Special Survey Areas

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

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Between April and October 2011, a few modifications were made to the ICP Global Core items list

Transport

Recreation and culture

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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:

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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

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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) -

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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

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Available survey materials for the Machinery and Equipment survey include the following:


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)-

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The list of items for Machinery and Equipment Goods comprises eight different Basic Headings including a total of 77 products and 177 items


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

-

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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)

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-

-

Construction and Civil Engineering

ICP Construction Price Survey Form (English) (Arabic) (French) (Spanish) -


Construction Materials Catalogue (English) (Spanish) -

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Construction and Civil

Engineering

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3 Basic Headings

3 Categories of Input

Resources50 Input Resources

Residential Building

Civil Engineering

Non-Residential

Building

Materials

Equipment

Labor

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5

7

Materials & Products

Equipment items

Labour services

Materials

Equipment

Labor

38

5

7


Equipment items

Labour services

Materials

Equipment

Labor

38

5

7


Equipment items

Labour services

Introduction

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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:

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Approach in brief

BH PPPs will be calculated as weighted averages of the sub-heading PPPs using Resource Mixes as weights

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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

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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

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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:

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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

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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

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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)

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-

-

Fast Evolving Technology Products

Operational Guide Chapter (English)-

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As a result standard ICP practices cannot produce satisfactory PPPs

IntroductionTechnology 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

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-

-

The issue of fast evolving technology relates mainly to the Audio-visual, photographic and information processing equipment BH (3 OECD BHs)

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ApproachAn 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

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2

3

4

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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 picturesEquipment for the reproduction of picturesInformation 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 items1 item9 items

Equipment for the reproduction of sound 1 item

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-

-

-

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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 featuresClearly 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

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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) -

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Introduction (1)Basic Headings relating to health products and services are split into household and government expenditures

Government expenditure consists of:

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Household expenditure consists of:

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Reference PPPsInput approach

Price surveys

Reference PPPs

7 BHs6 BHs

1 BH Hospital services BH

11 BHs1 BH Compensation of employees BH

12 BHs

Pharmaceutical products BHOther medical products BHTherapeutic appliances BHMedical Services BHDental services BHParamedical services BH

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Introduction (2)Despite being a comparison resistant area, the overall survey process follows normal household consumption price surveys:

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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 serviceFull market

price = Price paid by an individual + Potential government subsidy

or insurer/NGO contribution

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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”

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Out-Patient ServicesOut-Patient Services covers 3 BHs and 12 GCL items

Items 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

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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)

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Private Education


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Introduction to Private EducationCountry 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

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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

Data

Req

uire

men

ts

Number of Observations

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Item ListCode 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

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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

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THANK YOU

Documents

Special Survey Areas