Strong data protection framework vital for digital economy
A STRONG data protection framework helps foster consumer trust while increasing the use of digital tools which are now essential in expanding economies, United Nations agency has said.
This in turn can incentivize investment, competition and innovation in the digital economy, according to a recent study by United Nations Capital for Development Fund (UNCDF).
UNCDF stated that a strong data protection framework provided certainty which may encourage investment, competition and innovation in the digital economy, uptake of digital government and private sector services.
“Digital technologies and data are potential enablers of development in health, education, agriculture, food security, financial services, manufacturing, trade and infrastructure, and the digital economy itself.
“They can transform public and private services, inform policy decisions, and improve the monitoring of progress and impact,” UNCDF stated in its study.
According to UNCDF, increased trust in the digital realm was vital to uptake and usage of digital services, indicating that providers also needed certainty about the rules of the game.
“The implementation of a data protection framework may be a valuable precondition for investment in data-intensive businesses,” UNCDF stated.
The organisation also stated that efficient and innovative use of data may involve transferring data across country borders.
It indicated that this may be necessary, for example, for provision of cross-border digital services and electronic commerce, operation of international supply chains, customer relations management by international service providers, access to better or lower cost data processing, or pooling of data for better analytics.
It however pointed out that: “On the other hand, it is difficult to monitor and enforce data protection requirements if data leaves the country. Many data protection frameworks therefore impose conditions and restrictions on transfer of data outside the jurisdiction.”