sign in sign up
<<
Home , Czech Statistical Office, STATEC, Statistics Austria, Statistics Sweden

Unclassified DCD/DAC(2017)2

Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 20-Jan-2017 ______English - Or. English DEVELOPMENT CO-OPERATION DIRECTORATE DEVELOPMENT ASSISTANCE COMMITTEE Unclassified DCD/DAC(2017)2

UPDATE ON RECENT TOSSD CONSULTATIONS AND FORWARD ROADMAP

DAC meeting, 2 February 2017

This document is submitted for DECISION under Item 6 of the Draft Annotated Agenda [DCD/DAC/A(2017)1].

Contacts: Suzanne Steensen - Tel: +33 (0)1 45 24 76 23 - E-mail: [email protected] Raundi Halvorson-Quevedo - Tel: +33 (0)1 45 24 91 59 - Email: [email protected]

English English JT03407989

Complete document available on OLIS in its original format -

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of English Or. international frontiers and boundaries and to the name of any territory, city or area.

DCD/DAC(2017)2

UPDATE ON RECENT TOSSD CONSULTATIONS AND FORWARD ROADMAP

I. Introduction

1. 2017 will be a pivotal year for consolidating work on the TOSSD measurement framework: specialised expertise will need to be mustered to flesh out the technical specifications of the measurement framework, and concrete steps to situate its implementation and governance in a broader international context will need to be taken.

2. The central feature of next steps regarding TOSSD calls for working with the United Nations Statistical Commission (UNSC) to establish TOSSD as an international statistical standard. A multi- stakeholder group operating through United Nations (UN) structures and backstopped by the OECD Secretariat would carry out technical work over the next year to prepare the UNSC proposal. Adjustments to the TOSSD statistical standard in future would be validated by the UNSC on the basis of technical work supported by the OECD Secretariat. This approach affords a central role to the UN in TOSSD implementation in line with guidance provided by the DAC.

3. The DAC will be playing a vital convening role in this undertaking, facilitating an international process with the United Nations where different policy communities and institutions will work together to refine the statistical details of TOSSD and to elevate it in the international arena. The DAC continues to have a crucial role to play in exercising political leadership to advance the TOSSD agenda and, in so doing, developing an innovative modus operandi for working in partnership with others to shape the international agenda on SDG implementation. The proposed path for developing TOSSD as set out in this paper aligns with the conclusions of the October 2016 DAC Senior Level Meeting (SLM).

4. Work since the 2016 SLM has focused on carrying out targeted consultations to achieve greater clarity on forward steps towards establishing TOSSD as an international statistical standard. The overall contours of a forward path, set out in the text below, have been identified. Nevertheless, the specifics of how the proposed TOSSD roadmap will be implemented will likely evolve continuously in the coming months, calling for periodic, “real time” updates to be provided to DAC members to ensure progress aligns with priorities and expectations.

5. This paper is organised as follows: highlights of scoping discussions with key international institutions and bodies in December and January are described in section II, followed by a short exposé of the proposed 2017-18 TOSSD implementation roadmap in section III. The concluding section sets out a summary of DAC engagement and support for TOSSD development in this context.

II. Highlights of recent international consultations

6. Following the SLM, the Secretariat has undertaken missions to inform lead institutions about the status of ongoing work to develop TOSSD, to explore options for embedding TOSSD in the international system and to discuss their engagement in forward work to consolidate the conceptual and statistical details of the TOSSD statistical framework.

2 DCD/DAC(2017)2

A. Consultations with the UN system

7. In December 2016 a scoping mission to the United Nations was carried out. Discussions took place with the UN Secretariat (the Financing for Development Office and the Statistics Division), the UN Inter-Agency Task Force (IATF) on financing for development (in which the OECD participates alongside other UN agencies and bodies) and UN member states (a briefing session moderated by the UN Foundation). Highlights of these events and discussions are summarised as follows:

 The UN Secretariat readily acknowledged the relevance and unique role of TOSSD in helping the international community track and analyse the magnitudes and patterns of SDG-related development finance – currently the weakest component of the overall monitoring framework for assessing progress vis-à-vis the Means of Implementation of the SDGs and Addis Ababa Action Agenda (AAAA) commitments. The aim would be for TOSSD data to inform discussions in the UN ECOSOC Forum on Financing for Development and the UN High Level Political Forum (HLPF) in 2019. This will pave the way for TOSSD to be included as one of the indicators of the global SDG indicator framework, which is expected to be updated in 2020.

 They advised that the best route for anchoring TOSSD in the UN context would be to establish it as an international statistical standard validated by the UNSC. This would require member states participating in the UNSC to agree to consider a proposal to this effect in the course of the annual Statistical Commission meetings in March 2018. Focused work by statistical experts in a special “TOSSD Working Group”, convened by the OECD/DAC and the UN Financing for Development Office (FfDO)1 to flesh out TOSSD statistical parameters and features, would need to be carried out in 2017 and early 2018 to prepare this proposal.

 The UN Statistics Division recommended a phased approach to developing the TOSSD standard, focusing in the first instance on the cross-border flow pillar and progressively fleshing out the details of the development enablers and global challenges pillar with relevant policy communities in a second, more lengthy phase. They noted the primacy of sovereign states, including OECD DAC member countries, in UNSC deliberations, work processes and decision-making, and counselled sustained efforts over time to build buy-in and trust with a broad range of stakeholders, including non-OECD member states.

 The DAC Secretariat will work in close collaboration with the UN FfDO in navigating UN processes, sustaining engagement with UN member states, and securing expert feedback from relevant agencies and government entities on TOSSD statistical features and specifications. The IATF will be an important reference group for developing the two pillars of TOSSD going forward.

 The OECD has previously participated in technical groups working on international statistical standards (e.g. International Trade and Economic Globalization Statistics, Tourism) in connection with the UNSC, involving the relevant policy communities (e.g. statistics, trade, tourism). The explicit path for organising and proposing work on TOSSD in this regard will become clearer over the coming months, including the feasibility of such an option. The DAC will be continuously kept abreast of developments as the roadmap described below is implemented.

1 . The FfDO will associate the IATF with this work as part of the follow up Addis Ababa Action Agenda commitments.

3 DCD/DAC(2017)2

 Discussions with UN member states in the briefing hosted by the UN Foundation underlined the important role played by South-South providers in financing the needs of developing countries and highlighted the scope TOSSD would afford over time for this community to provide internationally comparable data regarding broader financing for development resources.

B. Consultations with the World Bank Group (WBG), the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB)

8. A mission was undertaken to Washington in January 2017 to engage with key staff from relevant international financial institutions2. Findings are summarised as follows:

 Participants at a special briefing and discussion with representatives from relevant areas of the WBG, organised by the Office of External and Corporate Relations, noted general support for TOSSD while acknowledging that OECD and WBG approaches for measuring mobilisation differ (the cross-border transfer of resources versus the broader FfD agenda of mobilising and catalysing domestic resources). Nevertheless, it was agreed that different approaches for measuring mobilisation and catalysation could co-exist in the international system. The WBG is currently reflecting on how it might best engage with forward work to develop the technical specifications of TOSSD (e.g. through the proposed “TOSSD Working Group”), including through the International Development Association team, the International Finance Corporation and/or the Development Data Group.

 A special briefing and question and answer session with WBG Executive Directors revealed interest from shareholders in the wider agenda of the WBG’s contribution to develop TOSSD as an SDG-relevant statistical standard. Wider concerns about mobilising and tracking development finance (trade, remittances) were also evoked. Participants expressed interest in the potential role TOSSD could play regarding data for analysing resource flows to countries, sectors, and projects as illustrated in the findings from the TOSSD pilot in Senegal.

 The IMF appreciated the relevance of the TOSSD measure, particularly its potential to contribute towards filling data gaps vis-à-vis international resource transfers. TOSSD could play a role in augmenting balance of payments information and contributing to debt sustainability assessments. The IMF signalled an interest in staying engaged in the context of the future “TOSSD Working Group”.

 The IDB expressed keen interest in TOSSD as a tool for enhancing the transparency of statistical information on a wide array of project financing operations. The IDB signalled its desire to participate in the “TOSSD Working Group”, and proposed to partner with the OECD on a TOSSD pilot in the Latin American region.

C. TOSSD Pilot in the Philippines

9. At the end of January 2017, a TOSSD pilot will be conducted in the Philippines to better understand how the current structure of the measurement framework could be improved in line with the priorities, capacities and information needs of the Philippines government – from both a recipient and a South-South provider perspective. Crucially, the mission will explore in greater depth how the Co-chair of

2 . The mission also discussed TOSSD with representatives of the United States government, the Gates Foundation, and the Brookings Institution.

4 DCD/DAC(2017)2 the UN Inter Agency Expert Group on SDG indicators3 (the current head of the Philippines Statistical Authority) could play a facilitative role in bringing TOSSD within the purview of the UNSC. The Co-chair has agreed to chair a side event that will take place in March 2017 on the margins of the UNSC’s annual meeting, which will brief the international statistical community on the concept and proposed structure of TOSSD and mobilise interest and support for bringing a proposal on TOSSD to the UNSC in March 2018. The Secretariat will also consult with the Asian Development Bank on its possible engagement with developing TOSSD, including by participating in the “TOSSD Working Group” and working together on a possible TOSSD pilot in the Asia-Pacific region.

III. Proposed roadmap

10. As a result of discussions with the UN Statistics Division, a possible critical path for associating work to develop TOSSD with the UNSC has been identified as follows:

 The OECD DAC Secretariat will organise a side event in March 2017 in the margins of UNSC meetings to inform participants about the potential future role and structure of the TOSSD measurement framework and to assess whether there would be interest among member states in conducting the work necessary to validate it as an international statistical standard.

 With the backing of lead OECD DAC and developing country members of the UNSC, a proposal for consideration of TOSSD as an agenda item by the Statistical Commission in March 2018 would be tabled at the conclusion of their March 2017 meeting.

 An informal “TOSSD Working Group” would be established to carry forward the technical work required to refine the statistical features of TOSSD and prepare documentation (e.g. a set of initial TOSSD reporting directives) for the March 2018 Statistical Commission discussion. Core agencies to involve in this work would include OECD, the UN FfDO, the UN Statistics Division, WBG, regional development banks, IMF, UNCTAD, UNDP and selected development finance institutions and export credit agencies. It is proposed for the WP-STAT Chair to participate in “TOSSD Working Group” work alongside DAC WP-STAT facilitators, thus ensuring a real time information link with the DAC.

 Statistical issues to be analysed and codified by the “TOSSD Working Group” would include how to treat combinations of concessional and non-concessional finance (including finance mobilised from the private sector through official interventions), export credits, the valuation of technical assistance and in-kind support, balance of payments and debt sustainability vis-à-vis TOSSD statistical parameters and defining TOSSD-eligible SDG sectors, institutions and countries. This work will draw on statistical expertise within participating agencies and aim to develop text that could be integrated in a set of TOSSD reporting directives, building on the initial text of the “TOSSD Compendium” and reflecting structural changes in the TOSSD measurement framework that resulted from the initial consultation processes, as outlined in the SLM paper. A revision of the initial TOSSD Compendium is not contemplated given that active work to develop the TOSSD reporting directives under the aegis of the UN system will begin in

3 . The global indicator framework developed by the Inter Agency Expert Group on Sustainable Development Goal Indicators (IAEG-SDGs) was agreed by the UN Statistical Commission in March, 2016 and subsequently adopted by the Economic and Social Council and the General Assembly, in line with existing mandates.

5 DCD/DAC(2017)2

early spring 2017. Throughout 2017, topical working papers will be drafted as inputs to the future TOSSD reporting directives.

 The inaugural meeting of the “TOSSD Working Group” would be convened in the margins of the WB/IMF Spring meetings. Subsequent work and discussions would be conducted virtually through video links and on-line discussion fora, drawing on the full range of OECD statistical expertise and support, which would play a strong role in facilitating, backstopping and overseeing the work. The UN ECOSOC Forum on Financing for Development will also host informal consultations on TOSSD with UN member states.

IV. Conclusions and next steps

11. The proposed TOSSD roadmap set out above is in conformity with the core conclusions of previous DAC discussions including the SLM e.g. the central role of the UN, making use of existing bodies and processes in lieu of establishing new ones, working out the statistical specifics of TOSSD (e.g. eligibility criteria, measurement boundaries, etc.), and identifying oversight arrangements that combine both political legitimacy and technical expertise. Situating TOSSD within the UN system will also increase the likelihood of the eventual engagement of South-South providers with the TOSSD reporting framework. The DAC Secretariat will work in close collaboration with the OECD Statistics Directorate in preparing the ground work for the future TOSSD proposal to the UNSC.

12. On current planning, the proposed scenario would make it possible to develop initial TOSSD reporting directives in 2018 which, in turn, will enable data collection in time for the initial stocktake of SDG implementation (at the 2019 HLPF). Annex I presents key milestones of the proposed timeline. This scenario also implies that future TOSSD data could be incorporated into the IATF report on the FfD agenda and the Means of Implementation of the SDGs, and that progressively, over time, TOSSD as a statistical standard could ultimately be a part of the SDG indicator monitoring framework. In future, work to update and adjust the standard will be taken up by the UNSC in a similar fashion e.g. with OECD convening and moderating the process.

13. Members are encouraged to engage with their UNSC counterparts to inform them about TOSSD and its potential role in the SDG implementation process and to mobilise their support for advocating TOSSD as an agenda item for their March 2018 meetings. Annex II contains a list of delegates of the OECD Committee on Statistics and Statistical Policy, which could be useful for identifying and reaching out to DAC members’ national statistical authorities in this regard.

14. Members are also encouraged to help facilitate Secretariat access to key stakeholders and decision-makers as efforts to promote TOSSD internationally proceed: Canada played a key facilitating role in the missions to New York and Washington D.C., for which the Secretariat is deeply grateful.

15. At this critical stage in launching TOSSD as an important part of SDG and AAAA monitoring efforts, mustering adequate expertise and knowledge at the right place and in the right measure will be crucial. A necessary condition for delivering on this roadmap will be to ensure there are sufficient Secretariat resources for managing the complex, highly technical character of collaboration over the next year to consolidate the statistical details underpinning the TOSSD reporting system and to facilitate engagement with the UNSC. The OECD will be playing an important role in convening other actors and stakeholders, sustaining international momentum, and ensuring a high-quality outcome and final product. This will require a balancing of different perspectives – including those of developing countries, emerging providers, DAC members and multilateral banks. Here, in addition to funding the DAC PWB area 5.1.1 (output result 1 and 2), it would be essential to bring in relevant statistical expertise to facilitate such an innovative process at the international level. Members are invited to explore the possibility of providing

6 DCD/DAC(2017)2 experts to the Secretariat, seconded from their national statistical offices, who have relevant knowledge of the international system, of developing country dynamics and realities, and of today’s development finance context and SDG-related work.

16. Finally, as noted at the beginning of this text, there are many unknowns regarding the nature and feasibility of the sequential steps required to successfully situate TOSSD within the purview of the UNSC, widely viewed among DAC members as the optimal option for implementing and overseeing TOSSD. The Secretariat will strive to keep members promptly abreast of unfolding developments in the months to come through formal and informal briefings, including in the context of the DAC Major Policy Issues group.

7 DCD/DAC(2017)2

ANNEX 1: TIMELINE

2017 2018 2019

• Briefing and agenda proposal • Finalise TOSSD reporting • TOSSD data collection to UN Statistical Commission directives (Jan-March) (Jan-March) (March) • Consideration of TOSSD • TOSSD data input to the • Establish informal “TOSSD proposal at UN Statistical HLPF (UN stock-take of Working Group” (March) Commission Meeting SDG implementation) • WBG/IMF Spring Meetings – (March) (July) 1st meeting of the TOSSD • Begin TOSSD data Working Group “(April) collection (second half • Informal consultations at UN 2018) Forum on Financing for • Continued outreach and Development with IATF and pilot studies (throughout member states (May) 2018) • TOSSD pilots in Philippines, Latin America (2017) • TOSSD reporting directives drafts and topical working papers by the “TOSSD Working Group” (2017)

8 DCD/DAC(2017)2

ANNEX 2: LIST OF DELEGATES OF THE OECD COMMITTEE ON STATISTICS AND STATISTICAL POLICY

Mr. Rudi ACX Ms. Marjo BRUUN Head of the Statistics Department Director General Banque Nationale de Belgique +32 2 221 24 03 +358 29 551 3389 [email protected] [email protected] Representing: Belgium Representing: Finland

Mr. Serge ALLEGREZZA Ms. Alda CARVALHO Directeur President STATEC, Ministere de l'Economie Instituto Nacional de Estatística (INE) +352 247 84210 +351 21 842 61 06 serge.allegrezza@.etat.lu [email protected] Representing: Representing: Portugal

Professor Giorgio ALLEVA Ms. Ximena CLARK President National Director Italian National Institute of Statistics INE - Instituto Nacional de Estadística (ISTAT) +56 (2) 2892 4300 +39 06 4673 2200 [email protected] [email protected] Representing: Chile Representing: Italy Mr. Padraig DALTON Mr. Anil ARORA Director General Chief Statistician Central Statistics Office +353 21 4535113 +613-951-9770 [email protected] [email protected] Representing: Ireland Representing: Canada Mr. Jorgen ELMESKOV Mr. Alexander Ballek National Statistician, Director General President Statistical Office of the Slovak Republic +45 3917 3907 +421 2 55425802 [email protected] [email protected] Representing: Denmark Representing: Slovak Republic Mr. Pieter EVERAERS Mr. Werner BIER Director Deputy Director General - Statistical Office of the European Central Bank (ECB) European Communities +49 69 13 44 76 79 +352 43 01 36847 [email protected] [email protected] Representing: EU Representing: EU

9 DCD/DAC(2017)2

Mr. Yoel FINKEL Ms. Liz MACPHERSON Associate Government Statistician Government Statistician Central Bureau of Statistics (CBS) Statistics New Zealand +97226592203 +64 4 931 4973 [email protected] [email protected] Representing: Israel Representing: New Zealand

Mr. Olafur Hjalmarsson Ms. Christine Benedichte Meyer Director General Director General +354 528 1010 +47 21 09 49 90 [email protected] [email protected] Representing: Iceland Representing: Norway

Mr. Satohisa INAMI Mr. ANDRES OOPKAUP Director-General Director General Ministry of Internal Affairs and Statistical Office in Gdansk Communications (MIC) of Japan +372 6259 202 +81 3 5273 1116 [email protected] [email protected] Representing: Estonia

Mr. Gregorio IZQUIERDO LLANES Mr. Konrad PESENDORFER President Director-General of Statistics National Statistical Institute of Spain Statistics (INE) +43(1)71128-7891 +34 915 839 271 [email protected] [email protected] Representing: Austria Representing: Spain Mr. John Pullinger Mr. David Kalisch National Statistician Australian Statistician Office for National Statistics (ONS) Australian Bureau of Statistics (ABS) + 44 207 592 8663 +61262526705 [email protected] [email protected] Representing: United Kingdom Representing: Australia Mr. Walter Radermacher Professor Mariana KOTZEVA Director General Deputy Director General European Commission - Eurostat +352 4301 31748 [email protected] [email protected] Representing: EU Representing: EU

Mr. Stefan LUNDGREN Ms. Iva RITSCHELOVÁ Director General President Statistics +46 8 506 940 00 + 420 274 052 411 [email protected] [email protected] Representing: Sweden Representing:

10 DCD/DAC(2017)2

Mr. Dominik ROZKRUT Representing: Greece President Central Statistical Office Mr. Tjark TJIN-A-TSOI +48 914597701 Director General [email protected] (CBS) Representing: Poland +31 70 337 4139 [email protected] Ms. Genovefa RUZIC Representing: Netherlands Director General Statistical Office of the Republic of Mr. Georges-Simon ULRICH Slovenia Director-General +386 1 2415 302 SFSO - Swiss Federal Statistical Office [email protected] +41 58 463 60 01 Representing: Slovenia [email protected] Representing: Switzerland Dr. Julio A. SANTAELLA President of INEGI Ms. Gabriella VUKOVICH National Institute of Statistics and President Geography (INEGI) Hungarian Central Statistical Office +52 (55) 52781038 +36 1 3456478 [email protected] [email protected] Representing: Mexico Representing: Hungary

Mr. Dieter SARREITHER Mr. Nicolas WAEYAERT President Director General Federal Statistical Office +49 611 75 2200 +32 (0) 2 277 70 02 [email protected] [email protected] Representing: Germany Representing: Belgium

Dr. Aurel SCHUBERT Ms. Katherine K. WALLMAN Director General Statistics US Office of Management and Budget European Union +1 202 395 3631 +49 69 1344 75 55 [email protected] [email protected] Representing: United States Representing: EU Mr. Gyeongjoon YOO Mr. Jean-Luc TAVERNIER Commissioner Directeur général de l'INSEE National Institute of Statistics and [email protected] Economic Studies (INSEE) Representing: Korea +33 (0)1 41 17 55 38 [email protected] Ms. Aija ZIGURE Representing: France President Central Statistical Bureau of Latvia Dr. Athanasios Thanopoulos +371 6736 6850 President [email protected] Hellenic Statistical Authority Representing: Latvia [email protected]

11