Biting the Bullet: Institutional Strengthening

Institutional Strengthening – The Case of the Central Statistical Office

It is a regular occurrence for us to vent our frustrations concerning the inefficiencies we encounter in accessing the services provided by the country’s major support institutions. In fact, for many of us the mere thought of having to visit certain government offices generates strong feelings of annoyance and trepidation. However, the damage imposed by the inadequacies of key support institutions extend well beyond our personal anguish. Such deficiencies result in major delays, foster corruption and ultimately constrain economic activity. For this reason, there must be a heavy focus on institutional strengthening for Trinidad and Tobago to achieve its major development goals. If we are to successfully diversify the economy, generate long-term growth or even combat corruption, it is essential to have strong and efficient support institutions. This includes the Central Statistical Office (CSO).

The adage “what gets measured gets done” simply reminds us that if we don’t track our progress and review the effectiveness of our policies, we are likely to fall short of our objectives. However, without reliable and timely data it can be very difficult to monitor progress. In this country, the CSO is the primary agency responsible for gathering, organising and publishing data, especially economic data. Yet, for years, across several administrations, the CSO has not been supplied with the requisite legislative clout, level of resources and appropriate structure to ensure its operations remain modern, efficient and relevant. The result of this has been an organisation that cannot keep up with the information needs of society in a rapidly changing world. For instance, the latest available unemployment data from the CSO is for the fourth quarter of 2017, though we are in July 2019.

The absence of timely, reliable macroeconomic data creates significant uncertainty for businesses, since they will find it difficult to monitor trends and to anticipate market developments. This uncertainty could constrain investment and thus cause the economy to perform at levels well below its potential. Consequently, in recent years, multi-lateral agencies like the International Monetary Fund (IMF) and international credit rating agencies have repeatedly flagged the unavailability of timely data as cause for major concern. In fact, issues surrounding quality and timeliness of macroeconomic data partly contributed to the credit rating downgrades the country suffered at the hands of Moody’s and Standard and Poor’s.

The authorities have recognised the need to rectify the situation and have moved to replace the CSO with the National Statistical Institute of Trinidad and Tobago (NSITT). Once introduced, the new organisation will have increased legislative power which is expected to enhance the management of data including the collection process. The NSITT, once operationalised will have a more modern structure than the CSO’s outdated setup. The National Statistical Institute of Trinidad and Tobago Bill is currently before a joint select committee. The bill will require a special majority of three-fifths of the members of each House to be passed. Given the ongoing challenges of the CSO and the harsh consequences it continues to impose on the country, it is my hope that the NSITT becomes a reality sooner rather than later.