Data protection in development: Where are we headed?

Imagine applying for a government benefit online, only to discover that your personal information—such as your ID number, medical history, or financial records—has been exposed due to a security breach. Suddenly, your most sensitive data is vulnerable to identity theft and fraud. Governments worldwide face increasing threats to public sector digital services, where a single breach can compromise millions of citizens. 

Digitalization is reshaping economies worldwide, offering unprecedented opportunities for growth and better access to public and private services. 

As we push forward to bridge the digital divide—the gap between those with access to digital technology and those without—we must also bridge the trust gap. Digital progress should empower, not intimidate. 

The Global Momentum for Data Protection 

The adoption of the EU General Data Protection Regulation (GDPR) in 2016 set off a global wave of privacy reforms—the so-called "Brussels effect," where EU regulations influence global standards. This prompted countries around the world to strengthen their data protection frameworks. 

In 2021, the United Nations Conference on Trade and Development (UNCTAD) reported that 137 nations had implemented some form of data protection legislation. According to David Banisar, a Visiting Senior Fellow at the London School of Economics and Political Science, that number has grown to 167 countries, reflecting a global shift towards stronger privacy safeguards. 

At the World Bank, we have witnessed this growing focus on the demand of our client countries. We have significantly increased our investments to help countries develop and implement best practices in data protection. Lending focused on strengthening the enabling environment for digital transformation—including building regulatory and institutional frameworks that foster responsible handling of data—has reached $274.4 million (2020–2024), a more than eightfold increase over the previous five years.

However, while the progress in legal adoption is undeniable, the next challenge lies in translating laws into real impact and ensuring that Data Protection Authorities (DPAs) worldwide are well-equipped to enforce them.

Where Our Focus Should Be: The Next Big Priorities in Data Protection 

As we move forward, the discussion should focus on how data protection can be effectively implemented, adapted to emerging technologies, and leveraged for development.

From Adoption to Enforcement 

The focus must now be on implementing existing legal frameworks and equipping DPAs with the financial, technical, and human resources necessary to enforce laws effectively. Many regulators, particularly in Low and Middle-Income Countries (LMICs), face severe capacity constraints that hinder their ability to investigate breaches, impose penalties, and provide guidance. Investment in training programs, peer-learning networks, and technological solutions that enable efficient regulation is needed. 

AI Governance: Leaving No One Behind 

AI-driven decision-making is shaping everything from social benefits to hiring processes, raising new risks for privacy, bias, and accountability.  The dialogue around AI governance should be more inclusive and include emerging countries to shape the rules that will mitigate AI risks. While privacy remains a critical concern, the conversation needs to expand to algorithmic transparency, explainability, and regulatory oversight for automated decision-making systems. 

Safe Movement of Data Across Borders

Countries are increasingly mandating data storage within national borders due to concerns regarding national security and citizens' privacy. However, such restrictions can also increase costs and slow innovation. The emergence of data protection laws worldwide presents a critical opportunity for governments, businesses, and civil society to collaborate on interoperable regulatory models that reflect regional specificities while ensuring secure data flows. This requires moving beyond the traditional “data sovereignty” debate and aligning domestic regulatory approaches to recognize multiple data transfer mechanisms that enable safe cross-border data flows.

Better Protection for Better Use of Data

The future of data protection is not just about safeguarding privacy–it is about enabling responsible data-sharing that drives progress across sectors. Strong frameworks ensure that the right data is shared with the right people for the right purposes. In healthcare, privacy-preserving mechanisms allow researchers to collaborate across borders while safeguarding patient privacy. In agriculture, trusted data-sharing can help farmers access better market and climate insights, fostering resilience and innovation. When done right, data protection is not a barrier—it is the foundation for a better use of data for development.

The author would also like thank colleagues for their valuable contributions to this blog: Prakhar Bhardwaj, Digital Safeguards Specialist, Ambrose Wong, Cloud and Data Governance Specialist, and Mateo Garcia Silva, Digital Safeguards Specialist.