New Direction of the Reform of New Direction of the Reform of the Statistical System in Japanthe Statistical System in Japan

Masahiro HORIEMasahiro HORIEProfessor, National Graduate Institute for Policy StudiesProfessor, National Graduate Institute for Policy Studies

Former Vice Minister, Former Vice Minister, Ministry of Internal Affairs and Communications Ministry of Internal Affairs and Communications

JapanJapan

Outline of the Current Outline of the Current Statistical System in JapanStatistical System in Japan

• The current statistical system in Japan is The current statistical system in Japan is a decentralized one.a decentralized one.

• The current legal framework for official The current legal framework for official statistics is established mainly by the statistics is established mainly by the Statistics Law (1947) and the Statistical Statistics Law (1947) and the Statistical Reports Coordination Law (1952).Reports Coordination Law (1952).

Outline of the CurrentOutline of the Current Statistical System in Japan (cont.) Statistical System in Japan (cont.)

Main functions for overall coordination of theMain functions for overall coordination of thestatistical administration are statistical administration are

• Planning basic policies on statistical systemsPlanning basic policies on statistical systems• Examining and coordinating statistical surveys of Examining and coordinating statistical surveys of

the national governmentthe national government• Establishing statistical standardsEstablishing statistical standards• Coordinating matters related to international Coordinating matters related to international

statistical affairsstatistical affairs

Outline of the Current Outline of the Current Statistical System in Japan (cont.)Statistical System in Japan (cont.)

• Almost 60 years have passed without major Almost 60 years have passed without major changes in statistical laws.changes in statistical laws.

• There are now deficiencies in meeting new There are now deficiencies in meeting new demands and challenges, such as responding demands and challenges, such as responding to the rapidly changing industrial structure to the rapidly changing industrial structure and meeting new and various needs of data and meeting new and various needs of data users. users.

　　　　 Discussion on Discussion on the Reform of Statisticsthe Reform of Statistics

• Discussion was started in mid-2004 by the Discussion was started in mid-2004 by the Council on Economic and Fiscal Policy. Council on Economic and Fiscal Policy.

• A special committee was set up in the A special committee was set up in the Cabinet Office in November 2004. Cabinet Office in November 2004.

• The committee made its report in June The committee made its report in June 2005, and its succeeding committee made 2005, and its succeeding committee made its report in June 2006. its report in June 2006.

Report of June 2005Report of June 2005

• In response to changes in industrial structure, In response to changes in industrial structure, new statistics such as the Economic Census new statistics such as the Economic Census and service sector statistics should be and service sector statistics should be developed.developed.

• Statistical systems should be reviewed and Statistical systems should be reviewed and the function of “headquarters” for the the function of “headquarters” for the development of statistics should be development of statistics should be strengthened.strengthened.

Report of June 2006Report of June 2006

• The committee proposed the reform of The committee proposed the reform of statistical systems and the reform to statistical systems and the reform to strengthen the “headquarters” function. strengthen the “headquarters” function.

• Following this report, it was decided Following this report, it was decided in July 2006 by the cabinet decision that in July 2006 by the cabinet decision that a bill for fundamental reform of the a bill for fundamental reform of the

statistical systems should be submitted to statistical systems should be submitted to the next ordinary Diet session of 2007.the next ordinary Diet session of 2007.

Necessity of Necessity of Reform of Statistical SystemsReform of Statistical Systems

• Most official statistics are produced Most official statistics are produced primarily for the administrative purposes. primarily for the administrative purposes.

• Use of administrative records is limited. Use of administrative records is limited. • Utilization of statistics does not sufficiently Utilization of statistics does not sufficiently

reflect new needs and advances in ICT. reflect new needs and advances in ICT. • Under the decentralized statistical system, Under the decentralized statistical system,

the coordinating agency is not sufficiently the coordinating agency is not sufficiently playing a strong and an active role. playing a strong and an active role.

Outline of Outline of the New Statistical Systemthe New Statistical System

• From “statistics for public administration” to From “statistics for public administration” to “statistics as an information infrastructure of society”“statistics as an information infrastructure of society”

• Basic viewpoints in establishing a new legal systemBasic viewpoints in establishing a new legal system1)1) To build appropriate disciplines and frameworks for To build appropriate disciplines and frameworks for

statistics from the viewpoints of both producers and usersstatistics from the viewpoints of both producers and users

2)2) To establish a mechanism to develop official statistics To establish a mechanism to develop official statistics efficiently based on overall plans regardless of the source efficiently based on overall plans regardless of the source or method of producing statisticsor method of producing statistics

3)3) To strengthen the function of “headquarters” for To strengthen the function of “headquarters” for developing official statisticsdeveloping official statistics

Points of Points of the New Statistical Systemthe New Statistical System

(1)(1) Instituting mid-term basic plans as a Instituting mid-term basic plans as a statutory requirement to be decided by statutory requirement to be decided by

the Cabinet the Cabinet (2) Establishing rules for utilizing (2) Establishing rules for utilizing

administrative records administrative records (3) Instituting “population information” (3) Instituting “population information” about businesses and establishments about businesses and establishments

(business frame)(business frame)

Points of Points of the New Statistical Systemthe New Statistical System (cont.) (cont.)

(4)(4) Establishing rules to make clearer the obligation to Establishing rules to make clearer the obligation to ensure confidentiality in cases when statistical ensure confidentiality in cases when statistical surveys are contracted out to private organizationssurveys are contracted out to private organizations

(5)(5) Promoting the secondary use of statistical data (such Promoting the secondary use of statistical data (such as tailor-made compilation and utilization of as tailor-made compilation and utilization of anonymous micro data) by ensuring the protection anonymous micro data) by ensuring the protection of confidentialityof confidentiality

(6)(6) Establishing the new Statistics Committee Establishing the new Statistics Committee (provisional title) in the Cabinet Office(provisional title) in the Cabinet Office

ConclusionConclusion

• The Office of Director-General for The Office of Director-General for Statistical Standards Policy (MIC) is now Statistical Standards Policy (MIC) is now preparing a draft revision of the two laws. preparing a draft revision of the two laws.

• Realizing reform of statistical systems will Realizing reform of statistical systems will be essential for the further development of be essential for the further development of official statistics in Japan.official statistics in Japan.

Thank you !Thank you !