Catalogue no. 13-606-G ISBN 978-0-660-28539-9 User Guide: Canadian System of Macroeconomic Accounts Chapter 2 History of Canada’s macroeconomic accounts Release date: August 31, 2016 How to obtain more information For information about this product or the wide range of services and data available from Statistics Canada, visit our website, www.statcan.gc.ca. You can also contact us by email at [email protected] telephone, from Monday to Friday, 8:30 a.m. to 4:30 p.m., at the following numbers: • Statistical Information Service 1-800-263-1136 • National telecommunications device for the hearing impaired 1-800-363-7629 • Fax line 1-514-283-9350 Depository Services Program • Inquiries line 1-800-635-7943 • Fax line 1-800-565-7757 Standards of service to the public Note of appreciation Statistics Canada is committed to serving its clients in Canada owes the success of its statistical system to a a prompt, reliable and courteous manner. 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User Guide: Canadian System of Macroeconomic Accounts Table of contents Chapter 2 History of Canada’s macroeconomic accounts ................................................................. 4 What this chapter seeks to do.............................................................................................................. 4 2.1 Introduction .................................................................................................................................... 4 2.2 The development of the international SNA .................................................................................... 4 2.2.1 The 1947 System of National Accounts ................................................................................ 5 2.2.2 The System of National Accounts of 1953, 1960 and 1964 .................................................. 6 2.2.3 The 1968 System of National Accounts ................................................................................ 7 2.2.4 The 1993 System of National Accounts ................................................................................ 7 2.2.5 The 2008 System of National Accounts ................................................................................ 8 2.3 The development of Canada’s SNA ............................................................................................... 9 2.3.1 The period up to and including World War I .......................................................................... 9 2.3.2 The period between the two World Wars .............................................................................. 9 2.3.3 The birth of Canada’s System of Macroeconomic Accounts .............................................. 10 2.3.4 The 1950s and 1960s .......................................................................................................... 12 2.3.5 The 1970s and 1980s .......................................................................................................... 18 2.3.6 The 1990s and 2000s .......................................................................................................... 22 2.4 Conclusion .................................................................................................................................... 28 Notes for chapter 2 .............................................................................................................................. 29 Statistics Canada – Catalogue no. 13-606-G 3 User Guide: Canadian System of Macroeconomic Accounts User Guide: Canadian System of Macroeconomic Accounts Chapter 2 History of Canada’s macroeconomic accounts What this chapter seeks to do The chapter offers an historical summary of the evolution of the international System of National Accounts (SNA) since 1947 and of the development of the Canadian System of Macroeconomic Accounts (CSMA) since the early 1900s. 2.1 Introduction The history of the international System of National Accounts extends through the 20th century and into the 21st, culminating with the release of SNA 2008. Canada’s national accounts have emerged, developed and grown over the same period. This chapter tells the story, first, of the evolution of the international SNA standard and then of Canada’s progress through time in implementing and contributing to the development of that evolving standard. The elaboration and improvement of the international standard is marked by the publication of manuals at a number of points in time. At first these manuals were issued by the United Nations and later they were published jointly by several international organizations, including the United Nations. The historical account in this chapter is drawn mostly from those manuals, which are cited at the appropriate points in the narrative. The history of Canada’s efforts to develop and improve its national accounts is well recounted in a book by Professor Duncan McDowall entitled The Sum of the Satisfactions: Canada in the Age of National Accounting.1 The historical account in the present chapter draws heavily from the story in that volume, especially for the earlier years of the chronicle. Readers looking for a fuller treatment of the subject are encouraged to read McDowall’s book.2 Readers unfamiliar with the national accounts may find this chapter difficult as it uses terminology and refers to concepts not yet explained. For this reason, some may wish to skip over this chapter and come back to it after reading the other chapters. Readers unfamiliar with the national accounts may find this chapter difficult as it uses terminology and refers to concepts not yet explained. For this reason, some may wish to skip over this chapter and come back to it after reading the other chapters. 2.2 The development of the international SNA The post-war development of the international SNA is summarized in Table 2.1.3 4 Statistics Canada – Catalogue no. 13-606-G User Guide: Canadian System of Macroeconomic Accounts Table 2.1 Historical versions of the System of National Accounts Year System of National Accounts version 1947 The origins of the SNA trace back to the 1947 Report of the Sub-Committee on National Income Statistics of the League of Nations Committee of Statistical Experts under the leadership of Richard Stone. At its first session in 1947, the United Nations Statistical Commission (UNSC) emphasized the need for international statistical standards for the compilation and updating of comparable statistics in support of a large array of policy needs. In view of the emphasis on international statistical standards throughout the history of the Commission, the following national accounts standards were produced 1953 The 1953 SNA was published under the auspices of the UNSC. It consisted of a set of six standard accounts and a set of 12 standard tables presenting detail and alternative classifications of the flows in the economy. The concepts and definitions of the accounts were widely applicable for most countries, including developing countries. Two slightly modified editions of the 1953 SNA were published. 1960 The first revision in 1960 reflected comments on country experience in the implementation of the 1953 SNA. 1964 The second revision in 1964 improved consistency with the International Monetary Fund’s Balance of Payments Manual. 1968 The 1968 SNA extended the scope of the national accounts substantially by adding input-output accounts and balance sheets; giving more attention to estimates at constant prices; and making a comprehensive effort to bring the SNA and the Material Product System (MPS)¹ closer together. 1993 The 1993 SNA represents a major advance in national accounting and embodies the result of harmonizing the SNA and other international statistical standards more completely than in previous versions. 2008 The 2008 SNA, which is an update of the 1993 SNA, addresses issues brought about by changes in the economic environment, advances in methodological research and the needs of users. 1. The Material Product System is the alternative to the SNA that was used in the former Soviet Union and Eastern Bloc countries until around 1990 and in China between 1952 and 1992. Its focus is on material goods and in this system the definition of value added excludes many services. There is no private corporations sector, just a ‘socialist productive