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IMF Survey: Current Crisis Highlights Importance of Data
October 28, 2008
- Current financial crisis helping steer IMF's statistical work in member countries
- IMF looking into datasets that cut across economic, financial sectors
- IMF to work closely with other international data organizations
A new head of the IMF's Statistics Department is taking over at a time of increased financial market turmoil around the world.
Burgi-Schmelz: "In my opinion, understanding the crisis might require out-of-the-box thinking" (photo: Adelheid Burgi-Schmelz)
Adelheid Burgi-Schmelz
Adelheid Burgi-Schmelz, who until recently was Director General of the Swiss Federal Statistical Office, is a leader within the international statistical community and has extensive private sector experience.
In an interview with the IMF Survey online's Natalie Ramírez-Djumena, Burgi-Schmelz speaks about the use of statistics in shedding further light on the current financial crisis, the relevance in measuring national wealth, and what she views as her priorities as the new Director of the Statistics Department.
IMF Survey online: Welcome to the IMF. Your previous assignment was Director General of the Swiss Federal Statistics Office. What prompted you to join the IMF?
Burgi-Schmelz: I enjoy the global perspective and appreciate the sound work the Fund is famous for delivering. Considering the present challenges both for the Fund and for the financial world, I am convinced that I can make a significant contribution based on my experience from heading a national statistical office and from my previous "real economy work" in the telecom industry.
IMF Survey online: The current financial crisis has put major strains in financial systems that are of key relevance to the work of the IMF. What are your views about how the Statistics Department should address some of these areas?
Burgi-Schmelz: The current financial crisis shows the limits of global financial and economic systems as they have evolved from national systems over the past decades. In my opinion, understanding the crisis might require out-of-the-box thinking. Since statistical work traditionally follows conventional data needs, it is not surprising that new needs arise that cannot be necessarily satisfied with well-established statistics, such as government guarantees. In the Statistics Department work is already under way on identifying the main data needs that cut across financial and nonfinancial corporations, government, household, and nonprofit institutions sectors. I also support the Statistics Department's efforts to intensify its close cooperation with other international financial agencies to build on one another's comparative advantages in this field.
IMF Survey online: The widely used statistical indicator Gross Domestic Product (GDP)—which measures economic growth—has been criticized for not capturing, for example, the effects on the environment. Is GDP a satisfactory measure of economic progress?
Burgi-Schmelz: In my view, GDP remains a very important statistical indicator. But we have to broaden the scope of statistical observations to include other aspects that are relevant to what could be called the wealth of nations in a wider sense. Wealth and progress rely heavily on economic aspects of wellbeing, but they are not limited to it. Social and environmental phenomena have to be taken into consideration, too. This will eventually lead to several indicators—if not an indicator system—rather than a single indicator.
IMF Survey online: Given recent pressures on IMF finances, the Fund has limited the resources earmarked for capacity building activities. How will this impact the Statistics Department's technical assistance program?
Burgi-Schmelz: As far as I know, the Statistics Department's technical assistance program used to take up a significant portion of the department's activities. Given the important resource reductions, major changes are required. They might include more standardized technical assistance products or train-the-trainer concepts. For such approaches to be developed, further information—for example, on countries with successful technical assistance implementation, on technical assistance demand seen by area departments, and on cost tracking—needs to be put together.
IMF Survey online: What's your vision for how the Statistics Department is going to work with IMF area departments and how is it going to support the Fund's mission, making the institution more effective?
Burgi-Schmelz: It is important for the Statistics Department to have a good understanding of the needs of area departments. At the same time, area departments should be familiar with the "products" of the Statistics Department and how they can be used for the mission of the Fund in general and of the area departments in particular. This kind of coherence is very important to me. It might also lead to a repositioning of the Statistics Department's products to better serve the needs of the Fund.
Comments on this article should be sent to imfsurvey@imf.org