Public Information Notice

Public Information Notices (PINs) form part of the IMF's efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.

On November 2, 2005 the Executive Board concluded policy discussions on the Sixth Review of the International Monetary Fund's Data Standards Initiatives.

Background

The Fund's Data Standards Initiatives aim to increase the comprehensiveness and timeliness of statistical information available to markets and the public, thus contributing to its member countries' pursuit of sound macroeconomic policies and the improved functioning of financial markets.

The Special Data Dissemination Standard (SDDS) was established in 1996 to provide guidance on disseminating data to the public for countries that have or might seek access to international capital markets. There are 61 subscribers to the SDDS, an increase of 8 since the Fifth Review of the Data Standards Initiatives (Fifth Review) in July 2003. Subscription is voluntary. Subscribers undertake to follow the SDDS requirements on the coverage, periodicity, and timeliness of national statistics under the 22 SDDS data categories. They must disseminate advance release calendars giving the public prior notice when these data will be disseminated. Subscribers also certify or update their stated practices (also referred to as "metadata") on the coverage, periodicity, and timeliness of the data, as well as their integrity, access by the public, and quality. The Fund posts this information about subscribers' data dissemination practices on its Dissemination Standards Bulletin Board (DSBB) at http://dsbb.imf.org. Subscribers maintain an Internet website that contains the most recent releases of the data, referred to as a national summary data page (NSDP), and to which the DSBB is electronically linked. The Fund uses the NSDP to monitor whether subscribers' data releases meet SDDS requirements.

The General Data Dissemination System (GDDS) was established in 1997 as a developmental framework for national statistical systems to meet the evolving requirements of the user community. Through its plans for improvement of statistics, the GDDS also promotes a systematic approach to national statistical development as well as helping to focus and coordinate the efforts of providers of statistical technical assistance. The DSBB contains the data dissemination practices and detailed plans for improvement of the 81 countries and territories participating in the GDDS. This is an increase of 24 countries since the Fifth Review. Five countries have graduated from the GDDS to the SDDS since the inception of the GDDS, four of these since the Fifth Review.

The Data Quality Assessment Framework (DQAF) has underpinned the assessment methodology of the data module of the Reports on the Observance of Standards and Codes (data ROSCs) since the Fourth Review of the Data Standards Initiatives. The Fund has integrated the DQAF into a data quality program that will include its data standards initiatives as well as its data quality assessment and statistical technical assistance work.

Executive Board Assessment

Directors commended the authorities of IMF member countries for their efforts to promote data transparency under the initiatives. They took note of the significant increase in the number of members subscribing to the SDDS and participating in the GDDS since the last review in July 2003. They further noted that progress in these initiatives continues to be important for the efficient operation of markets and effective surveillance and crisis prevention. In taking note of recent empirical evidence, Directors broadly agreed that adherence to international transparency standards—and to the SDDS in particular—could be an important factor in improving a country's access to international capital markets. In this vein, Directors recommended moving forward with the Fund's voluntary and cooperative strategy for assisting members to participate in the initiatives.

Directors welcomed the graduation of a number of countries from the GDDS to the SDDS since the Fifth Review, and looked forward to the graduation of additional countries as their statistical systems strengthen. They supported continuing the Fund staff's integrated outreach and technical assistance efforts in building countries' statistical capacities to levels that, among other things, meet SDDS requirements.

Directors supported continued efforts to promote the dissemination and exchange of statistical information on the Internet among international organizations and their member countries using common data transmission and dissemination standards. Among these efforts is development of data and metadata transmission standards under the Statistical Data and Metadata Exchange Initiative (SDMX) of seven international organizations including the IMF.¹

In considering the most recently introduced data categories, Directors welcomed the generally positive experience with incorporating the external debt data category into the data standards. Nearly all SDDS subscribers now meet the data dissemination requirements for external debt data, and a majority of GDDS participants disseminate metadata on their external debt. At the same time, they observed that no member had availed itself of the opportunity to report inflation targeting indicators under the SDDS's forward-looking indicators data category. Directors also took note of the slow progress in incorporating indicators of achievement of the Millennium Development Goals into the metadata of the GDDS. Going forward, Directors agreed to consider at the next review of the Fund's data standards initiatives whether a core set of Financial Soundness Indicators (FSIs) should be incorporated into the SDDS. By then, the Fund and participating member countries will have conducted a coordinated compilation exercise for FSIs and evaluated its results.

Directors noted that monitoring subscribers' observance of SDDS requirements is critical for assuring their adherence to those requirements, which, in turn, is the foundation for maintaining the credibility of the SDDS to capital markets and the public. Directors broadly supported requiring as an SDDS undertaking subscribers' use of standardized electronic reporting procedures to monitor more effectively their observance of the SDDS. They encouraged the staff to work with subscribing countries in designing the system to minimize subscribers' reporting burden and cost of observance as well as maximize monitoring efficiency.

Directors noted the staff's intention to assess subscribing countries' observance of their SDDS undertakings annually and post the first results on the DSBB in early 2007, implementing an earlier Executive Board decision. They stressed the reports should give attention to data quality and frequency as well as timeliness and distinguish between major and minor deviations from SDDS requirements. They encouraged the staff to continue to raise with country authorities SDDS observance issues that are central to effective surveillance under Article IV.

Many Directors considered that countries' commitment to improving data transparency and strengthening their statistical systems should be a factor in allocating technical assistance. They agreed that countries' participation in the data standards initiatives demonstrates such a commitment. However, they observed that a country's decision not to participate in the initiatives could be a function of limited resources and administrative capacity constraints. They thus considered that the criteria for access to Fund technical assistance should remain flexible. Directors recognized the central role Fund area departments play in developing a country-focused, medium-term technical assistance strategic framework. They supported further close collaboration with the World Bank and other institutions and donors in helping GDDS participants become SDDS subscribers. Directors noted the usefulness of the GDDS in effecting statistical reforms as part of poverty reduction strategies. To realize the maximum effect from this feature of the GDDS, they supported encouraging and assisting countries to integrate the GDDS into Poverty Reduction Strategy Papers (PRSPs), and thus take account of statistical reforms more systematically in their PRSP's public expenditure plan.

Directors broadly endorsed the suggestion that SDDS subscribers and GDDS participants be encouraged to provide additional metadata on oil and gas activities and products under the existing data categories of the SDDS/GDDS. They noted this initiative would promote public knowledge and understanding of how countries incorporate oil market information when compiling macroeconomic indicators.

Directors endorsed the further integration of the SDDS and the GDDS into the Fund's Data Quality Program by reformatting countries' SDDS/GDDS metadata according to the DQAF—the underlying framework for the data ROSC, which assesses the quality of countries' statistical practices. Directors agreed that using a common metadata structure will increase both the effectiveness and the efficiency of the staff's work on the SDDS, the GDDS, the data ROSC, and statistical technical assistance. At the same time, the staff's work in reformatting SDDS/GDDS metadata would place minimal burden on participating member countries.

Directors agreed the next review of the Fund's data standards initiatives should take place in the second half of 2008.

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¹ The SDMX consortium comprises the Bank for International Settlements, the European Central Bank, Eurostat, the IMF, the Organization for Economic Cooperation and Development, the United Nations, and the World Bank. See www.sdmx.org for further information.