The Current Practices and Gaps in Forest Accounting System of Ethiopia: A Review

Abstract

The SNA provides a framework and a comprehensive set of concepts, definitions and classifications for economic accounting that allows compiling, and presenting economic data in a format designed for purposes of economic analysis, decision-making and policymaking. However, the framework is inadequate to be better indicator economic performance, since it misses most of non-marketed economic activities because of different reasons. In this paper, we assessed the gap in the current practices of SNA in general and forest resource accounting system in particular using different national data sources to review the current practice of accounting in Ethiopian Economy. We also examined structure and contents of economic values of forest products and services. In the current Ethiopian system of national accounts, there was attempt to incorporate more forestry economic activities as much as the methodological approaches permitted. Different data on gross value of outputs and cost of material inputs collected from all available sources to calculate the contribution of different economic sectors to Ethiopian GDP. However, there are limitations in full coverage of forest goods and services and up-to-date productivity indicators - calling for a robust effort by all stakeholders. SNA’s room for flexibility that allows application of satellite accounting is worthy of value addition for improving the existing SNA gaps in methodologies, data availability and economic activity coverage. Measuring forest values that is more comprehensive than the current SNA greatly contributes towards production of integrated statistical indicators for development plan & policy formulation in social, economic & environmental spheres.

Keywords: SNA, GDP, Forest Goods and Services, ISIC, Gaps

DOI: 10.7176/RJFA/11-19-06

Publication date:October 31^st 2020