Courage Nhundu Report

MINISTRY OF FINANCE
CENTRAL STATISTICAL OFFICE

SURNAME NHUNDU
FORENAMES COURAGE ZVIDZAYI
REG NUMBER R0722297A
PROGRAMME HECON
COURAGE NHUNDU: WORK RELATED LEARNING REPORT
1
MINISTRY OF FINANCE

TABLE OF CONTENTS PAGES
1. ORGANISATIONAL CULTURE/ STRUCTURE ( 4
2. E!PECTATIONS ( 10
". NATURE OF INDUSTRY AND INDUSTRY DEVELOPMENTS ( 12
4. COMPANY SOCIETY AND CONECTIONS ( 17
#. PERSONAL DEVELOPMENT ( 1$
%. HANDLING CONFLICT BET&EEN PERSONAL AND ( 19
ORGANISATIONAL OB'ECTIVES
7. (EY S(ILLS DEVELOPED AND &OR( DONE ( 20
$. RE)ENTRY ( "$
9. OVERVIE& ( "9
10. CONCLUSION ( 41
2
MINISTRY OF FINANCE

A*+,-./,
This report !s "o#pi$e% !&% "o#p$ete% !s ! p!rti!$ '($'i$$#e&t o' the re)(ire#e&ts o'
the *!"he$or o' Co##er"e Ho&ors De+ree E"o&o#i"s ith the Mi%$!&%s St!te
U&i,ersit-. Co,ere% i& this report is #- or/ e0perie&"e hi"h I +!i&e% 1- 1ei&+
!tt!"he% to the Ce&tr!$ St!tisti"!$ O''i"e N!tio&!$ He!%)(!rters i& H!r!re. The report
'i+(res o(t the ro$es o' the CSO !s the N!tio&!$ St!tisti"s Co#pi$er2 its 1!"/+ro(&%
!&% str("t(re. The report hi+h$i+hts #- #!3or !re!s o' respo&si1i$it- !t CSO2 ho #-
!tt!"h#e&t perio% %e,e$ope% !&% stre&+the&e% #- 'ie$% o' st(%-.
A/012345675851,
I o($% $i/e to e0press #- +r!tit(%e to the Ce&tr!$ St!tisti"!$ O''i"e st!'' !&%
#!&!+e#e&t 'or their s(pport %(ri&+ #- perio% o' p$!"e#e&t. Spe"i!$ th!&/s +oes to
#- s(per,isor Mr D!#1!2 ho !s #- so(r"e o' i&spir!tio& %(ri&+ the ho$e "o(rse
o' #- or/4re$!te% $e!r&i&+ perio%2 !&% the pri"es se"tio& st!'' hi"h i&"$(%es Mr
S!'(re2 Mr Chi/!%!-!2 Ms D5i/iti2 Ms K!'!si-!&3i2 Ms Chiro"hier!2 Ms To#1ori2
!&% !$$ #- 'e$$o st(%e&ts !$so o& !tt!"h#e&t 'or their s(pport hi"h "!&&ot +o
(&#e&tio&e%. I o($% !$so $i/e to th!&/ the Mi%$!&%s St!te U&i,ersit-2 i& p!rti"($!r
the Dep!rt#e&t o' E"o&o#i"s 'or their e$$ str("t(re% %e+ree pro+r!##e2 hi"h h!s
e&!1$e% #e to h!,e ! "h!&"e to 1e e0pose% to the pr!"ti"!$ iss(es o' #- 'ie$% o' st(%-
!&% !$$ #- $e"t(rers ho #!%e #e '($$- e)(ippe% 1- +i,i&+ #e !& !rse&!$ o' too$s
&e"ess!r- 'or #e to 1e re!%- 'or the or/4re$!te% $e!r&i&+.
I o($% !$so $i/e to e0te&% spe"i!$ re+!r%s to #- '!#i$- !&% !1o,e !$$2 the A$#i+ht-
Go% 'or +i,i&+ #e the i$$ !&% the poer to prosper %(ri&+ the ho$e perio% o' #-
or/4re$!te% $e!r&i&+
6
MINISTRY OF FINANCE

C9.:,5- 1; O-7.1<+.,<21.4 C=4,=-5/ S,-=/,=-5

1.1.1O-7.1<+.,<21.4 H<+,2->
The Ce&tr!$ St!tisti"!$ O''i"e "!#e i&to e0iste&"e i& 1789 he& the *ritish So(th
A'ri"!& Co#p!&- :*SAC; 'irst est!1$ishe% ! Re"or% !&% St!tisti"!$ Dep!rt#e&t
hi"h !s (&%er the "o&tro$ o' H(1ert H!r,e-. Upo& his %e!th i& the M!topos !re!2
the Ci,i$ Co##issio&er 1!se% i& H!r!re :the& S!$is1(r-; too/ o,er his '(&"tio&s. The
O''i"e "o&%("te% its 'irst "e&s(s i& *($!!-o i& 178< 'or hi"h the Mi&i&+ !&% Ci,i$
Co##issio&ers s(pp$ie% esti#!tes o' the #i&i&+ !&% (r1!& pop($!tio& respe"ti,e$-. I&
178= !&other "e&s(s !s "o&%("te% i& S!$is1(r- !&% i&'or#!tio& !s "o$$e"te%
thro(+h the O''i"e o' the A"ti&+ M!+istr!te.
A ,!riet- o' i&%epe&%e&t se"tio&s ere set (p 1- 1829 to e&+!+e i& the "o$$e"tio& o'
st!tisti"s. A re"o##e&%!tio& !s #!%e th!t +re!ter e''i"ie&"- o($% 1e !"hie,e% i'
these %(ties ere "e&tr!$i5e% i& ! %ep!rt#e&t (&%er ! )(!$i'ie% st!tisti"i!&. A
#o&et!r- pro,isio& !s #!%e (po& re"o##e&%!tio&s 'or the est!1$ish#e&t o' !
St!tisti"!$ *(re!( (&%er the Mi&istr- o' Ho#e A''!irs. The *(re!( !s t!s/e% ith:
C!rr-i&+ o(t !&- "e&s(s
Co$$e"ti&+2 "o#pi$i&+ !&% !&!$-5i&+ st!tisti"!$ i&'or#!tio& 'or the
"o##er"i!$2 i&%(stri!$2 !+ri"($t(r!$2 #i&i&+ !&% so"i!$ spheres o' the
e"o&o#-.
Co$$!1or!ti&+ ith Go,er&#e&t i& the "o$$e"tio&2 "o#pi$i&+2 "o4"oor%i&!ti&+2
!&!$-sis !&% p(1$i"!tio& o' st!tisti"!$ re"or%s o' !%#i&istr!tio&.
I& 18>? the O''i"e !s tr!&s'or#e% i&to ! %ep!rt#e&t (&%er the Mi&istr- o' E"o&o#i"
A''!irs !&% s(1se)(e&t$- "h!&+e% its &!#e to the Ce&tr!$ St!tisti"!$ O''i"e :C.S.O.;.
I& 1871 it !s tr!&s'erre% to the Mi&istr- o' Fi&!&"e !&% E"o&o#i" De,e$op#e&t
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MINISTRY OF FINANCE

(&%er hi"h it oper!te% (&ti$ the sp$itti&+ o' the Mi&istr- i& Apri$ 2??<. The
%ep!rt#e&t !s the& tr!&s'erre% to the Mi&istr- o' Fi&!&"e.
Fo$$oi&+ i%er "o&s($t!tio&s i& 1887 !&% 18882 it !s re"o##e&%e% th!t the
Dep!rt#e&t 1e tr!&s'or#e% i&to ! se#i4!(to&o#o(s e0e"(ti,e !+e&"-. *oth the
P(1$i" Ser,i"e Co##issio& !&% the& Mi&istr- o' Fi&!&"e !&% E"o&o#i" De,e$op#e&t
e#1r!"e% the i%e! !&% o''ere% their s(pport. I& this re+!r% ! $ot o' or/ h!s 1ee&
(&%ert!/e& 1- the st!/eho$%ers "o&"er&e% !&% the- h!,e !$re!%- !%opte% the &!#e
@IMSTATS :@i#1!1e *(re!( o' St!tisti"s;2 the &!#e CSO i$$ th(s 1e %roppe%.
The #!i& !i# is to 'ree the Dep!rt#e&t 'ro# &ot o&$- 1ei&+ ! Go,er&#e&t St!tisti"i!&
1(t !$so 'or the pri,!te p$!-ers !&% (&$o"/ its ,!$(e !s it is $i/e$- to i#pro,e "!p!"it-
(ti$i5!tio&.
1.1.2 S,.,=,2-> <1?2-8.,<21
The Dep!rt#e&t is ! p(1$i" o''i"e !s it is "o&tro$$e% 1- the Go,er&#e&t o' @i#1!1e
!&% its oper!tio&s !re +o,er&e% 1- the pro,isio&s o' the Ce&s(s !&% St!tisti"s A"t
:Ch!pter 1?:?<; !s !#e&%e% 1- A"t 22 o' 2??1 e''e"t 22 Septe#1er 2??2. The A"t
pro,i%es 'or the o''i"e o' the Dire"tor o' Ce&s(s !&% St!tisti"s !ppoi&te% 1- the
Mi&ister o' E"o&o#i" De,e$op#e&t or !&- Mi&ister the Presi%e&t #!- !ssi+& to
!%#i&ister the A"t 'ro# ti#e to ti#e. The Dire"tor is respo&si1$e 'or !ppoi&t#e&ts o'
other st!'' #e#1ers !&% the %!- to %!- !%#i&istr!tio& o' the Dep!rt#e&t. He s(1#its
! report to the Mi&ister !'ter the 6?
th
o' A(&e e!"h -e!r %et!i$i&+ the oper!tio&s
(&%ert!/e& i& the pre"e%i&+ -e!r.
It is ! "ri#i&!$ o''e&"e (&%er the A"t to %is"$ose i&'or#!tio& to o(tsi%ers itho(t the
&e"ess!r- !(thorit- 'ro# the Dire"tor. I& so#e "!ses2 the Dire"tor "!&&ot itho(t the
!ppro,!$ o' the Mi&ister2 %is"$ose !&- i&'or#!tio& to those o(tsi%e the Dep!rt#e&t.
The pro,isio&s o' the A"t !re #!i&$- there to e&'or"e hi+h $e,e$ o' "o&'i%e&ti!$it- !&%
pri,!"- !s st!tisti"!$ i&'or#!tio& is ! ,!$(!1$e !sset to the e"o&o#-.
<
MINISTRY OF FINANCE

1.2.1 O-7.1<@.,<21.4 C=4,=-5
The "($t(re o' !& or+!&i5!tio& is !& !#!$+!#!tio& o' the ,!$(es !&% 1e$ie's o' the
peop$e i& !& or+!&i5!tio&. It "!& 1e 'e$t i& the i#p$i"it r($es !&% e0pe"t!tio&s o'
1eh!,io(r i& !& or+!&i5!tio& here2 e,e& tho(+h the r($es !re &ot 'or#!$$- ritte&
%o& e#p$o-ees /&o h!t is e0pe"te% o' the#. It is (s(!$$- set 1- #!&!+e#e&t
hose %e"isio&s o& po$i"- (s(!$$- set (p the "($t(re o' the or+!&i5!tio&. The
or+!&i5!tio& "($t(re h!s ,!$(es !&% 1e$ie's th!t s(pport the or+!&i5!tio& +o!$s. The
"($t(re o' the or+!&i5!tio& i' it is positi,e !&% he$p'($ "!& he$p to #oti,!te the st!''.
A& or+!&i5!tio& "($t(re &ee%s to 1e #!&!+e% i& or%er to #!i&t!i& ! positi,e "($t(re
!&% he&"e the &ee% to h!,e ! "$e!r$- %e'i&e% ,isio&2 #issio& st!te#e&t2 !&% the "ore
,!$(es.

>
MINISTRY OF FINANCE

1.2.2 ORGANISATION CHART (C.S.O.
=
MINISTRY OF FINANCE

1.2." S=88.-> 2? M.A2- D5:.-,851,+
There !re to #!i& Di,isio&s e!"h ith to 1r!&"hes s(pporte% 1- se,er!$ se"tio&s.
The to #!i& %i,isio&s !re:
. E/2128</ S,.,<+,</+ B-.1/9
7
Dire"tor o' "e&s(s
B st!tisti"s
Dep(t- Dire"tor
So"i!$ !&%
Pop($!tio&
%i,isio& T
Assist!&t Dire"tor
Ce&s(s !&%
S(r,e-s *r!&"h
Dep(t- Dire"tor
E"o&o#i"
St!tisti"s Di,isio&
Assist!&t Dire"tor
So"i!$ St!tisti"s
Ho(seho$%
S(r,e-s
Pop($!tio& Ce&s(s
Co#p(ti&+
DTP !&% Pri&ti&+
He!$th !&% Cit!$
St!tisti"s
E&,iro&#e&t!$
St!tisti"s
I&ter&!tio&!$
Mi+r!tio& !&%
To(ris#
E#p$o-#e&t !&%
E%("!tio&
A(%i"i!$ So"i!$
De$'!re St!tisti"s
So"i!$ i&%i"!tors
!&% Li,i&+
Co&%itio&s
Ge&%er St!tisti"s
Assist!&t Dire"tor
Pro%("tio&
St!tisti"s
Assist!&t Dire"tor
I&"o#e A&!$-sis
A+ri"($t(re
St!tisti"s
Forei+& Tr!%e
St!tisti"s
Pro%("tio&
St!tisti"s
N!tio&!$ A""o(&ts
St!tisti"s
Fi&!&"i!$ St!tisti"s
Pri"es St!tisti"s
I&'or#!$ St!tisti"s
Tr!i&i&+
MINISTRY OF FINANCE

The 1r!&"h is respo&si1$e 'or the "o#pi$!tio& o' st!tisti"!$ i&'or#!tio& th!t re$!tes to
e"o&o#i" !"ti,ities :!"ti,ities o' the se"o&%!r-2 pri#!r- !&% terti!r- i&%(stries; +oi&+
!ro(&% the "o(&tr- !&% is (&%er the "o&tro$ o' ! Dep(t- Dire"tor ho reports to the
Dire"tor. The %i,isio& is '(rther sp$it i&to to 1r!&"hes &!#e$- I&"o#e A&!$-sis !&%
Pro%("tio& St!tisti"s. E!"h 1r!&"h is he!%e% 1- !& Assist!&t Dire"tor ho !"ts !s !&
i&ter'!"e 1etee& the se"tio&sE st!tisti"i!&s !&% the Dep(t- Dire"tor respo&si1$e 'or
the ho$e %i,isio&.
<. I1/285 .1.4>+<+ *-.1/9
This he!%e% 1- the !ssist!&t %ire"tor :"(rre&t$- Mr. N. T!r(,i&+!; ho reports to the
%ire"tor. This 1r!&"h is '(rther %i,i%e% i&to three se"tio&s &!#e$-:
Pri"es se"tio&2
Fi&!&"e se"tio&2
N!tio&!$ A""o(&ts.
E!"h o' the !1o,e se"tio&s is he!%e% 1- st!tisti"i!&s.
<<. P-26=/,<21 S,.,<+,</+
This is s(1%i,i%e% i&to se"tio&s he!%e% 1- st!tisti"i!&s &!#e$-:
A+ri"($t(re
Forei+& tr!%e
Pro%("tio&
<<<. T-.<1<17
* P2:=4.,<21 .16 S2/<.4 S,.,<+,</+
The #!i& t!s/ o' this %i,isio& is "o#pi$i&+ !&% !&!$-sis o' st!tisti"!$ i&'or#!tio& ith
re+!r%s to the so"i!$ e$'!re o' the pop($!tio& !&% "!rr-i&+ o(t !&- 'ie$% s(r,e-s !&%
#!ppi&+ 'or the ho$e Dep!rt#e&t. The %i,isio& is '(rther sp$it i&to Ho(seho$%
S(r,e-s !&% C!rto+r!ph- !&% De#o+r!ph- !&% So"i!$ St!tisti"s.
The Di,isio& "o#pi$es st!tisti"s (se% 1- ,!rio(s or+!&is!tio&s to %eter#i&e the so"i!$
e$'!re o' the %i''ere&t "o##(&ities !ro(&% the "o(&tr-.
<. S2/<.4 S,.,<+,</+
8
MINISTRY OF FINANCE

This is respo&si1$e 'or +!theri&+ i&'or#!tio& re$!ti&+ to the so"i!$ e$'!re o' the
peop$e i& the "o(&tr-2 'or e0!#p$e $e,e$ o' e#p$o-#e&t2 he!$th !&% e%("!tio&. Fo(r
se"tio&s '!$$ ithi& this se"tio& !&% !re:
1. He!$th.
2. E&,iro&#e&t
6. I&ter&!tio&!$ #i+r!tio& !&% to(ris#
9. E#p$o-#e&t !&% e%("!tio&
<<. C51+=+ .16 S=-B5>+ B-.1/9
This i&"$(%es se"tio&s $i/e:
Ho(seho$% s(r,e-s
Pop($!tio& "e&s(s
Co#p(ti&+
Pri&ti&+
These #!3or %ep!rt#e&ts !re %epe&%!&t o& e!"h other !s the i&'or#!tio& 'ro# other
%ep!rt#e&t #!- 1e (se'($ to !&other %ep!rt#e&t.
1?
MINISTRY OF FINANCE

C9.:,5- 2; EC:5/,.,<21+
Dhe& I 3oi&e% CSO2 the o&$- thi&+ I /&e !s th!t the or+!&is!tio& !s !
+o,er&#e&t %ep!rt#e&t respo&si1$e 'or the "o#p(t!tio& !&% re$e!se o' i&'$!tio& r!tes
!&% other st!tisti"!$ i&'or#!tio& s("h !s po,ert- r!tes. M- prior e0pe"t!tio&s ere
th!t I h!% ! so(&% st!tisti"!$ 1!"/+ro(&% he&"e !s $oo/i&+ 'or!r% to $e!r& #ore
st!tisti"!$ pri&"ip!$s !&% "o&"epts.
As ti#e e&t o& #- "o&"eptio&s h!% 1ee& #et 1- +re!ter o&es2 hi"h ere th!t #-
st!- !t CSO !s +oi&+ to he$p #- %e+ree pro+r!##e2 Mi%$!&%s St!te U&i,ersit-2 the
or+!&is!tio& :CSO; !&% the +e&er!$ p(1$i" !s ! ho$e. Fo$$oi&+ is ho I tho(+ht the
!1o,e #e&tio&e% e&tities ere +oi&+ to 1e&e'it:
2.1.0 M> 657-55 :-27-.885
CSO is the "(sto%i!& o' !$$ &!tio&!$ st!tisti"s2 he&"e #- st!tisti"!$ /&o$e%+e is +oi&+
to 1ro!%e& (p thro(+h (si&+ !%,!&"e% "o#p(ter p!"/!+es !&% !$so 1ei&+ i&,o$,e% i&
#ost st!tisti"!$ pro"esses th!t !re %o&e2 th!t is 'ro# %!t! "o$$e"tio&2 !&!$-sis2 "ross4
"he"/i&+ the !""(r!"- o' re"ei,e% %!t!2 (si&+ %!t! e&tr- pro+r!#s to "!pt(re re"ei,e%
%!t!2 pro%("i&+ t!1$es 'or (se 1- the +e&er!$ p(1$i" !&% !$so #!/i&+ the# !,!i$!1$e to
!$$ ,!rio(s (sers o' st!tisti"!$ i&'or#!tio&. A$$ this is +oi&+ to #!/e #e !ppre"i!te
st!tisti"!$ #o%($es I h!,e $e!r&t !&% the o&es i# +oi&+ to $e!r& he& I +et 1!"/ to the
"o$$e+e 'or #- 'i&!$ -e!r.
D(ri&+ #- st!- I i$$ h!,e re$e,!&t or/i&+ pr!"ti"e to "o&%e&se the theor- $e!r&t !t
s"hoo$ ith re!$ $i'e pr!"ti"e !&% 1e !1$e to !ppre"i!te the %i''ere&"e !&% i#port!&"e
1etee& the to.
2.1.1 T95 M<64.16+ S,.,5 U1<B5-+<,>
D(ri&+ #- st!- !t CSO I i$$ 1e the !#1!ss!%or o' #- $e!r&i&+ i&stit(tio&2 so
e,er-thi&+ I %o i$$ 1e i& the &!#e o' MSU2 !&% I !# &ot +oi&+ to %is+r!"e the &!#e
o' the i&stit(tio&2 1(t I !# +oi&+ to 1e ,er- h!r% or/i&+ !&% so e!+er to $e!r& !&% !t
the s!#e ti#e or/i&+ to!r%s the o13e"ti,es o' the or+!&is!tio& !&% !1i%e 1- its
r($es !&% re+($!tio&s s("h th!t !t the e&% o' #- or/ re$!te% $e!r&i&+ the or+!&is!tio&
i$$ !$!-s h!,e '!ith &ot o&$- i& #e 1(t i& !$$ the st(%e&ts 'ro# MSU. He&"e i& the
11
MINISTRY OF FINANCE

e&% the (&i,ersit- i$$ !"hie,e its o13e"ti,e o' 1ei&+ %e,ote% to )(!$it- or/4re$!te%
$e!r&i&+ 'or the i##e%i!te !&% ($ti#!te 1e&e'it o' h(#!&it-.
2.1.2 CSO
The or+!&is!tio& i$$ 1e&e'it i& th!t %(ri&+ the to -e!rs I h!,e spe&t !t s"hoo$ so '!r2
I h!,e $e!r&t ! $ot o' theor- !&% #- $e"t(rers +!,e #e e,er-thi&+ there is to #!/e #e
re!%- to t!"/$e re!$ $i'e pro1$e#s. So !$tho(+h I i$$ 1e ! st(%e&t I !# +oi&+ to tr- to
(se e,er-thi&+ I h!,e $e!r&t !t s"hoo$ to #!/e s(re th!t !t the e&% o' the -e!r the
or+!&is!tio& i$$ 1e !1$e to !tt!i& its o13e"ti,es.
2.1." T95 :=*4</
Thro(+h h!r% or/i&+2 se$'4#oti,!tio& !&% %eter#i&!tio&2 I !# +oi&+ to 1e he$p'($ i&
the !"hie,e#e&t o' the or+!&is!tio&Es o13e"ti,es2 !&% &o si&"e the #!i& o13e"ti,e o'
the or+!&is!tio& is to ser,e the +e&er!$ p(1$i" he&"e !$$ the e''ort I !# +oi&+ to p(t is
+oi&+ to 1e&e'it the p(1$i" !s ! ho$e.
12
MINISTRY OF FINANCE

C9.:,5- "; N.,=-5 2? I16=+,-> .16 I16=+,-> D5B542:851,+
".1 N.,=-5 2? I16=+,->
The Ce&tr!$ St!tisti"!$ O''i"e is the o&$- 1o%- #!&%!te% 1- the Go,er&#e&t to
p(1$ish o''i"i!$ st!tisti"s. The st!t(s o' the CSO is re+($!te% 1- the Ce&s(s !&%
St!tisti"s A"t2 the or+!&i5!tio& 'or#s p!rt o' the P(1$i" Ser,i"e !&% '!$$s (&%er the
Mi&istr- o' Fi&!&"e
".1.1 V<+<21D M<++<21 S,.,5851, .16 C2-5 V.4=5+
V<+<21
To 1e the $e!%i&+ or$% "$!ss pro,i%er o' &!tio&!$ st!tisti"s i& @i#1!1e.
M<++<21
To "o&tri1(te to &!tio&!$ %e,e$op#e&t thro(+h the pro%("tio& !&% %isse#i&!tio& o'
ti#e$- !&% !""(r!te &!tio&!$ st!tisti"s th!t '!"i$it!te:
Po$i"- 'or#($!tio&
P$!&&i&+ !&% %e"isio& #!/i&+
E,!$(!tio& !&% rese!r"h
Tr!&sp!re&"- !&% +oo% +o,er&!&"e
This i$$ 1e !"hie,e% thro(+h the (se o' !(to#!te% te"h&o$o+- ith hi+h$- s/i$$e%
!&% #oti,!te% st!''.
C2-5 V.4=5+
I& p(rs(it o' o(r #issio&2 e sh!$$ 1e respe"t'($2 "o(rteo(s2 ope&2 tr!&sp!re&t !&%
16
MINISTRY OF FINANCE

respo&si,e to 1oth (sers !&% s(pp$iers o' %!t!. De i$$ e&s(re "o&'i%e&ti!$it- o'
i&'or#!tio& i& pro%("i&+ ! hi+h )(!$it- st!tisti"!$ ser,i"e ith pro'essio&!$is# !&%
i&te+rit-.
".1.2 T95 CSO +,-.,57>;
The str!te+- to !"hie,e the #issio& is thro(+h the "!rr-i&+ o(t o' the 'o$$oi&+
'(&"tio&s:
:i; Dr!i&+ (p !& o,er!$$ #!ster p$!& 'or o''i"i!$ st!tisti"s !&% /eep it (&%er
"o&ti&(o(s re,ie
:ii; Est!1$ishi&+ st!tisti"!$ #etho%o$o+ies !&% st!&%!r%s !&% e&s(ri&+ their (se
1-
!$$ pro%("ers o' o''i"i!$ st!tisti"s so !s !#o&+ other thi&+s to '!"i$it!te the
i&te+r!tio& !&% "o#p!riso& o' the st!tisti"s pro%("e% 1oth &!tio&!$$- !&%
i&ter&!tio&!$$-.
:iii; Co4or%i&!ti&+ st!tisti"!$ !"ti,ities i& the "o(&tr- so !s:
4 To !,oi% %(p$i"!tio& o' e''orts i& the pro%("tio& o' st!tisti"s
4 To e&s(re opti#!$ (ti$i5!tio& o' the !,!i$!1$e reso(r"es
4 To re%("e the 1(r%e&2 o& respo&%e&ts2 o' pro,i%i&+ st!tisti"!$ %!t!
:i,; Co$$e"ti&+2 "o#pi$i&+2 !&!$-5i&+ !&% %isse#i&!ti&+ st!tisti"s !&% re$!te%
i&'or#!tio&
:,; M!i&t!i&i&+ !& i&,e&tor- o' !$$ !,!i$!1$e o''i"i!$ st!tisti"s i& the "o(&tr- !&%
!ssisti&+ (sers i& o1t!i&i&+ i&ter&!tio&!$ st!tisti"s
:,i; Pro,i%i&+ St!tisti"!$ Ser,i"es !&% pro'essio&!$ !ssist!&"e to o''i"i!$ 1o%ies
19
MINISTRY OF FINANCE

!&% the p(1$i" !t $!r+e
:,ii; Pro,i%i&+ ! "o&t!"t poi&t 'or i&ter&!tio&!$ or+!&i5!tio&s !&% 'orei+&
i&stit(tio&s i& &ee% o' st!tisti"s o& @i#1!1e.
".1." M.<1 -245+ 2? ,95 CSO;
To pro,i%e st!tisti"s to the +o,er&#e&t2 1(si&ess "o##(&it- !&% +e&er!$
p(1$i" !s e$$ !s i&ter&!tio&!$ or+!&i5!tio&s 'or (se i& p$!&&i&+ !&% %e"isio&
#!/i&+
To "o4or%i&!te st!tisti"!$ !"ti,ities so !s to pro%("e st!tisti"s th!t !re
"o&siste&t
The CSO is !!re th!t 1oth p!rties o' the @i#1!1e!& e"o&o#- !re +e!ri&+ (p 'or !&
e"o&o#i" re"o,er- p!th2 he&"e this i&e,it!1$- +e&er!te i&"re!si&+ %e#!&% 'or #ore
1etter st!tisti"!$ i&'or#!tio&. M!3or %e"isio&s !re 1ei&+ #!%e "o&"er&i&+ e"o&o#i"
!&% or+!&i5!tio&!$ "h!&+e2 !&% %e"isio& #!/ers re)(ire !""(r!te2 ti#e$- !&% re$e,!&t
st!tisti"s. The %e#!&% 'ro# p(1$i" !&% pri,!te (sers o' %!t! o& e"o&o#i" st!t(s2
%e#o+r!phi" i&'or#!tio&2 et". is i&"re!si&+. The i&"re!si&+ i#port!&"e o' pri,!te
se"tor !"ti,ities h!s #!%e it i#per!ti,e to stre&+the& the "o$$e"tio& o' st!tisti"s i& this
se"tor o' the e"o&o#-.
".1.4 P=-:2+5 2? S,.,<+,</+ .16 S,.,<+,</.4 P-<1/<:45+
The p(rpose o' st!tisti"s is to !ssist or+!&s o' st!te2 1(si&esses2 other or+!&i5!tio&s
!&% the p(1$i" i&:
Po$i"- 'or#($!tio&F
1<
MINISTRY OF FINANCE

De"isio&4#!/i&+ or other !"tio&sF
Mo&itori&+ pro+ress !&% e,!$(!ti&+ per'or#!&"e.
G De"isio& #!/i&+ sho($% 1e e,i%e&"e41!se% !&% (p4to4%!te st!tisti"s !re re)(ire% to
#o&itor pro+ress i& the i#p$e#e&t!tio& o' ,!rio(s po$i"ies !&% pro+r!##es i& the
"o(&tr-. Hi+h )(!$it- st!tisti"s !re o' 1e&e'it to the Go,er&#e&t2 Rese!r"h
I&stit(tio&s2 Ci,i$ So"iet-2 the Pri,!te Se"tor or De,e$op#e&t A+e&"ies.
St!tisti"s sh!$$ prote"t the "o&'i%e&ti!$it- o' the i%e&tit- o'2 !&% the i&'or#!tio&
pro,i%e% 1-2 respo&%e&ts !&% 1e4
Re$e,!&t2 !""(r!te2 re$i!1$e !&% ti#e$-F
O13e"ti,e !&% "o#prehe&si,eF
Co#pi$e%2 reporte% !&% %o"(#e&te% i& ! s"ie&ti'i" !&% tr!&sp!re&t
#!&&er
Disse#i&!te% i#p!rti!$$-F
A""essi1$eF
I& !""or%!&"e ith !ppropri!te &!tio&!$ !&% i&ter&!tio&!$ st!&%!r%s
!&% "$!ssi'i"!tio&sF !&%
Se&siti,e to %istri1(tio& 1- se02 !+e2 +eo+r!phi"!$ 1re!/%o& !&%
si#i$!r so"io4e"o&o#i" 'e!t(res
1>
MINISTRY OF FINANCE

".2 I16=+,-> D5B542:851,+
It h!s $o&+ 1ee& re"o+&i5e% th!t !& e''e"ti,e st!tisti"!$ or+!&i5!tio& &ee%s to 1e
#!&!+e% str!te+i"!$$-2 #!/i&+ e''i"ie&t (se o' the s"!r"e reso(r"es to #eet the &ee%s
o' its (sers.
Str!te+i" p$!&&i&+ e&"o(r!+es the "o(&tr- to prep!re str!te+i" p$!&s 'or st!tisti"s !&%
"!re'($ %e"isio&s &ee% to 1e #!%e !1o(t ho 1est to %e,e$op st!tisti"s #ost
e''e"ti,e$- !&% e''i"ie&t$-. He&"e the CSO is or/i&+ o& the tr!&s'or#!tio& to ! se#i4
!(to&o#o(s !+e&"- !&% the "re!tio& o' ! N!tio&!$ St!tisti"!$ S-ste# :NSS;.
".2.1 R5.+21+ ?2- ,95 ,-.1+?2-8.,<21 2? ,95 CSO <1,2 . S58<)A=,21282=+
A751/>
The "(rre&t st!te o' the N!tio&!$ St!tisti"!$ S-ste# is (&"oor%i&!te%2 here #!&-
i&stit(tio&s pro%("e the s!#e %!t! hi"h !t ti#es !re "o&'$i"ti&+ he&"e the
+o,er&#e&t too/ ! %e"isio& to tr!&s'or# the CSO !s ! step to !%%ress so#e o' these
pro1$e#s !t the s!#e ti#e e&h!&"i&+ pro'essio&!$ i&%epe&%e&"e.
The CSO is e0pe"te% to "oor%i&!te the N!tio&!$ St!tisti"!$ S-ste# !&% pro,i%e the
$e!% i& the %e,e$op#e&t o' st!tisti"!$ st!&%!r%s !&% #etho%o$o+ies to #i&i#i5e
"o&'$i"ti&+ %!t! !&% pro#ote e''i"ie&"- i& the (se o' the s"!r"e reso(r"es !&% this i$$
see CSO oper!ti&+ (&%er the &!#e Zimbabwe Bureau of Statistics (ZIMSTAT).
".2.2 B515?<,+ 2? ,-.1+?2-8<17 ,95 CSO <1,2 . S58<) A=,21282=+ A751/>
To e&h!&"e the "re%i1i$it- !&% i#p!rti!$it- o' o''i"i!$ st!tisti"s
To re#o,e the 1(re!("r!ti" e&"(#1r!&"es !&% he&"e i#pro,e e''i"ie&"- i&
the pro,isio& o' o''i"i!$ st!tisti"s2 !&%
1=
MINISTRY OF FINANCE

To ste# the ti%e o' hi+h st!'' t(r&o,er hi"h h!s ero%e% "!p!"it- 'or the
o''i"e to per'or# its '(&"tio& to the e0pe"t!tio& o' (sers
C9.:,5- 4; C28:.1>)S2/<5,> .16 C2115/,<21.
CSO "herishes the prese&"e o' the so"iet- hi"h pro,i%es the 1!"/1o&e (po& hi"h
the or+!&i5!tio& "!& per'or# #ost e''e"ti,e$- !&% e''i"ie&t$- i& "o$$e"ti&+2 !&!$-5i&+
!&% %isse#i&!ti&+ ti#e$- st!tisti"s 'or e,i%e&"e41!se% p$!&&i&+ !&% %e"isio& #!/i&+.
He&"e CSO h!s set (p ! N!tio&!$ St!tisti"!$ S-ste# hi"h is "o#pose% o'
De,e$op#e&t P!rt&ers "o&sisti&+ o':
Users o' %!t!
Pro%("ers o' %!t!
S(pp$iers o' %!t!
Rese!r"h !&% E%("!tio&!$ i&stit(tio&s
Fro# this set (p it "!& 1e &ote% th!t CSO is #!i&t!i&i&+ ! stro&+ re$!tio&ship ith:
4.1 T95 7515-.4 :=*4</
CSO se$$s its p(1$i"!tio&s !&% reports !t ,er- $o pri"es2 'or e0!#p$e the CPI hi"h
"osts H6. A$so i&'or#!tio& o& po,ert- %!t(# $i&es !&% i&'$!tio& 'i+(res "!& 1e +i,e&
'or 'ree (po& re)(est.
4.2 T95 -5+5.-/9 .16 56=/.,<21.4 +5/,2-
I(!$it- !1(&%!&t %!t! is !,!i$!1$e 'or rese!r"h p(rposes !&% the CSO !$so "o&%("ts
(ser '(&%e% s(r,e-s o& 1eh!$' o' i&tereste% rese!r"h i&stit(tio&sJ or+!&i5!tio&s. CSO
is %oi&+ ! ,er- "o##e&%!1$e 3o1 1- pro,i%i&+ !tt!"h#e&t p$!"es 'or (&i,ersit-
st(%e&ts. To %!te CSO h!s o''ere% re$e,!&t or/i&+ e0perie&"e to ! &(#1er o'
17
MINISTRY OF FINANCE

st(%e&ts 'ro# MSU2 NUST !&% other (&i,ersities to "o&so$i%!te e$$ their theor-
!")(ire% !t the (&i,ersit-.
4." T95 *=+<15++ +5/,2-
CSO pro,i%es (se'($ i&'or#!tio& 'or the 1(si&ess se"tor to p$!& 'or '(t(re 1(si&ess
e0p!&sio& !&% pro%("ts2 1- !re!2 (si&+ !+es !s !& !ssess#e&t 'or !''or%!1i$it-. CSO
!$so pro,i%es (se'($ e"o&o#i" i&%i"!tors $i/e Co&s(#er Pri"e I&%e0 :CPI; hi"h
#e!s(res i&'$!tio&. CSO %!t! !$so he$p #!r/et pro%("ts2 #o&itor pro+ress !&%
%e,e$op#e&ts i& the i&%(str- !&% !$so #o&itor the per'or#!&"e o' the other
"o#petitors.
C9.:,5- #; P5-+21.4 D5B542:851,
Si&"e 3oi&i&+ the CSO I h!,e %e,e$ope% perso&!$$- 1oth !s !& e#p$o-ee !&% !s !
st(%e&t. I h!,e #!&!+e% to %isti&+(ish #-se$' !s ! $o-!$ !&% i&%epe&%e&t e#p$o-ee2
ho "!& or/ (&%er #i&i#(# s(per,isio& !&% pro%("e res($ts e,e& he& or/i&+
(&%er press(re.
S54?)/21?<651/5
K&o$e%+e is e#poer#e&t. I !s hesit!&t o' #-se$' he& %e!$i&+ ith "$ie&ts !&%
"o##(&i"!ti&+ ith #!&!+e#e&t %(ri&+ #- i&iti!$ %!-s %(e to $!"/ o' te"h&i"!$
e0perie&"e !&% the 'e!r th!t I o($% &ot 1e !1$e to %e$i,er !s e0pe"te%. A'ter !")(iri&+
the 1!si" s/i$$s I 1e"!#e ,er- "o&'i%e&t !&% !s !1$e to "o&,i&"e #- s(periors th!t I
!s "!p!1$e o' %oi&+ #- or/ e0"eptio&!$$- e$$ !&% !$so +i,i&+ 'irst $i&e s(pport to
"$ie&ts. Dith "o&'i%e&"e #- s(periors ere !1$e to tr(st #e thro(+ho(t the "o(rse o'
#- or/4re$!te% $e!r&i&+ perio%. I h!% "o&'i%e&"e he& !tte&%i&+ to "$ie&ts !&%
o($% !$so /i&%$- re'er the# to the he!% o' the se"tio&2 ho o($% 1est h!&%$e their
re)(ests.
S,-517,9+
4 I !# !$!-s s#!rt$- !&% pro'essio&!$$- %resse%
4 I !$!-s sho positi,e !ttit(%e !&% re!%i&ess to +(i%e others
4 I %o &ot "!rr- '!#i$- te&sio&s !&% orries !$o&+ ith #e to or/
4 I "!& or/ (&%er press(re !&% sti$$ pro%("e the %esire% o13e"ti,es
18
MINISTRY OF FINANCE

4 I "!& !$so or/ i&%epe&%e&t$- ith ,er- #i&i#(# s(per,isio&
4 I !# ! +oo% $iste&er
4 I h!,e ! +oo% spirit 'or te!#or/
&5.015++5+
No o&e is h(&%re% per"e&t per'e"t 1(t h!t it &ee%s is 'or o&e to (&%erst!&% !&%
!ppre"i!te th!t e !$$ h!,e e!/&esses !&% o&e sho($% /&o e0!"t$- h!t their
e!/&esses !re so th!t o&e "!& "h(r& the# o(t i&to stre&+ths.
C9.:,5- %; H.164<17 C21?4</, *5,3551 P5-+21.4/
O-7.1<@.,<21.4 O*A5/,<B5+
There !s &e,er re!$$- ! ti#e he& e%("!tio&!$ o13e"ti,es "o&'$i"te% ith
or+!&i5!tio&!$ o13e"ti,es si&"e the CSO h!s 1e"o#e ! ho#e 'or #ost e"o&o#i"s
st(%e&ts o& or/ re$!te% $e!r&i&+. The CSO h!s "re!te% !& e''e"ti,e $e!r&i&+
e&,iro&#e&t to tr!i& st(%e&ts 1- e0posi&+ the# to the "h!$$e&+i&+ -et !tt!i&!1$e
pr!"ti"!$ iss(es i& the 'ie$% o' st!tisti"s. The CSO h!s ! '($$- e)(ippe% $i1r!r- !s '!r !s
st!tisti"!$ !&% other re!%i&+ #!teri!$ is "o&"er&e%2 !&% I (ti$i5e% this $i1r!r- %(ri&+ #-
'ree ti#e !&% it !s !$so !$$oe% to 1orro 1oo/s i' o&e !&ts to re!% o,er &i+ht.
Co&'$i"t &or#!$$- !rises he& there is ! &!t(r!$ %is!+ree#e&t res($ti&+ 'ro# !
%i''ere&"e i& !ttit(%es2 1e$ie's2 ,!$(es !&% &ee%s !&% it "!& !$so ori+i&!te 'ro# p!st
ri,!$ries. H!,i&+ ! perso&!$ "o&'$i"t ith other st!'' #e#1ers o($% s(re$- res($t i&
or+!&i5!tio&!$ o13e"ti,es 1ei&+ (&%er#i&e%. He&"e to #!/e s(re th!t &o "o&'$i"t
e0iste% 1etee& #- perso&!$ !&% or+!&i5!tio&!$ o13e"ti,es2 h!t I %i% !s to #!/e
s(re th!t &o "o&'$i"t e0iste% 1etee& #e !&% !&- other CSO st!''2 !s this o($% !$so
!''e"t or+!&i5!tio&!$ o13e"ti,es.
2?
MINISTRY OF FINANCE

I o($% $i/e to poi&t o(t th!t %(ri&+ the ho$e perio% o' #- p$!"e#e&t I &e,er
i&%($+e% #-se$' i&to !&- /i&% o' perso&!$ ri,!$r- ith #- or/#!tes2 #- s(periors or
!&- other CSO st!''. There !s &e,er ! ti#e I '!i$e% to ho&o(r #- %(ties !s ! res($t o'
! "o&'$i"t ith !&other i&%i,i%(!$.
C9.:,5- 7; (5> S0<44+ D5B542:56 .16 &2-0 D215
7.1 S0<44+ 65B542:56
Here !re so#e o' the /e- s/i$$s I h!,e %e,e$ope% %(ri&+ #- perio% o' p$!"e#e&t2 i&
!&% o(t o' the o''i"e: 4
7.1.1 T<85 /21+/<2=+
Ti#e #!&!+e#e&t is ,er- ,it!$ i& or%er to 'it e$$ i& !& or+!&i5!tio&. So#e or/ !s
s(ppose% to 1e %o&e ithi& ti#e 'r!#esF %e!%$i&es h!% to 1e #et2 reports !&te% !t
spe"i'i" ti#es 'or e0!#p$e2 #o&th$- reports. This re)(ire% #e to #!&!+e #- ti#e
ise$- i& or%er to !""o#p$ish these %e!%$i&es. F!i$(re to !%here to ti#e to %o "ert!i&
t!s/s or pro"e%(res se,ere$- !''e"te% %esire% o13e"ti,es. This #e!&t I h!% to prioriti5e
t!s/s !&% 1e p(&"t(!$ i& "o#i&+ to or/ i& or%er to #!&!+e #- ti#e ise$-. The
+(i%!&"e 'ro# se&ior st!'' #e#1ers i& o(r se"tio& o& ho 1est to #!&!+e ti#e !s
!+!i& he$p'($. It !s ,er- %i''i"($t !t 'irst 1(t I #!&!+e% to !%!pt e$$ !s ti#e
pro+resse%
7.1.2 A 7226 /288=1</.,<21 +0<44
I h!,e %e,e$ope% esse&ti!$ "o##(&i"!tio& s/i$$s thro(+h or%s2 !"tio&s2 1o%-
$!&+(!+e2 !&% ,oi"e to&e2 I h!,e #!&!+e% to respo&% e$$ he& !tte&%i&+ to ! "$ie&t
21
MINISTRY OF FINANCE

1oth '!"e to '!"e !&% o,er the pho&e2 or he& t!$/i&+ to ! s(perior or he& i& !
#eeti&+.
7.1." A 7226 A=675851,.4 +0<44
I h!,e %e,e$ope% ! +oo% s/i$$ o' 'irst "o&si%eri&+ the !%,!&t!+es !&% the
%is!%,!&t!+es 1e'ore #!/i&+ %e"isio&s2 ei+hi&+ ris/s i&,o$,e% !&% !&ti"ip!te the
short ter# !&% $o&+ ter# e''e"ts. This is !"hie,e% 1- +oi&+ i&to the %epth o' e,er-
sit(!tio& !t h!&% r!ther th!& to 3(st !ss(#e thi&+s.
7.1.4 P4.11<17 .16 O-7.1<@<17
I $e!r&t th!t proper !&!$-sis !&% p$!&&i&+ o' ho 1est to so$,e pro1$e#s (s(!$$-
shorte&e% the possi1$e reso$(tio& ti#e !&% e''e"ti,e$- (ti$i5es reso(r"es. I !# &o
!1$e to p$!& !&% or+!&i5e reso(r"es 'or spe"i'i" t!s/s !&% prioriti5e the t!s/s !""or%i&+
to stip($!te% %e!%$i&es !&% (r+e&"- !#o&+ other thi&+s2 !&% the& #!/e s(re th!t !$$
%e!%$i&es !re #et.
7.1.# A*<4<,> ,2 =+5 .6B.1/56 +,.,<+,</.4 :./0.75+
I h!,e %e,e$ope% e''e"ti,e "o#p(ter s/i$$s i& (si&+ !%,!&"e% st!tisti"!$ p!"/!+es $i/e
the St!tisti"!$ A&!$-sis S-ste# :SAS; !&% the Ce&s(s !&% S(r,e- Pro"essi&+ S-ste#
:CSPro;. I "!& &o (se ! st!tisti"!$ s-ste# 1- %e'i&i&+ the %!t! 'ie$%s :!ssi+&i&+
"o%es;2 %!t! t-pe et". !&% the& "o%e the s(pp$ie% %!t! o& the )(estio&&!ires.
7.1.% C2)2:5-.,<21
I !# !$!-s i$$i&+ to or/ ith others i& !"hie,i&+ i&%i,i%(!$ !&% te!# o13e"ti,es. I
+!i&e% this s/i$$ si&"e i& o(r se"tio& e !$!-s or/e% !s ! '!#i$- !&% i& pri"es
se"tio& there is &o o&e4#!& 3o1.
7.2 &2-0 D215
O& e&teri&+ the pri"es st!tisti"s se"tio& I !s i&'or#e% th!t o&e &ee%s to 1e "o#p(ter
$iter!te2 1e !1$e to or/ (&%er #i&i#(# s(per,isio&2 1e ti#e "o&s"io(s !&% !$so 1e
!""(r!te he& %e!$i&+ ith 'i+(res so !s to pro%("e )(!$it-2 !""(r!te !&% ti#e$-
st!tisti"s. So I e0e"(te% #- or/ re$!te% $e!r&i&+ i& the Pri"es St!tisti"s Se"tio& !&%
h!% to st!tisti"i!&s &!#e$- Mr A D!#1! !&% Mr Chi/!%!-! !&% there !s !
22
MINISTRY OF FINANCE

St!tisti"!$ O''i"er2 Ms F K!'!si-!&3i !&% 'o(r St!tisti"!$ C$er/s :I #!i&$- per'or#e%
the %(ties o' ! St!tisti"!$ C$er/ i& the pri"es se"tio&.;
7.2.1 PRICES SECTION
7.2.1.1 (5> -5+=4, .-5.+;
Co$$e"tio&2 "o#pi$!tio&2 !&!$-sis2 i&terpret!tio& !&% %isse#i&!tio& o' pri"es
st!tisti"s.
M!i&te&!&"e o' pri"es %!t!1!se
Pro%("tio& o' reports
The se"tio& is respo&si1$e 'or "!$"($!tio& o' pri"e i&%i"es !&% r(&&i&+ the
I&ter&!tio&!$ Co#p!riso& Pro+r!# o& 1eh!$' o' the @i#1!1e Go,er&#e&t. The
#!3or p(1$i"!tio&s !re !s 1e$o:
Co&s(#er Pri"e I&%e0 :CPI;
Ci,i$ E&+i&eeri&+ Pri"e I&%e0 :CEPI;
*(i$%i&+s #!teri!$ i&%e0 :*MI; !&%
Po,ert- D!t(# Li&e :PDL;
I& pri&"ip$e2 the i&%i"es !re positi,e$- "orre$!te% !s the- !$$ #e!s(re the rise i& "osts
'or %i''ere&t se"tors.
7.2.1.2 T95 I1,5-1.,<21.4 C28:.-<+21 P-27-.8 (ICP
The ICP is !& i&ter&!tio&!$ pro+r!# 1ei&+ "!rrie% o(t i& 1<? "o(&tries !t the prese&t
#o#e&t i& !$$ the "o&ti&e&ts. Hoe,er2 &ot !$$ "o(&tries !re p!rti"ip!ti&+ i& the
e0er"ise. It is 1ei&+ !%#i&istere% 1- the U&ite% N!tio&s !&% Dor$% *!&/ thro(+h
,!rio(s "o&ti&e&t!$ 1o%ies 'or e!s- o' "oor%i&!tio&. The to 1o%ies !re !$so
26
MINISTRY OF FINANCE

respo&si1$e 'or '(&%i&+ the pro3e"t !s so#e o' the "o(&tries %o &ot h!,e the "!p!"it-
to 1!&/ro$$ it o& their o&. I& A'ri"!2 it is 1ei&+ "oor%i&!te% 1- the A'ri"!&
De,e$op#e&t *!&/ :AD*; !&% "o(&tries h!,e 1ee& +ro(pe% !""or%i&+ to the o''i"i!$
$!&+(!+es (se% so !s to !$$o e!s- e0"h!&+e o' &otes.
The pro+r!# "!#e i&to 1ei&+ !s ! res($t o' the %i''i"($ties i&here&t i& i&ter4"o(&tr-
"o#p!riso&s (si&+ the tr!%itio&!$ Gross Do#esti" Pro%("t :GDP; Appro!"h. The
#!i& !i# is to "o#e (p ith !& !,er!+e pri"e 'ro# the 1!s/et o' the +oo%s !&%
ser,i"es hi"h !s "o&str("te% !'ter i%er "o&s($t!tio&s ith "o(&tr- represe&t!ti,es.
The 1!s/et is si#i$!r !"ross "o(&tries i& o&e re+io& !&% h!s stri"t pro%("t
spe"i'i"!tio&s to 1e 'o$$oe%. The pi$ot pro3e"t !s (&%ert!/e& i& the perio% 188? to
1881 1(t i& so#e se$e"te% "o(&tries !"ross the "o&ti&e&ts.
Pro%("ts i& the 1!s/et $ist !re tr!"/e% e,er- #o&th 'ro# se$e"te% o(t$ets i& !$$ the
"o(&tr-Es te& pro,i&"es. D!t! "o$$e"tio& is %o&e (si&+ spe"i!$i5e% )(estio&&!ires
hi"h sho !$$ the pro%("ts !ttri1(tes &ee%e%. A'ter pri"e "o$$e"tio&2 the 'i$es !re se&t
to the He!% O''i"e 'or "!pt(ri&+ !&% e&tr- is %o&e o& ! Prote"te% Mi"roso't
Dor/sheet. D(ri&+ %!t! e&tr-2 errors !re pro&e to o""(r. C!$i%!tio& t!/es p$!"e
there!'ter to per'e"t the re"or%s 1e'ore s(1#issio& to the AD*. A$$ the 'i$es 'ro# !$$
pro,i&"es !re #er+e% (si&+ Mer+e M!"ro C hi"h "re!tes ! "o(&tr- %!t! 'i$e. This
"o&t!i&s !$$ the "!pt(re% re"or%s 'or the ho$e "o(&tr-. The &e0t st!+e is to r(&
#!"ros o& the "o(&tr- %!t! 'i$e (si&+ Se#per C!$i%!tio& So't!re 1.? !&% the res($ts
!re %eposite% i& ! ,!$i%!tio& 1oo/. The Se#per !s spe"i'i"!$$- %esi+&e% 'or ICP %!t!
,!$i%!tio&. It re"!$"($!tes pri"e !,er!+e 'or e!"h ite# e&tere% 'or the re"o##e&%e%
)(!&tit-. The ,!$i%!tio& 1oo/ is (se% to tr!"/ errors to their ori+i&!$ pro,i&"i!$ 'i$es
'ro# here "orre"tio&s !re #!%e. A$$ pro%("ts ith the s!#e "o%e !re +ro(pe%
to+ether. T-pi"!$ o(t$iers !re i&%i"!te% !&% these h!,e to 1e ,eri'ie%. I& the e,e&t th!t
! ro&+ (&it o' #e!s(re#e&t !s (se%2 the pro%("t "o%e i$$ 1e hi+h$i+hte% i& re% to
29
MINISTRY OF FINANCE

%r! the !tte&tio& o' the %!t! ,eri'ier. The pro"ess o' #er+i&+ !&% r(&&i&+ the Se#per
"o&ti&(es (&ti$ the re"or%s sho "o&siste&"-.
Dhe& s!tis'ie% th!t the errors h!,e 1ee& e$i#i&!te%2 the "o(&tr- %!t! 'i$e is se&t to the
AD* K St!tisti"s Di,isio& here I(!r!&t! t!1$es !re pro%("e% to "!$"($!te the pri"e
!,er!+es !&% s(1se)(e&t$- the P(r"h!si&+ Poer P!rit-. The AD* St!tisti"s %i,isio&
!$so pro%("es ! ti#e series to 'i&% o(t i' pro%("t pri"es !re "o&siste&t o,er the perio%.
Pri"e #o,e#e&ts h!,e to 1e i& "o&+r(e&t ith o1t!i&i&+ #!"ro e"o&o#i" "o&%itio&s.
7.2.1." O*A5/,<B5+ 2? ICP
To "!$"($!te the P(r"h!si&+ Poer P!rit- o' the "(rre&"- "o#1i&!tio&s i& the
1!s/et !&% this sh!$$ 1e (se% 'or "o&,ersio& o' GDP 'i+(res to o&e "(rre&"-
'or "o#p!riso& s!/e hi"h is &or#!$$- the US Do$$!r:US H;. C(rre&t$- there
!re %i''i"($ties i& "o#i&+ (p ith !& e0"h!&+e r!te 'or to "(rre&"ies th!t !re
&ot he!,i$- tr!%e%. I& so#e "!ses Go,er&#e&t i&ter'ere&"e i& the 'orei+&
#!r/ets !$so te&%s to %istort e0"h!&+e r!tes hi"h "!rr- 'or!r% to GDP
"o&,ersio&. There !re so#e %e$i1er!te po$i"ies i& so#e "o(&tries to i+&ore the
Re$!ti,e P(r"h!si&+ Poer P!rit- hi"h st!tes th!t e0"h!&+e r!tes h!,e to
!%3(st to "h!&+es i& "o&s(#er pri"e i&%i"es 1etee& "o(&tries. The ICP t!/es
i&to !""o(&t i&'$!tio& #o,e#e&ts !s the s!#e pro%("ts i& its 1!s/et !re the
o&es (se% 'or "!$"($!tio& o' the CPI !&% i&'$!tio&.
The i&'or#!tio& pro%("e% i$$ 1e (se% to "!$"($!te !&% (p%!te po,ert- %!t(#
$i&es i& e!"h re+io&. The e0er"ise is 1ei&+ (se% to i%e&ti'- &ee%- !re!s here
%o&or '(&%s sho($% 1e !pportio&e%. The Po,ert- D!t(# Li&es 'or e!"h "o(&tr-
i$$ 1e "o&,erte% i&to the US %o$$!r (si&+ the p(r"h!si&+ poer p!rit- o' the
ICP res($ts.
2<
MINISTRY OF FINANCE

To !ssist i& %e"o#posi&+ the GDP !&% its s(14!++re+!tes !s (se o' #($tip$e
"(rre&"ies %oes &ot !ssist i& #!/i&+ i&ter4"o(&tr- "o#p!riso&s. I& this re+!r%
the GDP 'i+(res o' the p!rti"ip!ti&+ "o(&tries !re "o&,erte% to o&e "(rre&"-
(si&+ the re"!$"($!te% PPPEs. It 1e"o#es e!sier to %ire"t$- "o#p!re the
st!&%!r%s o' $i,i&+ !"ross "o(&tries (&%er the %i''ere&t s(14+ro(ps &!#e$-
'oo%2 1e,er!+es2 to1!""o !&% &!r"oti"s2 re"re!tio& !&% e&tert!i&#e&t ser,i"es2
he!$th pro%("ts2 '(r&it(re !&% oper!tio&s2 "$othi&+ !&% 'oote!r !&% tr!&sport
!&% "o##(&i"!tio&.
Hoe,er its #!3or e!/&ess is th!t it %oes &ot i&"$(%e e0pe&%it(re o& e%("!tio& !&%
!")(isitio& o' !ssets 1- i&%(stries :Gross C!pit!$ For#!tio&; hi"h !re ,it!$
"o#po&e&ts i& !&- "o(&tr-. It is the& %i''i"($t to "o#p!re the res($ts !t &!tio&!$ $e,e$.
It is o&$- "o#p!r!1$e !t ho(seho$% $e,e$. It is i&teresti&+ to &ote th!t the U&ite%
N!tio&s !&% the re+io&!$ "oor%i&!tors h!,e &oti"e% this !&% #o%!$ities !re (&%er!-
to i&"$(%e s("h. Co&s($t!&ts h!,e 1ee& hire% to he$p p!rti"ip!ti&+ "o(&tries i&te+r!te
s("h e$e#e&ts.
7.2.2 T95 C21+=85- P-</5 I165C (CPI
The Co&s(#er Pri"e I&%e0 is "o&si%ere% the #ost i%e$- #e!s(re o' i&'$!tio& hi"h
is the r!te !t hi"h the p(r"h!si&+ poer o' "o&s(#ers is "h!&+i&+. It is th(s re+!r%e%
!s !& e''e"ti,e i&%i"!tor o' 'is"!$ !&% #o&et!r- po$i"ies p(rs(e%.
The "o#p(t!tio& o' CPI 1e+i&s ith the Co&s(#er Pri"e S(r,e- :CPS;.CPS is !
&!tio&!$ s!#p$e s(r,e-2 hi"h is %esi+&e% to pro,i%e !& esti#!te 'oo% !&% !$$ ite#s
i&'$!tio&. The re"or%i&+ is %o&e 1- tr!i&e% e&(#er!tors (&%er the $e!%ership o' their
te!# $e!%ers ho +e&er!$$- +i,e %ire"tio&s !s to h!t sho($% 1e %o&e. Pri"es !re
re"or%e% o& ! spe"i!$ )(estio&&!ire %esi+&e% 'or e!"h pro%("t !&% o(t$et hi"h
spe"i'ies the pro%("t !&% o(t$et t-pes 1(t +i,es the e&(#er!tor the $ee!- to "hoose
2>
MINISTRY OF FINANCE

the 1r!&% !&% )(!&tit-. The pro%("t is re'erre% to 1- ! "o%e so is the o(t$et !&%
$o"!$it- 'ro# hi"h the %!t! "o$$e"tio& too/ p$!"e. Us(!$$- the s(r,e- is %o&e i& the
ee/ '!$$i&+ #i%4#o&th !&% this e0p$!i&s h- so#e pri"e "h!&+es #!- &ot 1e
"!pt(re% !&% this i#p!"ts o& the o,er!$$ i&'$!tio& 'i+(res 'or the p!rti"($!r #o&th.
7.2.2.1 S.8:4<17 65+<71 ?2- C21+=85- P-</5 S=-B5> (CPS
A to4st!+e s!#p$e %esi+& !s (se% 'or the CPS. The !r% !s the 'irst st!+e
s!#p$i&+ (&it i& e!"h pro,i&"e 'o$$oe% 1- the o(t$etJshop. A$$ !r%s i& e!"h
pro,i&"e ere $iste% (si&+ the 1882 "e&s(s #!p !&% ithi& e!"h !r% ! $ist o' !$$
o(t$ets ere $iste% the& ! r!&%o# s!#p$e %o&e ithi& e!"h s!#p$i&+ 'r!#e. A tot!$ o'
12? "$(sters o(t$ets !re (se% (p to the prese&t %!-.
The CPI "o&sists o' ! 1!s/et o' +oo%s tr!"/e% 'ro# #o&th to #o&th !&% "(rre&t$- h!s
927 +oo%s !&% ser,i"es hi"h !re #!i&$- 1o(+ht 1- "o&s(#ers 'or 'i&!$ "o&s(#ptio&.
The res($t o' the "!$"($!tio&s is !& !,er!+e !t hi"h the r!te o' +oo%s !&% ser,i"es
i$$ 1e +oi&+ (p. The "o$$e"tio& poi&ts !re i%e$- %istri1(te% :i& 1oth the r(r!$ !&%
(r1!& !re!s; o,er the "o(&tr- to e,e& o(t pri"e '$("t(!tio&s i& pro,i&"es.
The "(rre&t 1!s/et !s !%opte% i& A(&e 2??< !s ! respo&se to "h!&+es i&
"o&s(#ptio& p!tter&s (si&+ ei+hts "o&str("te% 'ro# the 2??1 I&"o#e2 Co&s(#ptio&
!&% E0pe&%it(re S(r,e- :ICES;.
7.2.2.2 L<8<,.,<21+ 2? CPI
The #!i& %is!%,!&t!+e o' the Co&s(#er Pri"e I&%e0 :CPI; is th!t it !ss(#es &o
"h!&+e i& "o&s(#ptio& p!tter&s !s the $e,e$ o' i&"o#e "h!&+es i& the short to #e%i(#
ter#. The !ss(#ptio& is th!t "o&s(#ers i$$ "o&ti&(e to 1(- the pro%("t !t the
i&'$!te% pri"es 1(t this o&$- ho$%s i& st!1$e e"o&o#ies !&% &ot h-peri&'$!tio&!r-
e&,iro&#e&ts $i/e the o&e th!t pre,!i$e% i& @i#1!1e 1e'ore the i&tro%("tio& #($ti4
"(rre&"- s-ste#.
2=
MINISTRY OF FINANCE

It %oes &ot re"o+&i5e the e0iste&"e o' s(1stit(tes o(t o' the pro%("t "$!ss hi"h
"o&s(#ers "!& e!si$- sit"h to. It #!- !$so t!/e ! $o&+ ti#e 'or ! &e pro%("t to 1e
"!pt(re% i& the CPI %espite it h!,i&+ !& i#p!"t o& the "o&s(#ersE spe&%i&+ p!tter&s.
The @i#1!1e CPI is "!$"($!te% (si&+ the #o%i'ie% L!spe-eres 'or#($! hi"h !$$os
'or ei+hts to 1e !ssi+&e% !&% "h!&+e% to e!"h pro%("t !s the 1!se -e!r "h!&+es. It is
%-&!#i" r!ther th!& st!ti" he& it "o#es to !$ter!tio& o' ei+hts. The #etho% !$so
%rops the ei+hts o' pro%("ts hi"h o($% h!,e &ot 1ee& re"or%e% i& the p!rti"($!r
#o&th so th!t the o,er!$$ i&%e0 is &ot !''e"te%. The pro%("ts h!,e 1ee& p(t i&to to
#!3or s(1+ro(ps &!#e$- food and non-alcoholic beverages !&% non-food ite#s. The
ei+hts !re 61.86 L !&% >7.?= L respe"ti,e$-. To +et the "o&tri1(tio& o' e!"h +ro(p
to!r%s o,er!$$ i&'$!tio&2 the p!rti"($!r +ro(p i&'$!tio& r!te is #($tip$ie% 1- its ei+ht.
The he!,ier the ei+ht2 the #ore the i#p!"t o& the o,er!$$ r!te !&% ,i"e ,ers!.
A'ter the "o$$e"tio& pro"ess2 the s(per,isor h!s to ,eri'- th!t h!t h!s 1ee& re"or%e%
#!/es se&se !&% there!'ter2 the 'i$es !re se&t to the He!%)(!rters i& H!r!re here
"!pt(ri&+ t!/es p$!"e. E!"h pro,i&"e h!s its o& %!t!1!se #e!&i&+ %!t! e&tr- is o& !
pro,i&"e 1- pro,i&"e 1!sis. Re"or%s 'ro# %i''ere&t pro,i&"es %o &ot !ppe!r i& the
s!#e 'i$e to !$$o 'or e!s- o' re'ere&"e sho($% ! )(er- !rise i& the '(t(re.
D!t! e&tr- is %o&e (si&+ CSPro 6.? !&% the s-ste# is se"(re !s it !$!-s pro#pts the
(ser 'or i%e&ti'i"!tio& to +!i& !""ess !&% #!/e "orre"tio&s. This e&s(res th!t &o1o%-
"!& !$ter the re"or%s i& the %!t!1!se itho(t !(thorit-. E!"h pro,i&"eEs %!t!1!se h!s !
st!tisti"!$ "$er/ ho h!s the o,er!$$ respo&si1i$it- o,er it.
CSPro is ! st!tisti"!$ p!"/!+e th!t "!& 1e (se% to pro"ess %!t! 'ro# "e&s(ses !&%
s(r,e-s2 1oth s#!$$ !&% $!r+e. T-pi"!$ s(13e"t !re!s i&"$(%e:
M Ho(si&+ !&% Pop($!tio&
M De#o+r!phi" Ch!r!"teristi"s
M He!$th !&% N(tritio&
M A+ri"($t(re
27
MINISTRY OF FINANCE

M L!1or For"e
M *(si&ess Est!1$ish#e&ts
M E%("!tio&
M Li,i&+ St!&%!r%s
M E&er+-
M I##i+r!tio&
M Ho(seho$% I&"o#e !&% E0pe&%it(re
CSPro i&"$(%es the 'o$$oi&+ #o%($es:
M D!t! E&tr- App$i"!tio&s
M *!t"h E%it App$i"!tio&s
M Cross T!1($!tio& App$i"!tio&s
M Too$s
D!t! is the& e&tere% 'or the se"o&% ti#e to #i&i#i5e h(#!& errors !&% the& %o&e
#!&(!$$- 1e'ore se&%i&+ the %!t! to the pro+r!##er 'or !&!$-sis.
A'ter the %!t! e&tr- pro"ess2 the re"or%s !re se&t to ! pro+r!##er i& ! si&+$e 'o$%er
ho is respo&si1$e 'or r(&&i&+ i& ASCII 'i$e.
The %!t! is the& "o&,erte% to ! St!tisti"!$ A&!$-sis S-ste# :SAS; pro+r!# 'or
!&!$-sis.
7.2.2." C28:2+<,<21 2? ,95 <165C
I&%e0 1!s/et
The i&%e0 1!s/et "o#prises the i&%i"!tor "o##o%ities !&% ser,i"es hose pri"e
"h!&+e is 1e$ie,e% to represe&t !$$ possi1$e +oo%s !&% ser,i"es th!t "!&&ot 1e
pr!"ti"!$$- i&"$(%e% i& the 1!s/et. The "$!ssi'i"!tio& o' these is 1!se% o& the U&ite%
N!tio&s S-ste# o' N!tio&!$ A""o(&ts. It is 1!si"!$$- "!$$e% the C$!ssi'i"!tio& o'
I&%i,i%(!$ Co&s(#ptio& 1- P(rpose :COICOP;
28
MINISTRY OF FINANCE

The s#!$$est (&it i& the 1!s/et is !& ITEM :either ! "o##o%it- or ser,i"e;
e.+. hite 1re!% is !& ite#.
Re$!te% ite#s !re +ro(pe% to+ether i&to se"tio&s hi"h is ! "o$$e"tio& o' ite#s
th!t !re re$!te% $i/e N'r(its !&% ,e+et!1$esO. These !re "!$$e% +ro(ps. For
e0!#p$e i' e "o#1i&e hite !&% 1ro& 1re!% 'ro# the !1o,e %i!+r!# e +et
+=*)7-2=: 1re!% : "o%e 1?11?;.
Se"tio&sJ7-2=:+ $i/e N'r(its !&% ,e+et!1$esO2 N1re!% !&% "ere!$sO2 #e!t2 N#i$/2
"heese !&% e++sO2 N"o''ee !&% te!O2 'ish2 Ooi$s !&% '!tsO2 "o&%i#e&ts !&%
"o&'e"tio&!r-2 !&% other 'oo%s !re ro$$e% o,er to 'or# !& e,e& $!r+er "o$$e"tio&
o' re$!te% ite#s "!$$e% 8.A2- 7-2=: 'or e0!#p$e FOODD HEALTH !&%
TRANSPORT.
The i%er "o$$e"tio&s o' ite#s i& #!3or +ro(ps2 'or e0!#p$e 'oo%2 he!$th2
tr!&sport2 "$othi&+ !&% 'oote!r !&% !$"oho$i" 1e,er!+es !re ro$$e% o,er to
o1t!i& the ALL ITERMS.
7.2." C.4/=4.,<21 2? 821,9 21 821,9 (8)2)8D >5.- 21 >5.- (>)2)> .16
.11=.4<@56 <1?4.,<21 -.,5 ?-28 ,95 CPI.
7.2.".1 T95 E=</0 /R.,<2 M5,926
6?
MINISTRY OF FINANCE

The IUICKJ RATIO METHOD +i,e& 1- the 1e$o 'or#($!e is the o&e hi"h is (se%
i& the "!$"($!tio&s o' the #o&th o& #o&th !&% -e!r o& -e!r i&'$!tio& r!tes 'ro# the
CPI
Ratio = (
BaseValue
ue CurrentVal
) G100-100

e.+. To "!$"($!te -e!r o& -e!r !&&(!$ i&'$!tio& r!te +i,e& th!t the ,!$(e 'or !$$ ite#s
'or Fe1r(!r- 2?1? !s 86.8 !&% 'or Fe1r(!r- 2??8 !s 89.> the&:
% ca!"e= (
> . 89
8 . 86
)#100-100= -0.$
7.2.".2 T95 L.+:5>-5+ F2-8=4. <1 <165C /28:=,.,<21
The st!&%!r% L!spe-res For#($! "o#p!res the "(rre&t "ost o' the 1!se perio% #!r/et
1!s/et :the &(#er!tor; ith the 1!se perio% "ost o' the 1!se perio% #!r/et 1!s/et :the
%e&o#i&!tor;
The L!spe-res Pri"e I&%e0 is +i,e& 1-:
It
= (
9
1
? ?
9
1
?
i
i i
i
i it
q p
q p
)#100
Dhere iP12 22 62 9 represe&ti&+ the ite# !t perio% tP?2 12 22 6
61
MINISTRY OF FINANCE

The (se o' E0pe&%it(re Dei+hts !&% Pri"e Re$!ti,es i& the L!spe-res Pri"e I&%e0
'or#($!
It
=
w
?
1
(
w
?
p
p
t
?
)#100
Dhere %&=w=e'%e!(iture wei"ts
7.2."." A6B.1,.75+ 2? =+<17 ,95 B.+5 &5<79,56 L.+:5>-5+ F2-8=4. ?2- CPI
/28:<4.,<21
It is e!sier to i&terpret "o#p!re% to s(per$!ti,e i%e!$ i&%i"es s("h !s the Fisher
or Tor&),ist 1e"!(se the i#p!"t o' the pri"es !&% th!t o' )(!&tities "!& 1e
iso$!te% itho(t +re!t %i''i"($t-F
CPI (sers !re (s(!$$- '!#i$i!r ith the L!spe-res I&%e0 !s ! st!&%!r%
#e!s(re#e&t o' pri"esE tre&%F
It !$$os 'or the t!/i&+ i&to !""o(&t the "h!&+es i& the pro%("t #i0 !&% re+($!r
(p%!ti&+ o' the se$e"tio& o' o(t$etsF
The str("t(re !&% ei+hts o' the CPI 1!s/et2 hi"h !re "ost$- !&% ti#e
"o&s(#i&+ to %e,e$op2 re#!i& "o&st!&t 'or se,er!$ -e!rs
7.2.".4 S92-,/28<17+ 2? ,95 +,.16.-6 L.+:5>-5+ F2-8=4.
Does &ot pro,i%e '$e0i1i$it- re)(ire% 'or the "(rre&t sit(!tio& i& e"o&o#ies
+oi&+ thro(+h si+&i'i"!&t !&% r!pi% "h!&+esF
O,erti#e2 $!r+e ,!ri!tio&s i& pri"e re$!ti,es !re $i/e$- to %e,e$op !&% &o
#e!&i&+'($ "he"/s "!& 1e 1(i$t i& !t the e%iti&+ st!+e.
7.2.".# M26<?<56 L.+:5>-5+ I165C
The 1!si" 'or#($! is +i,e& !s:
It
P

w
t 1
p
p
t
t
1
7.2.".% &9> =+5 ,95 826<?<56 L.+:5>-5+ F2-8=4.
62
MINISTRY OF FINANCE

It !$$os 'or the t!/i&+ i&to !""o(&t the "h!&+es i& the pro%("t #i0 !&% re+($!r
(p%!ti&+ o' the se$e"tio& o' o(t$etsF
Does pro,i%e '$e0i1i$it- re)(ire% 'or the "(rre&t sit(!tio& i& e"o&o#ies +oi&+
thro(+h si+&i'i"!&t !&% r!pi% "h!&+es
7.2.".7 E C.8:45; I165C /28:=,.,<21
Product
p
?
p
1
1
1
]
1
p
p
?
1
Weight (
w
?
)
Index=
w
p
p
?
?
1
G
Bread 1500 2400 1.60 4.04 6.47
Sugar 1000 1350 1.35 5.20 7.02
Alcoholic Beverages 600 800 1.33 6.47 8.62
Transport and
o!!unication 5000 6500 1.30 13.86 18.01
"i#uid and $as %uels 2000 2500 1.25 12.70 15.88
&urchase o% !otor
vehicles 20000 3500 0.18 57.74 10.10
All Items Index 66.10
To +(!r% !+!i&st errors 'ro# !''e"ti&+ the ho$e pro"ess2 ! pri"e $ist 'or e!"h pro,i&"e
is pri&te%. It shos the pro%("t "o%e2 o(t$et "o%e2 "(rre&t i&%e02 !&% the per"e&t!+e
pri"e "h!&+e 'ro# the pre,io(s #o&th. The per"e&t!+e pri"e "h!&+e is (s(!$$- (se% to
"he"/ 'or errors.
St!tisti"!$ "$er/s +o thro(+h e%iti&+ &oti&+ %o& s(spe"t pri"e "h!&+es !&% ,eri'-i&+
(si&+ the o''i"i!$ 'i$e. I' the #ist!/e is tho(+ht to h!,e e#!&!te% 'ro# the re"or%i&+
e0er"ise2 the e&(#er!tor !&% s(per,isor "o&"er&e% !re "o&%("te% to ,eri'- ith the
o(t$et 'ro# hi"h the pri"e !s re"or%e%. This is #e!&t to #i&i#i5e the !#o(&t o'
errors th!t "o($% $e!% to %istortio&s i& the 'i&!$ 'i+(res.
66
MINISTRY OF FINANCE

I& the e,e&t th!t errors !re %ete"te%2 "orre"tio&s !re %o&e i& the ori+i&!$ 'i$e.
There!'ter the 'i$es !re se&t 1!"/ to the pro+r!##er ho "o&%("ts ! se"o&% r(&. The
"$er/s i$$ the& "o&%("t ! 'i&!$ error "he"/i&+ i& "!se so#e errors #i+ht h!,e es"!pe%
(&&oti"e% i& the 'irst st!+e !&% i' &o errors !re %ete"te%2 the i&%i"es !re "opie% to !&
E0"e$ 'i$e 'ro# here the #!3or "!$"($!tio&s i$$ t!/e p$!"e. For#($!e !re !ssi+&e% i&
the sheet to "!$"($!te the i&'$!tio& r!tes 'or the %i''ere&t s(1+ro(ps !&% the !$$ ite#s
i&%e0 o& ! #o&th$- !&% !&&(!$ 1!sis. The !%,!&t!+e o' (si&+ the E0"e$ or/sheet is
th!t it is (ser 'rie&%$- !&% !$so it h!s 1ee& !1$e to "re!te ! %!t!1!se o' i&%i"es !&%
i&'$!tio& r!tes 'or ! $o&+er perio%.
7.2.4 T<85 +5-<5+ .1.4>+<+
Ti#e series 'o$$os !'ter the Co&s(#er Pri"e I&%e0. This i&,o$,es the tre&%
!&!$-sis hi"h o($% the& 1e (se% 'or 'ore"!sti&+Jpre%i"ti&+ '(t(re i&'$!tio&
'i+(res hi"h is the& !& i#port!&t too$ i& %e"isio& !&!$-sis. 'or e0!#p$e i' e !re
to !&!$-se the #o,e#e&t o' i&'$!tio& 'i+(res 'ro# 2???42??> e "!& see th!t 'ro#
the se"o&% )(!rter o' 2??<42??> there !s ! sh!rp rise i& the i&'$!tio& 'i+(re !&%
1- so %oi&+ this i$$ he$p ,!rio(s se"tors o' the e"o&o#- to #!/e #ore i&'or#e%
%e"isio&s so !s to t!/e &e"ess!r- #e!s(res to %e!$ ith this.
Mi"roso't E0"e$ is (se% to "o&str("t the +r!phs i& or%er to #!/e "o#p!riso&s.
7.2.4.1 U+5+ 2? CPI T<85 S5-<5+
Ti#e series "!& 1e (se% 1- ,!rio(s 1(si&ess st!/eho$%ers i& #!/i&+ #ore
i&'or#e% %e"isio&s i&:
Deter#i&i&+ !,er!+e or/ers i&"o#es i& s(""essi,e #o&ths2
Pre%i"ti&+ "o#p!&- pro'its i& s(""essi,e -e!rs2
Pre%i"ti&+ tot!$ e0port s!$es i& s(""essi,e #o&ths or -e!rs2
A&!$-si&+ the s!$es 'i+(res i& s(""essi,e #o&ths thro(+h 'ore"!sti&+.
EC.8:45
The 'o$$oi&+ +r!ph hi"h shos !&&(!$ i&'$!tio& 'i+(res th!t "!& 1e (se% i&
'ore"!sti&+ 1- 1(si&ess st!/eho$%ers i& "o#i&+ o(t ith so#e #ore i&'or#e%
%e"isio&s
69
MINISTRY OF FINANCE

G-.:9</.4 <44=+,-.,<21 2? AB5-.75 .11=.4 <1?4.,<21 (2000 F 200%

Ti#e series "!& !$so 1e (se% to see the tre&% o' the po,ert- 'or e0!#p$e the +r!ph
1e$o shos the po,ert- 1eh!,io(r 'ro# 187>42??1.
Fro# the +r!ph e "!& see th!t 1etee& 18814 1886 !&% 188742??1 #ost peop$e
ere $i,i&+ (&%er po,ert- %!t(# $i&e he&"e e "!& %e%("e th!t #!&- peop$e ere
$o$- p!i% or the- ere poor.
I& 188<41887 hi+h $i,i&+ st!&%!r%s ere !"hie,e% to #ost peop$e.
7.2.4.2 P2B5-,> B59.B<2=- (19$%)2001
6<
MINISTRY OF FINANCE

7.2.# P2B5-,> A1.4>+<+
Po,ert- %!t(# $i&e :PDL; represe&ts the "ost o' ! +i,e& st!&%!r% o' $i,i&+ th!t
#(st 1e !tt!i&e% i' ! perso& is %ee#e% &ot to 1e poor.
The 'oo% po,ert- %!t(# $i&e :FPL; represe&ts the #i&i#(# "o&s(#ptio&
e0pe&%it(re &e"ess!r- to e&s(re th!t e!"h ho(seho$% "!& :i' !$$ e0pe&%it(res ere
%e,ote% to 'oo%; "o&s(#e ! #i&i#(# 'oo% 1!s/et represe&ti&+ 21?? /i$o "!$ories.
The 'o$$oi&+ 1!s/et hi"h "o&t!i&s 1= ite#s is the o&e (se% to %eter#i&e Foo%
Po,ert- Li&e :FDL;
The )(!&tit- (se% is !s i& the CPI.
*re!% Fish To#!toes
M!i5e Mi$/ Pot!toes
Ri"e E++s *e!&s
R!tio& Me!t Coo/i&+ S(+!r
Chi"/e& C!11!+e S!$t
F$o(r R!pe

7.2.% D5-<B<17 35<79,+ ?-28 5C:516<,=-5 6.,.
The ei+hts !re #!i&$- %eri,e% 'ro# the res($ts o' the ICES hi"h (s(!$$- 1e"o#es
the 1!se -e!r perio%. The ei+hts hi"h !re "(rre&t$- 1ei&+ (se% ere o1t!i&e% 'ro#
6>
MINISTRY OF FINANCE

the 2??1 s(r,e-2 hoe,er the (se o' 2??1 !s 1!se -e!r !s !1!&%o&e% si&"e the
i&tro%("tio& o' the #($ti4"(rre&"- s-ste# he&"e De"e#1er 2??7!s !%opte% !s the
1!se perio%. C!$"($!tio& o' ei+hts t!/e i&to !""o(&t tot!$ )(!&tit- "o&s(#e% !&%
tot!$ e0pe&%it(re o& the pro%("ts. Hoe,er2 %(e to (&!,!i$!1i$it- o' )(!&tities
"o&s(#e%2 the tot!$ e0pe&%it(re o& e!"h pro%("t is (se%.
EC.8:45
L 1?? G
e0p
Pr

,
_
enditure Total
product on e Expenditur
weight oduct
Product
Expenditure
(US)
Weight (!) =
L 1?? G
e0p
e0p
enditure total
enditure product
Bread
1 5.128
Sugar
2.50 12.820
'lour sel% raising
2 10.256
(ai)e !eal 10*g 6.50 33.333
+ice long grain 2 10.256
+ation !eat , -ee% 5.50 28.205
"ot#l 1$.% 100.000
7.2.7 R54.,<21+9<: *5,3551 CPI .16 P=-/9.+<17 P235-
There is ! &e+!ti,e re$!tio&ship 1etee& the CPI !&% the p(r"h!si&+ poer !&% !
positi,e re$!tio&ship 1etee& CPI !&% the "ost o' $i,i&+. Dhe& the CPI the CPI is
+oi&+ (p2 so %oes the "ost o' $i,i&+ !&% the p(r"h!si&+ poer o' the "(rre&"- i$$ 1e
'!$$i&+ s("h th!t i& ti#es o' st!1i$it- or $o i&'$!tio& r!te i&"re!ses2 the p(r"h!si&+
poer '!$$s s$o$- hi$e i& ti#es o' %e'$!tio& the p(r"h!si&+ poer rises.
6=
MINISTRY OF FINANCE

7.2.$ U+5+ 2? ,95 CPI .16 <1?4.,<21 -.,5+
.. It is ! #e!s(re o' i&'$!tio& !s it !''e"ts ho(seho$%s !&% th(s pro,i%es ! 1e&"h#!r/
o& h!t i&,estors sho($% e0pe"t o& their port'o$ios. The !i# is to !$$o"!te '(&%s to
those !ssets th!t 1e!t i&'$!tio& so !s preser,e o&eEs e!$th.

*. The CPI is (se% !s !& !%3(st#e&t '!"tor 'or i&%e0!tio& o' pri"es2 !+es !&%
s!$!ries !&% ,!$(!tio& o' !ssets. I& #ost "!ses !ssets h!,e to 1e !%3(ste% i& $i&e
ith the i&'$!tio& tre&%s so !s to !t $e!st #!i&t!i& the p(r"h!si&+ poer. I&
!""o(&ti&+2 'i&!&"i!$ st!te#e&ts h!,e to 1e !%3(ste% i& !""or%!&"e ith i&'$!tio&.
I& !""or%!&"e ith the pro,isio&s o' the IAS 282 !""o(&ts i& h-peri&'$!tio&!r-
e&,iro&#e&ts h!,e to 1e !%3(ste% 'or i&'$!tio&2 !s s("h e&,iro&#e&t hi"h
pre,!i$e% i& @i#1!1e 1e'ore the (se o' #($ti4"(rre&"- s-ste#.
/. The CPI is !$so (se% !s ! %e'$!tor o' series i& &o#i&!$ ter#s to %eri,e ,!$(es i&
re!$ ter#s. I& this re+!r%2 it is #!i&$- (se% 'or %e'$!ti&+ GDP 'i+(res to "o#e ith
"o&st!&t pri"es "o#p!re% to o&e 1!se -e!r.
6. It is !$so !& i#port!&t i&str(#e&t 'or 'or#($!tio& o' #o&et!r- !&% 'is"!$ po$i"ies.
Mo&et!r- !(thorities set i&terest r!tes !&% e0"h!&+e r!tes 1- (se o' i&'$!tio&
'i+(res %eri,e% 'ro# the CPI. I& pri&"ip$e2 the e0"h!&+e r!te 1etee& to
"(rre&"ies sho($% 1e e)(!$ to the i&'$!tio& %i''ere&ti!$ o,er the perio%. Fis"!$
!(thorities (se it to %eter#i&e t!0 1r!"/ets.
5. CPI is !$so (se% i& 'ore"!sti&+ i.e. i& pre%i"ti&+ '(t(re e,e&ts s("h !s esti#!ti&+
the "o#i&+ #o&th i&'$!tio& r!te.
?. It is !$so (se% to #e!s(re the po,ert- %!t(# $i&e !s the pri"es (se% 2the )(!&tit-
!&% the o(t$ets (se% !re the s!#e !s those 'ro# CPI

67
MINISTRY OF FINANCE

7.2.9 &2-0+92:+/ S58<1.-+ .16 M55,<17+ .,,51656
7.2.9.1 C288582-.,<21 2? ,95 A?-</. S,.,<+,</+ D.>
E,er- -e!r 17 No,e#1er2 A'ri"! "o##e#or!tes the AFRICAN STATISTICS DAY2
!&% CSO !s the #!i& pro%("ers o' st!tisti"s i& @i#1!1e2 "!&&ot 1e $e't o(t i&
"e$e1r!ti&+ this %!-2 !&% so 28 No,e#1er 2??8 !s set to host h!t !s +oi&+ to 1e !
spe"t!"($!r e,e&t i& "e$e1r!ti&+ the A'ri"!& St!tisti"s D!- NVital Statistics and
National egistration!" The e,e&t st!rte% !t !ro(&% 7!# ith ! #!r"hi&+ pro"ess
'ro# CSO He!% O''i"e2 !t K!+(,i *(i$%i&+2 to H!r!re G!r%e&s hi"h !s the ,e&(e
'or the e,e&t. S"hoo$ "hi$%re& 'ro# se,er!$ s"hoo$s ere i&,ite% to per'or# o& this
%!- o& the i#port!&"e o' &!tio&!$ re+istr!tio& !&% the /e- &ote !%%ress !s prese&te%
1- Mr N-o&i the %ire"tor o' CSO. The e,e&t 'i&ishe% !ro(&% 16?? ho(rs !&% $(&"h
!s pro,i%e% to e,er-o&e i&,o$,e% i& the e,e&t.

7.2.9.2 D<++58<1.,<21 &2-0+92: ?2- ,95 ICES E=5+,<211.<-5
This or/shop !s he$% !t the Ho$i%!- I&& Hote$. I !s pri,i$e+e% to !tte&% this
or/shop here1- %i''ere&t st!/eho$%ers ere i&,ite% to 1e 1rie'e% (p o& ho the
ICES )(estio&&!ire is str("t(re%.
68
MINISTRY OF FINANCE

C9.:,5- $; R5 ) E1,->
The or/ re$!te% $e!r&i&+ perio% is ! ,er- esse&ti!$ re)(ire#e&t 'or !$$ (&%er+r!%(!te
st(%e&ts '($'i$$i&+ !& ho&o(rs %e+ree pro+r!##e !t the Mi%$!&%s St!te U&i,ersit-2 !s
s("h the thir% -e!r is reser,e% 'or this perio%. A'ter spe&%i&+ to -e!rs !t (&i,ersit-2 I
!")(ire% e&o(+h theor- !&% &o !'ter "o#p$eti&+ #- or/4re$!te% $e!r&i&+2 I &o
h!,e ! "$e!r i&si+ht o' h!t !!its #e i& re!$ $i'e i& #- 'ie$% o' st(%-.
I &o /&o th!t &othi&+ so$i%i'ies $e!r&i&+ $i/e e0perie&"e2 the or/ re$!te% $e!r&i&+
perio% #!%e #e (&%erst!&% the or$% o' i&%(str- !&% "o##er"e ! $ot 1etter !&% I i$$
1e +oi&+ 1!"/ to s"hoo$ 'or #- 'i&!$ -e!r ith ! %i''ere&t perspe"ti,e !1o(t #- $i'e
si&"e this perio% #!%e #e !"hie,e ! +oo% se&se o' %ire"tio& !&% I h!,e !$so +!i&e%
/e- s/i$$s to he$p #e t!"/$e re!$ $i'e pro1$e#s.
The !tt!"h#e&t perio% #!%e #e re!$i5e the !re!s I &ee% to i#pro,e !"!%e#i"!$$- !&%
the i#port!&"e o' the #o%($es 'ro# other %ep!rt#e&ts th!t e t!/e2 'or e0!#p$e2 the
I&tro%("tio& to Co#p(ters #o%($e hi"h re!$$- #!%e $i'e e!sier 'or #e %(ri&+ the
!tt!"h#e&t perio%. Co#p(ter $iter!"- !s re$e,!&t to per'or# t!s/s hi"h !re %o&e i&
the Pri"es Se"tio& !&% he&"e I &o !ppre"i!te its re$e,!&"e to #- 'ie$% o' st(%-.
H!,i&+ !tt!i&e% ! $ot i& ter#s o' e0pos(re %(ri&+ #- perio% o' p$!"e#e&t !t CSO
espe"i!$$- ith h!t is %o&e i& the pri"es se"tio&2 i# $oo/i&+ 'or!r% to sh!ri&+ h!t
I +!i&e% ith #- "o$$e!+(es i& the %ep!rt#e&t o' E"o&o#i"s.
9?
MINISTRY OF FINANCE

C9.:,5- 9; OB5-B<53
I re!$$- !ppre"i!te% the str("t(re o' the E"o&o#i"s %e+ree !t the
Mi%$!&%s St!te U&i,ersit-2 !$$ the theoreti"!$ !spe"ts I $e!r&t ere "riti"!$ !&% $
#!&!+e% to !pp$- the# %(ri&+ the ho$e perio% o' #- p$!"e#e&t !s &ote% 1e$o:
. I re!$$- !ppre"i!te% the #o%($e EC 1?? :St!tisti"s *; !s it pro,i%e% #e ith #ost o'
the 'or#($!s th!t I (se% i& the pri"es se"tio& th!t is2 the $!sp!-ers !&% the )(i"/ r!tio
hi"h e (se% i& the "!$"($!tio&s o' the CPI.
. Dith h!t I $e!r&t i& #o%($e EC 1?2: St!tisti"s A;2 I )(i"/$- +ot to (&%erst!&% ho
the- (se% the s!#p$i&+ te"h&i)(es i& "o#i&+ (p ith the se$e"te% o(t$ets hi"h !re
the& (se% to o1t!i& %!t! o& pri"e "h!&+es hi"h !re (se% i& the "o#p(t!tio& o' the
CPI.
. Dith the pr!"ti"!$ s/i$$s I h!% !tt!i&e% i& ! Co#p(ter S"ie&"e #o%($e
I&tro%("tio& to Co#p(ters2 #!%e #e )(i"/$- !ppre"i!te !$$ the %i''ere&t
st!tisti"!$ p!"/!+es !&% %!t! e&tr- s-ste#s e (se2 s("h !s the CSPro 'or "o#pi$i&+
!&% i&terpreti&+ %!t!.
9.2 RECOMMENDATIONS
It h!s 1ee& !& e&$i+hte&i&+ perio% i& hi"h I +ot to (&%erst!&% the oper!tio&s o'
st!tisti"s2 the 1eh!,ior !&% re$!tio&ship o' ,!rio(s !&% st!tisti"!$ ,!ri!1$es. There is
hoe,er so#e !re!s hi"h I 'ee$ &ee% to 1e i#pro,e%.
9.2.1 R5/288516.,<21+ ,2 ,95 2-7.1<@.,<21
I& $i&e ith the e"o&o#i" e&,iro&#e&t i& o(r e"o&o#- !s o' %!te2 i 'ee$
th!t CSO !s !& or+!&i5!tio& sho($% !%%ress the e$'!re o' its e#p$o-ees.
I& $i&e ith the #issio& st!te#e&t th!t the %ep!rt#e&t sh!$$ (se hi+h$-
91
MINISTRY OF FINANCE

!(to#!te% te"h&o$o+- !&% h!,e ! #oti,!te% st!''2 there is &ee% to i&,est i&
its st!'' e$'!re.
D(ri&+ the perio% $ h!,e 1ee& here $ re!$i5e% th!t the s!$!ries o' the #!3orit-
o' st!'' !re e$$ 1e$o the Po,ert- D!t(# Li&e :PDL; o' H9<2 'or ! '!#i$- o'
< -et the- e!r& !ro(&% H1<? per #o&th. The +re!test i&,est#e&t th!t !&
or+!&i5!tio& "!& h!,e is its st!'' !s s("h it is i#per!ti,e 'or the or+!&i5!tio& to
!%%ress the pro1$e# so !s to he%+e !+!i&st 1r!i& %r!i&2 +oo%i$$ !&% p(1$i"
"o&'i%e&"e.
Despite h!,i&+ ! e$$ "o&&e"te% !&% se"(re Lo"!$ Are! Netor/ :LAN; !t
the he!% o''i"e2 the s!#e "!&&ot 1e s!i% o' the pro,i&"i!$ o''i"es. The- $!+
1ehi&% i& te"h&o$o+- hi"h !t ti#es posses ! thre!t to #!i&te&!&"e o'
"o&'i%e&ti!$it-. The- re$- o& ti#e "o&s(#i&+ #!&(!$ s-ste#s. The
reso(r"es sho($% 1e #!%e !,!i$!1$e to pro"(re p!$#tops 'or (se i& %!t!
"o$$e"tio& s("h !s is %o&e i& So(th A'ri"!. It !$$os %!t! to 1e se&t o& re!$
ti#e 1!sis 'ro# the poi&t o' "o$$e"tio& to the he!% o''i"e !&% )(eries "!&
th(s 1e reso$,e% (r+e&t$-.
9.2." R5/288516.,<21+ ,2 ,95 D5:.-,851, 2? E/2128</+
The Dep!rt#e&t o' E"o&o#i"s sho($% tr- to se&siti5e its (&%er+r!%(!tes to 1e e0pose%
to the pr!"ti"!$ 'ee$ o' the %e+ree &ot o&$- thro(+h !tt!"h#e&ts 1(t !$so or/shops
!&% 'ie$% trips.
Se"o&%$- the %ep!rt#e&t sho($% est!1$ish its o& "o#p(ter $!1or!tor- so !s to e)(ip
its st(%e&ts ith the /&o4ho o' (si&+ st!tisti"!$ p!"/!+es i& prep!r!tor- o' the o'
st!tisti"s si&"e !$#ost e,er-thi&+ is &o "o#p(teri5e% i& th!t 'ie$%.

9.2.4 R5/288516.,<21+ T2 T95 U1<B5-+<,>
T95 L<*-.->
It is #- (&%erst!&%i&+ th!t CSO pro%("es so #!&- p(1$i"!tio&s hi"h !re ,er- #("h
esse&ti!$ to st(%e&ts to 1(i$% their theoreti"!$ 'o(&%!tio&s i&to pr!"ti"!$ 'r!#eor/s
hi"h is esse&ti!$ to tr!%e !&% "o##er"e. To this e&% $ o($% re"o##e&% the
92
MINISTRY OF FINANCE

Li1r!ri!& to so(r"e this #!teri!$ !t the CSO. For e0!#p$e the CPI !&% PDL
p(1$i"!tio&s !re pro%("e% #o&th$- !&% "ost o&$- USH6.
C9.:,5- 10; C21/4=+<21+
I re!$$- th!&/ MSU 'or their e$$ str("t(re% %e+ree pro+r!##e hi"h h!s e)(ippe%
#e ith the &e"ess!r- theoreti"!$ !spe"ts hi"h I h!,e !pp$ie% i& the i&%(str- %(ri&+
#- perio% o' p$!"e#e&t !&% o($% !$so $i/e to +i,e "re%it to the Ce&tr!$ St!tisti"!$
O''i"e :CSO; hi"h h!s e)(ippe% #e ith the &e"ess!r- e0perie&"e %(ri&+ #- perio%
o' p$!"e#e&t.
96

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