Digital economy report 2021: cross-border data flows and development, for whom the data flow

The publication examines the trends in the global data-driven digital landscape, focusing on opportunities and challenges for developing countries. It highlights the implications of the Covid-19 pandemic on digitalization and cross-border data flows, and considers the regulation of these flows. The report explores advantages and disadvantages of different policies and approaches to regulation and makes policy recommendations for a balanced approach.

Format: Paperback / softback
Length: 234 pages
Publication date: 30 March 2022
Publisher: United Nations

This comprehensive publication takes a comprehensive look at the latest trends in the global data-driven digital landscape, exploring opportunities and challenges for developing countries to leverage. It delves into the profound impact of the COVID-19 pandemic, which has accelerated digitalization trends and witnessed a substantial increase in cross-border data flows. With a developmental lens, the report further examines the implications of these data flows, considering ongoing discussions and providing a comprehensive review of the relevant literature. It explores various policies countries are implementing regarding cross-border data flows, analyzing their advantages and disadvantages, particularly for developing nations. Additionally, the report tracks the evolution of different approaches to regulation at the international and regional levels. Finally, the report offers policy recommendations aimed at establishing a balanced approach to facilitating progress in the productive regulation of cross-border data flows.

Opportunities and Challenges for Developing Countries in the Global Data-Driven Digital Landscape

The global data-driven digital landscape presents both opportunities and challenges for developing countries. On the one hand, the rapid growth of digital technologies and the increasing availability of data can foster economic growth, innovation, and improved access to healthcare, education, and other services. However, developing countries face several barriers to fully benefiting from the digital revolution, including limited infrastructure, skills, and resources, as well as concerns about data privacy, security, and sovereignty.

One of the key opportunities for developing countries in the digital landscape is the potential for increased cross-border data flows. The COVID-19 pandemic has accelerated the adoption of digital technologies and the use of online platforms, leading to a surge in cross-border data transactions. This can bring benefits such as increased trade, investment, and economic growth, as well as improved access to healthcare and education resources. However, it also raises concerns about data protection, privacy, and security, particularly in light of the increasing amount of personal and sensitive data being transmitted across borders.

To address these challenges, developing countries need to invest in infrastructure development, including broadband access, digital literacy programs, and cybersecurity measures. They also need to develop policies and regulations that promote data protection, privacy, and security, while also encouraging innovation and economic growth. This can involve collaboration with international organizations, such as the International Monetary Fund (IMF) and the World Bank, as well as private sector partners.

Another challenge for developing countries in the digital landscape is the need to address the digital divide. Despite the growth of digital technologies, many people in developing countries still lack access to the internet and digital services. This can limit their ability to participate in the digital economy, access job opportunities, and access healthcare and education resources. To address this challenge, developing countries need to invest in infrastructure development, including mobile networks and affordable internet access. They also need to promote digital literacy programs and provide training and education opportunities to ensure that people have the skills and knowledge needed to participate in the digital economy.

In addition to these challenges, developing countries also face concerns about data sovereignty. Data is increasingly being used to drive economic growth, but it can also be used to perpetuate inequality and discrimination. For example, data-driven algorithms can be used to target advertising or loan applications, leading to discrimination against certain groups of people. Developing countries need to develop policies and regulations that promote data fairness, transparency, and accountability, while also ensuring that data is used to benefit society as a whole.

Finally, developing countries need to address the issue of data sovereignty. Data is often collected and processed by multinational corporations or governments, which can raise concerns about sovereignty and control over data. Developing countries need to develop policies and regulations that promote data sovereignty, including the right data localization and the right to data portability. This can involve developing policies that require data to be processed and stored locally, or that allow individuals to control their data and to transfer it to other providers.

In conclusion, the global data-driven digital landscape presents both opportunities and challenges for developing countries. By investing in infrastructure development, promoting data protection, privacy, and security, addressing the digital divide, promoting data fairness, transparency, and accountability, and addressing data sovereignty, developing countries can leverage the benefits of the digital revolution while also mitigating the risks. This requires a collaborative effort between governments, the private sector, and international organizations, as well as a commitment to promoting sustainable and inclusive development.

Dimension: 300 (mm)
ISBN-13: 9789211130225