Czech Statistical System: Global Assessment

Statistical System of the Russian Federation:

Global Assessment

Volume I: Report

Report prepared for Eurostat

in the framework of the TACIS Programme

David Wroe and Pascal Mazodier

July 2003

FINAL DRAFT Contents Volume I: Report Preface Page 4 Executive summary 5 Basic statistics on the Russian Federation 8 1. Legal and constitutional framework 9 (a) Constitution of the Russian Federation 9 (b) Territorial division of the Russian Federation 9 (c) Resolution on Goskomstat 11 (d) Obligations on disclosure 12 (e) Law on 2002 Census of Population 13 (f) Corfu Agreement 13 2. Federal Statistical System 14 (a) History 14 (b) Responsibilities of Goskomstat 14 (c) Involvement of other federal executive authorities 15 (d) Research institutes 15 (e) Federal statistical activities programme 16 (f) Summary 17 3. Goskomstat 18 (a) Mission of Goskomstat 18 (b) Collegium 18 (c) Methodological Council 19 (d) Organisational structure 19 (e) Finance 21 (f) Staffing 22 (i) Recruitment and promotions 22 (ii) Pay 23 (iii)Retirement and pensions 24 (g) Training 24 (h) Information technology 26 (i) Dissemination policies 27 (j) Relationship with users 28 (k) Relationship with suppliers 29 (l) Quality assurance 29 (m) Summary 30 4. Statistical domains 31 (a) Statistical infrastructure 31 (b) Demographic and social statistics 35 (c) Macro-economic statistics 40 (d) Business statistics 44 (e) Monetary, financial, trade and balance of payments statistics 49 (f) Agricultural statistics 53 (g) Multi-domain statistics 56 Tabular summary of findings on compliance with EU statistical acquis 59

5. Conclusions 60 Page 2 of 64 Volume II: Annexes

1. The Constitution of the Russian Federation 2(i) Provisions on the Russian Federation State Statistics Committee 2(ii) Provisions relating to statistics in other legislation 3. Territories of the Russian Federation 4. Federal Statistical Activities Programme 2002: Contents 5. Development of State Statistical System to 2005 6. Action Plan to 2005 7. Organisational structure of Goskomstat 8. Departmental Structure of Goskomstat Central Office 9. Goskomstat staff numbers, by gender, age and education 10. Policies in personnel training 11. Advance Release Calendar, October 2002 - January 2003 12. Goskomstat’s publications 2002 13. Statistics Reported by Goskomstat to International Organizations 14. Cooperation projects involving Goskomstat 15(i) Meetings held during assessment 15(ii) List of Participants 16. Terms of reference for the assessment 17. Statistical documents translated into Russian 18. Web-sites with information in English about Russian statistics

of 64 Statistical System of the Russian Federation: Global Assessment

Preface

This assessment has been carried out at the request of Goskomstat and Eurostat. The full terms of reference are given in Annex 16. In brief, the objectives were:

- To assess the administrative capacity of the country in the field of statistics, - To assess the technical aspects of the statistical system in the country, - To assess the compliance level of Russian statistics with European statistical requirements and to identify the areas where the adoption of the Acquis Communautaire is a relevant objective.

Despite the breadth of the task, we hope that our report meets these objectives – even if though much more contact and a larger team would be required for a comprehensive and authoritative assessment. We hope too that the information which we gathered and which is included in this report and in the annexes will prove useful for other purposes.

Several documents, including the Federal Statistical Activities Work Programme 2002, were translated into English for the purpose of this assessment. We are very grateful for these translations and for all the other assistance we received in our endeavours to develop an understanding of the Russian statistical system. We are conscious too of the patience of those to whom we addressed what in many cases must have seemed very elementary questions.

Special debts of gratitude on our part are due to Yuri Karpenko, Serguei Egorenko and Alexander Goncharov, of Goskomstat’s Department for Foreign Statistics and International Cooperation, for all their help - particularly with the arrangements for our two visits to Russia. These visits included numerous meetings in Moscow, both with Goskomstat’s staff in Moscow and with members of other organisations. We spent some time too with Goskomstat’s staff in Archangelsk and Kazan, in both of which we were made particularly welcome by the Regional Directors, Mrs Lioubov Grigorieva and Mr Valeri Kandilov respectively, and their staff. We are also indebted to our interpreters, especially Svetlana Vlasenko and Alexei Vasiliev who, with impressive competence, provided indispensable interpretations in the meetings in Moscow during our first and second visits respectively.

Pascal Mazodier David Wroe

of 64 Statistical System of the Russian Federation: Global Assessment Executive summary 1. Russian Statistical System The role and powers of The Russian Federation State Statistical Committee (Goskomstat), like those of other official bodies in the Russian Federation, are embedded within the Constitution of the Russian Federation adopted on 25 December 1993 (Annex 1). The Federation comprises 89 Territories each with its own constitution. The Constitution of the Russian Federation specifies those matters on which the federal government has exclusive jurisdiction, and those on which it has joint jurisdiction with the authorities in the Territories. (Chapter 1) The specific basis for Goskomstat’s work is to be found in a resolution, entitled “Provisions on the Russian Federation State Statistics Committee”, which was approved on February 2, 2001 (Annex 2(i)). The Resolution establishes Goskomstat as “a federal executive body executing cross-sectoral co-ordination and functional regulation in the government statistics domain”. It requires that Goskomstat “shall provide .. official statistical information .. on the country’s social, economic and demographic standing” to “federal government authorities, governments of the Russian Federation’s … territories, local authorities, citizenry, and organizations”. Goskomstat’s responsibilities are to be discharged either directly (usually involving its territorial bodies) or by “interacting with other federal executive authorities, executive authorities in the … territories, and other users of statistics”. These bodies must adopt statistical methodology approved by Goskomstat. (Chapter 2(a)-(b)) Russia celebrated in September 2002 the bicentenary of the birth of its state statistical system. Since 1802 the system has undergone many changes, including changes of name. The origins of the present Goskomstat, the Statistical Divisions in the Ministries and agencies, the Statistical Council, and the Statistical Committees in the Territories of the Russian Federation can nevertheless be traced clearly to the foundations laid in the first half of the 19th century. These developments rested heavily on pioneering work by researchers in the preceding century. (Chapter 2(a))

2. Federal Statistical Activities Programme Goskomstat prepares each year “a federal statistics work programme …. on the basis of proposals by federal executive authorities, executive authorities in the … territories, and other users of statistics”. This, as may be seen from the extracts from the 2002 programme in Annex 4, covers a very wide range of statistical activities in Goskomstat as well as in many different bodies of the federal administration. Harmonisation with international standards, particularly EU standards, is a major objective, in line with the Corfu Agreement on Partnership and Cooperation between the Russian Federation, the European Union and EU Member States. (Chapter 2) The Federal Statistical Activities Programme is funded from the federal budget. Other work may be undertaken by Goskomstat’s territorial bodies at the expense of the client (though the way in which this provision is used has been changed recently). The development of statistical methodology for some of the work in the Federal Statistical Activities Programme is carried out by research institutes with which Goskomstat has close contacts. (Chapter 2(d))

of 64 3. Goskomstat Goskomstat describes its mission as: the satisfaction of the requirements of the bodies of State authority and administration, the media, the population, the scientific community, private companies and entrepreneurs, international organizations, with objective and exhaustive information. Responsibility for achieving Goskomstat’s goals rests explicitly with the Chairman, who is appointed by the Government, in practice the Prime Minister. Goskomstat is managed through its “Collegium”. The Collegium does not have any members from outside Government, unlike the Statistical Council. The latter meets around four or five times a year to advise on methodological issues. Goskomstat plans to expand its role, and membership, so that it can advise on a wider range of issues, including the requirements of private sector users of Goskomstat’s statistics. (Chapter 3(a)-(c)) Goskomstat has about 28,000 employees in total, with females heavily outnumbering males. Fewer than 600 of the staff work in the Central Office in Moscow. Some are located in other units in Moscow, but over 26,000 are working in Goskomstat’s branches in the Territories of the Federation. Data collection from businesses and households is handled entirely by these regional offices, which also undertake the initial processing of data and are active in the dissemination of results. (Chapter 3(d)) About 23,000 of Goskomstat’s staff are civil servants. Many of the 4,000 or so non- civil servants in the territorial offices are involved in work specifically for the territorial administrations and other local customers, the others performing lower level, support work. Until 2002, territorial offices were able to retain the receipts, but these now have to be channelled through the Federal Budget. It is not yet clear how the change will affect the level of service provided. Regional offices are also becoming increasingly involved in work with the staff of the Presidential pleni- potentiary envoys in the 7 Federal Districts into which Russia has been divided recently for some federal administrative purposes. (Chapters 2(c), 3(d)) Recruitment and retention of staff is a major problem for Goskomstat, particularly in Moscow and St Petersburg, where vacancies are about 15 per cent. Civil service salaries are too low to be competitive - and are, we were told, too low even to provide an adequate standard of living - in these cities. Few people move to Moscow to work in Goskomstat. There is little mobility between Goskomstat offices. (Chapter 3(f)) The training provided by the European Union’s TACIS programme and other programmes (including bilateral co-operation) has helped considerably in developing the expertise of the staff in Goskomstat and other bodies. Further enhancement of Goskomstat’s information and communications systems is a major component of the World Bank’s US$30 million STASYS programme 2000-4. An important aspect which must be settled soon is whether data capture and processing will continue in its present locations, or be transferred - perhaps to a few regional centres. (Section 3(h)) In the past few years Goskomstat has developed considerably improved arrangements for disseminating results, including advance release dates and press conferences. Goskomstat produces an extensive range of outputs, both on paper and on its web- sites. Russia is close to being able to comply with all the requirements of the IMF’s Special Data Dissemination Standard. (Chapter 3(i)) Page 6 of 64 4. Conclusions and recommendations Government Resolution No. 85, 2 February 2001, provides a good basis for many aspects of Goskomstat’s work, but the provisions for handling confidential data are not satisfactory. The obligations to transfer individual data to other federal bodies pose a considerable threat to public confidence in Goskomstat. At the same time, Goskomstat is unable to access administrative records which it needs. A Statistics Law is required in which Goskomstat is given appropriate rights and duties, and these rights and duties are made clear to the public. (Chapters 1(d), 5.1) In general, Goskomstat works closely and effectively with other federal executive bodies, and, through its Territorial Offices, with executive authorities in the Territories of the Russian Federation. However, problems relating to the transfer of key data from the Ministry of Taxes and Levies and from the Ministry of Finance need to be resolved in collaboration with those Ministries. (Chapters 3(j)-(k), 5.2) Users require more information on methodology, so that Goskomstat’s procedures become more and more transparent to them. (Chapters 3(j), 5.2) Goskomstat has many expert staff. Nevertheless, key sections in Goskomstat’s Central Office (including the National Accounts and International Cooperation Divisions) need to be reinforced to provide the consistently responsive and helpful service which users have a right to expect. Inadequate salaries, and the resulting difficulties of recruiting younger staff, particularly in Moscow and St Petersburg, are serious long term threats to Goskomstat’s effectiveness. (Chapters 3(f), 5.2) The recently conducted Census of Population can be expected to provide a good basis for improving the quality of many statistics. (Chapters 4(b).2.1 and 5.2) In almost all areas of statistical work substantial progress has been made towards full compliance with international standards. In some areas, eg macro-economic statistics, the achievements are particularly impressive, though in almost all areas much remains to be done. Further TACIS support is desirable. (Chapter 5.2) The objective of compliance with the EU statistical acquis is relevant in all cases, except those few where compliance is obviously inappropriate (eg calculating the VAT base for EU budgetary purposes), and would contribute greatly to comparability of EU and Russian statistics. (Chapter 5.3) A major requirement in all branches of statistics is for Russian experts to become acquainted with EU methodologies and to be able to discuss the relevant methodological issues with EU experts. To this end, more documents should be translated into Russian (including ESA95) and more training in English should be offered, so that Russian statisticians can have access to more EU documentation and participate in more EU meetings. (Chapters 3(g) and 5.3) Reciprocally, to promote use of its results outside Russia, both in the EU and elsewhere, and to improve understanding of the methodologies followed, Goskomstat should provide as much material as possible in English. (Chapter 5.3) Additional, specific assessments and recommendations are given in Chapter 4. All of these are summarised in Chapter 5 on the conclusions of the report.

of 64 Global assessment of statistical system in Russian Federation

Basic statistics on the Russian Federation

The Russian Federation comprises 89 Territories each with its own Constitution. The Constitution of the Russian Federation specifies those matters on which the federal government has exclusive jurisdiction, and those on which it has joint jurisdiction with the authorities in the Territories.

Area (sq km) 17075 thousand sq.km

Population (on 1 January 2002) 144 million

Density of population (on 1 January 2002) 8.4 persons per sq.km

Life expectancy (2000)

Males 58.9 years

Females 72.4 years

Unemployment rate (2001) 8.9 per cent

Consumer price inflation rate (over year to Nov 2002) 13.3 per cent

GDP in 2001 9040.8 bn Rubles

Per capita GDP 2001 (US$ in PPP) 7279

Contributions to Gross Value Added per cent

Industry (including fishing) 28.8 Agriculture 6.7 Forestry 0.1 Construction 8.2 Other goods 0.5 Transport 8.4 Other Market Services 38.6 Non-market services 8.7

Current account balance 2001 - per cent of GDP 11.2 per cent

Currency: 31.99 Rubles = 1 Euro (15 November 2002)

of 64 Statistical System of the Russian Federation: Global Assessment

1 Legal and constitutional framework

1(a) Constitution of the Russian Federation

The role and powers of Goskomstat, like those of other official bodies in the Russian Federation, are embedded within the framework of the Constitution of the Russian Federation adopted on 25 December 1993.

The text of the Constitution is given in Annex 1. It runs to 137 articles, and covers 37 pages. It includes chapters on:

1. The Fundamentals of the Constitutional System 2. Rights and Freedoms of Man and Citizen 3. The Federal Structure 4. The President of the Russian Federation 5. The Federal Assembly 6. The Government of the Russian Federation 7. Judicial Power 8. Local Self-Government 9. Constitutional Amendments and Review of the Constitution

Article 65, at the start of Chapter 3 – on the Federal Structure - lists the 89 Territories of the Russian Federation, referred to as “subjects of the Russian Federation”. Article 71, in the same Chapter, lists matters which come within the jurisdiction of the Russian Federation. Article 72 lists matters falling within the joint jurisdiction of the Russian Federation and the Territories. These include education, health care, housing and management of natural resources. Article 73 leaves the Territories with “full state power” in other matters.

Articles 71 (d), (e) and (f) provide for the formation of “federal bodies of state authority”, the possession and management of “federal state property” and the “establishment of federal policy and federal programmes in the sphere of state, economic , ecological, social, cultural and national development of the Russian Federation”. Article 71(p) then cites “meteorological service, standards, metric system, horometry, accounting, geodesy and cartography, names of geographical units, official statistics and accounting” as matters within the jurisdiction of the Russian Federation. Article 71(r) provides for a “federal state service”. Article 78.1 enables the “federal bodies of executive power” to “create their own territorial organs and appoint corresponding officials” in order to exercise their powers.

1(b) Territorial division of the Russian Federation

The 89 Territories of the Russian Federation comprise: 21 Republics, 6 Territories (in the strict sense of the term in Russia), 49 Regions, 1 Autonomous Region, 10 Autonomous Areas, and 2 Cities of federal importance. The Territories differ vastly in area, population and economic conditions. The largest has a population of over 8.5 million, the smallest only 18,000. Article 5.1 of the Constitution declares that the Territories are all “equal subjects of the Russian Federation”. Article 5.4 of the Page 9 of 64 Constitution states that “in relations with federal bodies of state authority all the subjects of the Russian Federation shall be equal among themselves”. Though referred to differently, each of the Territories has virtually the same degree of autonomy. Republics nevertheless “have the right to establish their own state languages” - to be used with Russian as the “state language of the Russian Federation”. Each of the Territories has its own “charter and legislation”. Republics elect their own President and other Territories elect their own Governor.

Each of the Territories is divided into “raions”. There are 1,864 raions in the Russian Federation. The raions are used for Federal administrative purposes. A city may comprise several raions, and a town may be part of a raion. All raions are self- governing to some extent.

Power in the Russian Federation is vested in the President, the Federal Assembly, the Government and the courts of the Federation. The President is the Head of State and is elected for a term of four years by direct election. The Federal Assembly comprises the Council of the Federation and the State Duma. The Council has two representatives of the representative and executive bodies in each Territory. The Duma consists of 450 Deputies, elected for terms of four years.

For administrative purposes, the Federal Government established, by Presidential Decree No. 849 dated 13 May 2000, a framework of federal “okrugs”, or Federal Districts. This has involved grouping contiguous Territories into 7 areas that cover the whole of the Federation. The 7 Federal Districts are:

Central North-Western Southern Privolzhsky Urals Siberian Far Eastern

Under the terms of the Decree, the President has appointed a pleni-potentiary envoy to represent him in each of the Federal Districts, with Federal Inspectors located in the Territories. Their roles are:

 to ensure that Federal Policies are presented suitably in the Territories, and that the President receives relevant feed-back;  to ensure that Federal policies are implemented in the Territories;  to co-ordinate the work of the Federal bodies in the Territories; and  to implement staff policy in respect of Federal appointments.

Gradually, we are told, more policy issues are being addressed through the agency of the Federal Districts, involving both the Federal agencies and the relevant administrations and other bodies in the Territories.

Russia was also divided into 11 Economic Regions for analytical purposes, without political or administrative significance. For most purposes they seem now to have been superseded by the Federal Districts. Page 10 of 64 1(c) Resolution on Goskomstat

The specific legal basis for the role and powers of Goskomstat is to be found in the 9 pages of Resolution No. 85 of the Government of the Russian Federation. This resolution was approved on February 2, 2001 and carries the title, “Provisions on the Russian Federation State Statistics Committee”. Annex 2(i) gives a translation into English provided by CESD for use in this assessment.

Paragraph 1 of the Resolution establishes the Russian Federation State Statistics Committee (Goskomstat) as “a federal executive body executing cross-sectoral co- ordination and functional regulation in the government statistics domain”. It requires Goskomstat “shall provide … official statistical information that constitute part of government resources on the country’s social, economic and demographic standing” to “federal government authorities, governments of the Russian Federation’s member- territories, local authorities, citizenry, and organizations”.

Paragraphs 2-4 specify how Goskomstat shall carry out its responsibilities. These shall be discharged either directly (usually involving its local bodies) or by “interacting with other federal executive authorities, executive authorities in the … member-territories, and other users of statistics”.

Paragraph 5 requires that Goskomstat shall prepare each year “a federal statistics work programme to be compiled on the basis of proposals by federal executive authorities, executive authorities in the … member-territories, and other users of statistics”. The second part of Paragraph 5 places an obligation on corporate and other legally constituted bodies and on individual entrepreneurs with unincorporated businesses to supply information to Goskomstat.

Paragraph 6 places on other bodies the obligation to adopt statistical methodology approved by Goskomstat.

Paragraph 7 states that all the “assignments envisaged in the federal statistics activity programme … shall be funded from the federal budget.” It also states that other assignments may be implemented by Goskomstat’s local bodies at the expense of the requester or client (though as explained later the way in which this provision is used has been changed recently).

Paragraphs 8-10 spell out in more detail Goskomstat’s goals and functions. These include:

reporting in compliance with prescribed procedures of official statistics to both government and non-government users, with “the view of ensuring equal access for all interested users”, including access to “analyses and methodologies”;

the development of “scientifically validated official statistical methodology …., ensuring compliance with international standards”;

of 64 co-ordinating “federal executive authorities’ efforts … in the domain of government statistics”;

the storage and protection of official statistical information, including “data that constitute (a) state secret or any other classified item subject to protection by law, as well as confidential data”;

fulfilment of international obligations and international co-operation in the statistical domain.

Paragraph 11 covers the appointment of the Chairman of Goskomstat and his Deputies by the Government. Paragraph 12 lists the main functions of the Chairman. Paragraph 13 gives Goskomstat the power to issue resolutions, orders, directives etc.

Paragraphs 14 and 15 relate respectively to Goskomstat’s “Collegium” (board) and to the Statistical Council. These two bodies are considered further in a later section of this report.

1(d) Obligations on disclosure

In many respects, the Resolution on Goskomstat, which is described above, performs the same role as a Statistics Act in other countries. However, there are at least two major aspects where its provisions are unsatisfactory.

Despite the provisions in paragraph 5 of the Resolution, Goskomstat has difficulty in obtaining access to data held in other federal executive agencies which are needed by Goskomstat for statistical purposes. The difficulties arise in part from legal constraints on the data suppliers. Goskomstat hopes that its position in this respect would be enhanced considerably by suitable provisions in a Statistics Act.

The second problem relates to the obligations on Goskomstat to pass data about legal entities to other executive authorities in some circumstances. Provisions in other legislation require Goskomstat to supply individual data to other organisations, for example for reviews of the monopoly position of a particular business. The protection offered to the confidentiality of such data by the provisions of the Resolution on Goskomstat compares very unsatisfactorily with the protection offered by Statistics Acts and other legislation in western European countries. A Law on Statistics is required to ensure that data collected by Goskomstat are used only for statistical purposes. Without such protection, Goskomstat cannot expect to be regarded as an independent authority. This will inevitably harm the quality of the information available to Goskomstat and almost certainly erode, over time, confidence in the professional integrity of the organisation.

The draft of a possible new law has been prepared. The task was assigned, after some delay, to a legal company under contract, as part of the STASYS programme financed by a loan from the World Bank. However, the Duma has not included the law in the list of draft laws expected to be enacted in the near future. It is understood that Eurostat will be consulted about the precise content of the proposed legislation. It is also important that Goskomstat is kept informed about the work of the group asked to Page 12 of 64 examine possible revisions to the EU Statistical Law, so that their relevance for the proposed Russian Law on Statistics can be considered.

1(e) Law on 2002 Census of Population

The recent census of population in Russia was conducted under legislation specifically enacted for the purpose – the “All-Russia Census of Population” Law, which received final approval on 16 January 2002. While the law provides safeguards for the confidentiality of individual data, it was unusual in that participation in the census could not be made compulsory. The immediate reason for this is the provision in Article 24 of the Constitution of the Russian Federation that the “collection, keeping, use and dissemination about the private life of a person shall not be allowed without his or her consent”. Furthermore, under Article 26, “no one shall be forced to determine and indicate his or her nationality”. In the event, however, as described below, a high level of response was achieved in the census.

1(f) Corfu Agreement

In June 1994 the Russian Federation and the European Union concluded the Corfu Agreement on Partnership and Cooperation between the Russian Federation, the European Union and EU Member States. The Agreement includes an article (Article 79) on statistical co-operation. This states that the “co-operation shall aim at further development of efficient statistical systems, informational and programme- technological compatibility of statistical data, to provide, in time, reliable statistics needed to support and monitor economic cooperation between the parties and the process of economic reform in Russia, and also to contribute to the development of private enterprise in Russia”. The article continues:

“The Parties shall cooperate in particular:

- to enhance the development of an efficient statistical system in Russia, in particular to elaborate an appropriate institutional framework, - to improve the standards of training and the professional level of the personnel, - to bring about harmonization with international, and in particular, Community methods, standards and classifications, - to provide public and private sector operators with the appropriate macro- and micro-economic data, - to guarantee the confidentiality of data, - to exchange statistical information and to this end to build up and/or make appropriate use of databases.”

The full text of the agreement is set out in the EU Official Journal, L327, 28 November 1997.

of 64 2. Federal Statistical System

2(a) History

Russia’s state statistical system has recently celebrated its 200th anniversary. During the 18th century - particularly in the reign of Catherine the Great (1762-1796) - several researchers developed survey and other statistical procedures and collected a wide range of data. However it was in 1802 that a system of state statistics was introduced. As part of the reforms to the administration introduced by Alexander I, including the creation of ministries, the Imperial Manifest of 8th September 1802 ordered the ministries to prepare written statistical reports. In the same month, governors of provinces were given detailed instructions on the statistical reports required from them.

The processing of information from the provinces was entrusted to the newly established Estate of the Noblemen in the Ministry of the Interior, but in 1811 a Statistical Section was set up in the Ministry of Police. In 1819, the Section was attached to the Chancery of the Ministry of the Interior, where it remained till 1918, though it became the Statistical Committee in 1852, and then the Central Statistical Committee in 1858. The Statistical Council was created in 1863. Statistical committees were set up in the provinces in 1834. Ministries and agencies also developed their own statistical services.

During the Soviet period (1918 – 1991), the Central Statistical Board (as the Committee became) was given a major, central role in the collection of information from both private and public institutions. In 1930, the Board was transferred to the State Planning Commission (Gosplan). In 1948, it became again an independent agency under the Council of Ministers of the USSR. Having been renamed the State Statistical Committee (Goskomstat) of the USSR in 1987, in November 1991 the Committee became Goskomstat of the Russian Federation. Following a brief period in 1999 as the Russian Statistical Agency, its status as a State Committee and its earlier name were restored in December of that year.

2(b) Responsibilities of Goskomstat

As outlined in the preceding chapter, the responsibilities of Goskomstat are specified in Resolution No. 85, dated February 2, 2002 (Annex 2(i)). Paragraph 3 of the Resolution states that Goskomstat, its local bodies, and organizations under its authority “shall constitute the federal system of government statistics”. Many other federal executive authorities, and other authorities, are involved in the production of official statistics. Paragraph 4 requires that Goskomstat “shall implement its activities by interacting with other federal executive authorities, executive authorities in the Russian Federation’s member-territories, local authorities, public associations, and organizations”.

Paragraph 8(5) places on Goskomstat responsibility for co-ordination of the statistical activities of federal executive authorities, whether or not the activities are covered by the “Federal Statistical Activities Programme” considered below. Goskomstat has, following paragraph 9(7), responsibility for “organizing the development and maintenance of the Russia wide/national classifications of technical, economic and Page 14 of 64 social information”. As noted above, official statistical methodology approved by Goskomstat must be followed by other authorities in the Russian Federation (paragraph 6).

A major objective of Goskomstat, consistent with the federal government’s policy towards the European Union, is compliance with international, and in particular EU standards – in line with the general policy of the Government of the Russian Federation and the terms of the Corfu Agreement referred to in Chapter 1.

2(c) Involvement of other federal executive authorities

Numerous federal executive authorities, in addition to Goskomstat, are heavily involved in the production of official statistics on topics which fall within the scope of the European Union’s statistical acquis. Many of these are involved in implementing the federal statistical work programme discussed in the next section. These bodies are listed in Annex 4. As described in Chapter 4, in many statistical domains much of the necessary information is derived from administrative sources or from statistical surveys carried out by other bodies, including the Bank of Russia, the RF State Customs Committee, the RF Ministries of Finance, the Interior, Taxes and Fees Ministry, Education, Health, Labour and Social Development, Natural Resources, Transport, etc.

The RF Ministry of Economic Development and Trade, which is a major user of official statistics, has an important role too in the production of official statistics. The Ministry has co-ordinated the development of the new Russian classification of economic activity, in conformity with NACE (Rev 3), which is being adopted from 1 January 2003. (Issues relating to the transition to the new classification arise in several of the statistical domains considered in Chapter 4.)

2(d) Research institutes

The Resolution on Goskomstat includes several references to research institutions, particularly as users of statistics. It also requires that Goskomstat “define prioritized directions of scientific research in the domain of statistics” and “attract for these purposes, in compliance with prescribed procedures, research institutions under the Russian Academy of Sciences, other Russian and foreign organizations, as well as academics and specialists”.

Institutes which undertake statistical work, including research and developmental projects for Goskomstat, include:

Bureau of Economic Analysis, which was established in 1996 with World Bank lending, on the initiative of the Russian Government, by the Academy of National Economy and the State University Higher School of Economics. The Bureau undertakes analytical work for federal economic agencies and prepares policy recommendations. It publishes an annual survey of economic policy in the Russian Federation and holds annual conferences on major issues relating to the Russian economy and problems of transition. It is also managing the programmes to develop state statistics which are financed by World Bank loans, including the latest STASYS programme. More details of these programmes are given in Annex 14. Page 15 of 64 Centre for Science Research and Statistics of Ministry of Industry and Science and Russian Academy of Sciences, which was established in 1991 under the auspices of the Ministry of Industry, Science and Technology and the Academy of Sciences. Its main objectives are to develop internationally comparable statistics on R&D and innovation in the Russian Federation (discussed further in Chapter 4), analyse and forecast trends in science and technology, publish and disseminate statistics, analytical reviews and policy recommendations. The Centre also analyses trends in the closely related educational system, including higher education, and its links with the labour market. It has helped Goskomstat in the development of various aspects of its statistics, including the labour force survey.

Centre for Economic Analysis under the Government of Russian Federation, which was created in 1959 and is located within the Office of the Government of the Russian Federation. It is financed entirely from a budgetary allocation and its work programme is agreed with the Government, in the light of the requirements of federal bodies. The focus of the Centre’s work is now the economic transformation, both in Russia as a whole and in the Territories. It produces around 250 analytical publications each year. These concentrate on monitoring and evaluating economic and social developments and short-term forecasts (up to 2 years ahead). The Centre conducts business tendency surveys (in collaboration with Goskomstat) which cover most business sectors of the economy. They are based on principles followed in similar INSEE surveys. The centre is also working with the European Commission’s DG EcFin on a TACIS project on business tendency surveys.

Goskomstat also has close relations, supported by a long-term agreement, with the National Institute for Development, which was created in 1996 as a non-profit organization under the Russian Academy of Sciences. In addition to Russian competitiveness, one of its main subjects of study is the development of state statistics in Russia.

While the above bodies are all non-profit organisations, there are differences in the ways in which the work of these institutes is financed. The ability some have to operate on a semi-private basis seems to leave them on the whole more satisfactorily resourced than Goskomstat’s Central Office.

2(e) Federal statistical activities programme

The cycle of work required to prepare the federal statistical activities programme for the next (calendar) year begins in April. Proposals are assembled by Goskomstat’s Department of Statistical Planning. When they have been agreed by Goskomstat’s Collegium, the proposals are circulated to Federal Ministries, other federal executive authorities, Heads of Territories, the Russian Academy of Sciences, Russian Union of Entrepreneurs, Trade Unions, leading members of the media, etc. They are given 1-2 months to reply.

Responses are examined and summarized by Goskomstat, and the Collegium then considers to what extent the additional requirements and other suggestions can be adopted, taking account of resources likely to be available and any other relevant considerations. A “pre-final” draft is circulated to federal Ministries and other bodies Page 16 of 64 in early October. The draft is then finalized and submitted to the Government. Within Government, the plan may be considered either by the whole Cabinet or by the Prime Minister or Vice-Minister. Once the programme is agreed, funding from the federal budget is made available for the activities it involves. (Finance is considered further in Chapter 3.)

To implement the programme, Goskomstat prepares a detailed action plan, which specifies tasks and deadlines for each part of Goskomstat, including both the Central Office and the Regional and District Offices. Progress with the implementation of the programme is monitored by Goskomstat’s Department of Statistical Planning as the year progresses, mainly on the basis of an automated system.

The programme for 2002 was translated into English for the purposes of the current assessment. The headings of the separate sections of the programme are shown in Annex 4. The Annex indicates the very full spectrum of topics covered by the programme.

The annual programme is prepared within the framework of broader programme for the development of official statistics in Russia in the years to 2005. The latter was prepared in the same way as the annual programme is prepared, though only the core Ministries and agencies were consulted. It was adopted in November 2001, and is reproduced in Annex 5. The related Action Plan is also available in English (Annex 6). (The English versions of these documents were provided by the World Bank.) The programme to 2005 envisages developments in many areas, as may be seen from the annexes. Most of these developments are referred to in later sections of this report. The “overarching goal” of the programme is:

“ a comprehensive reform of the government statistics system to ensure reliable, high quality, prompt and publicly available statistical information on the national economic and social life and to maintain public trust in official statistics”.

The programme includes considerable enhancement of Goskomstat’s information and computing systems, much greater use of sampling, and “organizational stream-lining of the Goskomstat regional and local branches”. The resources for the programme (outlined in Section IV of the Annex 5) include World Bank loan financing for the State Statistical System Project (STASYS), which is referred to also in Annex 14. Other sources from which funding is being sought, including the TACIS programme, are indicated against each activity in Annex 6.

2(f) Summary

The above paragraphs of this chapter and Chapter 1 describe the legal and institutional framework of the Russian statistical system. The one obvious weakness of the framework is the absence of a suitable statistical law, particularly to regulate appropriately access to confidential data. In other respects the framework seems appropriate to the large, federal nature of the country. The operations of Goskomstat, which has the major and central role within that framework, are considered in the next chapter.

of 64 3. Goskomstat

3(a) Mission of Goskomstat

The full title of Goskomstat is “The Russian Federation State Statistics Committee”. (“Gos Kom Stat” stands for “State Statistical Committee”.) Federal executive authorities in Russia can take the following forms:

Ministries State Committees Federal Services Federal Inspectorates Agencies Goskomstat is established as a State Committee because it is required to undertake cross-departmental coordination and functional regulation in the field of state statistics.

As described above, the goals, functions and powers of Goskomstat are set out in the Resolution No. 85 of February 2, 2001, entitled “On Approving Provisions on the Russian Federation State Statistics Committee” (Annex 2(i)). The resolution sets out Goskomstat’s major goals. One of the main goals is:

Reporting in compliance with prescribed procedures of official statistics to the Russian Federation President, the Russian Federation Federal Assembly, the Russian Federation Government, federal executive authorities, government authorities in the Russian Federation’s member-territories and their local authorities, courts of law, prosecutor’s offices, research institutions and educational establishments, mass media, international organizations, other organizations, and individuals.

Goskomstat summaries its mission as:

the satisfaction of the requirements of the bodies of State authority and administration, the media, the population, the scientific community, private companies and entrepreneurs, international organizations, with objective and exhaustive information.

3(b) Collegium

The Chairman of Goskomstat is appointed, and may be removed, by the Government of the Russian Federation – in practice the Prime Minister, with the endorsement of the Government. (Further discussion of appointments may be found below.) The Resolution on Goskomstat declares (paragraph 11) that the “Chairman shall bear personal responsibility for accomplishing goals imposed on the Committee and for implementing its functions”. The Resolution also requires (in paragraph 14) that there should be a “collegium” (board) to “address major issues in developing government statistics, as well as other issues associated with the federal system of government statistics”. In the event of a disagreement between the Chairman and Board members, the decision will be taken by the Chairman, but he will be required to Page 18 of 64 report any such dispute to the Russian Federation Government. Board members are also able to deliver their opinions to the Government.

The Collegium comprises 12 persons. The Chairman of Goskomstat is the Chairman of the Collegium. The 6 Deputy Chairmen are members, as are the heads of three of the key departments in Goskomstat’s Central Office (Statistical Planning, Labour Statistics and Statistics of Prices and Finances). The other two members are the Head of Goskomstat’s St Petersburg Branch and the Deputy Minister in the Ministry of Economic Development and Trade. (The President of Goskomstat is also a member of the Ministry’s Collegium.) Although the Resolution specifies also “leading academics and experts”, none has yet been appointed. However, additional persons are invited to attend meetings of the Collegium when Goskomstat considers that it will be appropriate. For example, 15 Ministries were represented when the Collegium discussed in June the adoption of the new classification of economic activity (considered further in Chapter 4). Other Goskomstat Heads of Departments are also invited to attend meetings.

The Collegium meets twice a month. Although the agenda and papers presented to it are not published as a matter of routine, the monthly journal “Issues in Statistics” carries papers on many of the topics discussed.

3(c) Methodological Council

In line with paragraph 15 of the Resolution on Goskomstat, there is also a Methodological Council. This Council, which is a long-standing body and is purely advisory, is intended to “address problems of co-ordinating cross-sectoral activities in government statistics, enhancing statistical methodology, and meeting users’ demands in official statistics”. The Resolution states that it should be “composed of representatives from government authorities, business circles, academic community, (and) mass media”.

The Council is active in the consideration of research and methodological issues. It meets at least 4 times a year to discuss such topics. However, the Council is not yet addressing the other aspects of the role described in the Resolution. Goskomstat plans to appoint additional members to represent the interests of users, including the business community and journalists, so that the Council can cover all the components of this role.

3(d) Organisational structure

The basic structure of Goskomstat is shown in Annex 7. The Central Office in Moscow has a payroll for 622 employees, mainly in its 20 departments. The departmental structure of the Central Office, under the Chairman and 6 Deputy Chairmen, is shown in Annex 8.

There are too some institutes within Goskomstat:

of 64  Inter-regional Centre for Data Processing and Dissemination  Scientific Research and Technology Design Institute of Statistical Information Systems (NIPI Statinform)  R&D Institute on problems of socio-economic statistics (NII)  Inter-industry Institute of Vocational Training for Top-Managers and Experts in Statistics and Accounting

Each institute reports through one of the Deputy Chairmen.

Like the Central Office, Goskomstat’s Inter-regional Centre for Data Processing and Dissemination is also in Moscow, and currently has 900 employees in total. Staff of the centre are not civil servants. The Centre reports through one of the Deputy Chairmen, and provides services to Goskomstat on the basis of an annual contract. However, the Centre is funded only partly by Goskomstat. It receives the bulk of its regular funding by providing non-statistical services to municipal authorities in the Moscow area and to Aeroflot, and by the sale of data drawn from company accounts and of statistical information. The Centre employs 200 of its 900 staff for such work, which helps to finance work for Goskomstat. The Centre is currently involved in processing data from the 2002 Census of Population. The IT systems that the Centre uses are (except in the case of the Census of Population) developed and supported by another Goscomstat institute, NIPI Statinform. This institute also carries out its work for Goscomstat under an annual contract. It too is located in Moscow and employs 200 staff, who - like the employees of the Centre for Data Processing - are not civil servants. The Centre too undertakes work for other clients, in its case mainly statistical projects for Federal Ministries. These account for 20-30 per cent of its receipts. The salaries it is able to pay make it difficult to compete for staff with the private sector. The Institute is involved in work financed by the World Bank’s loans, but, as a public body, it is barred from competing with the private sector for the contracts to be awarded.

By far the greater part of Goskomstat’s staff is to be found in the 88 “Committees” in the Territories of the Russian Federation. (There are 88 “Committees” because the St Petersburg Committee covers both the city and the region.) These bodies (including their staff) are referred to subsequently as the Regional Branches of Goskomstat. There are currently about 23,000 Goskomstat staff in the Regional Branches, including 9,000 in Raion Offices. These are financed from the Federal Budget and are almost all civil servants. In addition the Regional Branches employ about 4,300 staff who are not civil servants and whose salaries are covered by receipts from customised data collection and processing, particularly for the local administrations. (The recent changes to funding arrangements are described in the section below on “Finance”.)

Data collection from businesses and households is handled entirely by the Regional Branches, mainly through their Raion Offices (which are under their direction). The Regional Branches are responsible too for the collection of price quotations and for changes to the register of businesses, in respect of both corporate and unincorporated businesses. Initial processing of the data takes place at the Regional level, and the preliminary regional results may be passed to users in the Member Territory at this stage. The data are then transmitted to the Centre for Data Processing and Dissemination, which produces and disseminates the results for the Russian Page 20 of 64 Federation and for the Territories. Statistics compiled under the Federal Statistical Activities Programme are provided free to the administration of the Territories and the municipal authorities. Payment, covering marginal costs, is required for additional analyses and data collection undertaken by the Regional Branches.

While a significant part of the work of the Regional Offices is undertaken for the local administrations, the offices are also becoming involved in the work of the Federal Districts, eg through involvement with the Federal Inspectors in each Member Territory, referred to in Chapter 1(b). The Chairmen of Goskomstat’s Regional Offices in each Federal District have regular meetings together.

3(e) Finance

Federal executive authorities’ budgets are set just for one year ahead, though in exceptional circumstances special allocations covering more than one year, eg for the Census of Population, may also be made.

Authorities are informed of the projected budget for the following calendar year when the Federal government’s Budget is formulated in June. Unresolved disagreements are discussed by August in a special commission, so that the proposed budget (though not at this stage the details of the Statistical Programme) can be put to the Parliament by 1 September.

The budget approved by the Parliament for Goskomstat specifies amounts under various heads, including compensation of employees, payments to utilities, payments for research, and capital investment. The Finance Division of Goskomstat advises the Chairman on the allocation of these amounts to the Regional Branches and the few other budget centres. The resulting allocation of the budget for 2002 is shown in the following table:

Goskomstat Federal Budget Resources, 2002

Million € * (per cent) Central structure 4.9 2.7 Regional structure 63.9 34.9 Research and development 0.3 0.2 Education 1.6 0.9 Investment 1.0 0.5 International Cooperation 9.0 4.9 Population census 101.8 55.5 Other expenses 0.8 0.4 TOTAL 183.3 100.0

* Converted from rubles to euros at rate of 1€ = 31.08 rubles, the official rate on 1 July 2002

Excluding funds for the Census of Population, the federal allocation to Goskomstat in 2002 amounted to 0.13 per cent of the federal budget.

of 64 The disbursement of funds by the Regional Branches, within the limits set by the Chairman, is monitored through the local unit of the RF Treasury Unit. The Chairman is able to relocate funds between budget centres if he judges this to be appropriate. Relocation of funds between lines of the budget specification may be made only after agreement from the relevant part of the Ministry of Finance.

Salaries are the only component of the budget that is indexed. Over recent years however the Government has reduced substantially the ceilings on the numbers of civil servants (including also non-civil servants who are responsible for the technical support of the federal bodies’ activities). The ceiling on the number of such staff employed in Goskomstat was reduced from 55,000 in 1992 to under 23,600 in 2002. The number of staff in January 2003 (including all non-civil servants) was just over 28,950, excluding 345 vacancies for civil servants. The number of staff employed implies 20 Goskomstat staff per 100,000 inhabitants.

The budgetary arrangements for Goskomstat and other federal executive bodies have recently changed in a significant manner. Before 2002, Goskomstat territorial bodies received non-budgetary funds obtained from work undertaken outside the federal statistical activities programme. This additional financing covered the salaries of the staff undertaking the work (about 4,000 in addition to the 23,000 financed from the federal budget) and various improvements to premises, additional computers, etc. From the start of 2002 all financing received from payable services has to be passed into the income of the budget. Receipts from payable services are now included in the income component of the federal budget, and the allocation to Goskomstat from the federal budget includes the salaries of the personnel and the costs of materials involved in producing these services. This has meant an increase of 364,7 million roubles in Goskomstat’s allocation, The Goskomstat of Russia transferred 420 million roubles into the income of federal budget (including VAT and value added) in 2002. A new volume of payable services for the next year has to be negotiated with the Ministry of Finance while the federal budget for the next year is being prepared.

So far, it is not possible to tell how the new arrangements will impact on the service which Goskomstat provides. Most of the Regional Chairs consulted considered that so far the change has made no difference to the service they provide to local customers, partly because there is enough scope to switch work to accommodate small, new requirements. It is likely however that in the longer run a significant factor will be the way in which the Ministry of Finance responds when receipts are higher (or lower) than the target levels. It would seem important to leave Goskomstat with some incentive to provide services to territorial bodies.

3(f) Staffing

(i) Recruitment and promotions

The Chairman and Deputy Chairmen of Goskomstat are appointed, and may be removed, by the Prime Minister. There is no term specified for the tenure of office. Though there is no legal obligation on the Government to do so, before making an

of 64 appointment the Prime Minister will in practice seek advice from the Human Resources Section of the Russian Federal Government Office. Only Ministers, and not Chairmen of State Committees, are likely to change with a change of government.

The Chairman appoints the Heads of Department in Goskomstat’s Central Office and the Chairs and Deputy Chairs of the Regional Offices. For appointments to these and other senior posts, the federal provisions require that there is an open competition. Departments however hold reserve “pools” of officers who are judged ready for promotion. Names from the “pool” can then be put forward when a post becomes vacant. People are consulted before their names are added to a “pool” (indeed some choose not to have their names added), but their names are not publicised. Goskomstat’s Department for State Service, Staff and Territorial Bodies monitors adherence within Goskomstat to the prescribed procedures. Senior staff and most other staff are employed as civil servants, which means that they are covered by the provisions of the Civil Service Law and, in particular, enjoy higher salaries and more security of employment than others employed (not civil servants) in Goskomstat. Despite this, open competitions are not held for lower level posts because there are many vacancies and few applicants, particularly in Moscow and St Petersburg. New recruits are usually appointed as civil servants after a trial period of 3-6 months.

The staff numbers shown in Annex 9 give some indication of the difficulties in recruitment. Good young graduates, particularly men, find it easy to obtain better paid jobs in the private sector, with the result that Goskomstat staff members are predominantly in the age groups over 40 – a potential source of considerable difficulty in the years ahead. Vacancies are running at about 15 per cent in Goskomstat’s Central Office – rather more than in most of the Regional Offices.

Over 90 per cent of Goskomstat staff members are females. At present, female staff hold posts up to, and including, the level of Head of Department.

There is a policy of encouraging staff movement between departments in Goskomstat, though it seems that moves between departments, or between regions, are relatively infrequent.

(ii) Pay

Pay scales for civil service grades are specified with upper and lower limits. Increments are awarded annually. In addition to basic salary, the officer may also be entitled to various allowances which can in some circumstances exceed the basic salary. In addition staff may be allocated a bonus (a one-off payment) from time to time. These are made on the recommendation of the Departmental Head. For senior staff a bonus will be between 150 and 200 per cent of basic salary. For junior staff they are between 60 and 100 per cent of basic salary. Bonuses are funded from the budgetary allocation for salaries, which could raise conflicts between the desire to fill vacancies and the desire to award bonuses. Many of those met referred to the low level of civil service salaries, particularly in relation in Moscow to the cost of living and the salaries paid in the private sector.

of 64 (iii) Retirement and pensions

Any retirement in Russia, we were told, “has to be seen as a personal tragedy for the person involved”. The reason is the very low level of occupational pensions. Men in the Russian Federal Civil Service are entitled to take their Civil Service pensions at age 60 and women at age 55. Theses are also the ages at which the State pensions become available to all employees. However, civil servants in the top grades (about 70 persons in Goskomstat in Moscow) are eligible to continue working till age 65. The State Pension is typically 2500-4500 roubles per month, which corresponds to 73- 132 Euro and is payable only if length of service is at least 25 years.

The Civil Service pension is calculated on the basis of final salary and length of service. Service of 15 years gives entitlement to a pension of 45% of final salary, multiplied by a co-efficient of 1.8; longer service leads to a higher pension, with 25 years’ service giving entitlement to a pension of 75% of final salary, multiplied by the same co-efficient of 1.8. However, these percentages apply only to basic salary. The latter may be much less than total pay. The result is that typically pensions for those with 25 years of service are no more than 40% of actual final pay. As Civil Service pay is already very low compared with basic living costs, the pensions paid inevitably mean hardship for many of the recipients. For persons in the most senior posts (about 80 in Goskomstat), medical services continue to be free of charge after retirement.

3(g) Training

People employed in Goskomstat and other bodies have clearly been helped immensely by the various co-operation programmes in which they have been involved. Outlines of the TACIS and World Bank programmes are given in Annex 14. Both include substantial training components. One of the TACIS projects involved the development of training programmes for Goskomstat specialists. Goskomstat and colleagues in other bodies have also received help with economic and financial statistics from the IMF and the OECD, and have participated in bilateral projects with many Western European countries. Annex 14 lists also the bilateral programmes which are currently active. It also includes the list of topics on which Goskomstat is hoping to receive assistance in a further TACIS round.

A government Resolution adopted in 1994 requires that every staff member in the federal administration is “retrained” every 5 years – this involves training of over 72 hours on and off the job. Goskomstat has not been able to keep to this requirement, but 3-4,000 staff are “retrained” each year using funds provided for this purpose by the Ministry of Labour and Social Security.

Between 800 and 900 Goskomstat staff receive training (usually in the form of “up- grading”, which requires at least 72 hours of training and 2 weeks away from the job) from the Russian Civil Service Academy. The Academy, which has branches in various parts of the Russian Federation, provides courses on administrative and managerial topics.

of 64 Goskomstat has its own Institute for Staff Training, but its training institutions outside Moscow have now been transferred from Goskomstat. The TACIS programme provided training, in 6 seminars across Russia, for trainers who could then train others. The subjects covered were national accounts, business statistics and sampling techniques.

Goskomstat makes use too of other institutes such as the Moscow State University for Economy, Statistics and Computer Sciences, Novosibirsk State Economics and Management Academy, etc. Wherever possible, Goskomstat arranges for the courses to be tailored suitably. Goskomstat members provide some of the training on such courses. At present, there are in Goskomstat 40 staff who possess doctoral or other academic (postgraduate) qualifications. About 100 persons per year take training courses abroad. Currently 15 Goskomstat staff members are on secondments to national statistical institutes in other countries, mostly CIS countries.

Provision of training for Goskomstat staff is co-ordinated by the Human Resources Department, which seeks to respond to the considerable demands for training from within the organisation by providing access to training geared to the requirements of the organisation for staff at all levels, including recruits. The value of the training is monitored. A summary presentation of the training policy is set out in Annex 10. The policy involves annual training for managers and training for specialists at least once every two years.

The training referred to above is concerned predominantly with administrative, managerial, and specialist IT and statistical skills. Such training is obviously crucially important. It is clear, however, from discussions about specific areas of Goskomstat’s work, that competence in foreign languages (particularly English in present circumstances) is also essential if Russian specialists are to have easy access to documents, and to be able to participate effectively in discussions about international standards in statistics and about their application. A limited number of staff in Goskomstat already speak English well. Many, however, quoted the absence of Russian translations (or interpretation at international meetings) as the first difficulty to be overcome in moving towards international standards in their areas of work. A training course for 35 young staff members was provided under TACIS in 2000, but much more is required – both for young and older staff. None is being provided by Goskomstat at present.

English is required particularly at the level of Head of Division and above, as well as at senior levels in the territorial offices. Advanced and specialized training in “statistical” and “economic” English might preferably be given in intensive residential seminars to be organized in Western Europe. If such training is to be supported by European funds, however, it is important that:

(i) Goskomstat should make it clear to its younger staff that ability to work in English will be considered an important positive factor when it comes to being promoted to the “pool” of future higher staff; (ii) Goskomstat should provide enough time to those persons keen to undertake such linguistic training; and should facilitate the organization by appropriate Russian institutions of basic training in English for them.

of 64 3(h) Information technology

As reported above, Goskomstat’s Centre for Data Processing and Dissemination, which is located in Moscow, provides data processing services to Goskomstat on the basis of an annual contract. The IT systems that the Centre uses are (except in the case of the Census of Population) developed and supported by another Goskomstat institute, NIPI Statinform. The institute has participated in TACIS projects on data processing with the Swedish and German statistical institutes. Like the Centre for Data Processing and Dissemination, it carries out its work for Goskomstat under an annual contract. Both the Centre and the Institute are required to submit tenders for their contracts, but the Ministry of Economic Development and Trade (which oversees the tendering for Federal contracts) allows the contracts to be awarded without requiring bids from others. No other bodies are likely to have anything like the same knowledge of the work involved.

The Centre for Data Processing and Dissemination carries out the processing of all the surveys etc required under the Federal programme, maintains the necessary databases (including databases holding classifications), and prepares the relevant publications. The Centre has electronic links with the Central Office and the 88 Territorial Offices. Its duties include the transmission of software, as well as statistical results, to the Territorial Offices. The latter have their own local networks linking which link the Raion Offices to them. There are currently 2,400 Raion Offices, but some of these are being merged.

In addition to the shortage of PCs, the main problems with the present arrangements are the relative inefficiency of the out-dated systems in respect of data entry, processing, and data transmission and the problems of integrating data from different sources. A major component of the World Bank’s STASYS programme is therefore the enhancement of Goskomstat’s information and computing systems. Nearly US$20 million is being made available in a loan for this purpose. The plans are described in slightly more detail in Section III.10 of the Goskomstat 5 year programme (Annex 5). The conceptual framework was developed further in 2000- 2001, and a technical brief has been elaborated. Some of the equipment involved has already arrived.

An important aspect of the system, which must be settled soon, is where the bulk of the data processing will take place in future. Apparently, 6 alternative arrangements are under consideration. The 5 year programme (Section 3.11, Annex 5) links this issue to the creation of new Federal Districts. It is clear that the needs of the Federal Districts have to be (and indeed are being) addressed. But so also the requirements of the authorities in the Territories will still have to be addressed. It is not immediately obvious, therefore, that the creation of the Federal Districts offers a strong case for relocating data processing from Moscow. Nor is it immediately evident how the creation of new inter-regional processing centres will itself lead to the “streamlining” of the “organizational structure of the Goskomstat territorial branches”, rather than a relocation of posts from Moscow. These two issues – where the inter-regional processing takes place and what should be the structure of the territorial branches - seem to be two fairly distinct issues, at least while the territorial branches are concerned mainly with data gathering and dissemination. Goskomstat is, however,

of 64 aware of the importance of reaching clear and sustainable decisions on these sensitive issues before the development of new system proceeds much further.

3(i) Dissemination policies

Russia is close to full adherence with the IMF’s Special Data Dissemination Standard. The Ministry of Finance, which produces the Government Finance Statistics, has been nominated as the IMF’s contact point for this purpose. The only issue still to be resolved is the release of information on foreign currency reserves and liquidity. Advance release dates are announced for key monthly and quarterly statistical indicators. Recent dates are given in Annex 11. The results become available to all users at the same time, notably on Goskomstat’s web-site (www.gks.ru). Hard copies of the results are provided free of charge to relevant federal government bodies, and one copy is provided free to the authorities in each Member Territory. Press conferences are held before the publication of the main yearly publications or the release of the key indicators. Goskomstat’s service to the media has, we were told, improved considerably in recent years (since around 1998), with advance release dates and more releases that covered a wider range of topics, presented in a consistent manner. Confidence in Goskomstat’s results has increased, though information on some subjects, eg shipbuilding and production of non-ferrous metals, is still withheld and there are particular concerns about the adequacy of additions to cover the non- observed economy. Recently, too, Goskomstat has lost the staff that ran its press service, which is now covered from the General Information Department.

Publications and flash releases are available on paper, but they are now also available in electronic form, both on Goskomstat’s web-site and on CD-ROMs. In addition to flash releases, the latest data are collated monthly in “Social and Economic Status of Russia”. This too is available on Goskomstat’s web-site, and, like the flash estimates, may be accessed free of charge. A much more detailed version, with results for each Member Territory, is also held on the web-site, but there is a charge for access to it. Regional Offices also maintain their own web-sites. The list of Goskomstat’s publications in 2002 is given in Annex 12.

Goskomstat plans to improve the arrangements for dissemination from its Regional Offices on the basis of the enhanced information system being introduced under the STASYS programme. A geographic information system, which will enhance the presentation of regional data, is being acquired under the STASYS programme. (Section III.7 of Annex 5 and Annex 14 provide more information.)

Goskomstat’s publications and web-site contain some English translations. Annex 12 indicates which are currently available in English. Some, such as Russia in Figures, are prepared as separate publications in English. Others, such as the Demographic Yearbook of Russia, have Russian and English texts in the same publication. The annual national accounts publication has just the contents listed in English. The further expansion of the material available in English, particularly methodological details, will greatly enhance the understanding of Russian statistics among official statisticians in other countries.

of 64 Goskomstat’s library can be used by the public. It holds hard copies of Goskomstat’s publications, many publications from other national statistical institutes and international bodies, and selected economic periodicals and monographs,. As a result of a TACIS project, the library has a very useful electronic catalogue. There are though only a few desks available in the library and, because it is located well inside Goskomstat’s Central Office and access is under tight control by security guards, visitors to the library must make a prior appointment. Additional special arrangements are required if the visitor is a non-resident.

The international questionnaires completed by Goskomstat are listed in Annex 13. Russian data are available on Eurostat’s NEWCRONOS database.

3(j) Relationship with users

Goskomstat enjoys generally close relationships with users in the federal government and research institutes. These relationships are in many cases underpinned by formal agreements on respective responsibilities, but it is apparent that the contacts are much more frequent than those required by the formal agreements. However, the extent to which Goskomstat is able to respond to the requirements of users, particularly in Moscow, is severely restricted by the severe shortage of staff in key areas, including the national accounts. The problems created by the switch to the new classification of economic activities offer an especially topical example. Several users also said that they wished to see more information on methodologies, particularly when changes are made. Users in international organisations have also referred to the high level of competence of Goskomstat’s subject specialists, while noting also the tremendous demands placed on key personnel because their divisions are under-staffed.

The same positive relationships appear to exist in the Territories. Indeed, in the areas visited it was apparent that the Goskomstat Committees make a major contribution to the work of the local administrations, which depend heavily on them for the statistics they need and, in turn, support the Committees in their work. The Committees are also becoming increasingly involved in work with the staff of the Federal Districts.

There has been considerable effort in recent years to provide a good service to private sector enterprises and to members of the public. A TACIS financed project which involved a survey of users’ requirements is helping to shape an appropriate strategy. One requirement that is evident is the need for more information on definitions and other aspects of methodology.

In addition to its regular surveys and analyses, Goskomstat undertakes customized surveys and analyses. For these the users are charged the costs of the additional work involved. As explained above, such work undertaken in Goskomstat’s Regional Offices is an important source of funding. How, if at all, this will be affected though by the change in budgetary arrangements, described in Section 3(e) above, is still difficult to foresee.

Goskomstat’s main web-site is at www.gks.ru . A list of web-sites which contain information in English about Russian statistics is given in Annex 18.

of 64 3(k) Relationship with suppliers

Goskomstat’s bilateral agreements with other bodies in the federal administration, and with administrations in the Territories, cover the supply of data to Goskomstat. In most cases, these arrangements are operating entirely satisfactorily, with the result that Goskomstat is able to make extensive use of administrative data. There are, nevertheless, some problems in the supply to Goskomstat of the data needed from the Ministry of Finance (for the national accounts) and from the Ministry of Taxes and Levies (both for the business register and the national accounts). The problems are considered further in Sections 4(a).2.3 and 4(c).2.1. In part they stem from legal restrictions (in relation to the Ministry of Taxes and Levies). However, it is important that Goskomstat sets out clearly why it needs the data it is requesting (especially in relation to the national accounts), and that it discusses its requirements with both Ministries, not least to see whether there are alternative solutions. Obviously, also, the various issues raised by the use of Electronic Data Interchange (EDI) should be addressed in the new Statistics Law.

The contacts between enterprises and the staff in the Goskomstat’s Regional and District Offices help undoubtedly in securing a good response to surveys. The policy of tailoring business surveys to what businesses can provide, conducting pilot surveys and discussing the questionnaires with the statisticians in the Regional offices also helps to maintain good relationships with suppliers. In the case of more complex businesses, however, a closer relationship needs to be established to obtain more information on component activities (a point considered further in Chapter 4).

Goskomstat is gradually extending the collection of data in electronic form, including supply by email using specially prepared software relating to particular business surveys.

3(l) Quality assurance

Some of the best assurances of quality are the development of good systems (eg by the adoption of tested procedures - as indicated in the preceding section - and exposure of methodology, particularly in comparison with those of other countries), the proper training of staff, and careful validation of results - if possible through integration with data from other sources. The sections of Chapter 4 give a strong indication of how these approaches are being adopted in Goskomstat’s work. As in many countries, a critical factor in the drive to improve quality generally is the adequacy of the business register. The register certainly presents some difficulty in Russia at present, but steps are being taken to remedy its main defects. The large scale of the informal sector and, allegedly, of illegal transactions in Russia, however, undoubtedly creates special challenges for Russia’s official statisticians.

of 64 3(m) Summary

Goskomstat has clear appropriate objectives and well developed planning procedures. It has an extensive and strong regional network, which is effective in both the collection and the dissemination of data. The Regional Offices are crucial in providing a good statistical service to the Territorial administrations in the Federation.

The Statistical Council is to include representatives of users in the business community and the media in future, and to be given the wider role envisaged for it. Goskomstat has improved considerably its arrangements for disseminating results. In general Goskomstat enjoys good relations with users of its statistics, but the shortage of staff in key areas in the Goskomstat Central Office also makes it difficult for the staff to respond as fully as might be expected to requests from users. Divisions concerned with key statistics, whose members clearly have considerable expertise, are desperately short of staff. These, and Goskomstat’s International Co-operation Division, need to be strengthened considerably so that they can provide a more consistently responsive service, though the low level of civil service salaries makes this very difficult to achieve.

In respect of the supply of data to Goskomstat, most arrangements are working smoothly, both at the Federal level and at the regional level. There are however some difficulties. Problems of access to data in some areas stem in part from legal restrictions on access to data, but these problems may be exacerbated by Goskomstat’s reluctance, possibly through lack of adequate staff to meet the requirements on them, to engage in discussions about their requirements.

of 64 4. Statistical domains

The following sections concern the degree of compliance between the infrastructure and outputs of the statistical system of the Russian Federation and the statistical requirements of the European Union, as identified in the statistical acquis. The requirements are summarised in the Statistical Requirements Compendium, published by Eurostat (latest edition, 2002). The sections below follow the structure adopted in the Compendium, at the levels of Chapters and Themes. A tabular summary of the Russian Federation’s degree of compliance with EU statistical requirements is at the end of the chapter.

4(a) Statistical infrastructure

4(a).1 Introduction

Goskomstat and its counterparts in other federal bodies have made considerable progress in the past few years towards establishing in the Russian Federation the statistical infrastructure which is needed in a democratic country with a free market economy and which will provide statistics comparable with those produced in the countries of Western Europe and in other developed countries. As required by the relevant Government Resolution (Annex 2), Goskomstat is striving to comply with international statistical standards. In particular, the development of the statistical system in the Russian Federation has been guided by the Fundamental Principles of Official Statistics adopted by the UN Statistical Commission. Substantial parts of the system are now in place, as the later sections of this chapter demonstrate, but on the other hand, many further developments are still required. Earlier chapters of this report have referred to the need for suitable legislation, which will help to underpin public confidence in Goskomstat, and thus in the service it provides. The move to the new classification of economic activity, which was adopted on 1 January 2003, is needed both to take account of fundamental changes in the nature of the economy and to provide internationally comparable statistics. Many other classifications and changes in methodology, however, still remain to be brought into line with international practice.

4(a).2 Themes

4(a).2.1 Classifications

A new Russian classification of economic activities has been prepared, and has been adopted by Gosstandard, the body which oversees the development and implementation of all official standards for the Russian Federation. The new classification came into use on 1 January 2003. It is consistent with NACE Rev1. The inter-agency group which prepared the classification was chaired by the Ministry of Economic Development and Trade. It involved Goskomstat and the Ministry of Finance, as well as other bodies. The same group is also identifying which statistics should be produced on both the old and new classifications, and for how long (eg two years), though the availability of funds for such “double running” still has to be Page 31 of 64 secured. The group is preparing too a related classification of products (compatible with CPA), but this has still to be completed. A Classification of Institutional Units by Sector has also been developed, and is expected to be approved in the next few months. Other classifications to be developed include the Classification of the Functions of the Government, in line with the SNA recommendations.

In relation to the transition from the old to the new classification of economic activity, the Ministry of Economic Development and Trade in particular is pressing for the continuation of detailed analyses on the basis of the old classification of economic activity and the application of the new classification to statistics for earlier years because such series form the basis of its econometric analyses and forecasting. Eurostat has recently agreed to fund assistance to Goskomstat with the handling of the transition, under the TACIS programme.

Other classifications which are used in economic statistics and are incorporated into the 1993 System of National Accounts (SNA), including the classification of individual consumption by purpose, have still to be developed or to be applied fully, eg in the national accounts and price indices. Goskomstat plans to do this within the scope of the programme to 2005 (Annex 5). In most cases, this will involve adapting, or replacing, classifications which already exist and which Goskomstat already uses.

The HS nomenclature and other international guidelines have been adopted in Russia’s external trade statistics. Energy statistics are also harmonised with international classifications.

In fields such as health and education, Goskomstat is able to align information to international classifications, but in other fields, such as tourism and environmental statistics, alignment has not yet been achieved.

The regional structure of the Russian Federation provides a ready basis for territorial units, and Goskomstat is developing a geographic information system to exploit this in its analysis and presentation of regional statistics. The Territories conform broadly with NUTS 2 regions.

Goskomstat is developing a database, which will in due course be accessible by the public, to hold Russian and international classifications.

4(a).2.2 Statistical Co-ordination

In most respects, the co-ordination of statistical work in the Russian Federation is handled effectively, as explained in the preceding chapters. Problems over access to data constitute the main exception to this. Bodies which are especially closely involved with Goskomstat in the development of Russia’s statistics, such as the preparation and implementation of new classifications in economic statistics, include the Central Bank of Russia, the Customs Committee, the Ministry of Finance and the Ministry of Economic Development and Trade, but many other bodies are also involved, as appropriate. The Ministry of Economic Development and Trade has co- ordinating responsibility within the federal administration in respect of the TACIS programme. Page 32 of 64 4(a).2.3 Registers

(a) Business register

A reliable business register is in Russia, as in other countries, crucial to the preparation of reliable economic statistics. Goskomstat holds centrally a unified register of businesses (EGPRO), but the register is managed by Goskomstat’s Regional Offices. EGPRO is a register held for administrative purposes and is open to the public. Goskomstat also holds a “statistical register”, which is based on EGPRO and contains additional information (eg turnover). The administrative register covers both legally constituted bodies and individual entrepreneurs. Of the 3.5 million legal entities registered, about 1 million are no longer operating, but have not cancelled their registrations. The register also covers 4.5 million individual entrepreneurs.

Recent changes to the procedures for registration have led to some changes in the sources of data for the business register. Goskomstat depends on the Federal Ministry of Taxes and Levies for information about new businesses. Goskomstat also needs access to information held by tax bodies to up-date the register in respect of information on individual entrepreneurs. The Ministry finds itself unable to release the information required by Goskomstat because of legal restrictions imposed by Article 102 of the Tax Code adopted in 1999. A proposal to amend the Code has been before the Duma for some time, but the prospects for its adoption are uncertain. In many countries such administrative data are key sources of information for the business register.

Additional information is also required in the register on different statistical units. As part of a project with INSEE, Goskomstat is introducing information on local and other units into the statistical register. Information is needed on local units to improve regional data. The extension of the structural surveys this year to all branches of economic activity will help considerably in improving information about the local units of large and medium-sized businesses. Information is also required on the structure of “groups” (often foreign-owned groups), so as to be able to separate quite different types of economic activity. It is hoped that funds will be available this year to make progress in 2003 on this aspect also.

While many steps are already being taken to identify dormant businesses and to correct the register in other respects (particularly in relation to individual entrepreneurs), the economic census planned for 2004 as part of the STASYS project should help considerably to improve the quality of the register, and, thus, of the statistics based on it. The Census of Businesses carried out in 2000 covered small legal entities (corporate units), but not individual entrepreneurs (unincorporated businesses).

(b) Other registers

One other important register is the register of territorial units, including urban settlements and rural areas. The information collected in the Census of Population, Page 33 of 64 structured on the basis of the register of territorial units, will provide a good basis for household and other surveys in the coming years.

The Russian Land Cadastre Committee holds registers of land-holdings in the Russian Federation.

The farm register, which is in part to be found in the business register, is considered further in Section 4(f) below.

4(a).2.4 Data security and statistical confidentiality

The plans for enhanced information and communications systems for Goskomstat include special provisions for the security of statistical information (section III.8, Annex 5)

Problems in respect of statistical confidentiality are considered in section 1(d) above. While Goskomstat endeavours to safeguard the confidentiality of data collected in statistical surveys, it is unable to do so in all cases because of legal obligations on it. In the special case of the Census of Population, a provision was introduced into the Census 2002 Law to safeguard the confidentiality of the information provided.

Procedures have been introduced to avoid the indirect disclosure of individual data, especially where one business dominates a market.

4(a).3 Main findings

Much progress has been made, and Goskomstat has plans to complete the transition of its statistical infrastructure so as to conform with the classifications and procedures followed in Western European and other developed countries. Changes in legislation, particularly the adoption of a Statistics Law, are especially important among the further changes needed. More access to administrative data is required to improve the quality of Goskomstat’s statistics.

Another pressing issue for Goskomstat and the users of its statistics is that of handling the change from the old to the new classification of economic activity.

of 64 4(b) Demographic and social statistics

4(b).1 Introduction

In addition to providing valuable information on social circumstances throughout the Russian Federation, the Census of Population carried out in October 2002 is intended to provide the basis for enhancement of all demographic statistics on the Russian Federation. It will also provide the basis of a sampling frame for improved design of the household budget and other household surveys, and provide a benchmark for many other statistics. The 2002 Census of Population was the first to be held in Russia since 1989, when the Census covered the Soviet Union. A 5 per cent micro- census was held in 1994.

4(b).2 Themes

4(b).2.1 Population

The Census of Population 2002 was carried out under the provisions of the “All- Russia Census of Population” Law, which was finally approved on 16 January 2002. This was the first such law in Russia. Participation in the census could not be made compulsory as this would have breached Article 24 of the Russian Constitution (Annex 1). Nevertheless, the campaign to persuade people to participate seems to have been successful. Full response was obtained from 93 per cent of the population; in the remaining 7 per cent, it was possible to obtain the age and sex of the population. The experience gained by Goskomstat in maintaining information about dwellings was helpful in monitoring the coverage of the census. Unlike the previous Census, the 2002 Census was based on households rather than families.

Everybody received a “short” list of 11 questions. One in four was asked also about employment, migration and (in the case of women) numbers of births. The topics covered conform broadly with UN-ECE guidelines, but names need not be supplied. The first results, based on manual processing, will become available by 1 April 2003. The data are being captured electronically by optical scanning in 16 centres, and will then be processed centrally. The first results profiling the population (with information on gender, age and migration) will be available by August 2003.

On the basis of the census results, the estimates of population and forecasts of the population are to be improved. However, for this purpose better information on international migration is needed, especially on the significant numbers who leave on a temporary basis (notably for Germany, Israel or the USA), but stay permanently and fail to cancel their registrations. An expert group, involving Goskomstat, is looking at possible improvements on legislation relating to migration. This may help to some extent in improving the reliability of the statistics.

Some assistance with demographic analysis and forecasting was provided by Dutch experts under TACIS 2. Goskomstat also hopes to use the census and other results to estimate more reliable demographic indicators (death rates, life expectation, fertility rates, etc), if possible with the help of a survey on family structure and fertility to Page 35 of 64 provide additional inputs. The information would also be used to analyse trends in the formation of households and to prepare projections of numbers of households (on the lines of such work in the United Kingdom).

4(b).2.2 Labour market

Goskomstat introduced a labour force survey in 1992. Initially the survey was held annually, but has been quarterly since the first quarter of 1999. The ILO has confirmed that the survey conforms entirely with their guidance.

The main problem with the survey is the sample size required. Although it involves 120,000 households in a year and smaller regions are sampled more intensively, adequately accurate data for Territories can be provided only by combining data for 4 quarters. At present the sample is derived from the micro-census conducted in 1994. In future, information from the census of population is to be used.

Goskomstat has been collecting information on labour costs every second year since 1994, based on ILO recommendations. Information is also collected every second year on the distribution of the numbers of employed by the size of salary and by different professions in a range of economic sectors. Average salaries are monitored monthly for all economic sectors and territories of the Russian Federation. Goskomstat hopes to collect more information on professional and skilled staff, including salaries in enterprises, using an expanded list of professions.. More information on labour efficiency is required to meet requirements within the federal administration.

Information on the informal sector is estimated from household surveys. Work recently has focussed on the development, with TACIS help, of labour accounts which involve integrating the data on employment from different sources. A recent problem identified by the national accounts team is the estimation of the earnings of staff employed in enterprises which are not established as legal entities - the total number of which is estimated to be up to 3 million people.

4(b).2.3 Education

Responsibily for collecting statistics on education is divided between Goskomstat and the Ministry of Education. The latter collects information on state general educational institutions, institutions of professional education, boarding-schools and institutions of additional education for children.. While arrangements in the Russian Federation are different from those implicit in the definitions adopted internationally, Goskomstat and the Ministry of Education are able to re-align the statistics to conform with international requirements. Statistics on adult vocational training are also available, but, because of the distinctive arrangements in the Russian Federation, these cannot be aligned with international recommendations. The one gap in the available information relates to economic aspects of education (eg costs, rate of return, etc). The international questionnaires are completed joitly by the Ministry of Education and Goskomstat and submitted by the Ministry of Education.

of 64 4(b).2.4 Culture

Data are available, principally those collected by the Russian Federation Cultural Affairs Ministry, as listed in the Federal Statistical Activities Programme. The methodology used by the Ministry has been approved by Goskomstat. The international questionnaires are filled in jointly by Goskomstat and by the Ministry of Culture and other state authorities which have responsibilities in the field of culture. They are submitted to international organisations by Goskomstat.

4(b).2.5 Health, safety and consumer protection

The Ministry of Public Health is responsible for the collection of data from affiliated medical and other health-care institutions. Goskomstat collects information from health-care organisations that are not covered by the Ministry of Public Health system. It is possible to provide information in line with standard international requirements. As a result of a large effort in 1999, it is now possible to apply the latest International Classifications of Diseases and Health Related Problems (Revision 10) – abbreviated list - in coding causes of death. The international questionnaires are completed joitly by the Ministry of Public Health and Goskomstat and submitted by the Ministry of Public Health.

4(b).2.6 Distribution of incomes and living conditions

Goskomstat’s household budget survey has been modified since 1995 to bring it closer to international practice. The survey now complies closely with EU guidelines, though it does not yield a good breakdown by household income. The sample of 49,000 in the household budget survey was built on the basis of data from the 1994 micro-census. Goskomstat is now developing a scheme involving a planned rotating sample and is proceeding to shape the sample with the use of the records from the 2002 census.

To make a more precise assessment of the distribution of incomes, Goskomstat considers it necessary to revive the practice of conducting special surveys of population incomes - the last such survey was conducted in 1989. For this reason work is needed on development of a suitable survey programme which takes into account the new economic conditions.

Goskomstat hopes to be able to conduct a National Survey on Household Welfare and Participation in Social Programmes (NOBUS). The survey is a component of the project of the Russian Federation Government to be funded by the International Bank for Reconstruction and Development (IBRD) through a loan budget allocated for the Social Protection Implementation Law (SPIL) The results of the survey will make it possible to carry out analyses of participation in the social protection system, to reveal the population groups to which social protection must be given as a priority, to assess

of 64 the effectiveness of population social protection programmes, and to make better measures of the economic situation of households.

The Ministry of Labour and Social Development and Goskomstat, with the assistance of the World Bank and the UK Department for International Development, are participating in a “Joint Project on Enhancing Poverty Measurement, Monitoring and Analysis in Russia”, implemented on the commission of the Government of the Russian Federation. The main source of data is likely to be Goskomstat’s Household Budget Survey, but the possible use of administrative data will be explored. Consideration will also be given to possible improvements to these sources, with a view to preparing, by December 2005, “a final report containing a detailed analysis of poverty level, profile and sources; evaluation of the effectiveness of socio-economic policy, as well as poverty reduction recommendations, using the 2003-2004 HBS databases and other data arrays”.

Goskomstat has had some experience of time-use surveys as such a survey was held every five years up to 1990. Respondents were asked to recall how they had spent their time, rather than to keep a diary. Goskomstat regret that a proposal to work with Statistics Sweden on this topic could not be implemented.

4(b).2.7 Social protection

Information on social protection is available from the Ministry of Labour, the Russian Pension Fund, and the Russian Federation Social Insurance Fund. So far, however, these data have not been brought together in the EU framework of social protection accounts. The proposed National Survey on Household Welfare and Participation in Social Programmes (NOBUS), which is referred to above, would also provide relevant information.

4(b).2.8 Housing statistics

To the mid-nineties responsibilities for statistics on housing and public utilities were decentralised to a considerable extent. Operational data were collected and analysed by the authority to which management of activities in relation to housing and public utilities was entrusted – Ministry of Housing and Public Utilities of the Russian Soviet Federal Republic, then the State Committee of Russian Federation on Construction and Housing and Public Utilities. (The name of this Committee changed repeatedly, but the function stayed the same – construction and housing and public utilities.) The data from these authorities were transferred to Goskomstat as final aggregate accounts.

During the period mentioned, Goskomstat collected, processed and released annual data on the availability and conditions of housing, waiting lists for dwellings, water- supply, sewerage and heating services, and some other aspects. The annual reports generally consisted of volume indicators. In 1989 Goskomstat started to collect statistics on privatisation processes. With the growth of market transactions, collection of data on the sales of dwellings on the primary market was introduced - as

of 64 well as collection of data on the waiting lists for purchasing newly-built apartments or houses – a means of improving housing conditions.

Since 1997, Goskomstat has organized the monitoring of the development of the reform of housing and public utilities. Within the framework of this monitoring, practically all statistical data on the housing and public utilities now collected form part of the system organised by Goskomstat. A particular characteristic of statistical observation of housing and public utilities in Russia, that distinguishes it from the international statistical practice, is the use of full-coverage surveys (annually, as a rule) to collect basic data from the organisations (municipal, as well as others), which are rendering housing and public utilities services to the population, jointly with the data from administrative sources (organisations holding technical inventories, bodies handling the registration of real estate etc.)

4(b).3 Main findings

Particularly when the results of the 2002 Census of Population become available, the Russian Federation will be able to supply many of the demographic and social statistics which are required in EU Member States. Major steps are planned to improve statistics on levels of household welfare and the incidence of poverty. To take proper advantage of the census results, it is also important that priority is given to the compilation of basic demographic indicators, including international migration, and the analysis of demographic trends, including trends in fertility and household formation.

There is demand from users also for improved statistics on labour efficiency.

of 64 4(c) Macro-economic statistics

4(c).1 Introduction

The development of a system of national accounts based on the internationally accepted 1993 System of National accounts has been a major objective of Goskomstat over the past decade. This has involved a radical reform in Russia’s statistical system, required to match the rapid changes towards a free-market economy and the increasing demands for relevant and internationally comparable statistics. A substantial part of the system of national accounts is now in place, supported by newly introduced business surveys, suitable price indices, etc. The programme for the period to 2005 envisages the virtual completion of this framework of accounts, using internationally recommended conventions throughout and with improvements to the accuracy of the data which is used to compile the accounts.

4(c).2 Themes

4(c).2.1 Annual economic accounts

Goskomstat now provides economic accounts, on the basis of SNA 93, making the best use possible of the available data. The accounts cover the whole set of SNA accounts except the financial account, the account of other changes in assets and liabilities, the revaluation account, and the balance sheets. In addition, Goskomstat makes calculations of separate elements of the financial accounts as regards changes in the financial assets and liabilities held by the sectors “state authorities” and “households”.

ESA95 is not available in Russian, but is referred to from time-to-time to help with methodological problems. The accounts are available from 1991. Separate accounts are provided for each institutional sector, but the basis of the sector classification has still to be brought into line with SNA definitions. A project underway at present is intended to provide the basis for the sector classification, and it is hoped to introduce the new sector classification into the accounts over the next two or so years.

The national accounts and the balance of payments accounts, which are the responsibility of the Bank of Russia, are prepared on consistent bases. The accounts include input-output analyses for the Russian economy. The latest such analyses relate to 2000. The estimates of GDP include adjustments of 20-25 per cent to allow for the non-observed economy – estimated with help from TACIS projects and from OECD. But inevitably there remain considerable problems relating to the scale of economic operations that are not covered by direct statistical observation, especially as they affect the estimates for the regions of Russia. Further steps on the improvement of the methodology of these adjustments, are being worked out by Goskomstat specialists, in discussion with OECD experts.

Estimates of Gross Regional Product (at current and constant prices) are prepared for each Member Territory. These estimates are finalised in Goskomstat’s Central Office based on the production approach; regional estimates of household consumption expenditure and of fixed capital formation are also compiled. Annual estimates for Page 40 of 64 each Territory are compiled first in the Regional Offices and sent to Moscow by 31 August of the year following that to which they relate. Although they may be released by the Regional Office if required, they are not publicised until confirmation of the figures (or revised estimates) arrive from Moscow at the beginning of the next year.

One of the tasks to be undertaken by Goskomstat is the creation of databases of raw statistical information used for compiling National Accounts and databases for the system of national accounts indicators. In the framework of Tacis projects ”Statistics- 4” and “Statistics-5”, work has started on the creation of a draft, automated scheme for forming macroeconomic indicators, based on the observation of institutional units’ activities. It is planned that the experts from departments which are responsible for collection and processing of information and for policy in the field of technology and technical maintenance of information resources, will also take part. This work is expected to take a number of years to complete Creation of such databases will contribute to the better analysis of raw information, ensure coordination of initial data, simplify the processing of initial data, improve timeliness and the quality of the accounts, and facilitate the preparation of different outputs to characterise the movements in the Russian economy.

To improve the quality of national accounting, Goskomstat has purchased the IAS software, intended to compile accounts of production, use and formation of incomes in current and comparable (ie previous year’s) prices on the base of an input-output model, and also to build up the input-output tables. The experts of the National Accounts Department are now facing the goal of adapting this software to the Russian information base.

Owing to the transition to the new classification of economic activity, the methodology of “production” and “formation of incomes” accounts’ indicators have to be revised. The new classification of economic activity will be adopted in the accounts from Q1 2004. It is not planned, in the near future, to put estimates for earlier periods onto the new classification.

While there is good co-operation generally between the different bodies involved in helping to prepare the national accounts, Goskomstat has some difficulty in obtaining some of the data it needs from the Ministry of Finance and from the Ministry of Taxes and Levies. In relation to the Ministry of Finance, these problems could perhaps be overcome after the economic budgetary classification is set in accordance with the international requirements of Government Finance Statistics (GFS), for which the Ministry is responsible in Russia.

The main directions identified by Goskomstat for the development of National Accounts in Russia are as follows:

- Enhancing and increasing the reliability of accounts which are already published regularly; - Development of accounts and tables, which are not yet compiled; - Improvement of information base for the formation of key accounts; - Improvement of methodology for compiling national accounts indicators on the regional level; Page 41 of 64 - Harmonising the subject-matter statistics with SNA, in respect of both methodological regulations and the interaction with subject-matter departments of Goskomstat; - Harmonising with SNA the macroeconomic statistics, for which other authorities are responsible (Ministry of Finance, Central Bank, Ministry of Taxes and Levies, State Customs Committee etc.)

4(c).2.2 Quarterly and environmental accounts

(i) Quarterly accounts

Quarterly accounts, similar to the annual accounts but without the breakdown by institutional sector, are compiled within 80 days following the end of the quarter. The first estimate of GDP is available after 50 days. The quarterly accounts are compiled in current and comparable prices. The quarterly accounts are compiled only for the federal level. To observe the in-year dynamic of the behaviour of economy on the regional level, indices of the volume of physical production in basic sectors of the economy (industry, construction, transport, trade, agriculture) are calculated. The indices of the volume of physical production of basic sectors are calculated in Goskomstat’s territorial bodies and are approved after verification in Goskomstat’s Central Office.

(ii) Environmental accounts

Goskomstat is developing statistics on environmental protection expenditure, with advice from Russian scientists. Goskomstat would find it helpful to have consultations with Eurostat experts and more information, preferably in Russian, on the methodology followed in the European Union, notably in the field of environmental protection expenditure and the classification of environmental protection activity.

4(c).2.3 Financial accounts

Sector financial accounts, as specified in SNA, have still to be developed. The Ministry of Finance is responsible for Russia’s Government Finance Statistics. A large part of the work on sector financial accounts will fall on the Ministry of Finance and the Bank of Russia, but Goskomstat will be responsible for the methodology used and for co-ordination with the rest of the national accounts. The Ministry of Finance expects to be able to provide data on an “accruals basis”, as required in both the SNA and the IMF’s revised guidance on Government Finance Statistics, but some “accruals adjustments” are already included in the national accounts. Help with the implementation of the revised manual on Government Finance Statistics is to be provided under the STASYS programme (Annex 14).

of 64 4(c).2.4 Monitoring own resources

While these requirements relate closely to budgetary arrangements within the EU, there could be some benefit if the Russian Federation aimed to comply with the requirements of the GNP Directive – though only with reference to ESA95 and not ESA79.

4(c).2.5 Prices

A consumer price index is compiled weekly, for each Member Territory. Improvements in data collection have been introduced (based on the use of hand-held computers), appropriate use of geometric averages has been adopted, and the selection of retail outlets has been improved. However, further changes (including modifying the methods of calculation and up-dating the sample of outlets covered) are required to bring the methodology and classifications used into line with international practice, and, in particular, to be able to follow the methodology of the EU’s Harmonised Index of Consumer Prices The federal government has also asked Goskomstat to develop statistics on “core” inflation, a topic on which Eurostat is working currently to produce a harmonized definition for use by all EU countries.

Goskomstat provides the methodology and calculation of producer price indexes in construction, prices on marketed agricultural production, tariffs on freight transportation, tariffs on communication services for legal entities, prices on the dwelling market. The producer price indices, which are also compiled for each Member Territory, need to be brought into line with recommended international practice. One basic change that is required is the introduction of suitable sampling procedures in the selection of businesses and of the items to be priced.

The Russian Federation has participated since 1993 in the International Comparison Programme, and since 1999 in the OECD-Eurostat programme. Russia is coordinator for the CIS and Mongolia comparisons for 2000. International comparisons of gross domestic product on the basis of purchasing power parities are included in various Goskomstat publications.

4(c).3 Main findings

Very impressive progress has been made in developing a new system of macroeconomic statistics for the Russian Federation, with key statistics also for each Member Territory. The staff involved who have brought the system this far are, moreover, well aware of the remaining weaknesses – particularly in the quality of some of the data they receive – and of the nature of the further extensions and modifications needed in the framework. The development of financial accounts and improvement of price indices are major tasks, and the opportunity to collaborate with EU experts on these topics would appear to be helpful. A major constraint may, however, be whether the small team involved in developing and now maintaining the system of national accounts so far developed has the time also to expand the system further. The team should in any case be provided with a Russian translation of ESA95. Page 43 of 64 4(d) Business statistics

4(d).1 Introduction

Under Russian Law businesses, including farms, are required to register as legal entities or as individual entrepreneurs (ie unincorporated businesses). Legal entities are regarded under the law as small businesses if they meet certain criteria, including:

employment not exceeding specified level, depending on main activity (eg 100 in manufacturing and construction, 50 in wholesaling, 30 in retailing, 30 in research and other services); 30 for farms.

government direct share of authorised capital not exceeding 25 per cent.

Other legal entities are classified “large and medium”.

There are different surveys for “large and medium”, “small” and “individual entrepreneurs”.

4(d).2 Themes

4(d).2.1 Statistics on the economic activity of enterprises

(i) Structural business statistics and short-term statistics

Structural statistics covering industry, construction and internal trade have been collected since 1998. They are to be extended to cover other activities in 2003. Both structural and short-term statistics are collected in a unified programme of surveys.

All large and medium enterprises are required, by law, to provide monthly information on production, labour costs, fixed capital formation, and financial performance (including changes in inventories). More detailed information on fixed capital formation is collected quarterly, and more detail on production is obtained annually. The results are disseminated in various releases, including the monthly report on the “Socio-Economic Situation in Russia”. Sampling among medium sized enterprises is to be introduced.

Small enterprises covering industry, construction and internal trade are covered quarterly by sample surveys which collect data on performance and labour inputs. Other activities are included annually. There is particular concern about the quality of the information available. A census of small businesses was held in 2000. This helped to improve considerably the relevant entries in the Business Register. More recent statistics are based on extrapolations from the census results. It is hoped to hold a similar census every 3-5 years.

There is also an annual sample survey of individual entrepreneurs in trade and manufacturing. A census of all such economic activity is planned for 2004. After Page 44 of 64 conducting the census, which will make it possible to derive a representative sample at minimal additional expense, it is planned to move to a quarterly sample survey of individual entrepreneurs, at least in retailing where they are particularly numerous.

Annual accounts, including balance sheets, are obtained from all legal entities. These are based on statutorily based accounting conventions, and are less detailed for small businesses. The accounts must be submitted to Goskomstat’s Regional Offices by 1 April following the year to which they relate. Results are consulted for each branch of economic activity, and then these results and the businesses’ accounts (700,000 in all) are sent to Moscow. The analyses are completed some time in August. The Centre for Data Processing and Dissemination also prepares and sells customised analyses of the accounts.

As far as possible the results are compared with information from tax authorities (on both legal entities and individual entrepreneurs), but rules about access to tax records present problems in this respect.

Users (and members of Goskomstat staff) commented on the need for returns relating to complex businesses, notably foreign-owned businesses operating in both the financial and other sectors, to provide separate information on each of their main activities. Experts from INSEE have been assisting in the development of a suitable system of units of observation. Businesses are not always able to supply information on local units or local kind of activity units. They are therefore now being asked to report according to their own structure, showing for each unit:

employment wage bill output of goods and services fixed capital formation

The transition to the new classification of economic activity is to be achieved by continuing with the monthly inquiries to large and medium-sized businesses on the old classification and to use the new classification in quarterly inquiries. After two years the quarterly inquiry would become monthly.

In general, Goskomstat considers that it is able to comply with EU requirements on short-term indicators and collects structural data, but the classifications etc may not all correspond exactly with EU conventions.

(ii) PRODCOM

Information on 1500 products is collected monthly, and on 7500 products annually. However, the classification used at present is the Russian classification of products. Goskomstat plans to move to a new PRODCOM related classification in future. How much more detailed this will be than the PRODCOM classification has still to be settled, but clearly the more detailed it is, the more likely that revisions to the classification will be needed frequently.

of 64 4(d).2.2 Energy statistics

Structural business statistics, short-term indicators and production statistics are collected from the energy sector as part of the unified programme of business statistics.

Energy balances are compiled for over 30 main products, based on methodologies developed in Russia in respect of oil, coal, gas and renewable energy resources. Information is collected from consumers, to supplement the data on consumption which suppliers can provide, but the coverage of small businesses is problematical.

As a leading world producer of energy, Russia has a particularly strong interest in international statistical requirements for energy statistics. Though not a member of the International Energy Agency, Russia attends its meetings as observer, and follows its recommendations on energy statistics. Russia has received several IEA delegations to discuss methodological issues relating to the IEA questionnaire. Goskomstat is participating also in the Joint Oil-Data Transparency Initiative, which involves Eurostat and other key international organisations and over 100 countries, and is concerned with monthly data on oil and downstream products.

Goskomstat plans to participate in the development of indicators of sustainable development, and is looking at specific EU requirements.

4(d).2.3 Transport

Responsibility for the collection of transport statistics in the Russian Federation is shared between Goskomstat and several other federal bodies, including the Ministry of Transport. The results are verified and aggregated by Goskomstat. Goskomstat represents Russia on transport statistics in the sessions of the UN-ECE Working Group on transport statistics and completes returns on transport statistics for UN-ECE and other international organisations. The Russian Federation maintains close ties with the relevant international organisations, firstly with Eurostat, and also with the International Conference of Transport Ministries and the International Railways Union.

In general, the Russian Federation is able to supply the information required by international organisations. Several years ago, a big effort was made to bring statistics on air transport into line with international requirements. There are however still some problems. Information is not available on mixed modes of transport. Not all the data available on road accidents is yet being processed suitably by the Interior Ministry, which is responsible for the data. There are also problems in the statistical data on the new registrations of cars on the territory of the country. The registering authority – the Ministry of Internal Affairs - finds it inadvisable to indicate in the records when a new car sold via agents may have been re-registered two or more times.

of 64 The biggest problem, however, is the statistical coverage of automobile transport. Large and medium-sized enterprises are well covered, but there are also many small and many unincorporated enterprises in road transport. Small legal entities, due to the legislative requirements, are covered on a sample basis, but only quarterly. As part of a TACIS project methods for a sample survey of freight transportation by individual entrepreneurs were developed, and from 1995 a survey has been conducted on the same basis. A pilot survey, based on similar methods , asking for weekly reports is being held in 2002. Provided that the pilot is successful, it is hoped to extend the survey to provide reliable estimates for all road transport. Additional developments will be required also to collect information on non-resident operators. Methods of doing so, both from Customs data and from other sources, are being explored. In addition, methods of assessment of transportation values in the informal sector of the economy are to be improved.

4(d).2.4 Communication, Information Society and Audio-visual Services

Statistics on postal and communication services are available. These statistical data are collected and processed mainly by the Ministry of Communication of the Russian Federation. In the framework of communication statistics, aspects of informatization, connected to data transfer, are considered (info-communicational technologies). Current forms of statistical observation are adequate to provide the main indicators of development of networks and means of communication, including those relating to informatisation. However, the methods of statistical observation are lagging behind the fast-developing processes in this area and need improvement - with the international experience taken into account.

The Centre for Science Research and Statistics is participating in a TACIS project concerning statistics on the information society. A publication on Science and Technology Indicators in Russia and the EU has been prepared. The Centre participates also in the OECD Group on the Information Society.

4(d).2.5 Tourism

Goskomstat embarked on the development of tourism statistics on the Russian Federation about two years ago. An inventory of the available data is being compiled, and this is being compared with international requirements. Goskomstat has been working particularly on the basis of technical papers from the World Tourism Organisation, include a paper on tourism satellite accounts.

A major difficulty is that the federal Law on the Basic Principles of Tourist Activities 1996 focuses on producers rather than tourists and also uses definitions different from those used internationally. A Duma Committee has decided that a new law is required. The draft now prepared takes account of Goskomstat’s proposals. A second problematical issue is the aggregate grouping “tourism” in the new classification of economic activity. While the Ministry of Trade and Economic Development has so far favoured a narrow definition involving only those activities directly involved, Goskomstat has been arguing for a broader definition in line with international recommendations. It is now optimistic that the issue will be resolved satisfactorily as a Government Resolution “Strategy of tourism development in the Russian Federation Page 47 of 64 for the period to the year 2005” requires the improvement of tourism statistics.

With help from the Greek NSI under the TACIS programme, Goskomstat has started to collect additional, relevant information from existing surveys and has developed new surveys covering tour operators, hotels and other accommodation, though many do not at present keep suitable records.

With the development of balance of payments statistics, international tourism statistics are also being developed. Currently they are based on data from the Frontier Guards Service and on the reports obtained from organisations which provide services on the accommodation and servicing of foreign tourists. In 2000-2002, pilot surveys were conducted, based on the foreign experience of data collection on international tourism. In co-operation with Statistics Finland, Goskomstat ran a pilot survey on the level of spending by foreign tourists departing from Russia, to obtain indicators of stay costs. A second pilot, with a more detailed expenditure breakdown, has been held at Moscow Sheremetyevo International Airport under TACIS-4. Among other results, the latter provided estimates of average expenditures by foreign visitors to Russia and the average durations of their visits. These results have been judged reliable enough to encourage Goskomstat to hold such surveys biennially or triennially in future, provided that funds are available. The results would be used in conjunction with numbers of travellers, which are provided by border controls, to estimate the total value of “International travel”. This item accounts for nearly half of the trade in international services in the Russian balance of payments.

4(d).3 Main Findings

Goskomstat, in collaboration with other federal bodies, has developed a coherent framework of business statistics, including monthly indicators, which appears to be capable of matching EU requirements, particularly after the transition to classifications of economic activity and of products is completed. The precise degree of coherence should be examined in detail in due course, notably in respect of the Structural Business Statistics and Short-term Statistics Regulations, with a view to achieving full alignment. However, a basic problem which affects most aspects is the reliability of the coverage of small businesses, including individual entrepreneurs. Though a problem in most countries, it is a particularly important problem at this stage of Russia’s economic development. The planned census of economic activity addresses this issue. Better access to administrative records is also needed to deal with the problem on a continuing basis.

Further work is in progress too in the development of tourism statistics.

of 64 4(e) Monetary, financial, trade and balance of payments statistics

4(e).1 Introduction

The Central Bank of the Russian Federation (CBR) is responsible for monetary and balance of payments statistics. The Ministry of Finance is responsible for government finance statistics. Customs statistics are compiled by the State Customs Committee. These bodies and Goskomstat are working together, within the framework of the Federal Statistical Activities Programme, to ensure that the results they produce are the best available, are consistent, and conform with the relevant international guidance.

Statistics covered in this section are compiled and disseminated in compliance with the IMF’s Special Data Dissemination Standard (SDDS). In relation to subscribing to SDDS, the only outstanding issue concerns data on foreign currency reserves and liquidity. The information needed to meet the new requirements is available, but a decision has not yet been made on whether to release it. The Ministry of Finance has the lead responsibility in relation to the SDDS in Russia.

4(e).2 Themes

4(e).2.1 Money and finance

The CBR is able to supply the banking and monetary statistics required by the IMF. The results are placed on the CBR web-site (www.cbr.ru) and are published in its publications, including the monthly Bulletin of Banking Statistics.

The CBR is participating in the IMF’s piloting of new questionnaires and new manual on monetary statistics. The IMF aim to complete the trials by 2005.

At present the CBR has powers only to collect data from lending institutions. The proposed new law on the CBR provides powers to seek data from all legal entities, including insurance companies, and pension and investment funds. The CBR is considering with the Ministry of Finance (which regulates the insurance industry and the investment securities exchange) and the Ministry of Labour (which oversees non- government pension funds) precisely which data are required. Such data would also be available for use in sector financial accounts. The organization of statistical surveys on the financial indicators of non-banking sector organizations (legal entities, including insurance companies, investment and non-budgetary funds) is entrusted to Goskomstat. Furthermore, Goskomstat is the only organization which provides processing of book-keeping records of organizations.

Information on interest rates is readily available. (One of the CBR’s concerns in this respect is rather the problem of forecasting international interest rates.)

4(e).2.2 Trade in goods

Within the Russian Federation, the State Customs Committee has responsibility for providing other government bodies with customs statistics on foreign trade. Statistics Page 49 of 64 on each month’s trade are placed on the Customs web-site (www.customs.ru) 35-37 days after the end of the month – in time for the statistics on a balance of payments basis to be prepared by the CBR for inclusion in their Monthly Bulletin after 42 days. In addition, in the same time period an official monthly report of Goskomstat “Social and Economic Situation in the Russian Federation” is released, which incorporates the Customs data. Hard copies are mailed to users. There is also a quarterly publication, with more commodity detail, and an annual compendium. This includes quantity data as well as values. Volume and unit value indices are compiled from these data. A small unit, “Russian Customs Information Unit”, sells tabulations on a customised basis. Direct access to Customs’ database has also been introduced, with charges for commercial users.

Customs statistics cover all merchandise covering the Customs border. The “General Trade” basis is adopted. Commodities are coded according to the Harmonised System, with 10 digits for national purposes (but not according to the more detailed CN system used in the European Union). Data are published annually at the 6 digit level, with selected products at the 8 digit level. The data are collected using the Single Administrative Document, as in EU countries. The methodology adopted is entirely in line with UN guidance. The RF Customs Committee has participated in the drafting of UN guidelines on methodology. Compared with EU practice, there are two main differences. The EU favours the “Special Trade” basis. The RF State Customs Committee can though identify additions to and releases from bonded warehouses, so could provide information on the “Special Trade” basis. The other difference is that the EU wants the country of destination, rather than the country of consignment. Data are supplied quarterly to Eurostat, and the RF State Customs Committee receives data from Eurostat. Data are also reported quarterly to the IMF.

Goskomstat publishes each month in its official releases the total figures of foreign trade, based on data from the balance of payments presented by the Bank of Russia, and Customs statistics data presented by State Customs Committee of Russia.

The results of foreign trade, estimated by the Bank of Russia on the methodology of the balance of payments, include:

- Customs statistics on foreign trade, obtained on the basis of freight customs declarations, with the account of data on the Republic of Belarus; - Data on export (import) of goods, which are not crossing the customs border of the Russian Federation (on the base of a statistical survey by the Goskomstat of Russia); - Adjustments of the Bank of Russia for the data on foreign trade statistics, which include the estimated cost of the goods imported (exported) by natural persons within the limits of the relevant duty-free quota and in the simplified (soft) regime, and other elements of adjustments.

The main weakness in the statistics stems from the fact that since 1995 there has been completely free trade between the Russian Federation and Belarus. Customs border controls between the two countries have been removed – a situation not unlike that in the European Union. Goskomstat introduced a survey of foreign trade with the Republic of Belarus in 1995. However, there are difficulties in organizing such a Page 50 of 64 statistical survey. Unlike the EU, where the accounting of the trade between countries is specifically required and based on the monitoring of the tax authorities (INTRASTAT system), the reception of data on the participants of the foreign trade with the Republic of Belarus is more difficult, as the system of indirect tax payment in the country of departure is still in operation. While large and middle-sized organizations are believed to be practically fully covered by the statistical observation of the trade between two countries, small entrepreneurs are not covered fully.

Goskomstat, in the framework of the TACIS programme “Statistics 4”, launched a pilot survey to businesses to obtain information on exports from Russia to Belarus. In the course of the survey, using the interviewers, the work was conducted to identify the small entrepreneurs delivering goods to Belarus. The work made it possible to improve considerably the data presented before. It is hoped that an alternative approach, based on information likely to be available when the system of indirect taxes is changed will yield more satisfactory estimates. Nevertheless, the statistics that are available will be included in this year’s edition of Customs’ Annual Compendium.

RF State Customs Committee has been involved in several “mirror” comparisons over the past 5 years, mainly under the TACIS programme. These showed big discrepancies initially. Reductions to some tariff levels, informed partly by what these comparisons showed about the mis-classification of goods to avoid high tariffs, have led to marked reductions in these discrepancies. Customs nevertheless proposes to continue to monitor and minimize the discrepancies.

4(e).2.3 Trade in services and balance of payments

The CBR compiles quarterly balance of payments accounts. Information on the international investment position is collected quarterly by the Bank of Russia in respect of the banking sector, and annually in respect of other sectors, though more detail on foreign direct investment is required. Information on direct, portfolio and foreign investments (excluding authorities responsible for monetary and credit regulation) is collected on a quarterly basis by Goskomstat, which supplies aggregate data to the Bank of Russia. Information on transactions in international reserves is available weekly and monthly.

Information on trade in services comes from a number of sources, following methodologies developed by Goskomstat and the CBR. Statistics on international travel have been referred to above. The geographical detail on travel services is estimated by using data from the Frontier Guards Service. The efforts of Goskomstat and the Bank of Russia are aimed particularly at improving the quality of the estimate of the export (import) costs of “trips”.

In addition to trade with Belarus, Goskomstat is responsible for covering other trade in goods which is outside the scope of the Customs statistics, but which nevertheless has to be covered as imports or exports in the balance of payments. This includes trade in fish or fish products going on outside the Customs border, re-fuelling and bunkering of foreign ships in Russian ports, and vice versa, and shuttle trade (ie Page 51 of 64 imports and exports carried personally and not declared to Customs, possibly because the amounts are below the relevant Customs threshold). A methodology for covering such imports (which are thought to be much larger than exports) has been developed jointly by Goskomstat and the CBR. A recently conducted pilot survey within the TACIS project to improve these estimates was addressed to tour operators and transport providers. Another survey will be addressed to vendors. Information on shuttle trade is collated with data from other sources in the form of commodity balances for commodity groups.

Adjustment to the Customs figures to obtain the statistics on merchandise trade on the basis required in the balance of payments accounts (including cif/fob adjustments) is made monthly by the CBR. These adjustments are based largely on the data collected by Goskomstat (as described above) and follow methodologies agreed with Goskomstat. Goskomstat’s publications include external trade statistics on both bases, with commodity and country detail in the Customs statistics.

4(e).3 Main findings

The Russian Federation has monetary, financial, trade and balance of payments statistics based on appropriate international standards. There are however some aspects which present particular difficulties, including trade with Belarus, shuttle trade, and international travel services. More information is required also on foreign direct investment. Developmental work is also required to ensure that suitable data are collected from insurance companies and other non-bank financial institutions. Steps are being taken to address all of these, but in each case, as with mirror comparisons of external trade statistics, the opportunity to work with EU experts familiar with such problems would make these efforts more effective.

of 64 4(f) Agricultural statistics

4(f).1 Introduction

Collection of statistics on agriculture is carried out mainly by Goskomstat, and partly by the RF Agriculture Ministry. This is the one area of statistics in which Goskomstat has had significant cooperation with US statisticians. Goskomstat has participated in some international seminars on agricultural statistics, and its experts would like to become acquainted in more detail with EU requirements. Some documents are currently being translated into Russian, including information on structural surveys. It would also be helpful to have most papers on methodology applicable to Candidate Countries passed to Goskomstat, even if they are not translated into Russian.

Agriculture accounted in 2002 for about 5.8% of GDP in basic prices of gross domestic product in the Russian economy.

4(f).2 Themes

4(f).2.1 Land use and landscape

Data on land use, including agricultural holdings, is available from the Federal Land Cadastre Committee of Russia, though information on land use on the cadastre may not be entirely up-to-date. Remote sensing is considered to be too costly, though the Cadastre Committee would have powers to purchase such data.

4(f).2.2 Agricultural structures

Goskomstat hopes to conduct a census of agriculture in 2006. It has had discussions with the Estonian and Polish NSIs as they have held agricultural censuses recently. It also hopes to take account of FAO, EU and American experience. Further preparatory work will be carried out in the years 2003-4, based on the results of which, project documents and other materials, required for the implementation of the census, will be developed.

Under the recent Civil Code, agricultural producers are divided into three categories:

- Large and medium sized firms (which must have at least 60 employees) - Households (output of products mainly for own consumption) - Farmers (including individual entrepreneurs)

As household production accounts for more than 50 per cent of Russia’s agricultural output, it is essential that their production is covered adequately in the Census. This is one of the key issues to be considered in the forthcoming seminar being organised by the World Bank. It is hoped that Eurostat will be represented at the seminar to help ensure that it is designed to meet EU as well as other requirements. Farmers produce 4% of agricultural goods. Page 53 of 64 4(f).2.3 Agricultural incomes and prices

Production accounts for use in the national accounts are compiled. Food consumption is estimated from foodstuff balances, taking account of household production. Samples for each Member Territory based on the lists of land tax payers are used to obtain information on household production of agricultural goods. There is also an annual sample survey of farmers.

4(f).2.4 Crop production

The 24,500 large and medium-sized producers provide monthly returns on production, sales and stocks of main crops. Sample surveys are organized to observe the household producers at the times of sowing and of harvesting. Information on production of agricultural goods by farmers is sought in an annual sample survey.

4(f).2.5 Animal production

Information is obtained monthly from large and medium-sized producers, and quarterly from a sample of household producers. They are asked about production of the main products of livestock farming (milk, animals and birds for meat, eggs), how much was marketed, and reserves . Information on animal production by farmers is sought annually from a sample survey.

4(f).2.6 Forestry statistics

In Russia, statistics on timber production are produced as part of the system of business statistics. The Ministry of Natural Resources collects detailed information every 5 years on the forestry stock. The next survey is due in 2003. Goskomstat collects information annually on forest regeneration and afforestation.

4(f).2.8 Fisheries statistics.

Responsibility for Fisheries statistics is shared between Goskomstat and the RF Fishing Affairs Committee. Information on the fishing fleet is compiled by the Committee. Monthly data on catches of fish – including fishing on inland waters - (with more detail of species annually) are collected by Goskomstat from large and medium sized enterprises in the business surveys. These businesses are responsible for the bulk of fish caught, but the number of small businesses is growing fast.

of 64 4(f).3 Main Findings

While the Russian Federation has statistics which match broadly the main EU requirements for agricultural statistics, the issues involved in harmonising statistics have not been solved so far. The importance of household production in the Russian Federation is also a major factor to be taken into account in the development of agricultural statistics in Russia. The key to this development is the agricultural census for which preparations are now being made in the STASYS programme. To promote the gradual alignment of Russia’s agricultural statistics with EU classifications etc, it is important that there is a significant methodological EU input to the planning of the census. As requested, Eurostat provided an input to the seminar held in November 2002 on the proposed agricultural census.

of 64 4(g) Multi-domain statistics

4(g).1 Introduction

The position varies from theme to theme, though they should all benefit from Goskomstat’s new geographic information system and mapping facilities. While there are many different aspects of these topics, it is perhaps particularly important to stress here that each is considered below essentially in relation to the EU’s statistical acquis, rather than national or other requirements

4(g).2 Themes

4(g).2.1 Environment statistics and indicators

In line with the legislation on environmental protection in Russia, collection of statistics on environmental is shared between Goskomstat and several other federal bodies, in particular the Ministry of Natural Resources and Minerals. The UN-ECE questionnaire on environmental indicators is completed by Goskomstat.

The Ministry of Atomic and Nuclear Energy collects information on radio-active waste. Under the Federal Law on Waste Discharges, discharges (other than radio- active discharges) are to be covered by Goskomstat. As part of a bilateral project with Finland, a pilot survey on waste disposal has been held recently in Murmansk. The data are being processed at present. For 2002, the Ministry of Natural Resources are providing data on discharges, including discharges into water. Goskomstat collects data on sewage.

Goskomstat compiles statistics on air pollution from fixed plants. Estimates in relation to mobile equipment (trains, aircraft, motor vehicles) are estimated from distance travelled, etc.

The Ministry of Natural Resources and Minerals compiles data on agricultural pollution. The Russian Hydrological Committee monitors water quality.

Environmental protection expenditure is referred to in Section 4(c).2.2. There has been a big effort in recent years to identify such expenditure.

4(g).2.2 Regional and geographic information

The federal nature of Russia necessitates that data are compiled for each Member Territory as well as for the Federation as a whole. These data can, of course, be aggregated also to provide information on the 7 Federal Districts or the 11 economic regions. Since 1996, Goskomstat has prepared an annual Compendium on Russian Regions. Many data are also available for the 1,864 raions, the administrative districts within each Member Territory. An annual statistical report is to be prepared on each raion, for internal review and sale.

of 64 Statistics are required also for the 2,800 self governing municipalities, and for smaller areas. A recent TACIS project has helped to identify the indicators thought to be needed for each municipality, including 10 core indicators. The federal statistical programme provides about 30 per cent of the data required.

Goskomstat has acquired a new geographic information system. It was completed in December 2002, and is already being used to produce an atlas of the 7 Federal Districts. The system will be able to “interface” with the census processing system.

4(g).2.3 Science and technology

Goskomstat, in conjunction with the Centre for Science Research and Statistics (CSRS), carries out collection, processing and dissemination of data on statistics of science, technologies and innovations. The relevant surveys seek data on scientific research and development, technological innovations, creation and use of know-how technologies, use of information technologies, production of related goods and services (hardware and software, information-computing services etc.), mobility of research personnel (including departures of Russian scientists to work abroad) etc. The surveys are conducted on a “one-off” basis, as far as possible regularly (usually annually, or quarterly for SNA purposes).

Being behind in up-dating the database of businesses (in particular, the identification of local units) in the Unified State Register of Organisations and Businesses (EGRPO) is still a problem. It is difficult to use the system for statistical surveys on this subject. That is why the development of a separate sub-register, combining certain areas of R&D statistics, is of great importance. This separate register is being established on the basis of the State inventory of scientific and innovation organisations, organised by the Centre for Science Research and Statistics - with the assistance of Goskomstat. In due course, it is proposed to use the register to identify local units by the type of economic activity of each unit.

A characteristic feature of Russian statistical practice in the field of statistics of science, technologies and innovations is the use only of statistical surveys with full coverage.

The statistics collected in general meet the requirements of the international bodies. The surveys are based on the relevant international guidelines – Frascati, Oslo and Canberra. The Centre for Science Research and Statistics has produced the official Russian version of the Frascati Manual. It has also carried out a pilot survey on the use of information technology (cf. Section 4(d).2.4).

Goskomstat has very close co-operation with the Centre for Science Research and Statistics of the Ministry of Science of Russia and Russian Academy of Science. Both organisations consider it very important to continue contacts with experts from EU member states and Eurostat in developing their work in these areas. .

of 64 4(g).3 Main Findings

In relation to regional statistics, the Russian Federation is well placed in comparison with EU Member States in general. The same also applies to statistics on science and technology. On environmental statistics the position is more difficult to establish because there has not been sufficient joint working to compare the differences. However, this is undoubtedly an area where international comparability is especially important.

of 64 Tabular summary of findings on compliance with EU statistical acquis

Theme Current degree of compliance Impact expected from planned programme to Proposed 2005 funding source (a) Statistical infrastructure 1. Many classifications still to be aligned; 1.Alignment with classifications used in SNA93 is a major priority 1.Fed Bud, TACIS, 1. Classifications 2. Good co-ordination of statistical work. of programme STASYS 2. Statistical co-ordination 3. Business register not yet up to required standard. 3. Development of business register, partly through economic 3. Fed Bud, TACIS, 3. Registers 4. Statistics Law needed to ensure access to data and safeguard statistical census; improve data on statistical units STASYS 4. Data security and statistical confidentiality confidentiality 4.Development of Statistics Law; enhanced data protection 4. Fed Bud, STASYS (b) Demographic and social statistics 1. Population Census carried out in 2002 provides basis for many improvements. 1.Enhanced migration and other demographic statistics 1. Fed Bud, STASYS 1. Population Problems with statistics on international migration and other vital statistics. 2. Labour market 2. Labour Force Survey (LFS) aligned with ILO guidelines. Statistics available on 3. Education labour costs and distribution of earnings. Work in progress on labour balances. 2. Enhanced statistics on employment and labour costs in line with 2. Fed Bud, STASYS 4. Culture 3,4,5,8. Suitable information available to meet main requirements on health, international guidance 5. Health, safety and consumer protection education, culture, and housing. 5. To improve statistics on occupational accidents etc 5. Fed Bud 6. Distribution of incomes and living conditions 6. Household Budget Survey (HBS) in line with EU guidance, but poor data on 6. Enhanced methodology in HBS; enhanced statistics on household 6. Fed Bud, STASYS, 7. Social protection household incomes. incomes, welfare, participation in social programmes and poverty SPIL 8. Housing statistics 7. Social protection accounts not compiled. 7. Develop methodologies for statistics relating to benefits etc 7. Fed Bud, SPIL (c) Macro-economic statistics 1-2. Annual and quarterly national accounts down to balance on financial 1-3. Further development of national accounts, in line with SNA93, 1. Fed Bud, STASYS, 1. Annual economic accounts assets/liabilities compiled in line with SNA93. including sector financial accounts and balance sheets TACIS. 2. Quarterly and environmental accounts 2. Statistics on environmental expenditure being developed. 2. Develop statistics on environmental expenditure 2. Fed Bud, TACIS. 3. Financial accounts 3. Financial accounts and required Government Finance Statistics not yet available. 3.Enhance government finance statistics and develop general 3. STASYS 4. Monitoring own resources 4. Not entirely applicable government sector accounts 5. Prices 5. Consumer price indices not aligned with international practice. 4. Improve methodological framework for price observations 4. Fed Bud (d) Business statistics 1. System of annual and short-term business surveys established, but variables not 1. Improved methods, including better use of sampling; improved 1. Fed Bud, TACIS 1. Statistics on the economic activity of enterprises aligned with EU regulations and coverage of small businesses is problematical. collection of industrial production by quantities, and of producer STASYS 2. Energy statistics NACE based classification being introduced. 2. Energy statistics well aligned with prices 3. Transport international guidelines. 3. Most of required transport statistics are available, but 3. To improve transport statistics; improve register of transport 3. Fed Bud 4. Communications, Information Society and Audio- problems with coverage of road transport statistics. 4.Statistics on Communications, establishments visual services Information Society and Audio-visual services now relatively well developed. 4. Survey on use of information technologies in education 4. Fed Bud 5. Tourism 5. Start made on developing tourism statistics. 5. Develop suitable sources of tourism statistics on WTO guidelines 5. STASYS, TACIS (e) Monetary, financial, trade and balance of 1. Banking and monetary statistics available in line with IMF needs. Data not 1. The CBR is participating in the IMF’s piloting of new 1. IMF payments statistics available at present on non-bank financial institutions questionnaires and new manual on monetary statistics. 1. Money and finance 2. Customs data on external trade aligned with UN guidelines. Trade with Belarus 2. Improve estimates of trade not covered by Customs 2. STASYS 2. Trade in goods and shuttle trade estimated by Goskomstat. 3. Trade in services and balance of payments 3. Balance of payments accounts follow IMF Manual, with data on foreign direct 3. Improve statistics on foreign investment. 3. Fed Bud, TACIS investment- though not all the detail needed. Improve statistics on imports of services STASYS (f) Agricultural statistics 1. Available data on land-use likely to meet EU requirements. 1. Land use and landscape 2. Registers of agricultural producers lack adequate information about household 2. Preparations for agricultural census to be held in 2005 2. Fed Bud, STASYS 2. Agricultural structures producers – responsible for half of Russia’s agricultural output. 3. Agricultural incomes and prices 3-4. Production accounts etc compiled at current and constant prices, but work not 3-4 Enhance methodologies and information support 3-4 STASYS 4. Crop and animal production aligned with EU practices. 5. Forestry statistics 5. Data available thought to be adequate to meet most EU requirements. 6. Fisheries statistics 6. Data collected on fisheries thought to be adequate to meet most EU requirements (g) Multi-domain statistics 1. Environmental statistics available but alignment with EU requirements still to be 1. Environmental statistics and indicators assessed. 2. Regional and geographic information 2. Russia relatively well placed in provision of regional data. GIS being introduced. 2. Improve system of economic indicators on municipalities 2. Fed Bud 3. Science and technology 3. Statistics on science and technology aligned with latest international requirements. 3. To conduct surveys of research ad innovation activities 3. Fed Bud Page 59 of 64 (Fed Bud = Federal Budget; other programmes are referred to in Annex 14)

of 64 5. Conclusions

5.1 Legal framework

1. Government Resolution No. 85, 2 February 2001 (Annex 2(i)), gives a good basis for many aspects of Goskomstat’s work. In most respects it provides well for the planning and co-ordination of statistical activities in different federal bodies in the context of a unified programme, reflecting users’ needs, to be implemented following approved methodologies. (Chapters 1-2)

2. The provisions for handling confidential data are not satisfactory. The obligations to transfer individual data to other federal bodies pose a considerable threat to public confidence in Goskomstat. These obligations are likely to harm response and to undermine trust in Goskomstat’s statistics. At the same time, Goskomstat is unable to gain access, purely for statistical purposes, to administrative records which could help to improve considerably the quality of its outputs and reduce the burden of form- filling for respondents. (Chapters 1(d)), 3(k), 4(a).2.3 and 4(c).2.1)

3. A Statistics Law is required so that Goskomstat is given appropriate rights and obligations, and so that these rights and duties are clear to the public. The law should incorporate the internationally agreed Fundamental Principles of Official Statistics and the relevant features of Government Resolution No. 85, 2001. It should, in particular, provide provisions both to ensure that confidential data collected for statistical purposes cannot be released for other purposes and, with these safeguards in place, to give Goskomstat right of access to the administrative records which it needs to carry out the task assigned to it. It is desirable that Eurostat should have an opportunity to provide expert comment on any draft, as is envisaged, and that Goskomstat is kept informed about proposals for revising the EU Statistical Law. (Chapter 1(d))

5.2 Russian Statistical System 4. Goskomstat is committed to the objective of harmonising with EU requirements, in line with the policy of the federal government and the Corfu agreement. (Chapters 1(f) and 2(b))

5. Goskomstat has an appropriate plan for the years 2001-2005. The plan gives high priority to adoption of international standards. (Chapters 2(e), 4(a).2.1) It also indicates for which projects external funding is being sought. (Annex 6)

6. In general, Goskomstat works closely and effectively with other federal executive bodies, and, through its Regional Offices, with executive authorities in the Territories of the Russian Federation. (Chapters 1(a)-(b), 2(e), 3(d)

7. Goskomstat and the Ministry of Taxes and Levies should work together to address effectively the problems concerning access to the administrative records essential for Goskomstat’s work. (Chapters 3(k) and 4(a).2.3)

of 64 8. Goskomstat and the Ministry of Finance should work in collaboration to solve the problems of supply of data on government operations. (Chapters 3(k) and 4(c).2.1)

9. Goskomstat is considering the possible involvement of academic and other private sector users in its Collegium, as envisaged in the Government Resolution on Goskomstat. The first priority should, though, be to develop the wider role which Goskomstat plans for the Statistical Council, particularly so that the Council can provide advice about the requirements of users in the private sector. (Chapter 3(b)-(c))

10. Much of Goskomstat’s work is covered by the Federal Statistical Activities Programme. In the past, there has been a considerable degree of flexibility to meet other demands at the expense of the user. It will be important to check that at least the same level of service can be maintained under the new financial regime. (Chapter 3(e))

11. Goskomstat has many expert and effective staff. They have, clearly, derived considerable benefit from the TACIS, World Bank and other co-operation projects over the past decade. (Chapter 3(g))

12. Key sections in Goskomstat’s Central Office (including the National Accounts Department and the Foreign Statistics and International Cooperation Department) are seriously under strength, with the result that they cannot provide fully the consistently responsive and helpful service which users have a right to expect. (Chapter 3(j))

13. Difficulties of recruiting younger staff, particularly in Moscow and St Petersburg, pose both an immediate problem and a serious long term danger. (Chapter 3(f))

14. Goskomstat has developed a suitable training policy for the development of managerial and specialist skills. (Chapter 3(g))

15. As far as we could tell, the accommodation available to staff compares reasonably with that in EU Member States, though some parts of Goskomstat’s Central Office clearly require renovation. A limited investment to renovate the building could improve significantly the staff’s working environment and the image of Goskomstat as a modern public agency. Some renovation is going on at present.

16. Under the STASYS programme, financed by World Bank lending, Goskomstat’s information and communications systems are to be enhanced significantly. (Chapter 3(h))

17. An important issue linked to the enhancement of Goskomstat’s information and communications systems is the appropriate allocation of responsibilities for data entry and processing between Moscow, the Territorial Committees and the Raion Offices, taking account of the requirements to be met at different levels of administration. The ability to continue to provide a good service to the Territorial administrations, as well as to the Federal administration, has to be a major concern in considering any possible changes. (Chapter 3(d), (h))

18. Goskomstat has made considerable progress in developing suitable procedures for the dissemination of results, both in the Headquarters and in the Territorial Offices. Page 62 of 64 Enhanced information systems to be introduced in the latter will lead to further improvements. Confidence in Goskomstat’s results has increased. (Chapter 3(i)-(j))

19. Notes on methodology are included in most publications. Full information on methodology should be available to users, so that procedures become totally transparent. (Chapter 3(i))

5.3 Compliance with statistical acquis 20. In almost all areas of statistical work substantial progress has been made towards full compliance with international standards. In some areas the achievements are particularly impressive. (Chapter 4).

21. The objective of compliance with the EU statistical acquis is relevant in all cases, except those few where compliance is obviously inappropriate (eg calculating the VAT base for EU budgetary purposes).

22. Improvements in the business register must be, and are, a high priority. The proposed economic census will help considerably. (Chapter 4(a).2.3)

23. The recently conducted Census of Population will provide a good basis for improving the quality of many statistics. (Chapter 4(b).2.1)

24. Substantial improvements to statistics on household welfare, participation in social programmes, and poverty are envisaged under the STASYS programme. (Chapter 4(b).2.6)

25. The extent of adjustments for the non-observed economy is a crucial issue. The proposed review by an OECD expert is to be welcomed. (Chapters 3(l) and 4(c).2.1)

26. An immediate problem is the handling of the transition to the new classification of economic activity in key economic series. Advice from EU experts with suitable experience is now being provided. (Chapter 4(c).2.1 and (d).2.1)

27. The planned census of agriculture is essential to improving agricultural statistics and aligning them into line with EU methodologies. To this end, it is important that EU experts are available to participate in the planning of the census. (Chapter 4(f))

28. Other areas where, in our view, help in the near future would be particularly desirable include:

demographic statistics (Chapter 4(b).2.1) price indices (Chapter 4(c).2.5) sector financial accounts and statistics on non-bank financial institutions (Chapter 4(c).2.1, 4(c).2.3 and 4(e).2.1) environmental statistics (Chapter 4(c).2.2 and 4(g).2.1) transport statistics (Chapter 4(d).2.3)

Some of these topics are already included in the proposals put to Eurostat for a further TACIS programme. (Annex 14) Page 63 of 64 29. Further TACIS support to the Russian Federation could be effective in the areas referred to above, but Eurostat and Goskomstat should ensure that it is co-ordinated with other programmes, particularly those of the World Bank and other international bodies.

30. A major requirement in all branches of statistics is for Russian experts to become acquainted with EU methodologies and to be able to discuss the relevant methodological issues with EU experts.

31. The practice of translating key methodological documents into Russian should be enhanced. This should include translating ESA95 in its entirety.

32. More training in English, and perhaps other languages, is required to help staff in reading about and discussing methodological issues, and in being able to work more generally with their Western European colleagues. Responsibility for such training inevitably rests mainly with the Russian authorities, but suitable advanced, specialized training should be supported from European funds, provided appropriate conditions can be met. (Chapter 3(g))

33. Some Goskomstat publications and web-site pages are available in English, or include both Russian and English texts. To promote use of the results outside Russia, both in the EU and elsewhere, and to improve understanding of the methodologies followed, Goskomstat should provide as much material as possible in English. (Chapter 3(i))

34. EU documentation on methodology and implementation, particularly in relation to the Candidate Countries, should be made available to Goskomstat systematically.

35. Eurostat should consider whether Russia could, as a matter of routine, receive papers for Eurostat Working Party meetings etc and be invited to attend the meetings as an observer (as Russia does at IEA and OECD meetings) – making it clear that the ability to work in English or another Community language is a prerequisite. It would then be for Russia to decide which meetings to attend – in the light of its priorities, available funding, etc.

July 2003