E-commerce Trade and Data Localization: A Developing Country Perspective

Abstract

This article explores the issue of data localization by capturing all relevant debates and discussion around it. It investigates issues related to data management, storage, and ownership, followed by the data safety and security concerns of developing countries in a rapidly changing digital world. Storing data locally can be an effective way to tackle these concerns. Data localization can bring the data storing market price down. It can inject sufficient incentive to spur technological innovation in the system. If workable templates of data safety and privacy frameworks can be built locally, consumers’ rights will also be protected. Data localization also has the potential to positively contribute to effective redressal of damages in developing countries related to data leakage. The COVID-19 pandemic has considerably sharpened existing conflicts in the e-commerce ecosystem. Treating this crisis as an opportunity and pushing for digital data safety and security by means of data localization is the ideal strategy for developing and emerging economies to adopt.