries that are in the process of becoming members. When Montenegro signed the agreement on the accession process with the EU, the Statistical Office of Montenegro took the following steps: **1. Identification of missing data** -- A list of missing statistical data in the Eurostat databases, classified by statistical domain, was created. **2. Alignment of methodologies** - A list of methodologies that are not aligned with Eurostat standards was made. **3. Assessment of the legislation** - The compliance of the legislation of Montenegro with the legislation recommended by Eurostat was assessed. **4. International cooperation** - Active participation in international conferences, seminars and events made it possible to gather knowledge and experience from developed EU member states. In this way, we quantified the initial state (benchmarks) and measured progress in statistical domains once a year. During this process, Montenegro had significant support from Eurostat, which through various projects and cooperation provided assistance in directing and implementing statistical tasks. In addition to Eurostat, Montenegro also cooperated with other international organizations. I would especially like to highlight the International Monetary Fund (IMF), which provided technical support in the development of national accounts and prices, as well as the possibility of including Montenegro in the IMF\'s database for data dissemination. **Slide 9: Recommendations for monitoring the needs of international and regional organizations** For effective monitoring of the needs of international and regional organizations, it is recommended: 1\. Participation of management in the work of the UN Statistical Commission - This commission is held once a year in New York and is an excellent opportunity to learn about global priorities and to present which priorities your country participates in. 2\. Participation in regional initiatives of Central Asia - These initiatives enable a better understanding of the specific needs of the region and facilitate regional statistical cooperation. 3\. Participation in national foreign policy initiatives - Initiatives organized by the Ministry of Foreign Affairs provide an opportunity for coordination and harmonization with the country\'s foreign policy goals. 4\. Active participation in international conferences, seminars and workshops - Employees at all levels should be regularly informed about international standards and initiatives that are important for the development of official statistics. 5\. Proactive role of the department for international cooperation and statistical coordination - This department should monitor, initiate and lead international projects and cooperation, ensuring constant improvement of the statistical system**.** In order to properly disseminate information from the international environment within the institution, it is recommended to organize in-house training. In this way, all employees can be equally informed about important changes and initiatives. **Slide 10: Understanding the needs of academic community organizations** The role of the academic community in every society is extremely important, so it is crucial to achieve close cooperation with this group of users through the following activities: 1\. Direct cooperation with the academic community -- Participation of academic representatives in the Statistical Council and other professional bodies important for the development of official statistics. This cooperation enables the exchange of knowledge, especially in the process of transformation and modernization of the statistical system. 2\. Development of academic programs -- Cooperation on the development of undergraduate and postgraduate studies in the field of statistics. Staff development through these programs is of essential importance, because without well-educated experts there can be no progress in official statistics. Cooperation with universities must cover all areas - both social and natural sciences, thus ensuring a wider range of knowledge and expertise needed for the progress of the statistical system. **Slide 11: Understanding the needs of academic community organizations (Experience of Montenegro)** The academic community played a key role in the process of transformation and modernization of the statistical system in Montenegro. The idea of implementing and realizing the reform came from the university professor, prof. Veselin Vukotić, who, together with a group of scientists and associates, led the reform in the period from 2002 to 2008. As part of this reform, the following was implemented: 1\. The first Law on Official Statistics was drafted; 2\. Other producers of official statistics are defined; 3\. Several schools of statistics were held for the needs of the National Institute of Statistics of Montenegro and other producers of official statistics; 4\. Schools for policy makers were held in order to improve the understanding of statistical data; 5\. The Statistical Council is headed by a university professor; 6\. The reform project was supported by the Government of Montenegro, which actively participated in the process; 7\. The first master\'s program of official statistics was introduced in 2016, which was licensed by Eurostat. After Montenegro signed the association agreement with the EU in 2008, it continued the reform in cooperation with Eurostat. However, cooperation with the academic community remained active through the realization of projects and events of importance for the development of official statistics, which ensured continuous progress. **Slide 12: Recommendations for monitoring the needs of the academic community** Respecting the importance of the academic community and the need for constant improvement of official statistics, it is recommended: 1\. Support to universities -- provide support to universities in establishing undergraduate and postgraduate studies in the field of official statistics, in order to develop experts needed for the progress of the statistical system. 2\. Participation of NSC staff - enable the staff of the National Statistical Committee to participate in lectures at universities, so that students can gain practical knowledge and experience directly from experts in statistics. 3\. Regular dialogue -- maintain a regular dialogue with the academic community in order to exchange ideas about the transformation, innovation and modernization of the statistical system. This communication enables continuous improvement of the quality and relevance of official statistical data. **Slide 13: Understanding the needs of civil society organizations** Civil society organizations (NGOs), as well as citizens, are important users of official statistics. Especially in developing countries, where NGOs play a key role in the democratization and development of society, it is important to understand their specific needs and maintain a regular dialogue with them. 1\. Maintain regular dialogues -- Organize regular meetings with relevant NGO organizations in statistical areas; 2\. Include them in the work of the Council for Statistics - Enable NGO representatives to participate in the Statistical Council; 3\. Joint projects and researches -- To implement projects and researches of common interest, which ensures a useful exchange of knowledge and resources; **Slide 14: Understanding the needs of civil society organizations (Experience of Montenegro)** In Montenegro, NGO organizations play a very important role in the development of society and critical reflection on the state\'s development processes. The role of the NGO sector in the process of transformation of the statistical system included: 1\. Participation in the Statistical Council - NGOs are active members of the Council for Statistics, thereby contributing to a better understanding of citizens\' needs. 2\. Partnership with fact-checking NGOs -- This partnership contributes to the accuracy and transparency of data. 3\. Trainings for the use of data - Trainings were organized for NGOs, so that they could more easily use statistical data to monitor the success of their projects. **Slide 15: Recommendations for monitoring the needs of civil society** Cooperation with the NGO sector is crucial for countries working to strengthen their democracy, making it highly desirable to foster and develop such partnerships. 1\. Define a strategy of cooperation with NGO organizations - This strategy should recognize the potential that NGOs have in the realization of research and projects, which can contribute to the transformation of official statistics. 2\. Partnership for the benefit of society -- Building partnerships with NGOs can result in useful mechanisms that bring benefits to society as a whole, providing more accurate and relevant data. The inclusion of NGOs in the transformation process brings numerous benefits, such as fostering community engagement, ensuring transparency, and providing diverse perspectives that can lead to more inclusive decision-making. NGOs often have strong connections to local communities, which allows them to effectively advocate for the needs and concerns of various groups, particularly marginalized populations. Their involvement also helps build trust between the government and citizens, as they serve as intermediaries and provide expertise that complements the work of public institutions. By integrating NGOs into the transformation process, the NSC can create more sustainable reforms. **Slide 16: Conclusion** 1. The aim of this module was for you to understand the needs of users from the point of view of transformation and modernization of the statistical system. The module focused on specific, but not all aspects of cooperation with users. 2. Recommendations for the establishment of cooperation are given on the basis of experiences gained through the transformation and modernization of the statistical system of Montenegro. 3. For more comprehensive research, the UN Handbook on Management and Organization of National Statistical Systems is recommended, the section on users and their needs, as well as Annex 7 International Statistical Systems.