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[Prepared for the 12th Session of the Committee on Statistics of the UN ESCAP, November 29-December 1, 2000, Bangkok, Thailand]

Prepared by the National Statistical Coordination Board (NSCB) with inputs from the Statistical Research and Training Center, National Economic and Development Authority, Department of Trade and Industry and the National Computer Center.


CONTENTS Page 1 1 2 2 3 3 3 4 4 4 5 5 5 5 5


INTRODUCTION ............................................................... STATISTICS ON THE INFORMAL SECTOR ............................. STATISTICS ON THE INFORMATION SOCIETY ...................... A. Proposed Creation of a Task Force on the Measurement of Electronic Commerce .................................................... B. Preliminary Wok Useful in E-Commerce Measurement ............ C. Survey of the Level of Computerization in the Government ....... D. ICT Module in the Annual Survey of Philippine Business and Industry .................................................................... STATISTICAL CLASSIFICATIONS: IMPLEMENTATION STATUS A. Amendments of the 1994 Philippine Standard Industrial Classification .............................................................. B. Integrated Harmonized Commodity Description and coding System and the Philippine Standard Commodity Classification .... C. Philippine Central Product Classification ............................. D. Philippine Standard Geographic Code ................................. E. Standard Classifications of Expenditures According to Purpose .... PHILIPPINE SYSTEM OF NATIONAL ACCOUNTS ................... A. Implementation of the 1993 System of National Accounts ......... B. Satellite Accounts of the Philippine System of National Accounts 1. Philippine Economic-Environmental and Natural Resources Accounting System .................................................... 2. Philippine National Health Accounts ............................... 3. Philippine Satellite Accounts on Tourism ......................... 4. National Education Expenditures Accounts ....................... POVERTY STATISTICS ...................................................... A. Official poverty statistics at the national and regional levels ....... B. Provincial poverty statistics ............................................. C. Annual Poverty Indicator Survey ....................................... D. Statistical and Operational Framework for the Integrated Poverty Monitoring and Indicators System ..................................... GENDER STATISTICS ....................................................... A. Dissemination of gender statistics thru publications and electronic media ....................................................................... B. Advocacy of gender statistics thru the 11th National Statistics Month ......................................................................



6 7 7 8 9 9 10 10 11 11 11 12




Improvement of statistics on gender issues ...........................

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OTHER DEVELOPMENT INDICATORS ................................. A. Philippine Human Development Index .............................. B. Development of Foreign Investments Information System in the Philippines ................................................................ C. Framework for the Development of Environment Statistics ...... D. Leading Economic Indicator System ................................. E. 2002 Census of Agriculture and Fisheries ........................... F. 2000 Census of Philippine Business and Industry .................. G. Capability building thru trainings on the use of development indicators .................................................................. ELECTRONIC REPORTING AND DISSEMINATION OF STATISTICAL DATA, CHARGING/PRICING POLICIES AND REVENUE RAISING ACTIVITIES ........................................ A. Electronic reporting and dissemination of statistical data .......... B. Web-based data archiving .............................................. C. Pricing policy ............................................................ D. Revenue raising activities .............................................. MONITORING STATISTICAL PROGRAMS AND ACTIVITIES THRU PERFORMANCE MEASUREMENT .............................. ENHANCING STATISTICAL LITERACY IN THE COUNTRY ..... A. Annual celebration of the National Statistics Month ............... B. Re-engineering the Government Statistical Services Project ...... C. Statistical training courses ............................................. D. Seminar on Statistics for Business Planning ......................... E. Statistical education at the elementary, secondary and tertiary levels ...................................................................... F. Philippine Statistics Quiz ............................................... GOVERNMENT COMPUTERIZATION IN THE PHILIPPINES .....


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ANNEX: Country Report on the Philippine Economic-Environmental and Natural Resources Accounting (PEENRA) and the International Workshop on Environmental and Economic Accounting held in Manila on September 18-22, 2000


COUNTRY PAPER: PHILIPPINES Recent Major Statistical Activities INTRODUCTION 1. The Philippine Statistical System (PSS) faces tremendous demands for quality data from its stakeholders owing to developments in the physical, social and economic affairs of the country. At the same time, impacts of global developments in the functioning of government, business and industries and individuals are likewise felt. All this necessitates response from the PSS in terms of providing the necessary data support which is critical in making policies and plans, arriving at decisions and monitoring of outputs and outcomes. In pursuing this, however, data producers and users alike are constrained by their existing capabilities and available resources. 2. This country paper presents recent major statistical activities in the Philippines. The identification of the activities reported considered the agenda items of the 12th Session of the UN ESCAP Committee on Statistics. I. STATISTICS ON THE IN FORMAL SECTOR

Box 1-- Economic Activities with Unorganized Sector Estimates 1. Agriculture, Fishery and Forestry a. Agriculture Palay Corn Coconut Banana Other Crops Livestock Poultry Agricultural activities and services b. Fishery c. Forestry 2. Industry a. Manufacturing b. Mining c. Construction 3. Services a. Transport Land transport b. Trade c. Finance Non-banks d. Ownership of dwellings and real estate Ownership of dwellings Renting and leasing of households Private services

3. The informal sector has always been important in the Philippines, being a developing economy. Several efforts have been undertaken to characterize the informal sector of the country, most of which dwell on measuring the contribution of the informal sector (more aptly termed as unorganized sector due to the nature of statistics used and defined as the sector not covered by the establishment surveys in the PSS). 4. The estimation of the contribution of the unorganized sector to the economy basically uses an indirect estimation approach formulated by the National Statistical Coordination Board (NSCB), the policymaking and overseer of the PSS, in the 1970's, similar to what has been proposed by Hussmanns and Mehran. In general, the approach used in the estimation of the economic contribution of the unorganized sector is based on employment. In this approach, the difference between the global sectoral employment from the household-based Labor Force Survey and the adjusted employment (to account for the small establishments dropped from the Annua l Survey of Establishments from 1984 onwards, and for identified undercoverage of establishment

Prepared by the National Statistical Coordination Board (NSCB) with inputs from the Statistical Research and Training Center, National Economic and Development Authority, Department of Trade and Industry and National Computer Center and using available materials at the NSCB regarding the recent major activities of the National Statistics Office and other statistical agencies in the Philippines.


surveys) from the establishment-based surveys is assumed to constitute employment in the informal sector. For sectors where this approach does not seem appropriate, parameters from household surveys and administrative records are used. 5. Due to data constraints, however, the methodology adopted in the Philippines differs from the coverage of the informal sector by economic activity as conceptualized by the NSCB in the 1980's. Box 1, on page 1, shows a listing of the sectors for which unorganized sector estimates are made. The data for the parameters used in the estimation come from surveys and administrative records of different government agencies. The present methodology produced a time series of gross value added for the unorganized sector from 1980 onwards. 6. The NSCB will soon embark on an overall revision of the national accounts and it would be an opportune time to review the methodology and update the parameters used in estimating the contribution of the informal sector. There are still many limitations and issues of the current methodology, including assumptions used, coverage and definitions.

II. A.


Proposed Creation of a Task Force on the Measurement of Electronic Commerce

7. Activities have been initiated towards the collection of data needed to quantify information and communications technology (ICT) and electronic commerce. The Electronic Commerce Act of 2000 (Republic Act No. 8792) enacted into law in June 2000 can significantly promote the measurement of ICT and e-commerce aside from providing the legal framework for the conduct of commercial transactions over the Internet. The Act provides that the government serve as a model user in utilizing electronic means in its delivery of public services and/or performance of governmental functions. Specifically, it mandates all government agencies to be Internet-enabled within two years. 8. The creation of an inter-agency Task Force on the Measurement of Electronic Commerce is due for approval by the NSCB Executive Board, the policy- making body of the PSS, to respond to emerging data requirements of users. It shall have representatives of agencies from the governme nt and private sectors as members. The task force is expected to formulate a framework for measuring electronic commerce, come up with the methodology and instruments and identify agency responsibilities and priorities. In pursuing its functions, the Task Force will conduct consultations with appropriate agencies/institutions such as the Information Technology and Electronic Commerce Council under the Office of the President. 9. Meanwhile, the Task Force can substantially benefit from the concepts and manuals and experiences of international organizations and other countries as regards the generation of electronic commerce statistics through surveys and other methods. Likewise, there is a need to build up the knowledge, skills and exposure on e-commerce of the concerned staff of statistical agencies.



Preliminary Work Useful in E-Commerce Measurement

10. The Department of Trade and Industry (DTI) is tasked to direct and supervise the promotion and development of e-commerce in the country pursuant to the provisions of the E-Commerce Act. It has completed an e-readiness self-assessment using the APEC ECommerce Readiness Guide in cooperation with other government agencies and the private sector. The results show the relative standing of the Philippines in the areas most critical for e-commerce participation. 11. Several measures are being pursued by other government agencies such as the Bureau of Customs (e.g., electronic lodgment of import entries and the Super Green Lane facility), Maritime Industry Authority (e.g., use of electronic transmission for bayplan cargo manifests for import/export data submitted by shipping lines to terminal operators), Bangko Sentral ng Pilipinas and the Department of Budget and Management (development of an Internet-based procurement tender board for government procurement opportunities) to promote paperless trading. All these factors are relevant in coming up with indicators for a knowledge economy and in the development of data systems using electronic media.

C. Survey of the Level of Computerization in the Government 12. In the government sector, the National Computer Center conducts annually a Survey on the Level of Computerization in the Government. The survey gathers information on application systems, hardware/computer equipment, networking which includes e-commerce application and use of websites, intranet and extranet facilities, IT organization and manpower, IT budget and spending, IT projects undertaken, IT standards and policies, and IT concerns. The results of the inquiry are used in policy- making and in the generation of a government IT profile. Among the statistics generated by the survey are the number of agencies with Local Area Network, Wide Area Network, Intranet, Extranet, and with website and E-commerce applications (see paragraph 114).

D. ICT Module in the Annual Survey of Philippine Business and Industry 13. Next year, the Annual Survey of Philippine Business and Industry (formerly, the Annual Survey of Establishments) will be undertaken by the National Statistics Office (NSO). The survey aims to provide intercensal estimates of the levels and structure of production of goods and services in the country. Planning of the survey is now ongoing through a task force created by the NSO. One of the modules of the survey will cover ICT-related activities to allow the generation of benchmark information needed in determining the state of ICT in the country. The statistics to be generated can provide indicators of the country's electronic-commerce readiness. 14. Meanwhile, the ongoing updating of the 1994 Philippine Standard Industrial Classification to consider ICT as an emerging industry will provide a more comprehensive and reliable basis for defining the coverage of ICT-engaged establishments to be covered by the above cited survey.




15. The existing standard classification systems in the country include the (a) 1994 Philippine Standard Industrial Classification; (b) 1993 Philippine Standard Commodity Classification, Rev. 2, with amendments in 1999; (c) 1997 Philippine Standard Classification of Education; (d) 1992 Philippine Standard Occupational Classification; (e) Philippine Standard Geographic Code; and (f) Philippine Classification of Commodities by Broad Economic Categories. These classification systems are being maintained by the NSCB which undertakes the updating of the different classification systems, the development of new systems and the conduct of advocacy activities to promote adoption of the classification systems.


Amendments of the 1994 Philippine Standard Industrial Classification (PSIC)

16. Draft amendments to the 1994 PSIC are now undergoing further validation by the NSCB Technical Committee on Standard Statistical Classifications (TCSSC). The proposed amendments include provisions for new/emerging/potential industries and other items proposed for the development of the Philippine Central Product Classification, modifications of existing industry description for clarity of coverage and/or consistency with the headings, and deletion of existing codes that were merged, subsumed or subdivided. Specifically, an emerging industry under study is ICT Services with several options on its treatment already identified and being studied. Consultations with the private and government sectors and the academe are scheduled in December 2000 with the results providing further inputs in the finalization of the amendments by the TCSSC for approval of the NSCB Executive Board.


Integrated Harmonized Commodity Description and Coding System and the Philippine Standard Commodity Classification (PSCC)

17. The preparation of the draft Integrated Harmonized Commodity Description and Coding System (HS) and the PSCC has been started. The Integrated HS/PSCC is basically an HS with statistical suffixes added to the HS code to accommodate commodities included in the PSCC. This ensures a one-to-one correspondence between the two classification systems for easier translation of the PSCC data in terms of the HS for economic, statistical and customs purposes. In addition, the integrated system will be used in the generation and dissemination of foreign trade indices. 18. In the drafting of the HS/PSCC, the requirements of concerned agencies have been integrated in the system. These requirements include those of the Bureau of Export Trade Promotion of the Department of Trade and Industry for monitoring purposes and the National Statistics Office for classification of export products not included in the existing PSCC. Likewise, the recommendation of the Customs Co-Operation Council for the insertion in the national statistical nomenclatures of subheadings has also been considered. This will facilitate the collection and comparison of trade data on hand- made products.



Philippine Central Product Classification (PCPC)

19. The draft publication of the PCPC has been reviewed by the NSCB TCSSC which recommended that further consultations with concerned agencies be conducted. Among the issues that need to be addressed include the emergence of new activities and products, e.g., service products and activities involving ICT, and the appropriate placement of these items within the existing structure of PSIC and the CPC. D. Philippine Standard Geographic Code (PSGC)

20. The PSGC is a systematic classification and coding of the different geographic areas of the country as shown in Box 2. Updating of the PSGC Box 2-- is done continuously to account for the creation, deletion, Philippine Standard Geographic Code merger and change of status of geographical units. Meanwhile, As of 31 October 2000 a database of the PSGC has been completed to provide a faster medium for the management and organization of the coding No. of regions ....... 16 78 system and search queries. The PSGC will be uploaded in the No. of provinces . ... NSCB website to make the information in the database widely No. of cities ........... 91 No. of municipalities 1,519 accessible to users. Relevant statistics pertaining to the No. of barangays ... 41,943 geographic area will also be shown to further aid the user. E. Standard Classifications of Expenditures According to Purpose

21. Currently being developed are the Classifications of Expenditures According to Purpose, namely: (a) COFOG--Classification of the Functions of Government; (b) COICOP--Classification of Individual Consumption According to Purpose; (c) COPNI-- Classification of the Purposes of Non-Profit Institutions Serving Households; and (d) COPP--Classification of the Outlays of Producers According to Purpose. These classifications are primarily designed to classify transactions undertaken by government, households, non-profit institutions and producers by purpose and specifically recommended for use in the implementation of the 1993 SNA.


PHILIPPINE SYSTEM OF NATIONAL ACCOUNTS Implementation of the 1993 System of National Accounts

22. The System of National Accounts (SNA) third revision came 25 years after the second revision. The 1993 SNA, which embodies the evolution and changes in economies since the 1968 SNA, introduces new measures such as gross national income replacing gross national product; clarifies concepts such as identifying producers and products as market or non-market which is a releva nt starting point in identifying and measuring the contribution of the informal sector; establishes criteria for the classification and treatment of financial instruments and services in the light of new innovations in these fields; and introduces new satellite accounts such as environmental accounts. 23. In implementing the 1993 SNA, the Philippines was proposed as a pilot country for the Asia-Pacific Region. Through the technical assistance (TA) from the Asian Development Bank, the pilot implementation of the 1993 SNA in the country commenced


in 1998. The main objective of the technical assistance is to help the Philippines implement and institutionalize the 1993 SNA at the NSCB which is tasked with the compilation of the Philippine SNA. Specifically, the objectives of the TA are (1) to integrate the various accounts into a consolidated system of economic account along the lines of the 1993 SNA; (2) to develop estimation procedures and compilation systems that are compatible with the available supporting data; (3) to computerize the national accounts estimation process; (4) to upgrade the capability of the compilers of the accounts and enhance the participation of the data producers; and (5) to document the experiences into manuals and handbooks that can serve as useful references for the Philippines and other countries. 24. As part of the methodologies in implementing the project, consultants were hired both from international agencies, such as the UNSD, ESCAP, etc., and those from local consultancy firms such as the Philippine Statistical Association, Inc. Assist. The conduct of training courses and field visits to statistical agencies in other countries also contributed in improving the capacity of the personnel of the NSCB and other government agencies. 25. To-date, the most important outputs of implementing the 1993 SNA in the Philippines are as follows: (1) the estimation of the sequence of accounts by institutional sector (see table for the specific coverage) from 1994-1998; (2) enhancement of the basic data inputs from different sources such as processing of administrative-based data and conduct of special studies for improving methodologies and setting up of estimation parameters; and (3) the improvement of the current estimation methodology inc luding new transaction items. These outputs are being documented and will be presented in an international workshop to be held in early 2001.

Table 1. 1993 Philippine System of National Accounts Estimation by Sector Sequence of Account Non-Financial External Account of Goods and Services Production Account Generation of Income Account Allocation of Primary Income Account Secondary Distribution of Income Account Redistribution of Income in Kind Account Use of Disposable Income Account Use of Adjusted Disposable Income Account Capital Account Financial Account Other Changes in Volume of Assets Account Revaluation Account R R R R Financial R R R R Government R R R R R R R R R Sector HH R R R R R R R NPISH R R R R R R R ROW R





B. Satellite Accounts of the Philippine System of National Accounts B.1 Philippine Economic-Environmental and Natural Resources Accounting System (PEENRA) 26. The institutionalization of the PEENRA in the country took off from initial efforts which started as early as 1991. For the accomplishments achieved on environmental accounting as a satellite account of the PSNA, a separate country report (see Annex) has been prepared for the 12th Session of the Committee on Statistics. The report also traces


activities that led to the institutio nalization of the PEENRA by the NSCB and other concerned agencies in government. 27. Another significant activity undertaken as regards the development of environment accounting in the Asia-Pacific Region is the recently concluded International Workshop on Environmental and Economic Accounting held in Manila in September 2000. A more substantive report on the workshop is also presented separately as part of the PEENRA country report (see Annex). B.2 Philippine National Health Accounts (PNHA) 28. Continuing the efforts initiated in 1992 by the Philippine Department of Health, through a project which it commissioned to the Health Policy Development Program of the University of the Philippines Economic Foundation, the NSCB has institutionalized the compilation of the PNHA. The project was conceived to provide data inputs needed in implementing meaningful reforms in the country's health sector, in addressing basic issues in health financing and in facilitating the formulation of health policies. Specifically, the uses of the PNHA are (1) to institute policy changes to correct imbalances in health spending and to formulate an appropriate social insurance Box 3-- program; and (2) to determine the efficiency of the present Share of Health financing system. Expenditure to GNP

(at current prices)

29. The PNHA consists of a set of statistics that systematically presents national health spending for a given year. It tells (a) how much the country spends for health care (see Box 3); (b) where the money comes from (sources of funds); (c) what types of health care services are purchased and who provides the services (uses of funds); and (d) how much it costs to administer a health financing scheme. The PNHA estimates from 1991 to 1998 have already been released while the 1999 estimates are currently being compiled. The accounts will be compiled and generated on an annual basis.

1991 2.98% 1992 3.05% 1993 3.19% 1994 3.24% 1995 3.48% 1996 3.52% 1997 3.58% 1998 3.60% Average annual growth rate 2.74%

B.3 Philippine Satellite Accounts on Tourism (PSAT) 30. Recognizing the importance of the country's tourism industry, the development of the PSAT aims to generate information on its contribution to the country's Gross Domestic Product and share of the Balance of Payment, the Box 4-- employment generated and the investment set aside for the Definition of Value Added of industry. The development of the PSAT is currently being Tourism Industries done jointly by the NSCB and the Department of Tourism ...the sum of the value added of all (DOT) using the World Tourism Organization (WTO) characteristic producers, regardless conceptual framework. The preliminary PSAT framework of whether Box 5--some of their all or Definition of Tourism Value has very little deviation from the WTO Tourism Satellite outputs are provided to visitors. It Added does not include the value added Accounts (TSA) except those which are due to data contribution of other industries ...the value added products constraints. However, there are some conceptual issues providing tourismgenerated in as secondary output. that need to be studied further and resolved for the economy by tourism industries and other industries in incorporation in the final PSAT. response to tourism internal 31. The PSAT basically adopted the proposed TSA consumption. classification of tourism industries. Meanwhile, the main It includes the proportion of the

value added of the principal activity of tourism industries and that for the secondary tourism characteristic activities of other industries, generated in the provision of goods and services directly to visitors.


aggregates to be generated include Value Added of Tourism Industries (see Box 4) and Tourism Value Added (see Box 5). Other aggregates to be generated include Tourism Employment, Tourism Gross Fixed Capital Formation, Tourism Collective Consumption, and Tourism Demand. The data sources include both survey and administrative data in addition to the Input-Output Table compiled by the NSCB jointly with the National Statistics Office (NSO). 32. The surveys used as sources of data include the monthly Visitor Sample Survey and the periodic Sample Survey of Regional Travelers in Accommodation Establishments conducted by the DOT and the Census of Establishments (now Census of Philippine Business and Industry) and Labor Force Survey of the NSO. Meanwhile, the administrative-based data come from the DOT Statistical Report, the General Appropriations Act of the Department of Budget and Management, the Annual Reports of national and local governments and government-owned and ­controlled corporations compiled by the Commission on Audit, and the financial statements of Nayong Pilipino Foundation and Intramuros Administration which are under the supervision of the DOT. 33. As a result of the initial work done on the development of the PSAT, preliminary estimates/aggregates have been completed for 1994. However, there is a need to further refine the estimates due to its limited coverage and data constraints. In view of this and the conceptual issues on the linking of tourism consumption with the production side of the account, future work on the PSAT will include improvement of the framework and refinements of the estimates. Furthermore, the inclusion of the indirect effects of tourism industries will have to be studied as well. B.4 National Education Expenditure Accounts (NEEA) 34. The modest growth of the Philippine economy in recent years was accompanied by a substantial sectoral reallocation of the national government expenditures in favor of the social services sector, with the biggest bulk going to education. Nonetheless, there are competing claims on government funds by other sectors, making it difficult for the education sector to further increase its share in the national budget. The boost in government funding for education may still be inadequate given the rapid growth of the school-age population and the corresponding increase in the demand for additional educational facilities and resources. 35. Statistical information on the sources and uses of education funding is an important factor in the formulation of policies on the development and management of the educational system. As in many other countries, however, the Philippines has yet to establish a system for the regular collection of information on education expenditures. The development of the National Education Expenditure Accounts is intended to address this need. It is envisioned to improve understanding of the educational system by providing a comprehensive and comparable set of information on the current sources and uses of funds for education. This information will likewise allow a coherent analysis of educational spending as inputs to educational planning and policy- making. 36. An undertaking was recently contracted by the NSCB with the Department of Education, Culture and Sports, through its Third Elementary Education Project, for the development of the NEEA. The undertaking will commence in December 2000 to be


carried out in five phases, namely: (a) development of the framework; (b) identification and assessment of data sources; (c) identification and design of supplementary data collection and improvement activities for data gaps and other data problems; (d) estimation and documentation of the NEEA for the period 1991 to 1999; and (e) preparation of an institutionalization plan for the development and maintenance of the NEEA. 37. The annual NEEA can be used to determine (1) education expenditures as a proportion of the GDP for a given year; (2) how education services are financed and how services are paid for, i.e., expenditures by various sources of funds, public and private; (3) changes over time in the source of funds, e.g., central or local level government, third party payments from insurance, etc.; (4) what education services are being paid for and where such services are obtained, i.e., expenditures by various types of education services; and (5) changes over time in expenditures for types of services. 38. The framework for the development of the NEA will be anchored on the basic framework prescribed for satellite accounts. The field to be covered by the education accounts seeks to be exhaustive. Thus, all forms of education that satisfy the standards and definitions in the Philippine Standard Classification Box 6-- of Education and prescribed by the Philippine Education Official Poverty Indicators Act of 1982 shall be taken into account. V. A. POVERTY STATISTICS

Annual per capita poverty thresholds: all areas, urban and rural Annual per capita food thresholds: all areas, urban and rural Poverty incidence: all areas, urban and rural Food/subsistence incidence: all areas, urban and rural Magnitude of poor families and population below poverty threshold: all areas, urban and rural Magnitude of poor families and population below food/subsistence threshold: all areas, urban and rural Poverty gap ratios: all areas, urban and rural

Official poverty statistics at the national and regional levels

39. The poverty statistics released by the NSCB through the Technical Working Group on Income Statistics of its Inter-Agency Committee on Labor, Income and Productivity Statistics are the official poverty statistics of the Philippines (see Box 6). The final estimates at the national and regional levels are based on the final results of the Family Income and Expenditures Survey (FIES) conducted triennially by the National Statistics Office; hence, official data are also released every three years. The latest official poverty statistics are for 1997.

40. The first official statistics on poverty for 1985 used a menu-based methodology and adopted a basic Income gap ratios: all areas, urban needs approach. The same methodology was used for the and rural 1988 poverty data. In 1992, a revised methodology was GINI ratios adopted by the NSCB as a result of the efforts of the Philippine Statistical System to improve the methodology for estimating poverty in the country. The major difference between the old and the new methodologies was on the non- food component of the poverty threshold. Under the new methodology, non- food items that were not considered basic, such as alcoholic beverages, tobacco, recreation, durable furniture and equipment, and miscellaneous expenditures, were excluded. The


1992 methodology was then used to re-estimate the poverty statistics for 1985 and 1988 and to generate poverty statistics for 1991, 1994 and 1997. 41. The NSCB continues to exert efforts to improve poverty assessment in response to the needs of data users. Starting with the latest poverty data, i.e., for 1997, measurement of the depth of poverty through poverty and income gaps has become a regular part of the series on poverty. These supplementary poverty statistics are now available from 1985 to 1997 with regional and urban-rural disaggregation. The poverty gap measures the income shortfall over the whole population while the income gap measures the average income shortfall of those below the threshold. Furthermore, the NSCB has also developed a methodology for computing annual food and poverty thresholds in-between FIES years. Using this methodology, the 1998 thresholds are now available.


Provincial Poverty Statistics

42. Another improvement in the official poverty series is the development of a provincial poverty estimation methodology. This is being done by the NSCB through a UNDP-assisted project, Strengthening Institutional Mechanisms for the Convergence of Poverty Alleviation Efforts. The provincial poverty statistics to be generated every three years will also be income-based and provide absolute and objective measures of poverty. The proposed methodology will also use headcount index as a measure of the prevalence of poverty. A series of users' fora was conducted in the three major island groups in the country to enable concerned and interested parties to comment on the new methodology. Their feedbacks will also be useful to the Philippine Statistical System in coming up with an improved and acceptable methodology for provincial poverty estimation. Poverty estimates will be done for all provinces including the National Capital Region and at the national level. As in the existing poverty statistics, the provincial series will also be disaggregated by urban and rural area.


Annual Poverty Indicator Survey

43. To provide data needed in a more frequent monitoring of poverty, the National Statistics Office started the conduct of the Annual Poverty Indicator Survey (APIS) in 1998 as a rider to the October round of the quarterly Labor Force Survey. The survey is considered as an important effort in poverty monitoring and measurement in the country. The survey provides information on demographic and economic characteristics; health status and education of family members; family access to health facilities; water and sanitation condition of families; availment of credit to finance family business or enterprise; and income and expenditures of the family. In addition, it gathers information on the effects of the economic crisis on families and the steps they have taken in response to these problems. D. Statistical and Operational Framework for the Integrated Poverty Monitoring and Indicators System


44. A conceptual framework for the Integrated Poverty Monitoring and Indicators System was developed by the National Economic and Development Authority through a UNDP-assisted project. The framework serves as basis for the measurement, monitoring and reporting of poverty measures in the country. More specifically, it is an integrated system by which different ways of measuring, generating, reporting and monitoring poverty-related indicators that are not income- and expenditure-based may be interfaced. 45. Using the conceptual framework, the NSCB has identified the appropriate indicators for the framework. These comprise 18 key indicators covering three areas of concern (see Box 7).

Box 7-- Key Poverty Indicators by Area of Concern 1. Survival · Life expectancy at birth · Infant mortality rate · Under 5 mortality rate · Maternal mortality rate · % newborn with birth weight less than 2.5kg · % severely and moderately underweight children under 5 years old · % population with micronutrient deficiency · Fertility rate · % households with access to potable water · % households with sanitary toilets Security · Poverty threshold · Food threshold · Unemployment rate · Underemployment rate · % of households in makeshift housing Enabling · Participation rate · Functional literacy · % of children 5-17 years in the labor market


VI. GENDER STATISTICS A. Dissemination of gender statistics thru publications and electronic media


46. Efforts to mainstream the regular generation and dissemination of gender statistics in the Philippines have seen some fruits as evidenced by the Women and Men in the Philippines: A Statistical Handbook which is released by the NSCB every two years as an offshoot of its involvement in the United Nations Development Fund for Women (UNIFEM) and UN ESCAP project. It is a compilation of the latest available and relevant statistics on gender issues which are deemed important to planners, researchers and other users in gender and development advocacy, plans, programs and policies. The data sources include the major statistical agencies, other departments and agencies in government and a number of private institutions and the academe. The NSCB has also included a section on gender statistics in its official website and in the 1st edition of the Philippine Statistics in CD-ROM. Meanwhile, the National Statistics Office (NSO) also releases Gender QuickStat which is an information sheet on the most requested gender statistics. 47. At the subnational level, the development of gender statistics is a progressive process that stems from similar initiatives at the national level as well as from the data needs of stakeholders. Among the activities undertaken/spearheaded by the NSCB regional units include the following: (a) establishment of databanks on women and men in 8 regions of the country; (b) publication of statistical handbooks on women and men in Region I (Ilocos Region), Region XI (Southern Mindanao) and Region XII (Central Mindanao) with four more handbooks due for release before the year ends; (c) sexdisaggregation of data in all relevant publications; (d) conduct of advocacy activities for the generation and use of gender statistics; and (e) provision of technical expertise/assistance to regional government agencies and local government units (LGUs) on the generation, presentation, analysis, and policy uses of gender statistics.


48. Work on gender statistics will be strongly pursued at the subnational level. Among the future activities include (a) firming up of the data framework and finalization of a GAD-responsive indicator system for each region; (b) coordination and monitoring of programs for the generation of gender statistics that will fill in data gaps and respond to emerging requirements; and (c) advocacy and technical assistance in the development of statistical capabilities of government agencies and LGUs to generate and use gender statistics. B. Advocacy of gender statistics thru the 11th National Statistics Month 49. Gender statistics were further given focus during the observance of the 11th National Statistics Month (NSM) in October 2000 with the theme, Empowering Filipino Women through Gender Statistics. This theme highlighted the importance of statistics that show the progress of the overall situation of women in the Philippines 11 National in terms of achieving the goals of women empowerment and gender Statistics equality. The 11th NSM thus aimed to advocate the production and Month dissemination of statistics that are sex-disaggregated and responsive to the visions of the Philippine Plan for Gender Responsive Development, the 12 critical areas of concern in the Beijing Platform for Action, the Beijing Plus 5 Outcome Document, and the Convention on the Elimination of all Forms of Discrimination Against Women. The National Commission on the Role of Filipino Women (NCRFW) played host to the opening and closing ceremonies of the 11th NSM.

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"Empowering Filipino Women through Gender Statistics"


50. In the opening ceremonies of the 11th NSM, a statistical presentation of the Status of Women and Men in the Philippines was done. Meanwhile, exhibits, conferences/trainings/seminars/workshops/symposia/lecture series, data dissemination thru press releases and publications, and contests focusing on gender statistics were conducted in 16 regions of the country during the month- long event. There were a total of almost 390 activities undertaken nationwide with agencies and academic institutions at the national and local level actively participating. As a culminating activity, a Declaration of Commitment on the Generation of Gender Statistics was forged by members of the Philippine statistical community and participants in the annual celebration of the NSM during the closing ceremonies. Specifically, the declaration provided for the affirmation of support to the production of gender statistics corresponding to national needs and international commitments at the national and local levels and making these available and accessible to users. It also enjoined their active participation in formulating strategies and in developing and implementing a plan of action to ensure the quality of gender indicators and sustain the generation of gender statistics. C. Improvement of statistics on gender issues

51. The NSCB, in collaboration with the NCRFW, is currently implementing a project on the Improvement of Gender Issues under the Canadian International Development Agency. The project has three components, namely: Component 1--Development of a Methodology to Generate Statistics on Violence Against Women and Children (VAWC); Component 2--Conduct of a Pilot Time-Use Survey in the Philippines Towards the Development of a Framework for Measuring Women's and Men's Contribution to the Economy; and Component 3--Refinement of Existing GAD Indicators System.


52. Component 1 aims to consolidate reported cases of VAWC coming from various law enforcement, social welfare and other agencies of the government which possess records of these cases. A task force on VAWC was created by the NSCB comprising of about 15 government and no n-government organizations. The project has produced a glossary of terms on VAWC and other related concepts which prescribes the standard concepts and definitions to be used in the generation of statistics on VAWC. The definitions and concepts conform with the United Nations Convention on the Elimination of All Forms of Discrimination Against Women, the UN Convention on the Rights of the Child and Philippine related laws on the rights of women and children. 53. A report on existing administrative-based data collection system on VAWC was also completed as basis for the improvement and development of an integrated statistical reporting system. In the evaluation of existing administrative reporting systems, it was revealed that data problems exist. The data on VAWC are primarily client-based which do not include unreported cases making it difficult to establish the prevalence and incidence of VAWC in the Philippines. As to some reported cases, these are not properly documented and consolidated. Meanwhile, a memorandum of agreement was drafted to formalize the institutional arrangements for the development of the VAWC statistical network. Furthermore, a statistical handbook of reported cases of VAWC at the national and subnational levels will be published shortly. 54. Component 2 of the project tackles a critical data gap identified by the Beijing Platform for Action. Specifically, it aims to develop a framework for measuring the contribution of women and men to the economy and a methodology for conducting a national time- use survey. It further aims to formulate estimation procedures and standards for the valuation of time-use for unremunerated work by women and men, including those not covered by the System of National Accounts (SNA). A draft framework, which served as the basis for testing several approaches in disaggregating by sex the gross value added of the various sectors in the SNA, has been completed. It was also used to come up with initial estimates of the economic contribution of women and men in the Philippines. 55. Meanwhile, a pilot time-use survey was conducted by the National Statistics Office in February 2000 in selected urban and/or rural barangays in the country covering a total of 240 households. The interview and diary methods of data collection and several questionnaire types were tested in the selected barangays. The results of the survey are expected to provide the basis for coming up with recommendations for improving the Trial Classification of Time-use Activities developed by the United Nations Statistics Division. At present, efforts are underway to solicit funding for the design of a national time use survey. 56. Component 3 of the project validates a list of identified core GAD indicators including their definitions, data sources and estimation methodology. It further seeks to develop a data framework for core GAD indicators which shall include statistical data assessment and documentation and plan of action to fill up data gaps. To-date, 20 core indicators needed to monitor the implementation of the Philippine Plan for GenderResponsive Development (PPGD) and the critical areas of concern of the Beijing Platform for Action have been identified. Specifically, the core indicators will be used to monitor gains made in pursuing the PPGD visions which include gender equality and equity,


women empowerment, sustainable development, peace and social justice, actualization of human potentials beyond basic needs, democratic participation, self-determination at all levels, and respect for human rights. 57. While significant gains have been achieved in the generation and dissemination of gender statistics, it is highly felt that there are still many data gaps, e.g., access to credit and other resources, time use, participation in public life, etc., that should be addressed in the short-term. In resolving this, there should be a close collaboration between research institutions and the statistical agencies in developing prototypes for generating the data. At the same time, there should be stronger advocacy to demonstrate the usefulness of the data in planning and policy- making and more effective data networking with bilateral and multilateral linkages. Further, there should also be closer linkages among concerned agencies to bring about an integrated reporting system using IT-based and other communication systems for faster data sharing and dissemination. Eventually, all gender statistics should become part of the Philippine system of designated statistics. In addition, statistical capacity building should be a continuing process to ensure that there is an adequate supply of statisticians with gender perspective. VII. OTHER DEVELOPM ENT INDICATORS A. Philippine Human Development Index

58. The UNDP conceptualized the Human Development Index (HDI) in 1990 to serve as a composite measure reflecting the most important dimensions of human development. It measures how well a country has performed, not only in terms of real income growth, but also in terms of social indicators of people's ability to lead a long and healthy life, to acquire knowledge and skills, and to have access to the resources needed to afford a decent standard of living. With assistance from the UNDP, the Human Development Network (HDN), a group of academicians, representatives from non- government organizations and government officials in their personal capacities, introduced the use of the HDI as a yardstick of progress in the country and across regions in 1994. Three years later, HDN extended this by coming out with HDI estimates at the provincial level for the years 1990 and 1994. The Philippines thus became one of the first countries to use HDI to gauge the level of development at the local level. 59. In May 1997, the NSCB, upon the directive of the President of the Philippines, institutionalized the computation and publication of the provincial HDI. This move demonstrates the continuing commitment of the government to provide relevant statistics and indicators, specially those that can be used to monitor situation in the countryside. As a first step towards institutionalization, the NSCB, with technical assistance from the HDN, prepared the provincial HDI estimates for 1997, together with updates for 1994. The provincial HDI is constructed using the average of three development outcomes for each province, namely: (1) health as measured by life expectancy; (2) level of knowledge and skills as measured by the weighted average of functional literacy and combined elementary and secondary net enrolment rate; and (3) access to resources as measured by the level of real per capita income. 60. The 1994 and 1997 provincial HDI were released in March 2000 through the publication, Report on the 1997 Philippine Human Development Index. The report


provides information on the human development performance of the country and its provinces. Apart from the highlights on each indicator, the report also gives emphasis on the state of human development in terms of geographic concentration, the development disparities across provinces, and the relationship between HDI and income. The provincial HDIs will be released every three years as the income data needed in the computation come from the triennial Family Income and Expenditures Survey. B. Development of Foreign Investments Information System in the Philippines

61. Foreign direct investment (FDI) statistics in the Philippines are generated by several agencies as by-product of their regulatory, promotion and banking functions. However, the coverage and time of recording vary as investment inflows are measured at the various stages of documentation/processing. To integrate the FDI data collection and reporting in the country, an Inter-Agency Committee (IAC) on Foreign Direct Investment System was formally organized in September 1996 by the NSCB to oversee the development and maintenance of the Foreign Investments Information System (FIIS). The IAC has tasked the NSCB with the preparation of the Consolidated Quarterly Reporting System which covers approved, registered and BOP FDIs. The report is released two months after the reference quarter and it provides comparative analysis of FDIs. 62. As part of the FIIS, the generation of Annual FDI stock using administrative reports, such as balance sheets and other financial statements, is being done. This offers an alternative way of measuring the existing FDIs in the country in the absence of a survey on FDIs. Other documents that have been completed include a draft FDI Statistical Framework, which articulates the data requirements needed to measure and monitor FDIS in the country; a Registry of Top FDI Enterprises in the Philippines (1998 edition) which contains a complete directory and database of large FDI enterprises belonging to the top 5,000 corporations in the country; and a Glossary of FDI and Financial Terms suited to Philippine conditions which serves as guide to data collection on FDIs and incorporates the most commonly used terminologies in the compilation of FDI in the country. 63. The IAC undertakes continuing improve ments in the FDI data dissemination activities such as uploading/publication of the quarterly FDI reports both in print and via the NSCB website and development of prototype program for interactive access of the FDI flow database in the website. Subsequent reports will be enhanced by providing more meaningful analysis for policy decisions. Meanwhile, the inclusion of a question on foreign equity in the 2000 Census of Philippine Business and Industry offers an opportunity to gather additional information on foreign investments. 64. The Government of the Philippines, through the IAC, hosted the First Meeting of the Working Group on FDI Statistics (WGFDIS) in ASEAN which was held from May 911, 2000 at the Subic Bay Freeport, Zambales, Philippines. The primary objective of the meeting was to continue the technical discussion on the harmonized measurement of FDIs in the ASEAN region. It was attended by 47 participants from the ASEAN member countries including the Philippines. Furthermore, the Philippines also actively participated in the Second Meeting of the WGFDIS in ASEAN held on September 13-24, 2000 in Bangkok, Thailand to complete the 2000 ASEAN Investment Report. During the meeting, it was noted that the Philippines could consider taking over the chairmanship of the WGFDIS from Thailand.


C. Framework for the Development of Environment Statistics 65. Another field on environment, aside from environmental accounting which the NSCB has embarked on, is environment statistics. The lack of organized and integrated environment statistics has become a major deterrent in man's struggle to effectively manage and conserve the natural environment. To address this concern, the Asian Development Bank (ADB) through Regional Technical Assistance (RETA) 5555, provided in 1995 a grant to developing member countries including the Philippines to develop and collect environmental statistics. 66. Using the UN Framework for the Development of Environment Statistics (UNFDES) as a guide, the Philippine framework, or so-called PFDES, was formulated. Just like the UNFDES, the Philippine version is a systematic organization of the interdisciplinary nature of environment statistics and focuses on the identification, description and presentation of data variables which are useful in tracing and verifying interrelationships between human activities and natural events. It also provides a systematic approach to the development of environment statistics and an instrument by which data coming from various institutions are compiled and integrated to be more useful in the formulation and valuation of socio-economic and environmental programs and policies. 67. The framework relates the seven components of the environment (flora, fauna, atmosphere, water, land and soil, mineral and energy resources, and human settlements) to four information categories, namely: (a) social and economic activities and natural events; (b) environmental impacts of activities and events; (c) responses to environmental impacts; and (d) stocks and inventories. A short description of each of the information categories is shown in Box 8.

Box 8-- Information Categories Social and economic activities and natural events --include human activities and natural events which directly affect the different components of the environment; thus, producing environmental impacts. Environmental impacts of activities and events --attempt to quantify the effects on the environment of man's activities and natural events.

68. The initial results of operationalizing the Responses to environmental framework are published in the Compendium of impacts--man's various attempts to Philippine Environment Statistics (CPES). The curb and mitigate the negative compendium embodies the initial attempt to compile impacts which can be defensive or priority environment statistics/indicators based on the curative. PFDES. The document is divided into seven chapters Stocks and inventories--provide corresponding to the components of the natural benchmark data and illustrate environment. Each chapter contains an introduction, linkages with other subject areas. conceptual framework, statistical framewo rk, data assessment, situational analysis and statistical tables. The level of disaggregation varies depending on the availability of data, covering the period 1990 to 1998, whenever possible. Updating of the compendium will subsequently be done every two years.


Leading Economic Indicator System


69. The Leading Economic Indicator System (LEIS) was developed jointly by the NSCB and the National Economic and Development Authority (NEDA) for short-term forecasting of the macroeconomic activity in the country. Through the LEIS, quarterly composite Leading Economic Index (LEI) is generated by the NSCB to provide advance information on the direction of the country's economic activity/performance in the short run. 70. The LEIS involves the study of the behavior of indicators that consistently move upward or downward before the actual expansion or contraction in the overall economic activity. The system is based on an empirical observation that the cycles of many economic data series are related to the cycles of total business activity, i.e., they expand in general when business is expanding and contract when business is contracting. The estimation of the composite LEI uses a combination of different leading indicators and a coincident indicator. 71. Eleven economic variables (see Box 9) are used as leading indicators while palay and corn production forecast is used as a coincident indicator. In the identification of indicators to be used, several criteria are adopted, namely: (1) should represent and accurately measure important economic processes or variables; (2) should provide adequate coverage of the major sectors of the economy; (3) should be promptly available and not subject to large revisions; and (4) should consistently lead and conform to business cycle movements.

Box 9-- Eleven Leading Indicators Used 1. 2. 3. Total imports Money supply Electric energy consumption 4. Hotel occupancy rate 5. Tourist arrivals 6. Number of new business incorporations 7. Terms of trade index 8. Exchange rate 9. Wholesale Price Index 10. Consumer Price Index 11. Composite Stock Price Index

72. The composite LEI is derived by summing up the weighted indexes of industry and services sectors and the weighted index of agriculture, fishery and forestry sector. The index for industry and services sector is a linear combination of the eleven leading indicators using the correlation coefficient of each of the indicators with the GDP cycle component of industry and services sector as weights. Meanwhile, the index for agriculture, fishery and forestry is computed based on the cycle component of palay and corn forecast. In generating the indexes, the indicators undergo several steps, namely: (1) seasonal adjustment using X11 ARIMA software to remove seasonality of the series and to obtain the trend cycle; (2) removing the trend; (3) correlation of the cycle component (standardized residuals) of each indicator with the combined cycle component of the sectors of the GDP; and (4) determination of lead period of the indicator which represents the number of quarters the cycle series for each indicator is moved forward. 73. Improvements in the methodology are regularly implemented in order to provide users of the index with more robust short-term indicators of the economy's performance and to resolve data issues encountered. E. 2002 Census of Agriculture and Fisheries

74. The Census of Agriculture and Fisheries (CAF) is a large-scale nationwide undertaking for collecting and compiling statistics on the country's agriculture and fishery


sectors. In 1918, 1939, 1948 and 1960, only the Census of Agriculture was conducted while the 1971, 1981 (1980 reference period) and 1992 (1991 reference period) censuses covered both agriculture and fisheries. As designated, the CAF will be conducted every ten years; hence, the next CAF will be done in April 2002 with 2001 as reference period of the census. It will be implemented by the National Statistics Office, being the statistical agency in government mandated to conduct censuses in the country. 75. The 2002 CAF will cover all areas pertaining to agriculture and fisheries under the jurisdiction of the Philippines. All households in urban and rural areas will be listed to determine whether any member was engaged in agricultural or fishing activity during the reference period. However, not all agricultural and fishing operators will be enumerated due to budgetary constraints albeit all agricultural/fishing establishments will be covered. The domain of the 2002 CAF will be the municipality. 76. The CAF has been the major source of micro- level estimates on the country's agriculture and fishery sectors on a nationwide scale. The data are needed by government in improving the productivity of the sectors; by the business sector in determining investments; and by other sectors, as inputs in studies and researches. Specifically, the conduct of the 2002 CAF has four objectives, namely: (1) to collect data on agricultural and fisheries structures which do not change rapidly from year to year; (2) to provide sampling frame for other statistical undertakings; (3) to obtain benchmark data for improving current estimates; and (4) to provide basic data for use in national as well as local development planning. 77. Preparations for the forthcoming CAF are now underway with the National Statistics Office at the helm of the activities. To ensure the successful conduct of the 2002 CAF, the NSCB created in May 2000 a Task Force on 2002 CAF as an inter-agency group with members coming from concerned agencies in the government and private sector. Specifically, the task force shall (1) recommend the programs for methodological and preparatory studies; (2) review the methodology, concepts, questionnaire design, tabulation plans and other related aspects; (3) ascertain the relevant variables and data items to be included; (4) propose strategies for funding; (5) recommend strategies for more efficient census operations; and (6) conduct consultations with other agencies/inter-agency committees. To assist the task force in carrying out its functions, sub-groups on preparatory studies for methodology and scope, strategies for fund sourcing, efficient census taking and field operations, and fisheries were likewise formed. 78. The member agencies of the task force and sub-groups had submitted their data requirements to the National Statistics Office which served as inputs in the drafting of the questionnaires. The draft instruments had been pre-tested in October-November 2000 which showed that respondents found difficulty understanding some questions and in estimating the physical area of parcels. A suggestion gathered was the translation of the questionnaires into local dialects and the operator as respondent. Considering the results of the first pre-test, the draft instruments will be revised for the second pre-test to be conducted in January 2001. Meanwhile, a study to develop the methodology for the 2002 CAF is ongoing.



2000 Census of Philippine Business and Industry

79. Formerly known as the Census of Establishments (CE), the Census of Philippine Business and Industry (CPBI) was conducted from August 14 to September 15, 2000. Earlier, the change in the name of the CE, being a designated statistics, to CPBI was approved by the NSCB Executive Board in order to be more reflective of the data being produced from the said establishment inquiries. It is the 13th in a series of economic censuses conducted by the National Statistics Office to collect and compile statistics from establishments pertaining to their economic activities in 1999, the reference period. As the designated frequency of the CE is every 5 years, the last CE conducted prior to the 2000 CPBI was in 1995 with 1994 as reference period. 80. The CPBI aimed at providing levels of economic activity and changes in the structure of the country's business and industry sectors at the provincial, regional and national levels and for selected cities. It further sought to establish a frame of establishments engaged in contracting activities during the year 2000. The data were collected from about 60,000 establishments engaged in economic activities as defined in the 1994 Philippine Standard Industrial Classification (PSIC). The census adopted a twophase sampling design with the first-phase sample generating estimates of total at 4-digit PSIC at the provincial level and the second-phase, which was a subsample of the first phase samples, generating detailed statistics at the regional level. 81. The major data items collected include (1) economic activity or business; (2) legal and economic organization; (3) capital participation; (4) employment; (5) compensation; (6) revenue; (7) subsidies; (8) costs; (9) fixed assets; (10) capital expenditures; (11) inventories; (12) hours worked; (13) capacity utilization; and (14) contracting activities. The data were gathered using 3 form types--common questionnaire (1 set), sectoral questionnaires (14 sets) and supplementary questionnaire (1 set). G. Capability building thru trainings on the use of development indicators

Box 10-- Training Courses on Indicators · Statistics for Development Planning with Computer Applications (25 participants) · Statistics for Project Monitoring and Evaluation, 2 batches (37 participants) · Statistics for Policy Analysis (18 participants) · UN SIAP-SRTC Country Course on Statistics for National Human Development Reports (29 participants) · Statistics for Sectoral Planning (9 participants) · Assessment and Analysis of Social Welfare and Development Data (23 participants)

82. A number of training courses conducted by the Statistical Research and Training Center, the training arm of the Philippine Statistical System, noted the importance of indicators. Specifically, six (6) training courses (see Box 10) conducted during the year provided considerable focus on indicator system. 83. The Country Course on Statistics for National Human Development Reports conducted by the SRTC in cooperation with the UN SIAP, with funding from the UNDP, provided in-depth focus on all sectoral indicators of human development.




Electronic reporting and dissemination of statistical data

84. The Philippine Statistical System (PSS) has taken advantage of electronic media in the dissemination of statistical data. In 1999, the NSCB Executive Board, the policymaking body of the PSS, issued the General Standards on Statistical Information Dissemination (GSSID) for adoption of data producers in the country. The results of monitoring the adoption of the standards are shown in Table 2.

Table 2. Rate of Compliance with GSSID Standards as of December 1999 Standard Compliance rate Dissemination of most micro-level summary statistics thru public-use-files 15.4 Electronic media dissemination (1) diskette 90.4 (2) E-mail 69.2 (3) Internet (WWW) 48.1 (4) CD-ROM 17.3 Data archiving system (1) diskette 88.5 (2) Other electronic media 19.2

85. A vital issue that has limited the capacities of many local data users to maximize the benefits from electronic data dissemination is the lack of necessary equipment facilities. To elucidate, out of the total number of pageviews made of the NSCB website in 1999, only 14% were by local users. 86. The future plan of the PSS is to develop more interactive databases, public- use- files, CD-ROMs and GIS of statistics including electronic data archiving not only to protect data holdings but also to enhance data presentation and retrieval. Meanwhile, the use of printed mode shall continue to provide opportunities for those who have no access yet to the Internet. B. Web-based Data Archiving

87. A recently completed study jointly undertaken by the SRTC and the UPLBFI on the Development of a Prototype for a Web-based Data Archiving System for the PSS presents a prototype that will support tools for management, increased accessibility and preservation of an integrated collection of statistical databases. The study also discussed how various data archives within each category can be set-up and eventually evolve into a data warehouse that can support more sophisticated queries and allow analytical processing. 88. Meanwhile, an inter-agency Task Force on the Electronic Data Archiving for Philippine Statistics was created by the NSCB Executive Board in May 2000. Its creation was aimed at implementing an earlier Board resolution on the adoption of data archiving measures to ensure the preservation, systematic storage and retrieval of statistical data including records on their methodology, concepts and other metadata. Specifically, the


task force shall provide a forum for the exchange of views and expertise in the development of the archiving policy. 89. Among the outputs expected of the task force are a draft statement on the vision of the PSS on data archiving, policies on the implementation of the archiving program for the PSS, recommendations on appropriate institutional linkages and coordination for the development of the archives, integrated work program and funding requirements of the PSS agencies on data archiving, strategies to fund the program, and consultations with concerned agencies in the public and private sectors. These would eventually lead to institutionalization of data sharing within the PSS in order to make information readily accessible to policy makers. C. Pricing Policy

90. The NSCB, as the policy-making and coordinating body on statistical matters in the country, issued a general pricing policy in 1999 to provide a uniform scheme in charging statistical services. Specifically, the policy prescribes WHEN to charge clients and WHAT to charge them. Meanwhile, the detailed implementing guidelines released this year spelled out the type of information that should be published and the mode of dissemination for free as well as the type of services that are fee-based. 91. New and more policies are expected to be formulated to address emerging products and services of the PSS and related issues and to consider advancements in information technology. Currently, a critical issue that has to be resolved is the adoption of the credit card collection system by government entities as the mode for accepting payment for products and services. The adoption of this system shall speed up the delivery of services to clients within and outside the country. However, its implementation by the NSCB and other government institutions has yet to be approved by the Commission on Audit which will prescribe the necessary guidelines and procedures. The recent enactment of the E Commerce Law is a crucial instrument that is expected to address this concern since government agencies have been enjoined to discharge their functions using electronic modes. D. Revenue Raising Activities

92. Sale of statistical products and provision of services for a fee are done by the PSS in order to earn revenues to recover direct costs of producing the product/service including marketing and developmental expenditures. Specifically, revenue is earned from the sale of statistical publications in printed copies and electronic forms such as in diskettes and CD-ROM, provision of technical services and the conduct of trainings (e.g., Lecture on the National Accounts of the Philippines) or seminars (e.g, Seminar on Statistics for Business Planning). Meanwhile, an executive order was issued by the Office of the President early this year directing agencies to increase their fees by at least 20%. The increase in prices took effect in April 2000. 93. While statistical agencies are authorized to collect fees and revenues, the proceeds cannot be used to defray their operational expenses. However, an exception is the Statistical Research and Training Center which is allowed to invest and to use income, contributions and donations received to cover operational expenses. To address this


concern, the NSCB submitted a draft executive order to the Office of the President to provide authority to the statistical agencies to use 50% of their income. This is in addition to a provision in the General Appropriations Act that allows the use of proceeds from sale of publications to cover printing costs. While the proposed EO is undergoing substantive review by the Department of Budget and Management, the NSCB will continue to explore other means to resolve the issue. IX. MONITORING STATISTICAL PROGRAMS AND ACTIVITIES THRU PERFORMANCE MEASUREMENT 94. A Performance Measurement Scheme for National Statistical Agencies and Other Data Producers will be implemented next year to determine the capabilities of agencies in responding to the needs of their clients and stakeholders. The scheme is expected to generate indicators of agency performance with respect to relevance, timeliness, accuracy, reliability, transparency and integrity, comparability, quality of training materials, facilities and resource persons, coordination, accessib ility and client orientation, and a number of input indicators as well. Ultimately, the results of monitoring will be used for advocacy, promoting public accountability of statistical offices, rationalizing allocation of resources and benchmarking purposes, and as basis for pursuing improvements in the quality of outputs and services and capacity building. 95. The questionnaires designed for the purpose of benchmarking collects information on the agency resources in terms of manpower, financial and equipment, indicators of professional capability, major products and services and their dissemination including documentation of metadata and user feedbacks, use of standards and classification systems, coordination mechanisms developed and adopted, and research and training done in- house and for other clients. It will be administered initially to nine data producers which include the five major statistical agencies in the country and four selected producers of administrative-based data. The major statistical agencies include the NSCB, NSO, Bureau of Agricultural Statistics, Bureau of Labor and Employment Statistics, and Statistical Research and Training Center. Meanwhile, the other data producers are the Department of Education, Culture and Sports, Department of Health, Department of Trade and Industry, and Bangko Sentral ng Pilipinas.


ENHANCING STATISTICAL LITERACY IN THE COUNTRY Annual Celebration of the National Statistics Month (NSM)


Official Mascot O f f iic iia ll M a s c o t O fO fcf ifa t h l a s a o c o t f O ciae Mc s t M Of the O ie N a t i oOa f iS t a t iM hc s o t o n t h n f l c i a l fst a s c M N a t i o n a l S t a ttih t i c s M o n t h s N a t i o n aO f t a tei s t i c s M o n t h lS National Statistics Month Of the National Statistics Month



96. The 11th year observance of this month- long event nationwide in October 2000 with the theme, Empowering Filipino Women through Gender Statistics, was recently concluded. Every year, the celebration focuses on a particular theme so as to highlight statistics pertaining to the theme at hand. The NSM, after more than a decade of observance at the national and subnational levels, has become an effective venue for strengthening and unifying the Philippine statistical community in promoting and instilling nationwide awareness and appreciation Each of the body parts of the Official Mascot represents a of the importance of statistics. The statistical symbol that is commonly used in statistical theory major activities conducted include and its applications. To explain, motorcades, hanging of streamers, n The Head symbolizes the sign `Sigma ()' which is used to denote standard deviation or variations among human exhibits, symposia, trainings/seminars/ endeavors. lectures, information dissemination n The Right Arm symbolizes the sign `Sigma ( )' which is using both print and broadcast media, used to denote summation of society's dreams and and contests. aspirations. 97. It is noteworthy to mention that the sign `Chi Square (2)' and is used to denote independence and objectivity of one's views and the target audience of the various decisions while maintaining harmony with the activities undertaken include the government. studentry and the general public. The use of the symbols as the body parts of the Mascot Specifically, most of the contests held signifies coherence and unity between statistical theory and applications, which include, among at the National Capital Region and in their variousanalysis and interpretation of data. others, the generation, the other regions of the country cater to students at the elementary, The Picture depicted of the Mascot in motion signifies the vision for and mission of the Philippine Statistical System, secondary and tertiary levels as that is, `Statistics in Action' which simply means a system that participants. These competitions is proactive and responsive to developments affecting the country and its products, in terms of statistical data series, include statistical quiz, poster/slogan used in governance, and in the conduct of our daily lives. making, essay writing, and oratorical contests. In addition, lecture series on statistics and demonstrations and tours of statistical offices are also conducted for students. B. Re-engineering the Government Statistical Services Project

n The Left Arm and Torso, taken altogether, symbolizes

98. The project was conceptualized by the NSCB with assistance from the Canadian International Development Agency through its Policy Training and Technical Assistance Facility. It was designed with the end- in-view of investing on human resources, technology and systems development towards long-term efficiency, developing a culture of excellence and entrepreneurial spirit in the PSS and optimizing utilization of existing products and services. Three modules comprise the project--Human Resources Development (HRD), Information Management and Dissemination and Research and Development. The HRD module involves the conduct of seminars/workshops and training programs as mechanis ms for developing a more qualified, competent, effective, and efficient statistical workforce. 99. The project also provides funding assistance for scholarship grants covering doctoral (five slots) and masteral (10 slots) programs in statistics. It is expected that this will beef up the existing core of professional statisticians in the PSS. C. Statistical training courses


100. As the training arm of the PSS, the Statistical Research and Training Center (SRTC) continued to conduct courses on basic and advanced statistics to strengthen the knowledge and skills of statistical personnel. This year, the various topics covered by its training courses include statistical data management, analysis, report writing, presentation skills and forecasting, and sampling design. It also conducts training programs that involve the use of IT in statistical operations, e.g., database management, etc. Meanwhile, the Philippine Statistical Association, the professional organization of statistical personnel in the country, also contributes its share in strengthening the capabilities of its members. In October 1999 and October 2000, the PSA sponsored a training on statistical forecasting with computer applications and data mining concepts and applications, respectively. D. Seminar on Statistics for Business Planning

101. The NSCB, through the National Statistical Information Center, has been conducting the seminar in response to the clamor of corporate planners, market researchers and entrepreneurs to be informed on the sources and concepts of statistical information relevant in business planning. Specifically, the seminar is envisioned to improve data linkages with the business sector as the prime movers of the economy, increase utilization of available statistics, promote better understanding of concepts and indicators, and gather feedbacks on their needs. The mix of participants who have attended the more than ten sessions already conducted include staff of business entities, academe and even government institutions involved in planning, policy and decision- making. Thus far, this forum has been successful in enhancing statistical awareness. E. Statistical education at the elementary, secondary and tertiary levels

102. The observance of the 10th National Statistics Month (NSM) in October 1999 with the theme, Statistical Research, Training and Education: Charting the Course for the New Millennium, culminated with an inter-agency collaboration to enhance statistical literacy and education in the country. This was done through a Declaration of Commitment that was forged during the closing ceremonies of the 10th NSM by concerned institutions. Following the declaration, a Committee on Statistical Literacy and Education was formed by the SRTC, the host of the 10th NSM. The committee is tasked to formulate and undertake activities necessary to implement the following strategies: (1) expansion of the clientele of statistics training and education to include teachers training at the primary, secondary and tertiary levels; and (2) enhancement of statistical literacy through the promotion of statistics at all levels of instruction. 103. Thus far, the committee has conducted workshops to discuss enhancements of statistical literacy at the elementary, secondary and tertiary levels. During said workshops, several papers which showed a situationer on the teaching of statistics at these levels were presented. The paper on Philippine Elementary Learning Competencies (PELCs) prepared by the Bureau of Elementary Education of the Department of Education, Culture and Sports (DECS) showed that basic statistical concepts are already integrated in the desired learning competencies in various subjects at each grade level. The PELCs are listings of expected learning outcomes in the different curricular areas in each elementary grade level. The said outcomes are considered fundamental elements in developing an enlightened citizenry.


104. Meanwhile, the situationer prepared by the Bureau of Secondary Education of the DECS entitled, Status of Statistics Education and Minimum Learning Standards, reported that statistics is a component of the mathematics curriculum in every year level for all secondary levels. However, special schools have more intensive and advanced program while introductory and advanced statistics subjects are suggested subject offerings in private secondary schools. 105. At the tertiary level, a paper presented by the University of the Philippines School of Statistics entitled, Assessment of Statistics Education in the Philippines, indicated that only eleven (11) higher education institutions in the country, out of 24 institutions surveyed, maintain programs in statistics. Relatedly, the Commission on Higher Education (CHED) conducted a workshop with the theme Charting Statistics Education in the New Millennium in June 2000. In this forum, it was noted that the country lags behind in appreciation for information and statistics as shown by the low supply of statisticians and financial remuneration for statisticians, lack of statistical positions in government especially in local government units, and unmet expectations of data providers, producers and users. 106. The concerns on statistical literacy and education that were identified during the workshops and several fora include: (1) enhancement of teacher capabilities; and (2) improvement of the quality of textbooks in statistics. To address the first concern, the Committee advocated for the enhancement of teacher capability through the establishment of Centers for Excellence and Centers for Development in Statistics. As regards the second concern, the SRTC worked out with the National Book Development Board (NBDB) that textbook publishers should have an editorial review board. Furthermore, it was also suggested that there be a peer review of textbooks in statistics written by local authors. These recommendations were discussed during a meeting of the Board of Directors of the Philippine Educational Publishers Association (PEPA) which proposed the following courses of action: (1) the formation of an editorial board in each publishing house; and (2) the creation of a PEPA Evaluation Committee to monitor the publication of all its members. These recommendations are due for ratification by the PEPA members during its next Quarterly Assembly. F. Philippine Statistics Quiz

107. Now on its 9th year, the Philippine Statistics Quiz (PSQ) was organized by the Philippine Statistical Association to test the knowledge of statistics of first year college students. Its specific objectives are threefold, namely: (1) to assess the competency and skills of students in statistics as acquired from the secondary education curriculum; (2) to promote, enhance and instill awareness and appreciation of the importance and value of science, statistics in particular, among studentry; and (3) to generate public awareness on the important uses of statistics in all development planning activities and win overall support for all government wide statistical activities. The PSQ is being managed by the National Statistics Office (NSO) which also creates a Steering Committee and other working committees to perform specific functions relating to the planning, fund sourcing, coordination and conduct of the contest in 16 regions of the country and the national finals.


108. The PSQ is a national competition with the winners of the contest from the different regions vying for championship in the finals. The regional elimination is held in the latter part of November of each year while the national final is usually held in the second week of December. The results of the PSQ can provide indications of the effectiveness of the statistics component of mathematics as a subject in the secondary curriculum. XI. GOVERNMENT COMPUTERIZATION IN THE PHILIPPINES

109. Tremendous government computerization initiatives have been put in place to harness the use of ICT in improving the overall capacity and efficiency of the public sector. These will ultimately impact on existing data collection and dissemination systems of the member agencies of the PSS. The programs adopted include the National Information Technology Plan for the 21st Century or IT21, the setting up of the RPWEB, the Philippine Information Infrastructure (PII), the E-Commerce Law, the Medium- Term Philippine Development Plan (MTPDP), 1999-2004, and the Government Information Systems Plan (GISP). 110. Launched in February 1998, IT21 outlines the country's action agenda for the 21st century, promotes best practices in ICT in governance and encourages the outsourcing of government ICT projects to stimulate industry growth. Meanwhile, the PII provides the telecommunications systems and facility services, value-added network and communications services and informatio n or content management and applications services. The setting up of RPWEB, through a presidential administrative order, provides the needed impetus for the realization of the PII. Specifically, the RPWEB will serve as the country's Intranet to achieve interconnectivity and greater efficiencies in electronic information and data interchange among government, academe and the industry and business sectors. 111. On the other hand, the current MTPDP underscores the commitment of government to carry out wide-ranging administrative reforms to enhance government efficiency and effectiveness in government operations and in the delivery of basic services to the public. It further recognizes that the wider use and application of ICT offer tremendous opportunities for government to ensure the success of these reforms. 112. The National Information Technology Council (NITC), the policy advisory body on ICT in the country, has formulated, in close consultation with various stakeholders, the GISP, also known as Philippine Government Online, to provide the framework for the computerization of vital government operations and key frontline services for more effective governance. Executive Order No. 265 was issued in July 2000 approving and adopting the GISP as framework and guide for all computerization efforts in government. 113. To oversee the implementation, periodic review and updating of the IT21, the GISP and their successor plans, the Information Technology and Electronic Commerce Council was created under the Office of the President. At the same time, the Council, among its other functions, shall create and maintain a national database on IT as part of the national statistical system. Meanwhile, the National Computer Center (NCC), the government's


regulatory arm in the area of ICT, will play a key role in ICT resource management for the public sector. 114. The annual Survey of the Level of Computerization in Government conducted by the NCC provides the needed data in its policy-setting and regulatory functions. Shown in Table 3 are some of the results of the 1999 survey based on the replies of 300 agencies in government. The data sets will be updated during the year 2000 round of the survey which will be administered soon by the NCC.

Table 3. Some results of the 1999 Survey of the Level of Computerization in Government Indicator No. of responding government agencies Personnel to computer ratio (average) No. of IT personnel Agencies with connections to the Internet No. As a ratio of the total responding agencies Agencies with Local Area Network (LAN) No. As a ratio of the total responding agencies No. of computer units Mainframe Mini-computer Micro-computers Budget for IT For CY 2000 (in million Philippine pesos) % increase (decrease) over the 1999 level Data 300 4 4,066 225 75% 133 44% 26,287 7 191 26,089 PhP2,740.8 (10%)



1. Environmental accounting in the Philippines has had a long history. In 1991, environmental accounting in the Philippines made a breakthrough with the launching of the Environment and Natural Resources Accounting Project (ENRAP), a four-phased project of the Department of Environment and Natural Resources funded by the US Agency for International Development. The first phase of the project developed the forest accounts; the second assessed the importance of households as a major source of air and water pollution, with implications on the investment required for managing solid waste disposal; the third revealed a higher degree of depreciation for renewable rather than non-renewable resources and the need for a concerted pollution management effort involving not only various sectors of society but several agencies as well; while the last phase concentrated on the institutionalization and policy use and application of environmental accounts. 2. The National Statistical Coordination Board was a partner in the implementation of the project by providing technical support specifically on the SNA concepts and methods, doing some of the ENRAP estimates, attending the training and discussions on environmental account estimates conducted by the project, acting as resource persons on the System of National Accounts (SNA) framework and serving as consultant to the project. The NSCB expertise on environmental accounting was clearly enhanced by its participation in ENRAP. 3. At the end of 1994, the Integrated Environmental Management for Sustainable Development (IEMSD) Programme, funded by the United Nations Development Programme (UNDP), was launched. Environmental accounting, using the SEEA framework, was one of the main sub-programmes of the project. The NSCB was the implementing agency on environmental accounting and led the development of the Philippine version of the SEEA, known as the Philippine System of integrated Environmental and Economic Accounting (PSEEA). Among the many achievements of the sub-programme is the compilation and subsequent publication of environmental accounts covering five resources (fishery, forest, minerals, land and water resources) and fourteen economic activities in agriculture, fishery and forestry (4), manufacturing (7), mining (1), electricity generation (1) and land transport services (1). The said accounts were presented on more than one occasion to various stakeholders from the government, private and non-government organizations for comments and suggestions. In addition, the project has produced a draft Manual on Sources and Methods for the PSEEA.

Prepared by the National Statistical Coordination Board



4. Following the gains achieved during the ENRA Subprogramme, the second phase of the project was launched in June 1998. The project focuses on the continuous development and enhancement of capabilities to conduct environmental accounting in areas of data generation, planning and policy making and institutionalization ­ the project's foremost objective. Achievement of these goals would create greater awareness and the eventual acceptance and mainstreaming of environmental accounting and the indicators generated from it. The potential of these accounts to contribute greatly to policy formulation and economic-environmental planning would also be realized upon institutionalization. 5. To develop the capacities of the different government agencies involved in the compilation of the different accounts, training/workshops were conducted on the PEENRA Asset Accounts Framework and Estimation Methodologies. The different asset and activity accounts are being revised and updated and expected to be compiled by the end of the year. 6. The Guidelines for the Generation of Statistics/Indicators for the Compilation of PEENRA system has been approved by the PEENRA Steering Committee. To improve the data support, the project conducted a Survey on Environmental Protection Expenditure (SEPE) covering different industries. The objective of the survey was to collect information on expenditures incurred by industries to prevent and abate pollution and the practices and techniques used for the purpose. 7. Through the project, a study on Policy Uses of Environmental Accounting in the Philippines was also generated. The study demonstrated the effective utilization of the results of the Philippine Economic-Environmental and Natural Resources Accounting in planning and policy formulation among the various stakeholders. This was presented to different government, private and non-government organizations. 8. Aside from the efforts to compile the environmental accounts at the national level, the NSCB has embarked on pilot activities at the sub-national level. Regional and provincial environmental accounts are currently being developed in the Cordillera Administrative Region (CAR) under the NSCB Regional Unit and Palawan through the Palawan Council for Sustainable Development Staff (PCSDS), respectively. These accounts would provide better economic-environmental indicators and a much clearer picture of the state of the environment at the regional and provincial levels. In these efforts, the collaboration among the NSCB, the PCSDS and the provincial government of Palawan has been an inspiring experience on the strength that synergy synthesizes. 9. One of the highlights of the ENRA II Project is the recently concluded International Workshop on Environmental and Economic Accounting held last September in Manila.







10. The International Workshop on Environmental and Economic Accounting (IWEEA) was held last 18 to 22 September 2000 in Manila. It was undertaken jointly by the National Statistical Coordination Board (NSCB) of the Philippines, the United Nations Statistical Division (UNSD) in New York and the United Nations Development Program (UNDP) in Manila. 11. The Workshop was attended by fifty-one (51) participants from fourteen (14) countrie s and a special administrative region in the Asia-Pacific region namely: Australia, Cambodia, China, Hongkong China, Indonesia, Japan, Lao People's Democratic Republic, Malaysia, Mongolia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam. Experts from United Kingdom, United States of America ­ New York University, UNDP, UNSD, Economic and Social Commission for Asia and the Pacific (ESCAP), Asian Development Bank (ADB), and World Bank (WB) were tapped as resource persons. 12. The Workshop aimed to serve as a venue to review, compare, and discuss the workin-progress in the development of environmental accounting in the ASEAN region, in particular, and in the Asia-Pacific region, in general. Specifically, it aimed: a) to train the participants in the implementation of the System of Integrated Environmental and Economic Accounting (SEEA); b) to provide a forum for sharing experiences in environmental accounting among countries in the Asia-Pacific region; c) to provide a venue for discussing the first draft of the SEEA 2000; d) to assess the stage of implementation of environmental accounting in various countries in the region; and e) to formally create the Manila Group. 13. The workshop started with country participants presenting a report on the status and plans on environmental accounting/statistics. This was followed by a chapter-by-chapter presentation of the draft SEEA 2000 manual. After each chapter discussion, a country experience was presented to elucidate how the concepts were implemented. The Philippine experience on the institutionalization of environmental accounting was also presented. Lastly, the question on how to sustain the discussions and efforts of the workshop leading to the creation of a forum on environmental accounting was discussed. 14. It is important to note that the workshop indicated that all countries were keen on taking steps toward the compilation of environmental statistics/accounting. Different countries in the region were at different stages of development in the area of environmental accounting. Also, the subject matter presentations showed the conceptual, methodological and data source issues. The availability of data is an important issue to be addressed in implementing environmental accounting. The presence of a coordinating mechanism to facilitate better and stronger linkage among concerned entities is deemed important. Most importantly, there is definitely a need for capacity building among countries. Many countries would benefit from both the technical and financial assis tance from different institutions as well as from countries with experiences in the field. Nevertheless the workshop emphasized that environmental accounts/statistics could be a powerful tool for decision-making and policy formulation.


15. Participants to the workshop also agreed on the need for an organizational framework of cooperation that would facilitate the conduct of a forum on environmental accounting. This will require the creation of a definite organizational structure, terms of reference for the forum that will include the objectives and functions, the necessary committees such as forum secretariat, facilities and other resources. 16. In view of the efforts of the Philippines in pioneering discussions on environmental accounting within the region, it w recommended that the Philippines should serve as the as secretariat of the forum or network. Country representatives from Indonesia and Australia agreed in principle to host succeeding meetings of the networking group. 17. There was, more or less, an agreement that the forum or network shall include countries within the Asia-Pacific region and other interested countries. It was also the opinion of the workshop that this forum or network of countries should meet on a regular basis and a concept paper would be drafted by the secretariat and circulated to the workshop participants towards the formal creation of the networking group. The concept paper would cover areas of agreement reached and the issues that arose during the panel discussion.



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