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Regional: 2017 International Comparison Program for Asia and the Pacific

Sovereign (Public) Project | 50233-001 Status: Active

This TA intends to support the next round of the International Comparison Program (ICP) in Asia and the Pacific region by coordinating all activities related to the collection of prices until calculation of purchasing power parities and related aggregates for participating economies in the region. It is expected that all 23 economies that were part of ICP 2011 will also be part of the next ICP round.

Project Details

Project Officer
Kaushal Joshi EROD Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name 2017 International Comparison Program for Asia and the Pacific
Project Number 50233-001
Country Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9238-REG: 2017 International Comparison Program for Asia and the Pacific
Technical Assistance Special Fund US$ 1.00 million
TA 9238-REG: 2017 International Comparison Program for Asia and the Pacific (Supplementary)
Technical Assistance Special Fund US$ 1.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Public sector management / Economic affairs management

Gender Equity and Mainstreaming No gender elements
Description

This TA intends to support the next round of the International Comparison Program (ICP) in Asia and the Pacific region by coordinating all activities related to the collection of prices until calculation of purchasing power parities and related aggregates for participating economies in the region. It is expected that all 23 economies that were part of ICP 2011 will also be part of the next ICP round.

To estimate the PPPs, the ICP requires undertaking price collection surveys of a large number of household and non-household consumption items that are comparable based on structured product descriptions (SPDs) across participating economies, and a breakdown of the national gross domestic product into detailed expenditure categories per the ICP classification of goods and services. The UN Statistical Commission also recommended adopting gradually a flexible _rolling benchmark_ approach for estimating the PPPs, with price collection surveys spread over a cycle of three-years starting from the 2017 comparison. It has also recommended exploring a closer alignment of the ICP and Consumer Price Index (CPI) surveys in order to reduce the burden on countries, and to enhance the quality of price statistics in general and linking the ICP capacity building activities to efforts to enhance statistical capacity for monitoring the Sustainable Development Goals (SDGs).

The Asian Development Bank (ADB) through the Development Economics and Indicators Division (ERDI) of the Economics Research and Regional Cooperation Department (ERCD) has been the regional coordinator of the ICP in Asia and the Pacific region since 2003. As regional coordinator, the ADB has successfully coordinated the 2005 and 2011 benchmark rounds of the ICP. ADB-ERCD's work has been recognized by all partners as critical to the success of the ICP. Hence, there is demand from all stakeholders for ADB-ERCD to continue playing the role of regional coordinator for the Asia Pacific region. Continued engagement in the ICP has been enabling the ERDI to continue its collaborative statistical work with national and international organizations (the national statistical offices and the World Bank in particular). Regional coordination has also helped ERDI integrate its initiatives in improving the statistical capacity (in surveys, data processing and analysis of price statistics and national accounts, and related fields) in ADB developing member economies (DMEs). As such, the next ICP round provides a unique opportunity for ADB to continue its efforts toward strengthening the statistical capacity of DME's national statistical offices in collecting and examining ICP price data; to facilitate collective efforts of all participating DMEs to improve methods for data collection, and to increase the reliability and availability of PPPs and national accounts expenditure estimates for better and informed policy-making.

Project Rationale and Linkage to Country/Regional Strategy

The purchasing power parities (PPPs) obtained through the International Comparison Program (ICP) make it possible to undertake real comparisons of total and per capita gross domestic product (GDP) of economies. The ICP, which is the world's largest statistical initiative, aims to compute PPP based measures of gross domestic product (GDP) and its components (household consumption expenditure; government consumption expenditure; consumption expenditure of non-profit institutions serving households (NPISH); gross fixed capital formation; and; imports and exports) that allow sound cross-country comparisons free from exchange rate distortions. Thus, the PPP-based estimates of GDP and its components allow direct comparisons of indicators of wellbeing, such as GDP per capita, or expenditures per capita on health, education, housing, etc. The PPPs for the household consumption have been the main inputs for deriving the International Poverty Line (IPL). In particular, the last three benchmark PPPs had been used to derive the international poverty lines (IPL) and in updating the poverty headcounts. As such, the PPPs have been instrumental inputs for tracking the progress of Millennium Development Goals and will serve as important inputs for the post 2015 agenda for Sustainable Development, especially for tracking global poverty.

Until now the ICP has been implemented globally for irregular benchmark years -- the last three being 1993, 2005 and 2011. Extrapolation techniques are used for estimating the PPPs for non-benchmark years. However, direct price comparison is more superior than the current method for extrapolating PPPs for long periods in between benchmark years because spatial and temporal indexes cannot be maintained over a long period of time leading to large revisions in GDP expressed in PPP terms when ICP benchmark results become available. In response to increasing demand from stakeholders on making PPPs available on a more frequent, timely and consistent manner, the UN Statistical Commission endorsed the ICP to be a permanent element of the global statistical work program during its 47th session held in March 2016. Thus, starting from the proposed 2017 benchmark comparisons, there will be more frequent global comparisons, to produce benchmark results every three years.

Impact Utilization of comparable macroeconomic statistics in policy-making and research enhanced.
Project Outcome
Description of Outcome Comparability of macroeconomic aggregates for the economies in the Asia and the Pacific region improved.
Progress Toward Outcome

The project implementation began in January 2017. The project has set-up the governance framework, i.e., established a Regional Advisory Board (RAB) and conducted its inception meeting; established framework of partnership, received no-objection, and secured advance payment facility from 15 participating economies, and conducted inception meeting of the heads of NIAs. As member of the ICP Governing Board, ADB has engaged in global progress monitoring and assessment of risks in implementation of ICP.

An action plan of implementing ICP in the region has been prepared with the target to finalize the results by end of December 2019. The work plan is regularly coordinated with the World Bank which is the Global Implementing Agency for the ICP.

Price collection activities of household items and specialized surveys of machinery and equipment, and construction are under progress for providing the basic data for producing comparable macro-economic aggregates for the region and for their global linking for global comparisons.

Implementation Progress
Description of Project Outputs

ICP survey tools produced.

ICP knowledge products delivered.

Statistical capacity of participating staff of NSOs on prices and national accounts statistics further strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

Finalized the sampling frameworks and product lists, prepared product catalogues and price capture tools, data validation procedures for intra- and inter-country data validation for household items, and non-household items (Machinery and Equipment [MNE], Construction [CNS], Government Compensation, Housing Volume, and Housing Rental Surveys). Prepared operational guidelines for price collection surveys by the National Implementing Agencies (NIAs). National level training programs were implemented by the NIAs and price collection operations started from April 2017. ADB conducted eight (8) regional technical evaluation and price data validation workshops for the price statisticians and sectoral (MNE, CNS, Housing, National Accounts) experts of 22 participating economies, the last being in April 2019 in Bangkok. ADB also participated as resource persons in the national training workshops in PRC and Myanmar in 2017.

Price surveys for household and non-household items (MNE, CNS, Housing, National Accounts ) have been completed in all 22 economies. Data preparation and methodological work is ongoing to finalize the 2017 ICP summary results for Asia and the Pacific in Q4 2019. Currently, ADB is working on the estimation of preliminary results for 2017 ICP and in the process continues to perform validation of prices data and GDP expenditures data for all 22 economies participating in the 2017 ICP cycle to ensure that reliable and robust PPPs are estimated for Asia and the Pacific by end of 2019. A 5-day experts' group meeting discussion was held from 10 to 14 June 2019, the meeting focused on preliminary results for 2017 ICP, identified related data problems, and make recommendations on methods and data improvements. The next experts' group meeting will be held in Bangkok, Thailand back-to-back with the Regional Advisory Board Meeting and Meeting with NIAs National Coordinators from 21 to 30 August 2019. Back-to-back in-country missions will also be held in select countries to address data issues and finalize the data. Price review and validation will continue until 3rd quarter of 2019 along with the work on estimation of results. Other regional consultations with the economies such as the data access and archiving policy to promote data access, methodology for estimation of housing PPPs, and extrapolation of prices for estimating full calendar year 2017 prices are under progress; enhancement of the ICP data collection tools, i.e., ICP Asia Pacific Software Suite (ICP-APSS), for the data management of household prices, MNE, CNS, and government compensation in preparation for the 2020 ICP benchmark round is in progress.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will be implemented from September 2016 to December 2019 and finance 40 person-months of consulting services: four months international and 36 months national.
Procurement Individual consultants will be selected and engaged by ADB in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) and lump sum payments and output-based contracts will be considered for consulting services in line with MTR Action Plan Nos. 2.9.2. and 2.10.2. Procurement of equipment will follow ADB's Procurement Guidelines (April 2015, as amended from time to time). Equipment purchased will comply with ADB guidelines on accountability of assets purchased under technical assistance, and disposal will follow the procedures as per relevant project administration instructions. Disbursements under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (May 2010, as amended).
Responsible ADB Officer Kaushal Joshi
Responsible ADB Department EROD
Responsible ADB Division EROD-SDI
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 04 Aug 2016
Fact Finding 27 Jun 2016 to 04 Aug 2016
MRM -
Approval 24 Nov 2016
Last Review Mission -
Last PDS Update 08 Jul 2019

TA 9238-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2016 - 24 Nov 2016 31 Dec 2019 31 Dec 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,500,000.00 0.00 0.00 0.00 0.00 0.00 2,500,000.00 24 Nov 2016 1,530,793.96

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
Consultant for preparation of draft report of the ICP for Asia and the Pacific Individual - Consulting Closed 21 May 2019 27 May 2019
Economist/Statistician Individual - Consulting Closed 18 May 2019 24 May 2019
Economist/Statistician Individual - Consulting Closed 18 May 2019 24 May 2019
Economist/Statistician Individual - Consulting Closed 03 Jan 2019 21 Jan 2019
Economist/Statistician Individual - Consulting Closed 02 Mar 2018 08 Mar 2018
Economist/Statistician Individual - Consulting Closed 02 Mar 2018 08 Mar 2018
Information technology and database specialist Individual - Consulting Closed 21 Oct 2017 27 Oct 2017
Economist/Statistician for ICP 2017 Individual - Consulting Closed 30 Aug 2017 05 Sep 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.