5 th regional coordinator’s meeting october 5-6, 2011 washington dc global office
TRANSCRIPT
Special Survey Areas
5th Regional Coordinator’s Meeting October 5-6, 2011
Washington DC
Global Office
2
Presentation Outline
Special Survey Areas
Changes to GCL
Machinery and Equipment
Construction and Civil Engineering
Fast Evolving Technology Products
Water
Private Health
Private Education
3
Between April and October 2011, a few modifications were made to the ICP Global Core items list
Transport
Recreation and culture
4
5
Changes to GCL
Food and clothing1
Housing and related goods and services3
Health Services2
Miscellaneous goods and services6
Most important changes concerned Basic Heading “Passengers transport by air”-
Other changes/clarifications were made, when needed, to the following categories:
4
On Passengers transport by air, due to internal complexity of travel services industry worldwide, the Global Office, following recommendation from ICP regions, decided to lay more emphasis on return tickets to various destinations with tickets in low season at the cheapest options
Changes to GCL
Necessary amendments were made and regions have been informed in order to incorporate them in their regional lists-
Global list of items have been developed for Machinery and Equipment Goods, Construction, Housing, Education, Compensation of employees
5
Available survey materials for the specific Water survey include the following:
Collection Form of Water Tariff (English) (Arabic) (French) (Spanish) -
Water
Operational Guide Chapter (English) -
6
The 2011 Global Core List for Household Consumption Survey of the International Comparison Program is designed to collect cost associated with water consumption through direct pricing of three items under Basic Heading 1104411
Water
In addition to the Global Core List, the Global Office has developed a special form to collect important structural information to understand the formation of water tariffs in the countries
These calibration information will support prices collected for Water Supply basic heading covering Global Core List and Regional items
7
Available survey materials for the Machinery and Equipment survey include the following:
Machinery and Equipment
Survey guidelines for Machinery and Equipment Goods (English) (Arabic) (French) (Spanish) -
ICP-Kit Machinery and Equipment Goods Module (English)-
Machinery and Equipment Goods product catalogue (English)-
Operational Guide Chapter (English)-
User Guide for the ICP-Kit Module (English)-
8
The list of items for Machinery and Equipment Goods comprises eight different Basic Headings including a total of 77 products and 177 items
Machinery and Equipment
All prices, costs and fees should be submitted for one unit and the order quantity must be indicated-
A new version of the ICP Kit and a product catalogue have been redesigned to reflect these requirements-
Updated materials for price collection of Machinery and Equipment Goods have been circulated and data will be collected through November 2011
-
9
Available survey materials for the Construction and Civil Engineering include the following:
A Paper describing the approach, titled as “A New Approach to International Construction Price Comparison” (English) (Arabic) (French) (Spanish)
Additional Guidance 1 (FAQs) (English)
Presentation (English)
-
-
-
Construction and Civil Engineering
ICP Construction Price Survey Form (English) (Arabic) (French) (Spanish) -
Operational Guide Chapter (English) -
Construction Materials Catalogue (English) (Spanish) -
10
Construction and Civil
Engineering
10
3 Basic Headings
3 Categories of Input
Resources50 Input Resources
Residential Building
Civil Engineering
Non-Residential
Building
Materials
Equipment
Labor
38
5
7
Materials & Products
Equipment items
Labour services
Materials
Equipment
Labor
38
5
7
Materials & Products
Equipment items
Labour services
Materials
Equipment
Labor
38
5
7
Materials & Products
Equipment items
Labour services
Introduction
11
Construction and Civil Engineering PPPs are calculated in 4 steps: An unweighted CPD is to be used to calculate PPPs for the 3 sub-headings:
1
Approach in brief
BH PPPs will be calculated as weighted averages of the sub-heading PPPs using Resource Mixes as weights
2
BHs PPPs based on the input prices will be adjusted to outputs using mark-ups and allowances for professional fees collected in the price survey3
Materials1Equipment2
Labor3
Each BH has thus three sub-heading PPPs
National construction PPPs are calculated by aggregating BH PPPs using expenditures on construction BHs as weights4
38 items5 items7 items
Importance
!Resource Mixes are typical proportions of resources (Materials, Labor and Equipment) used in construction projects relating to the 3 BHs (Residential and Non-residential building and Civil engineering work)
Relevance
12
The 38 material resources are allocated to the 3 BHs based on their relevance
Importance
Sheet roofing and sanitary ware appear only in Residential and Non-residential building BHsExample
In addition each item is to be classified as important (1) or not important (0) for each BH (R, NR, C)
Importance means readily available and in common use-
Only prices of important items are used in the calculation of sub-heading PPPs-
Important Not Important
Available
Not Available
Price 1 Price 0
No Price 0
13
Materials included in the construction survey have been selected on the basis of their common use across countries
Pricing Rules (1)
However these are not always available in all countries - in this case there is two options:
-
Prices are not provided for the material in question1
Alternative material is priced
2 Clay bricks
Alternative bricks
Concrete blocks
Copper pipe
Steel pipe
Plastic pipe
- In general, prices should not be provided for materials that need to be specially produced or imported
! Alternative description is to be noted; comparability to be verified during the validation
14
Prices provided should be those paid by construction contractors to their suppliers
Pricing Rules (2)
Prices paid after discounts, including all non-recoverable taxes and respectively excluding all recoverable taxes, such as the Value Added Tax (VAT)
materials and
products
Rental charges paid to hire companies or internal hire ratesequipment
Cost to the contractor of employing the workerslabor
Countries are requested to provide annual and national ‘average’ prices:Prices that are an average over the survey year (mid-year prices are acceptable)Annual averages
In addition the provided prices should be for items that are commonly available and commonly used in the country; not for “special” items -
Prices across the country, across different types and sizes of projects
National averages
15
Available survey materials for the Fast Evolving Technology Products include the following:
Note describing the approach, titled as “Fast Evolving Technology Products” (English) (Arabic) (French) (Spanish)
Item specifications in SPD format (English)
Presentation (English)
-
-
-
Fast Evolving Technology Products
Operational Guide Chapter (English)-
16
As a result standard ICP practices cannot produce satisfactory PPPs
Introduction
Technology products such as audio-visual, office and information processing equipment pose unique challenges for ICP price collection and PPP computation. These are related to: Short life cycles and the overall fast changing nature of these products
Tendency of consumer electronics companies to create market fragmentation by introducing models with minor variations for certain groups of countries or even for individual countries
Introduction of new models according to a different schedule across the countries or regions
-
-
-
The issue of fast evolving technology relates mainly to the Audio-visual, photographic and information processing equipment BH (3 OECD BHs)
17
Approach
An approach to resolve this problem is based on the following four main elements:
Focus on products with wide availability, low number of alternative models for the same product type, and relatively long lifespan or with replacement models which can be clearly identified
Based on the four elements, the Global Core List (GCL) is being revised to include 16 new items
Improve the item specifications so that they list the key price determining factors and indicate a product series instead of a single model
Use the whole scope of the basic heading(s)
Collect brand and model information for validation purposes
1
2
3
4
18
ImplementationThe 16 new GLC items are covering the following product types:
Regional Coordinators can add additional regional items to their regional lists following the approach, if needed
Photographic equipment
Equipment for the reception and reproduction of pictures
Equipment for the reproduction of pictures
Information processing equipment
The old GCL and regional items can either be kept or deleted depending on the results for previous quarters
Prices for these items are to be collected in the remaining months and quarters (Q3 and Q4) of 2011
The treatment of these items is the same as for any other GCL item
1 item
4 items
1 item
9 items
Equipment for the reproduction of sound 1 item
-
-
-
-
19
Item Specifications
Brand: Brand XSeries: Series YModel: e.g D255E-13639
Type: netbook computerScreen size: 10.1”Processor: Atom N455Installed memory: 1 GBHard disc: 250 GBWireless connectivity: Wi-Fi (WLAN), Bluetooth
Exclude: 3G/4G models
Number of units: 1Unit of measurement: piece
SPECIFY: brand and model
Item specifications define the series for the given brand and the key price determining parameters for the product
Model code can differ across countries for exactly the same product and change quickly even within a country due to possibly very minor changes with actual product
Reference to an actual model code is not made directly; it is included only as an example
The key product features
Clearly listed to facilitate the price collection and to assist the price collectors and shop assistants in finding comparable models at the national market
Series are more universal and stable
Prices brand and model is to be written down for validation purposes
20
Available survey materials for the Private Health include the following:
Presentation (English) -
Private Health
Operational Guide Chapter (English) (Arabic) (French) (Spanish) -
Item specifications in SPD format (English) (Arabic) (French) (Spanish) -
21
Introduction (1)Basic Headings relating to health products and services are split into household and government expenditures
Government expenditure consists of:
-
Household expenditure consists of:
-
Reference PPPs
Input approach
Price surveys
Reference PPPs
7 BHs6 BHs
1 BH Hospital services BH
11 BHs
1 BH Compensation of employees BH12 BHs
Pharmaceutical products BHOther medical products BHTherapeutic appliances BHMedical Services BHDental services BHParamedical services BH
22
Introduction (2)Despite being a comparison resistant area, the overall survey process follows normal household consumption price surveys:
-
Regional item lists consist of both Global Core List items as well as region specific items-
Price collections are to be carrier out quarterly in order to establish sound annual average prices
- Normal 2011 ICP routines are to be followed on importance
- Prices and resulting PPPs are to be validated at country, region and global levels
All reported prices are to be full market prices; this is the total amount the seller or service provider receives for the specified product or service
Full market price = Price paid by
an individual + Potential government subsidy or insurer/NGO contribution
-
23
Pharmaceutical ProductsThe GCL includes 43 internationally essential drugs, that are indentified based on the following main parameters:
Active Substance Quantity Product examplesDosage
In addition distinction is made between:
Identical, or bioequivalent medicines, to an existing brand-name medicine in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use
Branded drugs
Medicines produced and sold by their innovative pharmaceutical companies
Generic drugs
Referred as “Original” or “International brand”
referred as “Generic” or “Generic brand”
24
Out-Patient Services
Out-Patient Services covers 3 BHs and 12 GCL itemsItems include services such as sight test examination, extraction of a tooth and standard blood test -
Prices are to be collected only from private service providers - Public service providers is covered by the BHs relating to Health expenditure
by government; different comparison approaches are employed for these BHs!
Establishment whose all or most of output is market productionPrivate (market)
producers
Public (non-market)
producers
Provide all or most of its output to others at prices that are economically significant
Establishments owned by government units or NPISHs that supply goods or services free, or at prices that are not economically significant, to households or the community as a whole
Most of their activity will be undertaken on a non-market basis
25
Available survey materials for the Private Education include the following:
Private Education Guidelines (English) (Arabic) (French) (Spanish)
Private Education - Survey Questionnaire (English) (Arabic) (French) (Spanish)
Presentation on Private Education in the ICP 2011 (English)
-
-
-
Private Education
Operational Guide Chapter (English) -
26
Introduction to Private Education
Country Survey
Private Education under HHC collection of private tuition fees
Involves data collection by countries Regional PPPs computed by Regional
Coordinators then linked to Global PPPs
Global Level
Public Education under Government collection of compensation of employees working in the public education sector + productivity adjustment
Quantity indicators (Number of students)
Quality adjustment factors (scores, absenteeism, background, etc.)
No data collection by countries Data compiled centrally by the Global
Office, with the help of consultants Regional and Global PPPs computed
centrally by the Global Office, with the help of consultants
27
Survey Frame /Data Requirements
Surv
ey F
ram
e
Types of Schools
Locations
Number of Observations
Capital city and several other areas (including both urban and rural)
At least one per areaAt least five in the capital city
All types of private schoolse.g. Low-cost / High-cost schools, etc.
The average prices for annual tuition of private schools
All raw data and metadata
General education indicators
Worksheets 3.1-3.7
Worksheet 1
Worksheets 3.1-3.7
Dat
a Re
quire
men
ts
Number of Observations
28
Item List
Code Basic Heading and Product Name
1110111 Education
11101111 Primary Education (Primary)
11101112 Secondary education (Lower Secondary)
11101113 Secondary education (Upper Secondary)
11101114 Tertiary education (Computer Science Degree)
11101115 Tertiary education (Degree in Humanities or Social Science)
11101116 Other education programs (Foreign language course or lessons)
11101117 Other education programs (Private lessons in mathematics - outside school hours)
Specifications are provided in the SPD format in the operational material 1.4.02
29
Technical Issues in Pricing
Number of school days
• Excluding all the vacations and holidays.
Two academic years in calendar Y2011• For each academic year, average tuition per school day will be calculated and
multiplied by the number of school days in the calendar Y2011. Then they are summed up.
Cost of education only• Cost for educational materials and education support services should be
excluded.
Detailed Guidance is provided in the operational manual 1.4.01- guidelines
30
THANK YOU