The need for detailed statistics on small areas is constantly increasing. It is required for central government to carry out regional policies, and for local governments, communities, enterprises and citizens to make decisions concerning their local business activities and private life. Civil society expects to be informed about what is going on in its immediate neighbourhood. During the Conference of European Statisticians held recently in Geneva on 11-13 June 2001, discussion on small area statistics focused on the ability of governments to cope with this demand. Public statistics have limited resources and are therefore forced to choose between investment in national statistics and provision of small area detail. Looking into the structure of statistical systems of small countries may provide insights into methodologies for small area statistics.

There is always demand for data at lower geographic levels. Acute social problems can only be dealt with effectively when data on health, housing, jobs, skills, social environment, unemployment, and crime and drug abuses are explained well and can be traced back to a specific area.

"Policy makers need to make sure that resources are targeted effectively at the areas most in need. Without a proper monitoring system, problems are noticed only when it is too late. For example, in the United Kingdom, new demand at the local level for local information has arisen as the government initiated to tackle the problems of social exclusion by doing the following: narrowing the gap between the most deprived neighbourhoods and the rest of the country; lowering long-term unemployment and crime rates; and achieving better health and education," says Dev Virdee, Head of Regional and Local Statistics Unit of the Office for National Statistics of the United Kingdom.

Often small area statistics have a high political importance. Creating a statistical system on sub-national level can be a constructive way to respond to regional tensions. Impartial and objective data allow concerns related to ethnic conflicts to be addressed, and to look for solutions. Small ethnic communities often have strong feelings about their identity and recognition, as in the case of the Romanian Gypsies in East European countries and ethnic minorities in many Balkan countries.

Small area statistics also capture the dynamic development of a country as a whole. In today’s mobile world, administrative borders are often not relevant in analysing many aspects of life. Proper analysis can be done when data are linked to its exact location. Geographic Information System (GIS) is a useful tool in this respect. It provides the means to analyse environmental issues, emergency preparedness, natural disasters and spread of diseases. Statistical offices are working together with mapping agencies and other institutes to harmonize and standardize the digital spatial data for these purposes.

An important issue in small area statistics is the question of privacy and confidentiality. When producing and publishing statistics for small areas, for instance, villages, regions, or even small countries, it is often easy to recognise data related to individuals and enterprises, especially when there is good background knowledge of the area. "Currently several methods exist to protect individuals. These are especially important in the case of small area statistics. Statistical offices should pay attention to guarantee the confidentiality of their data, and to explain to users and respondents how individual-related information is protected," says Jana Meliskova from the UNECE Statistical Division.

Some countries are smaller than other countries’ small areas. The experience of small countries is valuable in finding ways to make statistical systems more efficient. Sometimes small countries have developed creative approaches in order to provide the same amount of detail, accuracy and timeliness of statistical data as bigger countries, even though the set up costs of establishing the infrastructure of a statistical system are of the same magnitude. On the other hand, the compactness of a country has advantages. "It is relatively easier to maintain good relationships with respondents. Detailed knowledge of the local conditions is a big advantage, because it makes it possible to produce better figures with limited resources. Also, running a small office is easier and more flexible. There is a larger range of solutions for many problems, and it is easier to bring in innovation," stated the representatives of statistical offices from several small countries, like Ireland, Luxembourg and Latvia.

Small area statistics is the means to raise statistics to a qualitatively higher level and to make it become more relevant and familiar to its users. The recent Conference of European Statisticians in Geneva showed that statistical offices of the ECE member countries are carefully considering how to use small area statistics to shape a better statistical system for the future.

For further information on the seminar, please consult the CES 2001 plenary session Website:

http://www.unece.org/stats/documents/2001.06.ces.htm

or contact:

Mrs. Jana Meliskova
Statistical Division
United Nations Economic Commission for Europe (UNECE)
Palais des Nations
CH - 1211 Geneva 10, Switzerland

Phone:  (+41 22) 917 41 50
Fax:    (+41 22) 917 00 40
e-mail: [email protected]

Ref:  ECE/STAT/01/07