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1993 SNA Update Information - Expert comments for issue:
Private/public/government sectors delineation (sectorization boundaries)

Issue description
Issue description in [English] | [French] | [Russian] | [Spanish]
According to the 1993 SNA, two factors determine whether a corporation or non-profit institution is controlled by government and thus falls into the public sector. One factor is the degree of control exercised by government. Concern has been expressed about the “mainly financed” phrase cited in respect of non-profit institutions. The determination of control in respect of special purpose vehicles (SPVs), notably created in the context of public private partnerships (PPPs) or securitization, is not always clear cut. The second factor is about “economically significant prices.” Concern has also been expressed over possible ambiguity in this concept. Is it possible to give greater content to the description without going so far as to prescribe a fixed proportion of costs to be covered by sales?
Expert comments
Number of expert comments for selected issue:7
  Date postedSourceComment
 1/3/2006Karl Wilding (Head of Research, National Council for Voluntary Organisations, England)I am writing in my capacity as Head of Research at the National Council for Voluntary Organisations, the main national umbrella body for non-profit organisations in England. We have supported the UN Nonprofit Handbook Project and the work of the JHU team for a number of years, including via our Chiref Executive's membership of the handbook's International Advisory Committee, while we ourselves are actively engaged in a long-term programme to produce robust, reliable statistics on non-profits in order to faciliate better policy development and decision making.
From our perspective, it is extremely important that national statistices consistently and accurately represent the scale and scope of non-profit activities, something which they currently do not. Moreover, at a time when public policy is increasingly being globalised, it is important that international comparison is used accurately and more widely. The widely documented limitations of the current SNA preclude such accurate analysis and, in turn, effective understanding on the part of policy makers on how to work with non-profits.
Therefore, NCVO strongly supports the principles established by and outlined in the UN Nonprofit Handbook, and we would therefore welcome their consideration and ultimate adoption during the SNA review process. As such, we support the letter written to you by Lester Salamon (30/11/05) concerning the treatment of NPIs.
 12/20/2005Miklos Marschall (Transparency International)I strongly support the efforts to improve the treatment of non-profit institutions and volunteering in basic national accounts data, and as an NGO practitioner I agree with the basic recommendations that the letter from Prof. Lester Salamon outlines.
 12/15/2005Israel CommentNPIIsrael;
 12/13/2005Rien van Gendt (Van Leer Group Foundation)As Executive Director of the Van Leer Group Foundation and an active member of the European Foundation Center in Brussels (former Chair International Committee and former Board Member) I have been closely involved with the John Hopkin's activities regarding the UN Non Profit Handbook project and the ossibilities to have the principles integrated in the core system of national accounts. As a matter of fact I chaired the sessions of the International Advisory Committee of this project for the last few years.
I would like you to know that I strongly endorse the attached letter and its recommendations.
 12/13/2005Rory Francisco-Tolentino (Asia Pacific Philanthropy Consortium)I would like to endorse Dr. Lester Salomon’s letter, suggesting revisions to improve the treatment of Non-Profit Institutions in the basic national accounts data.
In this part of the world, as in many others, the Non-Profit sector has grown in influence and in scale. However, it is still difficult to know accurately the extent of this sector’s contribution to the economy of the region. In part, this is because of accurate measurement of their size and possibly their impact.
I hope that Dr. Salomon’s suggestions will be seriously considered in the guidelines for Non-Profit Institution treatment in the basic national accounts data.
 12/8/2005Lester Salamon (JHU) SNARevisionletterJHU;
 6/3/2005Lester Salamon (JHU) m2(c)jhu;
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