Transcript Chapter 1: Concepts,features and applications of SUT

Handbook on Supply and Use
Table: Compilation,
APPLICATION, AND GOOD PRACTICES
Comments on Chapter 1
 I think that the concepts of commodity flow and
SUTs have been well introduced in this chapter. The
presentation was briefly and clearly done so that it is
easy to understand. Therefore, there aren’t many
comments to do given that most of these concepts
are fairly well known.
Section: 1.1.1 Commodity flow approach,
 In this section, my recommendation is to explain
more the concepts of basic prices, producers price
and purchasers price.
 A paragraph could be devoted to their definitions.
Wherever possible, we can explain the relationship
between these different types of price : how to go
from one price to another one.
Section: 1.1.1 Commodity flow approach,
 The other comment concerns paragraph 8 where it is
said that the method of commodity flow can be
important in some cases and used to estimate the
Households final consumption expenditures and
investment especially if the quality of the primary
data is weak.
 We would like to add that the realization of the
product balance serves generally to test the
consistency of all elements of the balance
Section: 1.1.1 Commodity flow approach,
 For example, realizing product balance can help
problems in production estimates. Sometimes this
variable is underestimated or overestimated due to
the lack of information concerning the informal
sector.
 But if there is sufficient information about the other
elements of the balance, you’ll probably detect this
problem.
 Generally speaking, first estimates of elements on
supply and demand in the product balance will help
you test their coherence.
Section: 1.2.Features of SUTs,
 In the paragraph 12, I’d like to relativize the
comment that says that the quality of national
accounts increases with the details of the products
listed in the supply and use tables. This is true but
not in all cases.
 In many African countries, information does not
necessarily exist in very detailed levels.
Classifications are often limited in the surveys and
administrative data compilation process.
Section: 1.2.Features of SUTs,
 Thus, increasing the details in the products list will
lead to much more estimation in the balances. This
can increases the chances of making errors.
 In the paragraph 15 while explaining the components
of the supply table, i think it’ll be appropriate to
explain the role c.i.f / f.o.b ajustement in the table.
Section: 1.3. Uses/Applications of SUTs
and Commodity flows
 I’d like to add that SUTs are very important in the
computing of economic convergence indicators for the
West African countries and for the forecast of economic
trends.
 More and more, in the sub-Saharan African countries,
GDP forecasts are prepared for the current year and the
next three or five years. Doing that helps in verifying the
coherence between governments politics and the impact
on the economy.
 In the countries that are members of economic union,
forecast are also used to know if countries will respect the
convergence indicators.