Special Data Dissemination Standards (SDDS) of IMF.

GS-III: Special Data Dissemination Standards (SDDS) of IMF

Context

India failed to comply with multiple requirements prescribed in the Special Data Dissemination Standard (SDDS) mandatory for all IMF members.

Special Data Dissemination Standard

The Special Data Dissemination Standard (SDDS) was established by the IMF for member countries that have or that might seek access to international capital markets, to guide them in providing their economic and financial data to the public.
Although subscription is voluntary, the subscribing member needs to be committed to observing the standard and provide information about its data and data dissemination practices (metadata).
The metadata are posted on the IMF's Dissemination Standards Bulletin Board. The SDDS is expected to enhance the availability of timely and comprehensive data and improve the functioning of financial markets.
India subscribed to the SDDS on December 27, 1996.

Indian datasets are not updated

India failed to comply with multiple requirements prescribed in the SDDS a practice mandatory for all IMF members.
Whereas comparable economies comprising the BRICS grouping of Brazil, China, South Africa and Russia, have maintained a nearly impeccable record in the same period.
Also, India’s non-compliance in multiple categories in 2018 and to an extent in 2017 breaks with an otherwise near-perfect dissemination record.
When contacted, the IMF acknowledged India’s deviations but termed them “non-serious”.
However, independent observers see these deficiencies as a result of indifference to data dissemination procedures.

A recent phenomenon

India’s non-compliance with IMF standards is a recent phenomenon.
When asked for the reason for the delays in 2018, Deputy Director in the Department of Economic Affairs termed it as a “one off event due to technical glitches”.
They were made available on other (Indian) government websites on a timely basis through links on the NSDP to these websites”.

Implications of non-compliance

The IMF document states that monitoring observance of the SDDS is central to maintaining the credibility of the IMF’s data standards initiatives and its usefulness to policymakers.
It further states that if the IMF staff considers a non-observance as a “serious deviation” then procedures would be initiated against the member country.
When the IMF was asked to explain why India’s non-observance was deemed as non-serious, their statistical department persisted that this was due to “information availability in other government websites.

Source: The Hindu

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