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SDG Indicator 2.a.1 the Agricultural Orientation Index for government expenditures

15 November 2016

Brian Carisma & Sangita Dubey

Statistics Division, FAO

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1. Overview of SDG and the role of FAO 1.1 SDG Indicator 2.a.1 1.2 Indicator 2.a.1 and the 2016 SDG report 1.3 SDG 2.a.1 FAO data collection/compilation

2. Compiling GEA at Country Level 2.1 Questionnaire 2.2 Mapping of public institutions by GEA-related function 2.3 GEA data collection

3. Potential Extensions 4. Next step

Outline

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2030 Development Agenda

Key Challenge: how to measure the indicator? Is the

data available? Does the methodology exist?

FAO- member country role?

Rationale for SDGs - economic growth alone not

enough to address socio-economic inequity

1.Overview of SDGs and the role of FAO

230 SDG indicators

17 Goals

169 targets

21 Indicators (FAO as custodian)

Indicator 2.a.1

(FAO & IMF)

230 SDG indicators

17 Goals

169 targets

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Goal 2 (End hunger, achieve food security and improved nutrition and promote sustainable agriculture) 8 targets

SDG Indicator 2.a.1 is agriculture orientation index (AOI) for government expenditure (central)*

Defined as:

Means of Implementation indicator for Goal 2 not a target indicator but away to monitor implementation of commitment of countries.

Tier 1 indicator - conceptually clear, established methodology and standards available and data regularly produced by countries.

http://www.un.org/sustainabledevelopment/hunger/

* refers to the expenditures of Central Govt. In the absence of data, Budgetary Central Govt is used in lieu of Central Govt.

1.1 SDG Indicator 2.a.1

http://www.un.org/sustainabledevelopment/hunger/http://www.un.org/sustainabledevelopment/hunger/

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Derived indicator of two components: The 2 denominator components rely on the system of national accounts

(http://unstats.un.org/unsd/nationalaccount/sna.as)

The 2 numerator components rely on government finance statistics - the focus of the rest of the training

Takes into account the relative size of agriculture sector across countries.

A novel way of looking at government priority and allocation to the agriculture,

relative to other economic sectors and the total economy as a whole.

1.1 SDG 2.a.1 compilation

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Why it matters?

1.1 SDG 2.a.1 compilation

Investing in agriculture is one of the most effective strategies for reducing poverty and hunger and promoting sustainability. Investing

in agriculture is one of the most effective ways of promoting agricultural

productivity, raising real incomes, reducing poverty and food insecurity,

and enhancing environmental sustainability.

The Addis Ababa Action Agenda (AAAA) lays out the steps the international community promises to take to fund the worlds new sustainable development agenda- countries can take this opportunity

http://unstats.un.org/unsd/nationalaccount/sna.as)http://unstats.un.org/unsd/nationalaccount/sna.as)http://www.un.org/ga/search/view_doc.asp?symbol=A/CONF.227/L.1

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Interpretation of values: AOI > 1 - prominence to agriculture than its contribution to the economy, as

measured by GDP

AOI < 1 - more prominence to non-agricultural sectors.

e.g. Countrys Y AOI = 0.5. This effectively means "For every unit spent of the of total central governments budget, agriculture gets half of what it should obtain if

allocation was according to contribution to GDP"

1.1 SDG 2.a.1 compilation

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Asia and the Pacific 16 18 18 20 23 23 25 28 28 26 26 27 27 23 16

Number of countries reporting Central Government* Spending in A&P Region, 2001-2015

Inverse relationship between the agriculture value added and the AOI

Interpretation of values (cont.)- Asia and the Pacific countries :

1.1 SDG 2.a.1 compilation

* Central Govt = CG else BA

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1.2 The first SDG Report (2016)

http://unstats.un.org/sdgs/report/2016/

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FAO obtains country data from? GEA data from, questionnaire to

countries, supplemented by:

IMF GFS data; Country publications, statistical

yearbooks & official reports;

Other International databases (e.g. AfDB, OECD/Eurostat)

National Accounts data from the UN Statistics Division Main Aggregates

What are country data sources? Administrative budget data Budget execution and Financial

statements

National Accounts

1.3 SDG 2.a.1 - FAO data collection

http://unstats.un.org/sdgs/indicators/database/?indicator=2.a.1

http://unstats.un.org/sdgs/indicators/database/?indicator=2.a.1http://unstats.un.org/sdgs/indicators/database/?indicator=2.a.1

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FAO GEA Questionnaire and IMF GFS Questionnaire are the key vehicles for FAO data collection for the

government expenditures in agriculture component of

SDG 2.a.1 Questionnaire- based data collection

FAO Government expenditure on agriculture (GEA) Functional classification of expenditure in GFS/COFOG Extension of the standard IMF template to support FAO

analytical needs Addition of specific COFOG groups pertaining to Agriculture (and

subsectors) and Environmental Protection.

FAO GEA and IMF GFS Questionnaires

1.3 FAOs GEA data collection

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1.3 FAOs GEA data collection

Step 1:

Identify key responsible departments

Step 2:

Determine a key focal

person

Step 3:

Pre-populate

FAO questionna

ire with previous FAO and IMF data

Step 4:

Dispatch FAO

questionnaire

Step 5:

Validate received

data

Step 6: Supplement

non-respondse with data from IMF,

other national sources, Eurostat,

OECD

FAO Statistics Division formally launched the GEA questionnaire in 2012, now on its 4th global collection, requesting Budgetary Central

Government at a minimum (and its subsectors, as relevant)

- FAO provides pre-filled questionnaires to facilitate comparability of disaggregated series

FAO seeks your assistance in compiling the questionnaire or in identifying appropriate contacts

Queries may be addressed to: - Investment-data@fao.org

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FAO Government Expenditure on Agriculture: Data Collection (3/3)

1.3 FAOs GEA data collection

Agricultural Expenditure:

Who and on what? (1/2)

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What constitutes agriculture expenditure? ISIC Rev 3.1. Section A+ B Agriculture, forestry, fishing and hunting (COFOG code 7042)

Agriculture (crops and animal husbandry)- (Code 70421)

Forestry - (Code 70422)

Fishing and hunting - (Code 70423)

2. Compiling GEA at country level

http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=17&Top=2&Lg=3

Government expenditure in agriculture refers to all non-repayable payments whether capital or current, by governments.

mailto:Investment-data@fao.orgmailto:Investment-data@fao.orgmailto:Investment-data@fao.orghttp://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=17&Top=2&Lg=3http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=17&Top=2&Lg=3

Agricultural Expenditure:

Who and on what? (2/2)

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A framework to assess governments role in and contribution to agriculture and rural development:

Compile and analyze data consistent with internationally recognized macroeconomic statistical systems GFS-based questionnaire format should reduce reporting burden

Enhance and provide additional value-added to the data already collected by IMF according to COFOG Disaggregation of IMF aggregates on government expenditure in

Agricultural between capital and recurrent spending (expense and the net acquisition of nonfinancial assets)

Harmonize these data as fully as possible with three other investment datasets, and with U.N. SNA-based 2012 System of Environmental-Economic Accounts (SEEA) Central Framework (http://unstats.un.org/unsd/envaccounting/seearev/)

2. Compiling GEA at country level

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Functions

+ select

Groups but no

Classes

COFOG classifications

2.1 GFS Yearbook Table 7

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Total + Key

Agri-

related

Functions +

select

Groups + related

Classes along with

recurrent

and capital

split, where

feasible

COFOG classifications

2.1 FAO GEA Questionnaire

Example: Thailand

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Total + Key

Agri-

related

Functions +

select

Groups + related

Classes along with

recurrent

and capital

split, where

feasible

GEA vs GFS questionnaire

2.1 GEA vs COFOG Questionnaire

Government Ministry of Chile

Ministry of the Interior and Public Security

Ministry of Foreign Affairs

Ministry of National Defense

Ministry of Finance

Ministry General Secretariat of the Presidency

Ministry General Secretariat of Government

Ministry of Economy, Development and Tourism

Ministry of Social Development

Ministry of Education

Ministry of Justice and Human Rights

Ministry of Labor and Social Forecast

Ministry of Public Works

Ministry of Health

Ministry of Housing and Urban Planning

Ministry of Agriculture

Ministry of Mining

Ministry of Transport and Communications

Ministry of National Assets

Ministry of Energy

Ministry of the Environment

Ministry of Women and Gender Equality

Ministry of Sport

National Council of Culture and the Arts

Identifiy relevant ministries involved in GEA-type function and expenditures

Which among ministries listed on the right you likely consider?

2.2 Mapping public institutions by

GEA-related function

2.2 Mapping of public institutions by

GEA-related function

If possible, identify the lowest level of public institution that deliver GEA-related functions

http://si3.bcentral.cl/estadisticas/Principal1/Estudios/CCNN/sector_institucional/see77.pdf

MINISTRY DEPARTMENT PROGRAM

SECRETARIAT OF FISHERIES SECRETARIAT OF FISHERIES

FISHERY ADMINISTRATION FUND

AQUACULTURE STRENGTHENING

NATIONAL FISHERY SERVICE NATIONAL FISHERY SERVICE

ENVIRONMENTAL AUDIT PROGRAM

MINISTRY OF PUBLIC

WORKS

DIRECTORATE GENERAL OF

PUBLIC WORKS DIRECTION OF HYDRAULIC WORKS

SECRETARIAT OF AGRICULTURE SECRETARIAT OF AGRICULTURE

RESEARCH AND TECHNOLOGICAL

INNOVATION SILVOAGROPECUARIA

OFFICE OF STUDIES AND

AGRICULTURAL POLICIES

OFFICE OF STUDIES AND AGRICULTURAL

POLICIES

INSTITUTE FOR AGRICULTURAL

DEVELOPMENT

INSTITUTE FOR AGRICULTURAL

DEVELOPMENT

RURAL DEVELOPMENT PROJECT IV REGION

COASTAL SECTION PROJECT

AGRICULTURAL AND LIVESTOCK

SERVICE AGRICULTURAL AND LIVESTOCK SERVICE

INSPECTIONS EXPORTS SILVO-PRACTICE

LIVESTOCK DEVELOPMENT

NATIONAL FOREST CORPORATION NATIONAL FOREST CORPORATION

SPECIAL PROGRAMS

PROJECT PRODUCTIVITY AND ENVIRONMENT

NATIONAL IRRIGATION

COMMISSION NATIONAL IRRIGATION COMMISSION

MINISTRY OF

ECONOMY,

DEVELOPMENT AND

TOURISM

MINISTER OF

AGRICULTURE

http://si3.bcentral.cl/estadisticas/Principal1/Estudios/CCNN/sector_institucional/see77.pdfhttp://si3.bcentral.cl/estadisticas/Principal1/Estudios/CCNN/sector_institucional/see77.pdf

2.2 Mapping classification of public

institutions by GEA-related function

MINISTRY DEPARTMENT PROGRAM COFOG COFOG DESCRIPTION

SECRETARIAT OF FISHERIES SECRETARIAT OF FISHERIES 70423 Fishing and hunting

FISHERY ADMINISTRATION FUND 70423 Fishing and hunting

AQUACULTURE STRENGTHENING 70423 Fishing and hunting

NATIONAL FISHERY SERVICE NATIONAL FISHERY SERVICE 70423 Fishing and hunting

ENVIRONMENTAL AUDIT PROGRAM 7054 Protection of Biodiversity and Landscape

MINISTRY OF PUBLIC

WORKS

DIRECTORATE GENERAL OF

PUBLIC WORKS DIRECTION OF HYDRAULIC WORKS 70421 Agriculture

SECRETARIAT OF AGRICULTURE SECRETARIAT OF AGRICULTURE 7042 Agriculture, forestry, fishing, and hunting

RESEARCH AND TECHNOLOGICAL

INNOVATION SILVOAGROPECUARIA 70482 R&D Agriculture, forestry, fishing, and hunting

OFFICE OF STUDIES AND

AGRICULTURAL POLICIES

OFFICE OF STUDIES AND AGRICULTURAL

POLICIES 7042 Agriculture, forestry, fishing, and hunting

INSTITUTE FOR AGRICULTURAL

DEVELOPMENT

INSTITUTE FOR AGRICULTURAL

DEVELOPMENT 70421 Agriculture

RURAL DEVELOPMENT PROJECT IV REGION 70421 Agriculture

COASTAL SECTION PROJECT 70421 Agriculture

AGRICULTURAL AND LIVESTOCK

SERVICE AGRICULTURAL AND LIVESTOCK SERVICE 7042 Agriculture, forestry, fishing, and hunting

INSPECTIONS EXPORTS SILVO-PRACTICE 70421 Agriculture

LIVESTOCK DEVELOPMENT 70421 Agriculture

NATIONAL FOREST CORPORATION NATIONAL FOREST CORPORATION 70422 Forestry

SPECIAL PROGRAMS 7054 Protection of Biodiversity and Landscape

PROJECT PRODUCTIVITY AND ENVIRONMENT 7054 Protection of Biodiversity and Landscape

NATIONAL IRRIGATION

COMMISSION NATIONAL IRRIGATION COMMISSION 70421 Agriculture

MINISTRY OF

ECONOMY,

DEVELOPMENT AND

TOURISM

MINISTER OF

AGRICULTURE

Global implementation of reporting of detailed annual data integrated with National Accounts Data on GDP and

Agriculture Value-Added

- Priorities in reporting Government Expenditure on Agriculture data

o Budgetary Central Government short-term objective

o Recurrent and capital expenditures short- to medium-term objective

o General Government series medium-term objective (including state and local government expenditures)

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FAO Government Expenditure on Agriculture: Data Reporting (1/3)

2.3 GEA Data Reporting

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GEA collects data on Agriculture, Forestry and Fishing and Environmental Protection

GEA is mainly agriculture-specific expenditure

Should GEA include agriculture-supportive expenditures as well?

What additional COFOG codes to include? What additional functions and activities to consider?

GEA to include Rural development? How to define rural development; parameters to include?

How to address cross classification of expenditure? e.g. multi-purpose development projects, such as the

development of integrated facilities for flood control and irrigation,

which would fall under GFS code 70474.

3. Potential extension something to think about

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Develop e-learning materials for SDG indicator under FAO custodianship

Develop and identify experts to train the trainers

Collaborate with Regional Associations and the IMF

Develop SDMX protocol for exchanging data, first between FAO and the IMF

Other issue?

4. Next steps

For more information or a detailed

presentation on SGDs and for training

request, please contact:

FAO Statistics Division

Pietro Gennari, Chief Statistician: ESS-Director@fao.org

Sangita Dubey, Senior Statistician/Economics Team Leader:

sangita.dubey@fao.org

Brian Carisma, Investment Statistician: brian.carisma@fao.org

- End-

mailto:ESS-Director@fao.orgmailto:ESS-Director@fao.orgmailto:ESS-Director@fao.orgmailto:sangita.dubey@fao.orgmailto:brian.carisma@fao.org

- Annex -

Scope of GEA-related activities

- Annex-

- Annex-