India has a crucial role in setting international statistical standards

Source- The post is based on the article “India has a crucial role in setting international statistical standards” published in the “Live mint” on 24th April 2023.

Syllabus: GS 3 – Important international institutions

News– Recently, India was elected to the United Nations Statistical Commission (UNSC) after a gap of two decades. The membership is for a term of four years, beginning from January 2024.

What are some facts about the United Nations Statistical Commission?

The UNSC was established in 1947. It is the highest body of the global statistical system. It brings together the chief statisticians of member states from around the world.

It is the highest decision making body for international statistical activities. It is responsible for setting statistical standards and the development of concepts and methods. It also includes their implementation at the national and international level.

They also enable comparability across countries through various indicators such as Gross

Domestic Product, Gross Value Addition, employment-unemployment statistics, price statistics, health accounts, tourism accounts, environment accounts.

What are the contributions of India to the United Nations Statistical Commission?

Two prominent statisticians from India have chaired the Commission. The first Indian to hold its chair was P.C. Mahalanobis. He was followed by V.R Rao who chaired the 19th session in 1976.

Mahalanobis made path-breaking contributions to the UNSC during its formative years. He created a sub-commission on statistical sampling. It paved the way for the application of sample surveys in various fields of official statistics.

Rao strengthened the statistical organisations of many developing countries, especially for carrying out household sample surveys. He chaired the only session of the UNSC held outside a UN duty station at New Delhi in1976.

Which issues related to the accounting system need the consideration of the United Nations Statistical Commission?

One of the most important items on the agenda will be the finalization and implementation of the System of National Accounts (SNA) 2025.

SNA refers to the framework adopted by UN member countries for the formulation of national accounts. It is the basis for estimation of GDP, GVA and other macroeconomic aggregates.

The current estimates of National Income are based on SNA 2008, with 2011-12 as base year.

Emerging economies like India are in a disadvantageous position because of non-measurement of certain economic activities, like unpaid work by women.

The women’s labour participation rate in India is just about 20%, compared to about 70% in the US, UK and other developed countries.

A majority of women are engaged in economic activities, such as family labour in agriculture. This remains unaccounted for.

With the internet and rapid digitalization, the basic structure of production, consumption and expenditure has changed since the SNA 2008. This has changed the production, consumption and expenditure patterns.

Digitalization has resulted in a shift from physical to online transactions. It has given rise to new types of economic activities that are beyond the old SNA framework.

Digital intermediary platforms have emerged. The Gig economy has independent service providers who source their work from these platforms, such as bicycle couriers, and cab drivers. Currently, their value addition remains outside the system’s accounting ambit.

Similarly, there are a few products and services which are beyond SNA 2008, like data and digital services provided by enterprises.

There are other important issues relating to the measurement of our well-being and the impact of climate change. There is a need to incorporate these economic activities into the revised SNA of 2025.