Today’s rapid digitization represents a revolving door for opportunities and challenges across the world. The issue of data privacy and digital rights in poorer developing nations is an evolving concern in this context. While digital technologies help these countries to advance economically and socially, they also pose threats to data protection and digital rights. We asked the DevelopmentAid expert community about the challenges and solutions for developing nations in this respect. Check out the experts’ answers in our new article below.
Key Takeaways:
- According to the United Nations, there was a 11% surge in the adoption of data protection and privacy legislation between 2015 and 2020 but only 66% of the world’s nations currently safeguard people’s online data and privacy.
- Developing nations face challenges in adapting to new technologies mainly due to slow legal frameworks and an understanding of compliance.
- The absence of robust data protection laws hampers economic growth, foreign investment, and innovation in developing nations.
- International organizations offer financial aid, loans, and technical assistance to facilitate capacity building, and knowledge sharing, and encourage public-private partnerships in developing countries.
DevelopmentAid: What are the challenges for developing countries regarding data protection and digital rights compared to developed nations?
“Nowadays, the art of technological advancement is being embraced by all nations including developing countries. However, they face multiple challenges in adhering to new technologies, without understanding the implications of compliance and the legal frameworks under which the technologies operate. According to the resolution of the 28th International Conference of Data Protection and Privacy Commissioners (2006), the technological pace continues to accelerate while the legal pace remains comparatively slow in progress. For this reason, developing countries may not effectively deal with crimes committed over the internet or in the office work environment. Hackers and spammers, for instance, target populations from developing countries because they have little or no knowledge of online security. Although most of these countries may have laws on data protection, these laws are general in character and may not apply to crimes such as spamming. Moreover, the IT and electrical infrastructures are of inferior development, and the internet access is unreliable. ”
“Developing nations face a myriad of challenges in safeguarding data privacy and digital rights, primarily stemming from resource constraints, inadequate legal frameworks, and a lack of technical expertise. Unlike their developed counterparts, where data protection laws are often well-established and enforced, developing nations may lack comprehensive legislation to address data privacy concerns. This legislative gap leaves individuals’ personal information vulnerable to misuse and breaches. Furthermore, developing countries often lack the necessary infrastructure to effectively implement and enforce data protection regulations. The absence of robust legal and technical frameworks makes it difficult to manage and secure the vast amounts of data generated through increasing digitalization. This situation is aggravated by a general lack of awareness and understanding of data privacy issues among the population and institutions in many of these countries.”
“Though it is of capital importance in adverse climate, food production and distribution deficit situations, conflict and extreme regional circumstances, all digital rights and data privacy must be of specially consideration all the time. Protecting data privacy is not an exclusive issue of developing nations. Sometimes, state and economic reasons conduct to unwished situations which result is turned in data privacy failure. With the worldwide nowadays distributed information, is quite frequent to aboard generalized subjects which may be precursor of data privacy vulnerability, mainly when journalist’s jobs are being denaturalised, distortional, censured or ignored.”
See also: Human rights and digitalization: Exploring the key challenges
“I consider that developing countries face complex challenges from global data flow demand in regulating data for cross-border, cultural and social factors, including high digital literacy gaps, which influences policy and enforcement. Also, because of the rapid adoption of digital transformation and the lack of resources and expertise required to develop a robust legal framework, nations can be vulnerable to data breaches and exploitation with new technologies being unregulated.”
“Firstly, a recognition that personal data belongs to the individual and is shared with the state in exchange for services, such as national ID, Passport, drivers, and with commercial entities; e.g. Banks. Personal data protection is also vital for national border security as well as ensuring citizens receive benefits due to them. Ultimately, the protection of personal data engenders trust in government institutions. Without the adequate protection of data, digitization of government and e-Commerce becomes a very risky proposition. Citizens will not participate if they think their personal data is not protected. Foreign companies will be wary of investing if they think their digital rights, in particular IPRs, are not adequately protected and that there is a fully functioning legal regime that understands the roles of digital rights in a modern economy.”
DevelopmentAid: How does the lack of data privacy and digital rights mechanisms affect developing countries?
“Startups and emerging businesses rely heavily on data access to develop new products and services. Overly burdensome privacy regulations may disproportionately affect their ability to compete with established market players from developed countries. The key point is that attracting digitized foreign direct investment (FDI) may necessitate different laws and regulations than those for traditional FDI since enterprises that offer digital services use different business models. Digital enterprises invest heavily in contracting freelancers for remote work which brings them closer to their clients and allows access to the new markets. As a result, specific rules and taxation laws in developing countries are at the top of the list of issues that digital enterprises are most concerned about. For example, the COVID-19 pandemic acted as a driving force for the digitalization of various enterprises since a nationwide lockdown across most of the globe drove firms to migrate remotely using digital platforms. With most economies seeing considerable growth because of this digitalization, investors recognized an opportunity to invest and profit. The use of communication services that rely on the internet and significant quantities of cross-border data flows has thus surged throughout the pandemic globally.”
“The absence of robust data privacy and digital rights protections can have a significant detrimental impact on economic development and foreign investment in developing nations. Investors and multinational companies often seek assurances that their data and intellectual property will be protected. Without clear and enforceable data protection laws, these nations may be perceived as high-risk environments thus deterring foreign investment. Moreover, inadequate data privacy measures can lead to data breaches and the misuse of personal information, eroding public trust in digital services and hindering the adoption of technology-driven solutions. This situation can slow down the digital transformation that is essential for economic growth, limiting access to digital markets and innovations that could spur development. In essence, the lack of data privacy and digital rights protection can create a vicious cycle of underdevelopment as it impedes innovation, discourages investment, and erodes public trust in the digital economy.”
“A strategic economic imperative for developing nations ensuring compliance with data privacy and digital rights protection is essential as the absence of, or inadequacy of one, creates the perception of a less attractive environment that impedes international trade, involves compliance costs, and reduces consumer trust thus deterring nations from engaging in digital trade with regions having stringent data privacy requirements, e.g., GDPR. Consequently, local businesses incur higher costs to comply with international standards, making them less competitive.”
“Without the adequate protection of data, digitization of government and e-Commerce becomes a very risky proposition. Citizens will not participate if they think their personal data is not protected. Foreign companies will be wary of investing if they think their digital rights, in particular IPRs, are not adequately protected and that there is a fully functioning legal regime that understands the roles of digital rights in a modern economy.”
“Global communication systems inherently protect privacy data and related questions but some state policies are still making questionable effects on all the related economical, strategic planning and individual activities. The reason for this behaviour is closely related to the strategy and projections particular states adhere.”
See also: Understanding GDPR: A guide for development organizations
DevelopmentAid: How can international organizations support developing nations to improve data privacy and digital rights mechanisms?
“International organizations and developed countries can offer bilateral aid to address challenges regarding funding, technical capacity, governance, and data demand. Coalitions of international organizations and development partners can provide coordinated global solutions for activities that fulfill specific data needs. The governments of developing countries need to make coordinated efforts either under national budgets or through loans or grants from multilateral development banks. For example, the World Bank’s Data for Policy Package identifies a core set of social, economic, and sustainability statistics that is crucial for monitoring and evaluating development outcomes and provides governments with loans or grants to address these data needs. For relatively lower-income, data-deprived countries, this aid can help governments to prioritize which gaps to fill and supplement scarce national funding. Another example is to minimize the agricultural data gap needs, which is an exclusive initiative that seeks to transform agricultural data systems across low and middle-income countries by 2030. It can help to expedite innovative funding mechanisms, leveraging donor funding to mobilize national funding and create national ownership. One example of such initiatives is the “UNCTAD eCommerce Week”, one of the leading forums for ministers, senior government officials, CEOs and other business representatives, international organizations, development banks, academics, and civil society to discuss the development opportunities and challenges associated with the digital economy. Held simultaneously in Geneva and online from 25 to 29 April 2022 under the theme “Data and Digitalization for Development”, this edition looked at ways to strengthen the ability of developing countries, including least developed countries, to continue engaging in and benefiting from e-commerce and the digital economy to build more resilient and inclusive societies in a dramatically different from post COVID-19 environment.”
“International organizations and developed countries can play a crucial role in enabling developing nations to establish effective data privacy and digital rights regulations. This support can take the form of technical assistance, capacity building, and knowledge transfer. Developed countries and international bodies can provide expertise in crafting legislation that balances individual rights with the need for digital innovation. Additionally, they can offer resources to build the necessary infrastructure for enforcing data privacy laws. Collaborative efforts, such as partnerships and knowledge-sharing platforms, can facilitate the exchange of best practices and experiences in data protection. Financial support and investment in digital infrastructure can also be pivotal. Encouraging global standards for data privacy can ensure a level playing field, helping developing nations to integrate into the global digital economy while protecting the rights of their citizens. By working together, international organizations and developed countries can help developing nations to overcome the challenges they face in protecting data privacy and digital rights, creating a more equitable and secure digital landscape for all.”
“Apart from traditional support, developing nations can leap-frog from collaborative efforts between international organizations and developed countries through USAID, GIZ, OECD, UN, EU, etc. with their multi-faceted assistance in the facilitating of public-private partnerships between governments and competent private entities that are necessary to establish robust, effective, and sustainable data privacy and digital rights framework- recognising the unique context and needs of each nation.”
“Several fronts; Legal and regulatory reform to recognise data protection is fundamental to growth in a modern society. The principles have been laid down by the UN and endorsed by the OECD with a practical guide from the Council of Europe’s Convention 108, leading to legislation to protect an individual’s data. Data privacy needs to be protected from political interests, so an independent privacy commission, reporting to the head of state goes a long way towards that goal. Next, is capacity development to enforce DP regulations, this includes the training of the judiciary on DP and DR, and the appointment within every compony and government department, above say 10 employees, someone who has had training and has the legal responsibility for protecting their fellows data, and perhaps more importantly, that of their customers. Finally, ensuring citizens are educated to understand how their data is being protected so they willingly participate in digitation initiatives of the government and commerce. This should start at elementary school level grade 4 and above to ensure kids know that before they get their hands on a phone and access to social media what the consequences are of over sharing their personal information.”
“The best efforts to help assuring effective data privacy on all developing and developed countries is a matter of capital importance, and for that purpose some state and private organizations ought to make the best for that purpose be accomplished, mainly in situations where peace, lives and future human development is at risk. Every limit badly imposed on privacy data and rights, certainly would limit the economical and human success, will reduce the future development and will consolidate the breach between the less and most privileged nations.”
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