Analyses financed by the Ministries How to maintain our independence?

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1 THE ROLE OF STATISTICS IN SOCIETY SESSION: STRATEGIC CHALLENGES TOMORROW Analyses financed by the Ministries How to maintain our independence? Anette Walstad Enes Statistics Norway

2 Analyses financed by the Ministries How to maintain our independence? Anette Walstad Enes 1 Abstract. Statistics Norway has the overall responsibility for official statistics in Norway, and carries out extensive research and analysis activities. Recently, Statistics Norway carried out an internal project to analyse how we as an organization deal with analyses financed by the Ministries. The study carried out interviews with several government agencies which finance our analyses, as well as group interviews with project leaders at Statistics Norway. This paper discusses the role of Statistics Norway as a provider of statistical analyses and offers some reflections on how to meet the needs of the Ministries, and ensure our political independence. Finally, it highlights some recommendations for good practice in terms of contact with government agencies which finance our analyses. Key words: Analyses, Ministries, Independence 1. Introduction Statistics Norway has the overall responsibility for official statistics in Norway, and carries out extensive research and analysis activities. The Statistics Act stipulates that it is an independent institution in its field (The Statistics Act 1989). As the National Statistical Institute, we administer the nation s shared factual basis, and our statistics are essential for a living democracy. Statistics Norway has as its ambitious aim to be society s leading supplier of statistical facts. Further, our strategy states that relevant research and analysis shall enhance the value of statistics (Statistics Norway 2014). Statistical analyses are vital to the Government s planning and evaluation, as well as to the debate in the general public. One third of Statistics Norway s activities is financed through customer financed assignments. The customers are mainly government agencies. Last year, Statistics Norway carried out an internal project to analyse how we as an organization deal with analyses financed by the Ministries. This paper will provide some results from the project, and based on the conclusions, discuss the question: How to ensure our political independence as the National Statistical Institute and 1 Statistics Norway, Senior Advisor, Oslo, Norway, awe@ssb.no

3 at the same time meet the needs of the Ministries. In specific how can Statistics Norway as a political independent institution carry out statistical analyses financed by the government agencies that are so close to the political decision making? Finally, this paper will highlight some recommendations, from a bottom-up perspective, for good practice in terms of contact with the government agencies which finances our analyses. 2. Background In the fall of 2015, Statistics Norway completed an internal project to analyse how we as an organisation deal with analyses financed by the Ministries. 2 This project differs from other projects in Statistics Norway that deal with strategic questions. Most projects of this kind would typically assemble a group of managers to discuss the issue from a top-down leadership perspective (e.g. Statistics Norway 2008). Instead, this project had a bottom-up perspective, using a qualitative approach to collect experiences and points of view from the skilled persons carrying out the projects: internal project leaders in Statistics Norway and senior consultants in the Ministries cooperating with Statistics Norway. Neither the members in the project team, nor the key persons we interviewed in the government agencies, nor the project leaders in Statistics Norway, were managers. The project team carried out semi-structured group interviews with 18 internal project leaders from 13 different departments and research divisions in Statistics Norway. Further, the project carried out semi-structured interviews with 6 different Norwegian Ministries. In September 2015, the project team presented its recommendations to the top management in Statistics Norway. The project analysed the status quo last summer. This paper will highlight some recommendations for good practice for tomorrow and the years to come. 3. Analyses financed by the Ministries what s the issue? Statistics Norway and the Ministries have different roles in the Norwegian democracy. When it comes to analyses financed by the market, the roles are to some extent contradictory. Statistics Norway produces statistics and analysis and has the nation s shared factual basis. Our strategy states that we are to have a role of a factdeliverer. We have some of the best national expertise in statistics, methodology and 2 ProTeam project: «Eksternt finansierte forsknings- og analyseprosjekter: Praksis og retningslinjer». The project team consisted of Liv Taule, Kristin Halland, Marit Slåen Sæther and Anette Walstad Enes

4 statistical research and analyses. As Statistics Norway executes market financed analyses, it is an player in the market. Finally, as the Statistics Act stipulates, Statstics Norway is a politically independependent institution (The Statistics Act 1989). Figure 1. Different roles of Statistics Norway and the Ministries concerning marked financed statistical analyses On the other hand, the Ministries are in need of facts for the Government s planning and evaluation. They have an in-depth knowledge on their various disciplines. The need for statisical analyses lead them into the role of a financer. Besides, the

5 Ministries are close to the political decision-makers, supplying the politicians with evaluations, planning, reviews and analyses. Further, there will be a discussion on how Statistics Norway and the Ministries can have a good cooperation, in spite of their contradictory role when it comes to market financed statistical analyses. 3.1 Statistics Norway as a fact-deliverer The European Code of Practice states that European statistics shall meet the needs of users, and should accurately and reliably portray reality (Principle 11 and 12). Statistics Norway s strategy makes it clear that the ambition for our organization is to be society s leading supplier of statistical facts. Furthermore, relevant research and analysis shall enhance the value of statistics (Statistics Norway 2014). The Ministries on the other hand, are in need of statistical analyses for the purposes of Government s planning and evaluation. Espen Søbye, one of Statistics Norway s most profiled researchers says: To make official statistics is to build an infrastructure for developing knowledge 3. But to produce statistics and analyses, some choices must be made. The employees at Statistics Norway are not computers. We are people, educated and trained to make considered decisions. As the National Statistical Institute, we cannot solely consider us selves as a fact-deliverer, but also as an analysing organization with monopoly and the power of definition. As Søbye discusses it: "The great privilege of monopoly that Statistics Norway has, of defining what should apply to official statistics, comes with obligations. It gives us the power to define of what is important and unimportant, true and false, likely and unlikely. Official statistics plays a big role in the formation of public opinion in society. 4 Søbye reminds us that we should not pretend we don t know this, pretending that facts are objectively and beyond doubt. He continues: Acknowledging this does not weaken but strengthen the requirements for what should apply to official statistics, the reasons we give for how we choose to produce and present a statistic. Official statistics should always make detailed account of the choices that underlie it, and how they affect the results. Our branded product is not facts, but Source: Statistics Norway. 5 3 Internal document, Espen Søbye, Statistics Norway, may (Author s translation). 4 Ibid. 5 Ibid.

6 Just as important as striving to deliver the facts, is the endeavor to be transparent and open about our choices, so that others are able to re-examine what we have done. As the European Code of Practice includes in its principle 6 dealing with impartiality and objectivity: Statistics are compiled on an objective basis determined by statistical considerations (Principle 6.1.), further Choices of sources and statistical methods as well as decisions about the dissemination of statistics are informed by statistical considerations (Principle 6.2); and: Information on the methods and procedures used is publicly available (Principle 6.4). As a National Statistical Institute, we should provide statistical analyses to meet the special needs of the government agencies to give them a factual basis for their planning, evaluation, etc. To execute statistical analyses financed by the Ministries should be seen as a part of our statutory mission for the Norwegian democracy. It is Statistics Norway s responsibility and role in the society to be a deliverer of facts, to make definitions, and decide what to include and what should be left out, and make considered choices about methodology. Statistics Norway is now in a process of renewing its strategy. Hopefully, this new strategy will be better balanced when it comes to our role as an independent fact-deliverer, and as an organization producing statistics and analyses based on well-considered decisions for which documentation is publicly available. 3.2 Statistics Norway as an expert on statistics Statistics Norway has some of the best national expertise in statistics, methodology, statistical research and analyses. To offer our expertise to government agencies is part of our role in a vital democracy. At the same time, we must acknowledge the Ministries as sovereign with in-depth knowledge on their discipline. In the interviews with representatives for the Ministries, nearly all of them expressed that they wanted more dialogue with the project leader / -team in the course of the project. Several of them emphasized the need for preliminary results. As one of them argued: Some of the projects are politically sensitive, and we are nervous before you publish the results. It is in our interest and it should be in yours that the laws and regulations are referred to correctly and that the project leaders have an adequate understanding of them. For example, Statistics Norway has evaluated the results of several of the Government s integration initiatives for immigrants. The legal framework for these programs is so complex that we do not have adequate knowledge to conduct these analyses, without the input from the Ministries. After several complaints from the Ministries responsible, regarding our lack of knowledge of the integration programs and their applicable laws and regulations, we established a reference group with

7 experts on the topic. The group meets regularly to guide Statistics Norway in our work with the analyses of these initiatives. In order to maintain a good dialogue throughout the project, we found that in projects that had a reference group, both the internal project leaders and the representatives for the Ministries were satisfied with the communication during the project. And the Ministries were, in general, pleased with the final product. Additionally, several of the ministries mentioned that they would have preferred to also have a project board, even if the projects are relatively small. Some of the Ministries expressed their frustration of not being able to read and comment drafts before the final version of the analyses. New guidelines in December 2015 now open for the financers to comment on a draft before the analyses are approved by Statistics Norway s management. 3.3 Statistics Norway as a player in the market The fact that about two-thirds of our activities are financed through a grant from the National budget, provide stability of Statistics Norway s portfolio: the majority of grants we can decide how to produce statistics and analyses that gives a balanced overview of the Norwegian society, unaffected of the changing political landscape. One third of Statistics Norway s activities are financed by the market. A large proportion of this is statistical analyses. Our project shows that in-depth analyses on our statistics are of crucial importance for the Ministries in their planning and evaluation. Several of the representatives for the Ministries emphasized the fact that Statistics Norway s political independency and our reliability in the Norwegian society in combination with our statistical expertise were essential for choosing us to execute the analyses. On the other hand, the internal project leaders were generally positive to performing the analyses financed by the marked. Several of them emphasized that Statistics Norway needs the market assignments to keep track of the needs of society. Statistics Norway does not necessarily have the overview of every need the Ministries have; our market clients help us to focus. Executing statistical analyses financed by the Ministries gave them the opportunity and the obligation to listen to the needs of the Ministries and learn from their professional knowledge of their discipline. Analyses financed through the market help to keep us on track of the needs and changes in society and our activities are not solely goverened by the internal preferences of the departments in Statistics Norway, nor the top management. However, it is time-consuming to apply for grants. The market therefore both guides us and consumes our valuable time.

8 3.4 Statistics Norway as a political independent institution Statistics Norway is a politically independent organization, regulated by the Statistics Act. It stipulates that Statistics Norway is an independent institution in its field (The Statistics Act 1989). The importance of political independence also constitutes the first principle in the European Statistics Code of Practice: 1.1: The independence of the National Statistical Institute from political and other external interference in developing, producing and disseminating statistics is specified in law Below is an illustration of how we as a National Statistical Institute are organized in Norway. On the top, we have the prime minister, below we see the different Norwegian ministries, and underneath them are the directorates. Statistics Norway is placed under the ministry of Finance, but that is only for administrative purposes. Two thirds of our incomes come from the ministry of Finance, and one third of Statistics Norway s activities are financed through user financed assignments. The customers are mainly government agencies. How are we able to maintain this political independence while we are conducting analyses for the ministries that are so close to the political decision-making? Figure 2. Statistics Norway and the Ministries To conduct statistical market financed analyses, the project leaders and management at Statistics Norway need well worked out and well formulated general directives and guidelines. Further, there might be necessary with some forms. As the ESS Quality Assurance Framework states: Guidelines for assuring impartiality and objectivity exist at the statistical authority and are made known to statistical staff (Indicator 6.1.1, s.11). However, all analyses are different. Every project we conduct for the Ministries has its origin from a special need that cannot be met by our standard statistics. The political landscape is continuously changing. One of the key persons in a Ministry emphasized that the political landscape has changed during

9 the last couple of years: the Ministers now want to be more active in the media promoting their agendas, while earlier they had been more passively waiting for the media to take the initiative. In this area, Statistics Norway needs more flexible tools. Since this field is categorized by continuously changes, we cannot standardize the entire process. Executing market financed analyses for the Ministries requires contact with bureaucrats working close to the politicians. Often, the request for the specific analysis stems from a need to evaluate a political initiative, or is needed to lay the foundation for a specific policy. Therefore, the project leaders need to be sensitive to the needs of the Ministries, but at the same time conscious of Statistics Norway s role and political independence. Handling these processes in a good manner often requires experience. Therefore, there should be internal structures and a culture in Statistics Norway for facilitating and encouraging the transfer of knowledge from staff with experience in these processes, to more unexperienced employees. One internal project leader we interviewed told us about a Ministry that financed some of their analyses: Along with the order for statistics, the Ministry also gave guidelines for which results they wanted. In order to handle these kinds of situations well, experience is quintessential. Therefore, it is of crucial importance to have a good dialogue on a horizontal level in the organization, between different project leaders and teams. Also, there should be fora for exchanging experiences between project leaders and project teams. Further on, efforts should be made to reinforce and fortify an organizational culture that strengthens and encourages the transfer of knowledge and experiences in the area of market financed analyses. To meet the needs of the changing political landscape, we concluded that good communication between project leaders and the leadership in Statistics Norway is of crucial importance. When initiating and ending a project, there should be a good dialogue. The analyses are all different. Some analyses are politically hot and could cause a lot of debate in the media; other types of analyses are of a more technical type. Therefore, there should be room for internal discussions and assessments for each work. The European Statistics Code of Practice states that The heads of the National Statistical Institutes have responsibility for ensuring that statistics are developed, produced and disseminated in an independent manner (Principle 1.3). While the leaders know the policies and are the ones responsible for the analyses, the project leaders know the history of the project and the dialogue with the Ministries. Such vertical communication and discussions is important to ensure that the analyses have a satisfactory level of quality, and that the conclusions are in accordance with the policy of Statistics Norway.

10 4 Conclusions: how to maintain our independence? General directives, guidelines and forms. To conduct statistical market financed analyses, the project leaders and management at Statistics Norway need well worked out and well formulated general directives, guidelines and forms. But statistical analyses are all different, and it is neither possible nor desirable to standardize the entire process. Respect the in-depth knowledge of the Ministries. If we are to be considered as a serious player in the market of externally financed statistical analyses, we have to have respect for the in-depth knowledge of the Ministries on the topic of our analyses. We should be able to balance the objectivity and the political independence, and at the same time open for the knowledge and the expertise of the Ministries. Our study shows that reference groups have been a good tool for exchanging knowledge between the Ministries, Statistics Norway and other professionals. In that respect, the analyses will be of higher quality, and Statistics Norway is more likely to meet the needs of our customers. Transfer of knowledge and exchange of experiences. Conducting market financed analyses for the Ministries requires contact with bureaucrats working close to the politicians. In order to handle this in a good, professional manner, there should be fora for the exchange of experiences between project leaders and project teams. It is of crucial importance to have a good dialogue on a horizontal level in the organization, and efforts should be made to maintain and improve an organizational culture where transfer of knowledge is appreciated and encouraged. Communication, dialogue and discussions. To respond to the changing political landscape, we concluded that good communication, dialogue and internal discussions are of crucial importance. When initiating and ending a project, there should be a good dialogue between the project leaders and their managers at Statistics Norway. Such vertical communication and discussions are important to ensure that the projects have a satisfactory quality, and that the conclusions are in accordance with the policy of Statistics Norway. Finally, back to the main question of this paper: Is it possible to execute statistical analyses financed by the Ministries, and at the same time maintain our political independence? Our main conclusion from our bottom-up project is yes, through communication. Structured dialogue and communication externally with our financers, as well as internal communication in Statistics Norway: Various fora for vertical and horizontal communication within the organization. Then, we believe, Statistics Norway can provide statistical analyses to the Ministries - and at the same time maintain the political independence in the years to come.

11 4. References Eurostat (2011): European Statistics Code of Practices. Available from: Eurostat (2015): The Quality Assurance Framework of the European Statistical System (ESS QAF). Available from Ministry of Finance (1989). The Statistics Act, Act No. 54 of June The Ministry of Finance Statistisk sentralbyrå (1987). Praktisk brukertesting. Statistisk sentralbyrås håndbøker Statistisk sentralbyrå (2012). Oppdragene i SSB: Innstilling fra et utvalg nedsatt av SSBs administrerende direktør. Interne dokumenter, Statistisk sentralbyrå 32/2012 Statistics Norway (2014). Strategy Plans and reports 2014/8 Statistisk sentralbyrå (2016). Virksomhetsplan Satsinger og prioriteringer. Planer og meldinger 2016/02 Søbye, Espen (2016). Om offisiell og historisk statistikk. Internal document may , Statistics Norway

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