According to information on the Special Data Dissemination Standard (SDDS) website of the International Monetary Fund (IMF), Ecuador has been an SDDS subscriber since March of 1998 and presently meets all requirements for coverage, periodicity, and timeliness. Ecuador does invoke the timeliness flexibility option for unemployment and wage/earnings data, however. Advance release calendars are produced for all required categories, although the calendar flexibility option is applied to national accounts data. The 2003 IMF Report on the Observance of Standards and Codes (ROSC), data module found that Ecuador's macroeconomic statistics were of good quality overall, but found shortcomings in detail and in the quality of some source data, particularly in the area of government finance statistics. The SDDS website discloses that the current practice of announcing methodological changes at the time of implementation may change, as there are plans to switch to advance notice for several datasets. While applauding the good informal cooperative relationship existing among the principle statistics agencies (Central Bank, Ministry of Economy and Finance, and the National Institute of Statistics and Censuses), the ROSC recommended that this relationship be formalized. It also called for modernization of the Statistics Law and a greater official emphasis on the importance of national statistical policy.

General Overview

According to the Special Data Dissemination Standard (SDDS) website of the International Monetary Fund (IMF), Ecuador first subscribed to the SDDS on March 27, 1998, and first posted its metadata on the SDDS bulletin board on September 14 of that year. As of July 14, 2000, Ecuador successfully met SDDS specifications for coverage, timeliness, periodicity, and the issuance of advance release calendars. A review of the Ecuadorian information as posted on the SDDS website discloses that summary methodologies are available for all data categories except exchange rates. In 2003, the IMF published a Report on the Observance of Standards and Codes (ROSC), data module, for Ecuador.

The 2003 ROSC found that Ecuador possesses an "extensive legal framework" that supports official statistical work" (p. 3), but noted that there were deficiencies in the foundational Statistics Law, citing vagueness, obsolescence, and nonobservance of some of its provisions. The ROSC commended Ecuador's recognition that data quality is important and praised the professionalism of Ecuadorian statistical agencies, but observed the need for improved staffing and training. The application of proper ethical guidelines and the transparency of statistical policy and practice were both specifically applauded by the ROSC team. However, the report did note that methodological soundness issues were apparent, citing "shortcomings regarding the scope, classification, sectorization, and/or basis of recording, mainly in the case of the government financial statistics" (p. 4). The ROSC also cited the inadequacy of fiscal source data, national accounts, and balance-of-payments data. Also coming in for criticism was the irregularity with which revision studies are prepared and the failure to regularly consult with data users. When such studies are done, they are not made accessible to the public. Finally, the ROSC found that Ecuador could do a better job of communicating information on methodology to the public, but did commend the adequacy of user assistance offered by agencies charged with statistical compilation.

The 2003 ROSC offered a number of specific recommendations aimed at addressing Ecuador's data dissemination deficiencies. First on the list was legislative reform designed to clarify the respective roles and responsibilities of Ecuador's various statistical agencies and to "strengthen the mandate of these agencies to disseminate to the public the macroeconomic statistics and metadata they produce" (p. 18). A more thoroughgoing national statistical policy was required, as was the creation of more explicit and formal collaborative arrangements between the two agencies chiefly responsible for producing government finance statistics and the national accounts: the Central Bank of Ecuador (BCE) and the Ministry of Economy and Finance (MEF). The ROSC also called for the statistical authorities to consult with statistics users more frequently, and to disseminate to the public advance notice of major changes in methodology. (While such changes are still announced at the time of change, according to the SDDS website, in many instances there is a specific notation that there are plans to switch to advance notice in the future.) The ROSC suggested that revision policies and regular revision studies should also be published, and argued that all statistical units should be adequately staffed and trained.

The Ecuadorian response to the ROSC recommendations of 2003 was appended to the report, offered by representatives of the BCE, the National Institute of Statistics and Censuses (NISC), and the MEF. This response demonstrated that Ecuador took many of the ROSC's recommendations, both general and specific, to heart. According to the authorities, the 1993 System of National Accounts (SNA93) had been adopted, and broader, more regular publication and dissemination of national accounts data had begun through a variety of venues, including website publication, monthly reports, press releases, and public workshops. The authorities reported progress in their efforts to adopt the fifth edition of the Balance of Payments Manual (BPM5), as well as the sectorization methodology recommended by the Monetary and Financial Statistics Manual (MFSM) in conjunction with the creation of a new Chart of Accounts applicable to the Ecuadorian financial system as a whole.

The authorities recognized the validity of the ROSC team's concerns about its legislative framework for statistical work, and agreed that the Statistical Law should be amended to bring the system up to date. They noted that their implementation of SNA93, BPM5, and MFSM standards should address issues relating to methodological soundness. They announced ongoing work with the IMF to compile a monetary survey of the offshore branches of commercial banks, in order to expand the coverage of financial instruments. They mentioned a variety of vehicles through which they are attempting to expand dissemination of statistical data, including the annual and quarterly reporting of balance-of-payments statistics in both paper and electronic form, with more detailed and historical information and analysis published on an annual and quarterly basis, including notes explaining methodology and defining specialized terminology. The authorities did note that a recommendation to adopt accrual-based recording would be difficult to achieve at the time. They also agreed that collection programs for source data needed improvement, and mentioned that the NISC had been engaged by the BCE to develop an expanded household survey. Enhancements were underway with regard to statistical techniques employed in data compilation. Improvements were also contemplated or in process to address the need to communicate more fully with statistical users, improve statistical reconcilability, and expand statistical dissemination to the public, including dissemination of information that facilitates interpretation by the end users of the data.

In 2006, the IMF published the results of its Article IV Consultations with Ecuador, which had been completed in the previous year. The Statistical Appendix to this report took up very specific areas of statistical deficiencies noted in the original ROSC data module. The 2006 report noted that a 2004 monetary and financial statistics mission to Ecuador resulted in the resolution of many problems arising from the effort to adapt balance-sheet presentation, and specifically stated that "data on offshore banks are currently being compiled following the same high-quality standards as the onshore banks" (p. 49). However, the report mentioned that this data was not at that time available to the public. The report noted that Ecuador had introduced a new integrated data system, called SIGEF, and that the transition to this system entailed some interim deterioration in data compilation and reporting, specifically with regard to central government data. The report called upon Ecuadorian authorities to resume reporting annual central government statistical data to the Government Financial Systems Yearbook, noting that the last data so reported was from the year 1994.

In its Annual Observance Report for 2007, posted on the SDDS website, the IMF reported that Ecuador has maintained appropriate observance of the SDDS since 2000. The report noted that there was no recourse taken to "as relevant" flexibility options regarding coverage, adding that the requisite reserves template components were disseminated as well. Periodicity requirements were exceeded for all three components of the labor market data and for the analytical accounts of the BCE. Timeliness flexibility options were taken for the three components of the labor market data, but the report nonetheless noted that, for these data sets, Ecuador actually exceeded the timeliness requirement, and it also exceeded timeliness requirements for the consumer price index, merchandise trade, and the analytical accounts of the central bank. In 2007, it failed to disseminate national accounts data (in November) and external debt data (in Q4), and missed the requirement by a short delay that year for producer price data, general government/public sector operations, central government operations, central government debt, and official reserves. Analytical accounts of the banking sector were subject to occasional short delays, while the balance of payments data was subject to more frequent short delays. The report on Ecuador's 2007 SDDS performance also noted that punctuality in meeting dissemination dates set by the advance release calendar was generally achieved, with some exceptions arising from the timeliness performance issues noted above. Posting requirements are met and mandated links to the requisite tables for the Data Template on International Reserves and Foreign Currency Liquidity, External Debt, and International Investment Position are provided. Requirements for the certification of metadata were also met for all quarters.

The Principles

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

FC

Ecuador first became a subscriber to the IMF's SDDS in 1998, and currently meets the specifications for coverage, timeliness, and periodicity. The SDDS website notes, however, that Ecuador does avail itself of the timeliness flexibility option in the case of unemployment and wage/earnings data. The website further discloses that there are specific provisions in Ecuadorian law and its regulatory framework dealing with timely reporting of data. For instance, Monetary Board Regulation No. DBCE-097-BCE of 2001 and Executive Decree No. 1589 of 2001 stipulate that the Central Bank of Ecuador must compile and publish, on a timely basis, information on monetary, financial, fiscal, external, and real statistics; and elaborate the statistical synthesis and previsions of the real sector. The IMF's Article IV Consultation report for 2005 found Ecuador's data to be adequate for overall surveillance purposes, but cautioned that the quality of the source data remains uneven, particularly with regard to balance-of-payments, public finance, and labor market data.

Ready and equal access to official statistics.

FC

The IMF's SDDS website discloses that advance release calendars are available for all relevant data categories. The calendar flexibility has been invoked regarding the national accounts data, and timeliness flexibility is selected for the labor-related data categories. Data are released simultaneously to all interested parties in all relevant categories, in most cases first on the website of the appropriate data-compiling agency (e.g. the BCE, MEF, or NISC). There are no advance release calendars for interest rates, stock prices, exchange rates, and population data. In the case of the first two datasets, advance release calendars are considered "not applicable" because the data are subject to daily release. For exchange rates, Ecuador's dollarization legislation policy has set the exchange rate at a stable 25,000 sucre (the former national currency) to $1. A note on the population dataset states that an advance release calendar is "not applicable."

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

CP

The SDDS website discloses that there is public access to information regarding the terms and conditions that govern data collection, compilation, and dissemination. Confidentiality of individually identifiable information is covered under the provisions of the 1976 Statistics Law of Ecuador. Data reporting agencies such as the BCE are also subject to legal and regulatory requirements that govern their statistical activities, and these are disclosed on the SDDS website as well as (in Spanish only) on the various agency websites. The SDDS website also discloses that there is generally no prior governmental access to data prior to release, and where mention is made of an agency seeing data in advance, the officials subject to prior access are limited to the agency that generates such data. Most data is released without ministerial commentary, but where footnotes or other comment accompanies the data, it is identified by the ministerial logo. Changes in methodology are generally announced at the time of implementation, but the SDDS website shows that in the case of several datasets there are plans in place to switch to advance notice at some time in the future.

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

CP

The SDDS website discloses that there is public access to information regarding the terms and conditions that govern data collection, compilation, and dissemination. Confidentiality of individually identifiable information is covered under the provisions of the 1976 Statistics Law of Ecuador. Data reporting agencies such as the BCE are also subject to legal and regulatory requirements that govern their statistical activities, and these are disclosed on the SDDS website as well as (in Spanish only) on the various agency websites. The SDDS website also discloses that there is generally no prior governmental access to data prior to release, and where mention is made of an agency seeing data in advance, the officials subject to prior access are limited to the agency that generates such data. Most data is released without ministerial commentary, but where footnotes or other comment accompanies the data, it is identified by the ministerial logo. Changes in methodology are generally announced at the time of implementation, but the SDDS website shows that in the case of several datasets there are plans in place to switch to advance notice at some time in the future.