According to the International Monetary Fund's (IMF) Special Data Dissemination Standards' (SDDS) website, the IMF's 2007 annual observance report, and the 2007 data module of the IMF's Report on the Observance of Standards and Codes for Chile, the country's economic and financial statistics are of good quality, meet SDDS requirements for coverage, timeliness, and periodicity, and satisfy specifications regarding accessibility and data integrity. While the annual observance report notes some relatively minor areas in which Chile could improve its performance in meeting data dissemination standards, both it and the ROSC applaud the commitment of Chile's statistical authorities to professionalism, transparency, and accessibility of data. Chile became a subscriber to the SDDS in May of 1996 and first met SDDS specifications in March of 2000. According to information provided on the IMF's SDDS website, Chile fully complies with the SDDS requirements on timeliness, periodicity, coverage and access to data. However, with regards to the SDDS' integrity and quality dimensions, there are certain data categories posted on the SDDS website that do not fulfill all the requirements as stipulated by the SDDS. One of the most significant issues raised by the IMF's reports is the insufficient independence of Chile's National Statistics Institute (INE), due in large part to the short terms of office served by the directors and deputy directors and the terms by which these officials may be removed from their posts. A further important problem is the inadequacy of resources allocated to the INE and the Ministry of Finance's Budget Directorate, as well as shortcomings in the legislation governing the dissemination of official statistics.

General Overview

The 2008 Article IV Consultation report by the International Monetary Fund (IMF) states that Chile is in observance of the Special Data Dissemination Standard (SDDS) and its "economic and financial data are timely, of good quality, and adequate for surveillance purposes" (Appendix II, p. 3). The IMF's SDDS website discloses that Chile became a subscriber to the SDDS in May of 1996 and successfully met all SDDS specifications for the first time in March of 2000. According to an IMF 2007 report titled "Annual Observance Report of the Special Data Dissemination Standard for 2007" (hereafter referred to the IMF's 2007 annual observance report), Chile has remained in observance of the SDDS since it subscribed to the standard. The 2007 annual observance report notes that Chile did not avail itself of any "as relevant" coverage flexibility options, met all the requirements established for the reserves template and external debt template, and met or exceeded most SDDS requirements for coverage, timeliness, and periodicity. Chile used no periodicity flexibility options. It is in the area of timeliness that Chile encountered a few problems. First, Chile did opt for the timeliness flexibility option for central government operations data. Second, Chile failed to meet timeliness requirements in 2007 for data in the categories of general government or public sector operations, central government debt, and analytical accounts of the central bank, all of which experienced short delays, and for official reserve assets, which were subject to a long delay. While the SDDS website shows that Chile does not show an advance release calendar (ARC) for the category of general government or public sector operations, the 2007 annual observance report explicitly states that "Chile met the SDDS requirements for ARC in all months" (p. 6) in 2007. The report adds that Chile achieved compliance with the punctuality requirement for many datasets, but experienced a short delay for wages and earnings data, general government and public sector operations, central government operations, central government debt, merchandise trade, external debt, and population data. It also experienced long delays for consumer and producer price data, analytical accounts of the central bank, and official reserve asset data. The 2007 annual observance report adds that Chile fell short of the SDDS requirements for metadata certification in the first, third, and fourth quarters of 2007. In 2007, Chile did provide the SDDS with information regarding methodology, sources, and data reconciliation.

In 2007, the IMF also published its Report on the Observance of Standards and Codes (ROSC), Data Module for Chile. This supersedes the previous ROSC data module that was published in 2001. The 2007 ROSC asserted that Chile remains in observance of the SDDS requirements. According to the ROSC, there are four principal agencies responsible for the range of Chilean statistics. Price statistics fall under the authority of the National Statistics Institute (INE). National accounts, monetary, and balance of payments statistics are the responsibility of the Central Bank of Chile (BCCh). The Ministry of Finance (MdH), through its Budget Directorate, handles government finance statistics. Finally, monetary data is collected by the Superintendency of Banks and Financial Institutions (SBIF) for use by the BCCh. In the years that have elapsed since the 2001 ROSC, Chile has made a number of improvements that have been documented in the 2007 ROSC. For instance, the benchmark year for national accounts data has been changed, a Producer Price Index (PPI) was compiled, and Chile switched to the use of the fifth edition of the Balance of Payments Manual (BPM5). Chile has also adopted the 2001 edition of the Government Finance Statistics Manual (GFSM2001). According to the 2007 ROSC, "Chile's macroeconomic statistics are timely, generally of high quality, and adequate to conduct effective surveillance" (p. 4). The report applauds Chilean officials' awareness of the importance of data quality and the reputation for integrity that the statistical agencies enjoy among their users. Areas in which the report determined that Chile could stand improvement include the inadequacy of the INE's resources and insufficient inter-agency coordination. The report also found weaknesses in certain source data and inadequacies in Chile's policies of consultation with its data users. Further, the IMF suggested that the Chilean legal framework needed enhancement, particularly as it pertains to the INE's independence and the BCCh's authority to insist on the submission of statistical data from the nonfinancial private sector. Improvements in methodological soundness would also be welcome. Similarly suffering from inadequate resources is the MdH 's Budget Directorate, although the IMF found that both the BCCh and the SBIF were appropriately resourced. For the Budget Directorate, additional resources are required in order to finalize the adoption of the GFSM2001, as well as to "ensure adequate business continuity and data sharing" (p. 5) the report stated.

The 2007 ROSC was particularly enthusiastic in its praise of the assurances of integrity provided by Chilean statistical agencies. According to the report, "they adhere firmly to the principle of objectivity in the collection, processing, and dissemination of statistics" (p. 5). The IMF found a commitment to professionalism, impartiality, transparency, and the provision of ethical guidance to agency staffs. Some concerns were expressed regarding the independence of the INE's professional independence, due in large part to the brief terms of office served by the INE directors and deputy directors and the terms by which these individuals can be removed from office. There is good interaction between the INE, MdH, and BCCh on one hand and committees and working groups from the international community, in which the opportunity for exposure to international best practice and professional standards is enhanced. The ROSC also found that Chile's standards for methodological soundness are broadly consistent with international standards. In specific areas of the national accounts, the ROSC found some deficiencies in scope and classification, as well as in the geographic coverage of the consumer price index data. The ROSC laments the incomplete coverage of certain elements in the government finance statistics and "significant deviations from the GFSM2001 exist regarding classification systems" (p. 6). There are also a few "nonmaterial departures" from the Monetary and Financial Statistics Manual (MFSM) with regard to Chile's monetary statistics, and some similar departures from the BPM5 with regard to balance of payments data.

The 2007 ROSC found that Chile's macroeconomic statistics are adequately accurate and reliable. According to the report, "source data and statistical techniques are sound and statistical outputs sufficiently portray reality" (p. 6). Problems include the possibility that Chile may not meet the challenge presented by the rapid expansion of Chilean services and its financial system, the failure to regularly update the business register, and an insufficiently frequent Household Budget Survey, which may compromise the data on household spending. The INE has had timeliness issues in the validation of its survey data, and its surveys generally do not employ scientific sampling techniques. Also problematic is the lack of information on potential errors in the source data. Consumer Price Index data is compromised by the use of an outdated basket and weighting techniques, and the data is not subject to cross-checking with other data sources. Similar issues arise in the PPI data, and weaknesses are noted as well regarding government finance statistics and monetary statistics. Nonetheless, the ROSC awards "high marks" for the serviceability of Chile's macroeconomic statistics. User satisfaction is high, for the most part. The ROSC does note that there are reconciliation problems with the source data used for government finance statistics and monetary statistics. Similar issues are noted with regard to the balance of payments data, but the ROSC finds that these statistics are ultimately reconcilable.

The 2007 ROSC adds that Chile provides good accessibility to macroeconomic statistics, all of which are made available electronically from generally easy-to-access websites maintained by the statistical agencies. The ROSC found the websites to present such information in a "user-friendly format" (p. 7). Nonetheless, the ROSC found certain datasets to be less well presented, such as price statistics. Statistics are made available to the public simultaneously, without prior release to the government and generally without ministerial commentary. Where ministerial commentary is disseminated, it is readily identifiable. Basing their findings on consultations with users of Chile's macroeconomic statistics, the IMF ROSC team determined that there was satisfaction in the areas of "methodological soundness, timely dissemination, accessibility, and frequency" (p. 7) added the report. However, users expressed some dissatisfaction with the PPI's credibility and with the coverage provided in government finance statistics and the PPI. Respondents also suggested improvements in the provision of revision information in the areas of national accounts, PPI, government finance statistics, and the balance of payments. Improvements could also be made in the ease of access to national accounts, PPI, and government finance statistics. The report further noted that "a considerable number of users emphasized the need for data on household income distribution, average prices by industry, volume of sales by industry, and reliable and consistent series on employment statistics" (p. 8).

The Principles

Comprehensive economic and financial data, disseminated on a timely basis.

FC

According to the IMF's SDDS website and the IMF's 2007 annual observance report, Chile's metadata meets or exceeds nearly all specifications for coverage, periodicity, and timeliness. It takes the timeliness flexibility option for its Central Government Operations Data, however.

Ready and equal access to official statistics.

FC

The SDDS website discloses that simultaneous release of data to all interested parties is achieved for all datasets, largely through the internet but also through agency publications such as the BCCh's regular reports, INE news releases, and other such sources. Users report general satisfaction with Chile's statistical agencies' dissemination practices, although the IMF's 2007 ROSC did turn up some complaints regarding ease of access to national accounts, PPI, and government finance statistical data. Nearly all datasets are the subject of advance release calendars, although the SDDS website does not show one for general government or public sector operations. However, the 2007 Annual report explicitly stated that "Chile met the SDDS requirements for ARC in all months" (p. 6) in 2007.

Official statistics must have the confidence of their users. Transparency of its practices and procedures is a key factor.

CP

The IMF's SDDS website discloses that Chile makes publicly available the terms and conditions under which official statistics are produced, compiled, and disseminated. It also discloses the confidentiality policy employed in the dissemination of data. However, the SDDS website makes it clear that in most cases, the protection of confidentiality is handled by an assertion that data is "considered confidential" by the statistical agency, rather than through the embodiment of confidentiality requirements in law. The website makes clear that there are a variety of means by which this information can be accessed by the public, including the websites of the statistics-generating agencies and on the SDDS website itself. According to the original IMF ROSC, published in 2001, the National Statistics Institute was created via Law No. 17.374, which established the INE as an administratively decentralized agency that was mandated to handle official statistics and conduct the Chilean Census. Central Bank Law No. 18.840 accorded to the BCCh its statistical authority, including its responsibilities for compilation and dissemination of data. The IMF's 2007 annual observance report disclosed that there were some concerns regarding the INE's institutional dependence, based on concerns about the brief terms of office served by directors and deputy directors and the provisions by which these individuals may be removed from office. The 2007 ROSC was particularly enthusiastic in its praise of the assurances of integrity provided by Chilean statistical agencies. According to the report, "they adhere firmly to the principle of objectivity in the collection, processing, and dissemination of statistics" (p. 5). The IMF found a commitment to professionalism, impartiality, transparency, and the provision of ethical guidance to agency staffs.

The SDDS website also discloses that there is no internal government access prior to public release of data, and that ministerial commentary, in those few instances where it is offered, is clearly identified. Data revision policy is regulated by the BCCh's Agreement No. 393-07-941207. In most but by no means all cases, changes in methodology are presented to the public in advance. When this does not occur, however, methodological changes are announced in relevant publications at the time of the change or, more frequently, as footnotes to the first release of data to which the changes apply. However, per SDDS' requirements, the ideal case would be when countries provide advance notice of major changes in methodology, which Chile does not do for a few of its data categories as noted above.

A set of standards that deals with the coverage, periodicity and timeliness of data must also address the quality of statistics.

CP

The 2008 Article IV Consultation report by the International Monetary Fund (IMF) states that Chile's "economic and financial data are timely, of good quality, and adequate for surveillance purposes" (Appendix II, p. 3). According to the IMF's SDDS website, Chile provides documentation regarding methodology and sources for nearly all categories of data, although there is no summary methodology provided for central government debt or population data. In some cases, only the summary methodology is provided, such as the analytical accounts for the banking sector and for the central bank. When such documentation is made available, it appears on the websites of the relevant statistical bodies. The SDDS website also notes that the dissemination of component detail, reconciliation with related data, and statistical frameworks that support cross-checks and provide assurance of the reasonableness of data are provided. Basing their findings on consultations with users of Chile's macroeconomic statistics, the 2007 IMF ROSC team determined that there was satisfaction in the areas of "methodological soundness, timely dissemination, accessibility, and frequency" (p. 7). However, users expressed some dissatisfaction with the PPI's credibility and with the coverage provided in government finance statistics. Respondents also suggested improvements in the provision of revision information in the areas of national accounts, PPI, government finance statistics, and the balance of payments. Improvements could also be made in the ease of access to national accounts, PPI, and government finance statistics. The report further noted that "a considerable number of users emphasized the need for data on household income distribution, average prices by industry, volume of sales by industry, and reliable and consistent series on employment statistics" (p. 8). The 2007 ROSC found that Chile's macroeconomic statistics are adequately accurate and reliable. According to the report, "source data and statistical techniques are sound and statistical outputs sufficiently portray reality" (p. 6). Problems include the lack of information on potential errors in the source data. Consumer Price Index data is compromised by the use of an outdated basket and weighting techniques, and the data is not subject to cross-checking with other data sources. Similar issues arise in the PPI data, and weaknesses are noted as well regarding government finance statistics and monetary statistics.