Mode 4 - developments
UNSD
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Mode 4 subgroup
 Proposal to create a technical group
that concentrates on the development of
mode 4 statistics – April 2003
 First actual meeting – Sept. 2003
– Setup of objective and terms of
reference
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Mode 4 subgroup
 Target output:
– methodological report replacing
Annex 1 of the Manual
– Data collection guidelines
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Mode 4 subgroup
 First step:
– Developing a framework
Definitions and concepts
Measurement
Related international standards
Universe
Existing profiles, trends and
provisions
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Why develop a framework for measuring
Mode 4?
 To provide a framework to measure the
degree of liberalization of trade in terms of
labor mobility
 To provide an accurate measure of Mode 4 to
support GATS negotiations;
 To have a clear understanding of the impact
of the movement of natural person on the
economy (including labour market) of the host
as well as the home country;
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What is Mode 4?
As defined in GATS, Mode 4 is defined as:
“The supply of service by a service supplier
of one Member through the presence of
natural persons of a Member in the territory
of another Member in a temporary or nonpermanent basis”.
This definition is rather narrow.
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What is Mode 4?
(broader approach)
 In addition to what defined by GATS, mode 4
could be viewed to include:
– Not only the supply of services but also the
supply of goods through the presence of
natural persons;
– Not only “temporary” workers but all foreign
nationals working in the domestic economy
and in foreign affiliates establishments.
WHY a broader approach? To link Mode 4 to
GNI and GNDI and improve their measure
within the national accounts.
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Variables
 Number of natural persons delivering goods and
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services under Mode 4 in the narrow and broad sense
(classified by industry as well as educational level)
(some info may be available from FATS)
Value of service provided (output)
Income derived not only from wages and salaries
received by “temporary” workers, but also receipts and
payments on external financial assets and liabilities;
Current (including migrant transfers and remittances)
and financial transfers;
Assets and liabilities positions
All the above should be provided by host and home
country, industry (ISIC), employment category and
educational level (ISCO, ICSE, ISCED) and, when
possible, by products (CPC, EBOPS).
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Universe
 Establishments for identification of the
number of “temporary” workers and
foreign workers by industry and the value
of services provided
 Households for identification of selfemployed and remittances
 Tourists for identification of business
travelers
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Data sources
 International transactions reporting system
– Residents working abroad
– Non-residents working in the host country
 Enterprise surveys of employers
– Compensation paid to non-resident employees
– Compensation paid to local employees by non-resident
enterprises
 Bank data
 Migration statistics/Transport statistics
 Surveys of travelers
 Survey of embassies, etc.
 Partner country data
 Household surveys
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Concepts to be revisited/further
research
 Concept of residency (and related
special cases, e.g. embassy and
military personnel, students, technical
assistance experts, etc.)
 Definition of household
 VISA and other administrative
arrangements among countries
 Definition of “natural person”
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Sources
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SNA 1993
BMP5
FATS framework
BD3
Tourism satellite accounts
Principle and recommendation on migration
statistics
 Population censuses
 OECD manual of economic globalization
indicators
 Country practices
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Next steps
 Preparation of a paper on the framework for the
measurement of Mode 4 and circulation in the
sub-group for comments (June 2004)
 Preparation of an annotated
outline/questionnaire for the drafting of country
papers to be presented in the September
meeting (June 2004)
 Revise the paper on the basis of comments
received and further research (September 2004)
 Present revised draft to the BOP Committee
(October 2004)
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