Imagine submitting an online application for a government benefit only to learn that a security breach has revealed your personal data, including your ID number, medical history, and financial records. Your most private information is now at risk of fraud and identity theft. A single breach might jeopardise millions of citizens, posing a growing threat to public sector digital services for governments around the world.

Global economies are changing as a result of digitalisation, which presents previously unheard-of chances for expansion and improved access to both public and private services.

We must close the trust gap as we work to close the digital divide, or the gap between people who have access to digital technology and those who do not. Instead of frightening, digital advancement should empower. 

The Global Data Protection Movement

A global wave of privacy reforms was sparked by the EU General Data Protection Regulation (GDPR) in 2016; this phenomenon is known as the “Brussels effect,” in which EU laws have an impact on international norms. As a result, nations all over the world strengthened their data protection laws.

According to a 2021 study by the United Nations Conference on Trade and Development (UNCTAD), 137 countries had put data protection laws into effect. That number has increased to 167 countries, suggesting a global trend towards more robust privacy protections, according to David Banisar, a Visiting Senior Fellow at the London School of Economics and Political Science.

We at the World Bank have seen this increased attention to our client nations’ needs. Our contributions to support nations in creating and implementing best practices in data protection have expanded dramatically. Reaching $274.4 million (2020–2024), lending aimed at bolstering the enabling environment for digital transformation—including creating institutional and regulatory frameworks that encourage safe data handling—has more than doubled in the last five years.

Even while there has been unquestionable progress in the adoption of legislation, the next task is to ensure that Data Protection Authorities (DPAs) around the world are prepared to enforce them and to translate regulations into actual impact.

Where to Put Our Attention: The Upcoming High Priorities in Data Security

As we proceed, the conversation ought to centre on the efficient implementation, adaptation to new technologies, and development-leveraging potential of data protection.

Adoption to Enforcement

Implementing current legal frameworks and providing DPAs with the financial, technical, and human resources required to successfully execute the law must now be the main priorities. Many regulators have significant capacity limitations that make it difficult for them to look into violations, enforce sanctions, and offer advice, especially in Low and Middle-Income Countries (LMICs). It is necessary to make investments in peer-learning networks, training initiatives, and technology that facilitate effective regulation.

AI Governance: Ensuring Everyone Is Included

AI-driven decision-making is influencing everything from hiring procedures to social benefits, posing new privacy, bias, and accountability problems. Emerging nations should be included in the discussion of AI governance to help create the regulations that will reduce the hazards associated with AI. The discussion needs to broaden to include algorithmic openness, explainability, and regulatory oversight for automated decision-making systems, even while privacy is still a major concern.

Safe Cross-Border Data Transfer

Because of worries about national security and citizen privacy, countries are increasingly requiring data storage to take place within their borders. But these limitations can also delay innovation and raise prices. The globalisation of data protection legislation offers governments, corporations, and civil society a vital chance to work together on interoperable legal frameworks that take into account local characteristics and guarantee safe data transfers. This necessitates putting aside the conventional “data sovereignty” argument and coordinating national regulatory strategies to acknowledge the various data transfer channels that facilitate secure cross-border data flows.

Improved Security for Improved Data Utilisation

Protecting privacy is only one aspect of data protection in the future; another is facilitating ethical data sharing that propels advancement in many industries. Robust frameworks guarantee that the appropriate data is disseminated to the appropriate individuals for the appropriate objectives. Researchers can work together internationally in the healthcare industry while protecting patient privacy thanks to privacy-preserving measures. Trusted data sharing in agriculture can promote resilience and innovation by giving farmers access to improved market and climate knowledge. When properly implemented, data protection serves as the cornerstone for more effective data utilisation for development rather than as a barrier.