A world crawling out of global devastation needs multicountry data alliances to find solutions to current and future pandemics and cybersecurity
The new decade brings with it unresolved issues of the past and risks and opportunities in the days to come. Did you know that China is the world’s largest storehouse of cross-border data while also being the single-largest exporter of what is being termed as the most precious resource or commodity on the planet? If data is the gold reserve of the new decade, it is time to understand the complexities around data silos and a regulated Earth. The pandemic-ravaged year and a “sheltered at home” humanity saw some key rulings and policy documents on data regulations, pinned across strategic geographies, which possibly hold the key to a new world order. In October 2020, China came up with a Personal Information Protection Law (PIPL) draft to provide a structured privacy and data governance regime. This draft, besides stating the obvious about protecting the privacy of Chinese citizens while providing for technological innovation and growth, has significant insights on China’s outlook towards the global digital economy. It raises key points related to national security vis-a-vis the world economy, banning of overseas data controllers and processors, and using Chinese companies or investments as economic attaches to international sovereigns, thereby threatening them with reciprocal actions in case of adverse decisions or threats. The PIPL has borrowed heavily from the European Union (EU) General Data Protection Regulation (GDPR) and has provisions which give Beijing digital policing reach beyond its physical boundaries. It also allows China to strictly control data flows from its territory, with possible sanctions and bans against blacklisted entities. The PIPL does not have the provision for an independent data protection authority, with the Cyberspace Administration of China being the enforcer and policymaker on data regulations. Meanwhile, along similar timelines a European top court ruling has junked the provisions of the Privacy Shield, a legal framework which guided data flows between the US and EU countries. The landmark ruling will have substantial ramifications for thousands of companies currently sharing millions of dollars worth of data with the US. Meanwhile, the EU has also released a first set of measures under the Data Governance Act to “foster the availability of data for use by increasing trust in data intermediaries and by strengthening data-sharing mechanisms.” This Act has ambiguous guidelines and references on international data transfers, access requests from third countries and provisions to control non-personal data. All of these have edges to cut through the existing fabric of global trade and cooperation.
India introduced a Bill in Parliament for protecting the data privacy of its citizens in 2019, called the Personal Data Protection Bill. Its provisions are still being deliberated by lawmakers. Meanwhile, in the last week of 2020, it also came up with a second draft on the regulation of non-personal data which, according to the committee which prepared the draft, will lead to “India becoming the first country to put in place a simple, comprehensive framework for non-personal data.” The underlying principle is to generate economic value through processing and use of data. When we look at the big picture we find some key phrases such as “data sovereignty”, “economic value of data”, “data protectionism” and “data diplomacy” emerging as commonalities among all regional regulations. It would be naïve to assume that each region in its respective bubble, can derive and create significant value out of the evergreen commodity called data, unless it is helped by real world multinational company investments. The beauty of a digital market economy is that it is both a receiver and a generator of the commodity. Any data regulation applicable for a country/geography will find resonance only if it is interoperable with comparative policies in other economically strategic regions. Let us add another dimension of the emerging technology-led promise of greater well-being in the form of 5G, Artificial Intelligence (AI), the Internet of Things (IoT) and cloud computing, and cyberspace becomes a complex multilayered chessboard. Every player has equal opportunity and risk, with every new move.
To stay in the game, one needs to build alliances or corridors of faith with other players. For instance, the incoming Biden Administration in the US can take the lead in building mutually beneficial tunnels of free data flows between like-minded countries. It may be significant to mention here that China will increasingly use this tactic in its Belt and Road Initiative partner countries, cushioned by large State funded investments and sponsored companies. What is interesting is that each player is learning from the other, while sharpening the next move. Make no mistake that growing concerns/regulations on data flows have a significant impact on the power cords of a “Digi global world order” running on innovations in fintech and technology-aided healthcare,while looking at collective issues of tackling pandemics, climate change and sustainable living. A world crawling out of global devastation needs multicountry data alliances to find solutions to current and future pandemics. It needs to collectively find regulatory principles for AI and emerging technology, including ensuring a safe cyberspace. Any damage to the fragile ecosystem will lead to additional layers of regulatory complexities, which will not benefit anyone.
(The writer is a policy analyst. The views expressed are personal.)