CONTENTS Page Letters of transmittal Introduction... To what extent is there coordination and integration?_ What are the implications on the efficiency of our statistical system?. Would further integration and particularly a national data center present a threat to personal privacy?_ Is the present administrative machinery adequate for the tasks at hand?.. III 1 3 4 789 V THE COORDINATION AND INTEGRATION OF INTRODUCTION In its 1967 Economic Report, the Joint Economic Committee directed the Subcommittee on Economic Statistics "to look into the possibilities of a truly integrated system providing genuinely comparable statistics consistent with and meshed into an overall system of economic statistics including the Federal, State, and local governments." Two considerations gave rise to this directive: (1) statistical information about the economy is necessary for good management in both the public and the private sectors; and (2) at this time in the evolution of our statistical services, significant improvements lie in the direction of further coordination and integration.' In our modern private enterprise economy and in our system of Federal, State, and local governments, statistics provide much of the information which enables individuals, businesses, and governments to pursue their goals intelligently. A wide distribution of appropriate, accurate, prompt, and comprehensive intelligence is absolutely essential to the efficient functioning of a free society.2 Investigations by this subcommittee and by others have indicated that further significant improvement in our statistical services depends upon a higher degree of integration and coordination of our statistical programs. Indeed, there are strong indications that this is the aspect of the statistical system where progress is needed most. The central theme of respondents in this subcommittee's compendium of views and suggestions by experts on improving our economic statistics was a recognition of the need to improve the organization of statistical data so that they can be more effectively used in analysis and policy. This general feeling was succinctly expressed by Prof. Wassily Leontief, of Harvard: The postwar revolution in economic programing and management techniques reinforced by unprecedented advances in data processing technology has made the traditional approach to collection, organization, and dissemination of facts and figures describing the operation of the American economy and the social conditions of the public and private life of the 180 million of American citizens completely obsolete.3 The staff of the Joint Economic Committee in a recent study of Productivity, Prices, and Incomes pointed out: 1 By coordination and integration is meant a system of interrelated, accessible statistics, which conform to uniform definitions, classifications, time periods and quality standards. The importance of statistics for a free society was stressed by Raymond T. Bowman, Assistant Director for Statistical Standards, Bureau of the Budget, in his address "Achieving an Integrated Federal Statistical Program," delivered to the Annual Meeting of the Federal Statistics Users Conference, Oct. 2, 1957, and reprinted in The National Economic Accounts of the United States, hearings before the Subcommittee on Economic Statistics, 1957, p. 70. 3 "Improved Statistics for Economic Growth-A Compendium of Views and Suggestions from Individuals, Organizations, and Statistics Users," materials submitted to the Subcommittee on Economic Statistics of the Joint Economic Committee, July 1965, p. 90. * there are still major difficulties in regard to the integration of and availability of statistical data. *** On the other hand, the advances in statistical methodology and in data processing equipment have made practical enormous advances in the quality, prompt availability, and integration of economic data.* A recent task force, commissioned by the Bureau of the Budget, made the following evaluation in their report: As it is presently operated, the statistical system is both inadequate in the sense of failing to do things that should and could be done and inefficient-in the sense of not doing what it does at minimum cost, or getting less for what it spends than might be possible.5 The coordination and integration of Government statistical programs involves far more than the organization of Government bureaucracy, although the potential increase in efficiency and resource saving is important in itself. Nothing less than the quality of our public and private economic policies is at stake. In 1957, the National Accounts Review Committee, set up by the National Bureau of Economic Research at the request of the Bureau of the Budget, made the following statement: Integration of the national economic accounts is desirable from three points of view. First, many economic problems require the use of several different kinds of information, and it is often necessary to move from the information provided by one kind of economic accounts to that provided by another. Second, from a statistical point of view, integrating the various kinds of economic accounts makes best use of the available data, with less duplication and with improvement in statistical accuracy. Finally, for the user of the national economic accounts, a single integrated system is easier to understand and use correctly than a number of different apparently unrelated or overlapping systems. The potential improvements in efficiency through increased integration are large-not only in terms of the quality and quantity of statistical output, but also in terms of cost reduction for a given output. The estimated budget obligations for fiscal 1968 are $122 million for current programs and $163 million for all programs including periodic programs, which do not include the costs and inconvenience imposed on private respondents. It is therefore clear that every effort should be made to obtain maximum use of these data which have been secured at significant cost to the Government and to private firms and individuals. In view of the Committee's directive, and of such expert opinions as cited, and in recognition of the primary importance of an integrated statistical system, the subcommittee held 4 days of hearings-May 17, 18 and June 7 and 8-on the "Coordination and Integration of Government Statistical Programs." The focus of the hearings was on the following questions: (1) To what extent is there coordination and integration of our statistical programs? (2) What are the implications on the efficiency of our statistical system? James W. Knowles, Executive Director, Letter of transmittal, Dec. 21, 1966, Productivity, Prices, and Incomes, materials prepared by the Committee staff for the Joint Economic Committee. "Report of the Task Force on the Storage of and Access to Government Statistics," Bureau of the Budget, Oct. 1966, p. 5. |