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  Special Data Dissemination Standard (SDDS)
   

Introduction:

  
   

Data Dissemination Standard is different than Data Dissemination System. A system establishes an organized way to disseminate data. For Economic and Financial Data International Monetary Fund (IMF) has established some standards for dissemination for member countries. Those countries which follow these standards are called member countries adhering to IMF Special Data Dissemination Standard (SDDS). Those member countries follow a system are called adhering to General Data Dissemination System (GDDS). Both the system and standard adherence is voluntary and there is no force upon them to adhere to either one of them. The adherence to standard is strict and has to meet four criteria in dissemination (1) frequency or periodicity (2) timeliness, (3) transparency and (4) quality and consistency. Failing in either of the criteria will cease the country’s recognition to adhering to Special Data Dissemination Standard. GDDS includes besides Economic and Financial Data , Social indicators. The countries following the system (GDDS) has no such penalty, however, a report is done of the progress made by a country confirming to the system. Some countries use GDDS as a stepping stone towards SDDS. SDDS came about 1996 after the Asian Tigers crisis and became a tool for IMF and others to monitor the economic conditions of a country.

 
   

Advantages of SDDS:

  
   

To be a member country adhering to SDDS has some of the following advantages.

  
     
bullet The strong commitment to transparency, as well as a significant achievement in implementing internationally accepted best practices in statistics.
 
bullet  SDDS is expected to enhance the availability of timely and comprehensive statistics, thereby contributing to the pursuit of sound macroeconomic policies and the improved functioning of financial markets
 
bullet  It disciplines the Country to disseminate with regular frequency and timeliness the data , which are official statistics of the country in financial terms.
 
bullet It is a good tool for attracting Capital Investment in the country. The country may be not in need of investment, but capital investment brings transfer of technology with the capital investment.
 
bullet The investors, because of higher transparency, charges less as borrowing cost as it reduces risk element.
 
bullet SDDS subscription indicates that the country meets a test of “good statistical citizenship.”
 
bullet The SDDS is a global benchmark for disseminating macroeconomic data to the public.
 
bullet Most of the rating agencies look favorably to the country subscribing to SDDS.
 
   
     
     
     
   

Components of SDDS:

  
   

A country adhering to SDDS has to meet certain criteria:

Country should appoint a National Coordinator, who will coordinate the SDDS functions between IMF and the country’s data providing agencies.

All the items which are disseminated must have a corresponding metadata (description about data) in a prescribed IMF format. These metadata are approved by IMF and resides on IMF website page called Dissemination Standard Bulletin Board (DSBB). Any change in metadata is conveyed to IMF by the National Coordinator of the member country.

The member country will have a National Summary Data Page on one of the country website where the data is disseminated and the items are prescribed by IMF. The National Summary Data Page then becomes a unified economic and financial data disseminated by the country approved by IMF as SDDS.

IMF monitors the frequency and timeliness, also it checks the transparency and consistency in data disseminated. Failure to comply with either of the dissemination standard is liable for a country to be thrown out of countries list of special data dissemination standard and is publicized on IMF website as not adhering to SDDS.

There are four major components of type of data disseminated by SDDS.As said earlier they are all part of Economic Statistics and Financial data except last addendum item about Population.
 

  
     
  1. Real Sector of the Economy – National Accounts, Price Indices, Industrial Production Index ,and Labor data.
     
  2. Financial and Monetary Sector of the Economy- Money Supply, Banking Data Including Central Bank and commercial banking sector data Stock Exchange and Exchange Rate data.
     
  3. Fiscal Sector of the Economy – Government Financial Data, Debt data, Utilization of Fiscal Surplus or financing deficit data.
     
  4. External or Rest of the World Sector of the Economy – Foreign Trade Data, Balance of Payment, International Investment Position, Foreign Exchange Reserve data as per a template.
  
   

SDDS enforcement:

  
   

The format in which the data is disseminated is enforced by IMF to be uniform. This allows one to do cross country comparison.

IMF also posts on its website what is called Advance Release calendar, which informs the user when the data will be released for each country for each item of SDDS. The advance release calendar also allows IMF to monitor the frequency and timeliness of release of the data. IMF is using Statistical Data Metadata Exchange technique, so compare practices of the countries which adhere to SDDS.
 

  
   

SDDS Plus:

  
   

The SDDS Plus is open to all SDDS subscribers but is aimed at economies with systemically important financial sectors. The SDDS Plus includes nine additional data categories, which an interested country commits to fully observe by the end of 2019. These data categories refer to the four macroeconomic sectors: real sector ( sectoral balance sheets); fiscal sector (general government operations and general government gross debt); financial sector (other financial corporations’ survey, financial soundness indicators, and debt securities); and external sector (Coordinated Portfolio Investment Survey, Coordinated Direct Investment Survey and Currency Composition of Foreign Exchange Reserves).

Adhering to the SDDS Plus would be voluntary, but once a country adheres, it undertakes to meet the most rigorous data dissemination and data quality standards within the Fund’s Data Standards Initiatives

  
   

Some Statistics about SDDS:

  
   
  1. As of today there are 68 member countries who are subscribing to IMF SDDS.
     
  2. Only five countries (including Gaza and West Bank) are members of SDDS in the MENA region.
     
  3. None of the Gulf Cooperation Council member countries subscribe to SDDS, but all the six countries are member of GDDS.
     
  4. All the members of OECD countries are members subscribing to SDDS.
     
  5. European Union through Eurostat is a member subscribing to SDDS, besides individual country of European Union..

Because of the crisis in 2009 and current turmoil in Eurozone, member countries are requested to prepare themselves for SDDS plus.

  
   

Conclusion:

  
   

A country which decides to raise its standard of Economic and Financial data to SDDS will commit itself to a discipline of strengthening Economic National Statistical System to a high standard. Before IMF grants the subscription to SDDS the country will go under scrutiny by some of IMF tools. IMF uses to measure quality called Data Quality Assurance Frame work called DQAF. IMF also will use a tool called Report of Standards Codes (ROSC). Before subscribing to SDDS, for some time period IMF keeps the country under observance to see if it meets all the criteria described above for SDDS. In many countries, the main agencies who are effected by joining SDDS are Central Statistical Organization, Ministry of Finance or Dept. of Treasury and Central Bank. Of course all the data suppliers to these three entities will have to respond to the needs of the three main agencies.

  

 
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