Registry Detail

967

Decision

27/10/2000 18:13:00

To record decision of the Technical Subgroup to the Expert Group on International Economic and Social Classifications, regarding ISIC 95.

Decision of the Technical Subgroup to the Expert Group on International Economic and Social Classifications at its meeting held on 16-20 October 2000 in New York. Amendment to ISIC 95 for implementation in 2002. The SNA states that goods production for own final use is a product of household unincorporated enterprises. It includes: (a) subsistence farming activities that produce agricultural goods for own final consumption; (b) construction/improvements and extensions of existing dwellings or structures for own use; and (c) production of other goods for own consumption usually cloth, clothes, furniture and other household goods or foodstuffs other than meals for immediate consumption (SNA para. 4.148 ). This type of subsistence production may be produced by households or by "groups of households that engage in the communal construction of buildings, roads, bridges, etc., for their own individual or community use and that are treated as informal partnerships engaged in non-market production" (SNA,, para 4.148 ). The problem is, that there is no single ISIC industry category that can be used to describe "informal partnerships engaged in non-market production" for purposes of food, clothing and shelter for own consumption. The production activities of such units are currently required (according to the SNA) to be subdivided into discrete categories distributed across a number of different ISIC industries i.e.agriculture; fishing; manufacture of food products and beverages; construction, manufacture of textiles (spinning, weaving and finishing of textiles); etc. It does not seem to be a totally reasonable solution. Such methodological practices that divide these largely subsistence activities up, obfiscate the unitary or wholistic context of subsistence level production units producting food, shelter and clothing for own use. It is therefore proposed that we need to be able to describe and place into one category of ISIC, the industry of non-market mixed subsistence production of food,clothing and shelter for own consumption. Right now we have a single category to describe households employing domestic servants (ISIC 95). We need an additional category for households (unincorporated enterprises) employing (without pay) household members and others for the production of subsistence goods, i.e.,food, clothing and shelter for own consumption (proposed ISIC 96) We also need a category for households (unincorporated enterprises) employing (without pay) household members and other for the production of services (proposed ISIC 97). The proposed ISIC 97 would go beyond the production boundary" in the System of the 1993 SNA; however category 97 would still fall within the "general production boundary of the SNA (see paras. 6.15 - 6.17). The "general production boundary" of the 1993 SNA is more inclusive than the "production boundary" of the SNA and includes household activities that produce domestic or personal services for own final consumption within the same household (para. 6.17 of the 1993 SNA). The newly amended (P) of ISIC would be as follows: (P) PRIVATE HOUSEHOLDS EMPLOYING DOMESTIC STAFF AND UNDIFFERENTIATED PRODUCTION ACTIVITIES OF HOUSEHOLDS FOR OWN USE 95 Activities of households as employers of domestic staff 96 Undifferentiated goods producing activities of private households for own use 97 Undifferentiated services producing activities of private households for own use Note: Services production by households employing paid domestic staff would continue to be classified in ISIC 95. Households in production units that operate at the subsistence level producing mixed goods for food, shelter and clothing for own consumption will be classified in 96. However, household units primarily engaged in a productive activity (non-market) such as agriculture, would continue to be classified to the appropriate ISIC agriculture category, rather than classified in 96. Household primarily engaged in undifferentiated combinations of subsistence service are to be classified in 97. There will be a narrative discussion and explanation of this in the introduction to the ISIC 2002 update. The following explanatory notes will be used: Division 96: Undifferentiated goods-producing activities of private households for own use This division contains the undifferentiated subsistence goods-producing activities of households, that is the activities of households that are engaged in a variety of activities that produce goods for their own subsistence. These activities include hunting and gathering, farming, the production of shelter and clothing and other goods produced by the household for its own subsistence. In application, if households are also engaged in the production of marketed goods, they are classified to the appropriate goods-producing industry of ISIC. If they are principally engaged in a specific goods-producing subsistence activity, they are classified to the appropriate goods-producing industry of ISIC. Division 97: Undifferentiated services-producing activities of private households for own use This division contains the undifferentiated subsistence services-producing activities of households. These activities include cooking, teaching, caring for household members and other services produced by the household for its own subsistence. In application, if households are also engaged in the production of multiple goods for subsistence purposes, they are classified to the undifferentiated goods-producing subsistence activities of households.