Abstract
The SNA provides a framework and a comprehensive set of concepts, definitions and classifications for economic accounting that allows compiling, and presenting economic data in a format designed for purposes of economic analysis, decision-making and policymaking. However, the framework is inadequate to be better indicator economic performance, since it misses most of non-marketed economic activities because of different reasons. In this paper, we assessed the gap in the current practices of SNA in general and forest resource accounting system in particular using different national data sources to review the current practice of accounting in Ethiopian Economy. We also examined structure and contents of economic values of forest products and services. In the current Ethiopian system of national accounts, there was attempt to incorporate more forestry economic activities as much as the methodological approaches permitted. Different data on gross value of outputs and cost of material inputs collected from all available sources to calculate the contribution of different economic sectors to Ethiopian GDP. However, there are limitations in full coverage of forest goods and services and up-to-date productivity indicators - calling for a robust effort by all stakeholders. SNA’s room for flexibility that allows application of satellite accounting is worthy of value addition for improving the existing SNA gaps in methodologies, data availability and economic activity coverage. Measuring forest values that is more comprehensive than the current SNA greatly contributes towards production of integrated statistical indicators for development plan & policy formulation in social, economic & environmental spheres. Keywords : SNA, GDP, Forest Goods and Services, ISIC, Gaps DOI: 10.7176/RJFA/11-19-06 Publication date: October 31 st 2020
Highlights
Ethiopia is a natural resource dependent country
Our study assessed the gap in the current practices of forest resource accounting system that enables us to call for developing the robust accounting system that measures both the direct and indirect economic contribution of forest resources to national economy of Ethiopia
Using the current accounting documents, we reviewed the current practice of accounting in Ethiopian economy and examined its structure contents about economic values of forest products and services
Summary
Ethiopia is a natural resource dependent country. Industries and households in Ethiopia use ecosystem services from forest resources available in the country. The current measures of national income (SNA) used by different countries of the world, is inadequate as indicator of social welfare It provides misleading information about whether an economy is using its resources sustainably because there are many limitations on the current system of national accounting to include the contribution of forest products to national income. An overview of Ethiopian system of national accounts Classification Framework - ISIC International Standard Industrial Classification of All Economic Activities Revision 4 is a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules It is a comprehensive framework for economic data collection, reporting, economic analysis, decision-making and policy-making. Forest products are grouped as Forestry and logging under ‘Division 02’ of International Standard Industrial Classification of All Economic Activities Revision 4 under Broad and detailed structure as stated in the follows table
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