The relevance and accuracy of economic statistics are among the most significant challenges nowadays because statistics represent a particular country and identify its position in the global economy. At the same time, the accuracy of national statistics affects the perception of a country in the international arena because it determines whether national institutions can be cooperated with and trusted.
From this perspective, developing universal standards and frameworks for assuring the quality of economic statistics was a must. To achieve this objective, the Task Force on the Quality Assurance Frameworks for Economic Statistics was founded. Its purpose is to ensure the efficiency of national statistical systems (NSS) and avoid major risks connected to the accuracy of statistics. Nevertheless, to make the Task Force productive, it is essential to obtain an in-depth understanding of the context of statistical systems’ operation and point to primary challenges and risks commonly associated with it. To achieve this objective, reviewing NSSs is paramount.
Therefore, the paper at hand aims at addressing quality assurance frameworks for economic statistics in Mongolia. The rationale for choosing this country is the fact that the quality of Mongolian economic statistics is commonly questionable due to difficulties in collecting statistical data and imperfections in calculations. That is why most international organisations and foreign governments rarely rely on national data.
Instead, they give preference to outside estimations of Mongolian economic and social development prepared by such institutions as United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP). More than that, nowadays, as the Mongolian economy is open and foreign investment is desirable, it is critical to review the effectiveness of national statistical system operation (Dippelsman et al. 5). For this reason, it is desirable to understand the current situation in this country, especially existing challenges and risks, and find ways to cope with them, thus guaranteeing the quality of NSS and national economic statistics.
This case study will be divided into three interrelated chapters. The first one will provide the background of quality assurance for economic statistics. The purpose is to identify legal and institutional frameworks and describe all existing and planned provisions, as well as address current policies and practices or standards in the national statistical system of Mongolia so that it is possible to understand who documents statistics and how it is communicated.
The second chapter will focus on determining the deployed quality assurance frameworks with special attention to the development, implementation, and operation of this system as well as its correspondence with national legislation and international standards. More than that, it will assess the monitoring of existing or planned frameworks and introduce any current issues related to them. Finally, the concluding chapter will estimate the changes related to the implementation of quality assurance of economic standards and speculate on the related issues and ways to overcome them. More than that, it will include lessons learned from the experience of developing quality assurance frameworks and introducing them both to Mongolia itself and other countries that might use Mongolia’s experience as a guideline for improving national standards and legislation.
Background: Legal Framework and Statistical Policy for Quality Assurance for Economic Statistics
In Mongolia, the central law regulating statistical policy and procedures has already been passed. It is the Law on Statistics that identifies all provisions necessary for the regulation of this sphere of socioeconomic relations. It was adopted in 1994, but there were numerous revisions aimed at making the major document comprehensive and detailed. The latest revision dates back to 2015. However, even though the current version is in operation, new amendments are expected in 2019 (Ariunzaya). The Law determines not only central provisions related to economic statistics but also points to the criticality of assuring the quality of statistics and corresponding with the national and international standards of statistics relevance.
Speaking of the Law, it is essential to mention the fact that the current version has both strengths and weaknesses that are directly connected to the performance and efficiency of the statistical system. For instance, it is transparent that means that it can be easily accessed online and referred to (an online version is available on the website of the National Statistical Office (NSO) of Mongolia). More than that, the Law clearly determines roles, rights, obligations, and mandates of the NSO and officials related to its operation. At the same time, it identifies a set of major indicators that help to understand that statistical data is accurate and relevant (Badamtsetseg).
From this perspective, the law corresponds with the standards developed by the United Nations (UN) because it facilitates management of statistics (Turner 13). However, regardless of the primary strengths mentioned above, there is a range of significant weaknesses. For example, the standards and indicators for quality management of statistics are only mentioned in the Law, but are not incorporated in it (Dippelsman et al. 7).
It means that documenting statistics according to these standards is not a legal obligation. Furthermore, there is a significant gap in enforcing UN standards at territorial and ministerial levels because no particular procedures are specified except for the fines for infringing legal regulations, but they are moderate (Badamtsetseg). Still, these challenges point to the need for the further revision of the Law. In this way, it is possible that they will be eliminated in 2019 when new amendments are passed.
In addition to the Law on Statistics, there are other frameworks for quality assurance for economic statistics. For instance, there is the Quality Policy for the Mongolian Official Statistics. This document identifies eight major principles for quality management of statistics. At the same time, it determines criteria and indicators for statistical services and products (Ariunzaya). These standards and indicators correspond with international standards, particularly ISO 9000. It means that they promote constant improvement of the end product (statistics), enhancement of staff involvement, focus on the needs of consumers (those interested in statistics), point to the criticality of developing quality assurance procedures and strong leadership for preparing accurate and relevant statistics, and highlight the importance of creating a comprehensive system for managing and monitoring Mongolian NSS.
Furthermore, the abovementioned Quality Policy lists and explains primary criteria that determine the quality of statistics. There are eight criteria in general. According to them, a high-quality statistical product or service should be relevant (meet users’ needs), accurate (reflect the real state of affairs), timely and punctual (without significant delays in communicating statistics), clear (all data should be easy to interpret), comparable (measurable), accessible, and coherent (conform with international standards). These criteria are up-to-date and correspond with the international experience and standards (Badamtsetseg).
Except for the Law on Statistics and the Quality Policy, there are the Standards for the Quality Management of the Mongolian Official Statistics. These standards involve a set of indicators aimed at coordinating Mongolian NSS, developing statistics, communicating statistical data, offering statistical products, and delivering statistical services (Ariunzaya). There are fifteen groups of indicators that correspond with the eight criteria of high-quality statistical products and services mentioned above. In addition, they determine the criticality of independence of statistical collection and identify mandates for data collection. In particular, it is stated that statistical data should be collected by Statistical Authority (NSO) because it is the only institution that possesses a required mandate as well as produces and approves statistics. These standards make up Group A – coordination of statistical system.
At the same time, this authority should guarantee statistical confidentiality to all statistical respondents so that no statistical data is issued illegally and under pressure. Otherwise, the standards prescribe the existence of fines and penalties. Moreover, the burden on statistical respondents should not be excessive and statistical procedures should be well-developed, sound, cost-effective, and appropriate. These determinants belong to Group B – statistical process. Finally, there is Group C of the indicators aimed at describing statistical outputs and services. According to all indicators, statistical products and services should be relevant, timely, coherent, comparable, reliable, accessible, and clear. It means that they should correspond with the criteria mentioned earlier in the paper (specifically, in the Quality Policy description).
In addition to legal documents, it is paramount to identify official institutions that are involved in developing national statistics and are responsible for operating according to the standards and criteria mentioned above. Here, it is essential to state that even though the National Statistical Office of Mongolia is the central authority, there are as well other institutions that are legally capable of generating statistical data. According to the Law on Statistics, statistical departments of ministries, agencies, administrative units, and the Bank of Mongolia are permitted to develop and communicate statistical information.
In addition, Economic Standing Committee of the Parliament is as well allowed to be involved in this process. More than that, officers of governors and statistical divisions of cities and districts can issue local statistical sheets. Still, official statistical data is produced by NSO, its council, and cities and districts statistical divisions. The other sources of statistics are non-official so that NSO is not responsible for their quality (Ariunzaya).
To sum up, the provisions mentioned above are implemented and enforced by the Mongolian Government and NSO. Nevertheless, regardless of the existence of such documents, criteria and standards discussed earlier in the paper are the guidelines for re-establishing the existing National Statistical Authority that would correspond with the international standards and satisfy the needs of local and foreign consumers of statistical products and services.
From this perspective, the major strategic objective connected to the adoption and promotion of these provisions is the desire to create an operational and effective system in Mongolia that would be reputable and trusted at national, regional, and international levels. It means that improving the image of the Mongolian NSO is the main goal. However, it can be achieved only by generating high-quality statistical information. Therefore, the vision of the new NSS is the ability to develop and communicate relevant and accurate statistical data.
The Case: Quality Assurance Framework for Economic Statistics
Nowadays, there are several trends in the sphere of developing and sharing economic statistics. First and foremost, significant progress has been achieved in developing legal frameworks and upgrading the operation of the NSO. It is seen in the modernisation of data collection and analysis procedures, increased transparency (almost all information is available online), and the introduction of clear methodologies and guidelines for statistical operations. Moreover, there has been spectacular success in establishing international and regional bonds – ties with the United Nations institutions (such as UN ESCAP) and city groups (Ariunzaya; Badamtsetseg). These changes were triggered by user demands and policymakers. They were associated with the increased openness of the Mongolian economy and the desire to attract vast volumes of foreign investment necessary for the further sustainable development of the country.
Still, in order to foster cooperation with regional and international actors, it is essential to enhance the establishment of adequate quality assurance frameworks for economic statistics. This need is motivated by the changes mentioned above and the interest in the future cooperation with the most influential countries and institutions. At the same time, it came about from the decisions of the NSO management and the National Government. In particular, it is inseparable from the constant enhancement of legal and institutional frameworks as well as the improvement of technical operations.
In order to implement recommendations mentioned above, it is critical to realise that there are some significant barriers to the effective operation of the new system. For instance, the Law on Statistics does not incorporate standards. It means that, nowadays, accuracy and confidentiality of statistical data are not legally guaranteed and protected. At the same time, statistical officers cannot be perceived as independent and unbiased due to the increased outside pressure (for instance, that of influential businesses and institutions). In this case, there is as well the risk of increased pressure of the NSO, especially if statistical data is developed and communicated by smaller statistical divisions (UN ESCAP 8).
More than that, the level of technological development is poor. From this perspective, it is not only essential to update technical base of statistical bodies but also seek regional and international consulting services because the lack of skills necessary for working with the newest technologies is a common problem. In this case, cooperation with the International Monetary Fund, UN ESCAP, and the World Bank are the best options for coping with this issue (UN ESCAP 16).
However, regardless of significant progress in the area of economic statistics quality assurance, taking additional steps aimed at making the system more efficient is critical. For instance, it is advisable to attract governmental investment in modernising data production (collection and analysis) procedures, infrastructure of the whole system, and quality management. Moreover, revising the Law on Statistics is essential, especially incorporating criteria and international standards related to quality assurance. Furthermore, it is paramount to create and launch the universal national database that would be integrative and easy to navigate. Finally, developing short- and middle-term national strategies for assuring the quality of economic statistics is recommended in order to guarantee that quality management objectives are determined and achieved (Ariunzaya).
Therefore, the implementation of the quality assurance framework is inseparable from the further modernisation of this sector as well as legal and institutional support. From this perspective, it is evident that introducing it without guaranteeing that central quality indicators are followed and seeking international consulting in the technical field is impossible. As for the indicators, the central one is the independence of statistical institutions because it is one of the primary challenges in the modern Mongolian economic statistics. In case if independence is guaranteed, operation in accordance with relevance, accuracy, timeliness, and other indicators will not be problematic.
As for the foreign technical assistance and consultations, they are critical for developing the adequate level of skills necessary for assuring that the staff involved in generating and communicating economic statistics is professional and competent. Finally, it is essential to make sure that stakeholder involvement mechanism is productive, i.e. that all changes in the area of developing statistics are supported. In order to develop an operational stakeholder mechanism, it is essential to return to the correspondence with indicators and criteria mentioned in the Quality Policy and Standards for Quality Management.
In this way, once all criteria are met, involving stakeholders will not be challenging because they will see that the changes are productive and the quality of statistics is exceptional. It is applicable to the users of statistics. As for the Government and NSO as stakeholders, fostering their engagement is possible in case of pointing to potential benefits related to issuing relevant and accurate statistics, such as increased inflow of foreign investments, improved international and domestic image, perceiving them as reputable and trusted institutions, and enhanced cooperation with the global economic community (UN ESCAP 28).
Conclusions and Lessons Learned from the Quality Assurance Experience
Based on the findings of the case study, it is evident that the planned quality assurance framework corresponds with the international standards, as it is designed according to the ISO 9000 and UN standards. At the same time, regardless of the existence of numerous barriers to the full-scale implementation of this framework, it has already initiated numerous positive changes in the field of statistics, such as enhanced cooperation with regional and international institutions and excessive modernisation. Furthermore, the communication patterns have become more effective because there are feedback channels on the NSO website (UN ESCAP 67).
Finally, the Government of Mongolia acknowledges the need for revising the Law on Statistics and implementing the Quality Policy. It means that due to the governmental support, the process will be successful, although challenging and troublesome.
Moreover, Mongolian experience is a valuable lesson for other countries planning to implement quality assurance frameworks. It will be beneficial for the countries with similar economic and social problems, such as neighbouring Asian states. They may use Mongolia’s experience as the guideline for reaching success. It is especially true in case of reviewing Mongolian challenges. For instance, countries interested in the implementation of quality assurance frameworks may recognise that seeking involvement support is the initial step in initiating changes. More than that, they may use the Quality Policy and Quality Management Standards as guidelines for developing their own frameworks that will incorporate national specificities and features. Finally, Mongolian experience is beneficial because it points to the significance of cooperation and communication as a driving force of positive alterations in the national economy and community as the whole.
Nevertheless, regardless of serving as an example of positive changes, Mongolia should as well explore international experience in developing quality assurance frameworks. For instance, Mongolian Government may be interested in the steps taken by Canada and European states, such as expanding the descriptions of standards, indicators, and mandates so that officials’ duties and obligations are clear, determining scopes of NSS, and guaranteeing that all provisions and frameworks are realistic, i.e. comply with the available resources and skills as well as correspond with the current level of economic and technical development. These steps may be helpful for improving the quality of national statistics and boosting the productivity of the NSS.
Works Cited
Ariunzaya, Ayush. “National Statistical System of Mongolia.” UNStats. 2016. Web.
Badamtsetseg, Badmaa. “The Results of the Global Assessment Conducted in Mongolia.” Unece. 2014. Web.
Dippelsman, Robert, et al. Mongolia: Technical Assistance Report- Report on the National Accounts Mission. International Monetary Fund, 2017.
Turner, Barry, editor. The Statesman’s Yearbook 2015: The Politics, Cultures and Economies of the World. Macmillan Publishers, 2014.
UN ESCAP. Global Assessment Report: National Statistical System of Mongolia. 2014. Web.