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Global Data Governance
Part Two: Evolving Government Data Collection Practices
UPDATED: Sept. 15, 2021
PUBLISHED: June 26, 2020
In Part I of FP Analytics' Data Governance Power Map, we detailed global issues concerning private-sector collection and use of personal data, catalogued emerging regulatory responses and data privacy laws, and broke down critical comprehensive data privacy legislation and global regulatory trends. However, data governance as it pertains to governments themselves is quite distinct. In Part II of this series, we explore evolving government data collection practices, cataloguing key regulations that expand government data collection authority and illustrating how a multi-billion-dollar private surveillance industry is enhancing the sophistication of governments’ data collection across both the developed and developing world. Further, we explore how artificial intelligence (AI) is making government data collection more efficient and ubiquitous, and how the onset of COVID-19 is accelerating the adoption of AI and other digital technologies that facilitate data collection. The increased digitization of society and collection of sensitive personal data by governments and private companies amid the pandemic is exacerbating existing cybersecurity challenges and elevating the urgency of developing international norms for cyberspace.
Executive Summary
Data governance has long been the domain of corporate and organizational strategy, lending a competitive advantage to those able to optimize their data collection, organization, transfer, and discovery practices. With the increasing digitalization of organizations and economies, data governance—and clear establishment of data collection standards, storage, transfer and use protocols—is becoming an increasingly pressing and global issue.
While intellectual property and proprietary data have long been governed through strict legal frameworks, relatively scant protections have existed for user data and personal information. This lax regulatory environment for consumer data in particular has enabled the rise and dominance of global tech companies from Facebook and Google to Baidu and Tencent and has spurred a wave of privacy-focused regulation around the world.
In FP Analytics’ Global Data Governance Power Map series, we examine the emerging laws, regulations, and technologies that are both enabling greater data collection and impacting cross-border data flows. By cataloging the data localization laws, comprehensive national data regulations, government data collection, monitoring and surveillance technologies, and cybersecurity norms and standards shaping the global data governance landscape, we identify and analyze the wide-ranging impacts for individuals, companies, governments, multilaterals, and non-profits.
Emerging data regulations are fundamentally altering how organizations of all types operate internationally. Major data privacy frameworks developed by first movers are serving as templates for other national frameworks under development, many of which are being tweaked to suit prevailing governments’ domestic agendas. For example, the recent passage of the EU’s General Data Protection Regulation (GDPR) and China’s Cybersecurity Law—two of the most comprehensive packages of data privacy regulations—have already had cascading impacts on businesses and organizations in these markets and on their trading partners. In 2017, U.S. firms cited data localization policies as their number-one impediment to digital trade, and these types of protectionist measures are rapidly proliferating worldwide. And that is just the beginning.
Simultaneously, many national governments are crafting exemptions to their data privacy laws, empowering them to expand monitoring capabilities and build up massive data collection infrastructure. New digital technologies, such as artificial intelligence (AI), biometric monitoring and facial-recognition software, are making data collection increasingly efficient. The onset of the COVID-19 pandemic accelerated the adoption of these technologies as governments began rapidly deploying surveillance technology to enforce quarantines and track the spread of the coronavirus. This mass accumulation of sensitive data can have transformative impacts on societies but pose new cybersecurity and privacy risks as regulation struggles to match the pace of technological advancement.
FP Analytics’ Data Governance Power Map series breaks down key emerging trends in global data governance by:
- Pinpointing emerging global data governance trends;
- Cataloguing specific data localization and data privacy laws by country;
- Mapping encryption policies around the world;
- Charting the global sales of data collection and surveillance technology; and
- Exploring cybersecurity and privacy risks and the implications for businesses and individuals.
FP Analytics provides the most comprehensive assessment and mapping of data localization and privacy laws to date, as well as one of the most complete assessments and mappings of government data collection and regulation trends around the world. It is a powerful tool for businesses and others seeking to understand how evolving global governance regimes are shaping our digital world.
PART TWO OF TWOEvolving Government Data Collection Practices
Introduction
In Part I of FP Analytics Data Governance Power Map, we detailed global issues concerning private-sector collection and use of personal data, catalogued emerging regulatory responses and data privacy laws, and broke down critical comprehensive data privacy legislation and global regulatory trends. However, data governance as it pertains to governments themselves is quite distinct. In Part II of this series, we explore evolving government data collection practices, cataloguing key regulations that expand government data collection authority and illustrating how a multi-billion-dollar private surveillance industry is enhancing the sophistication of governments’ data collection across both the developed and developing world. Further, we explore how artificial intelligence (AI) is making government data collection more efficient and ubiquitous, and how the onset of COVID-19 is accelerating the adoption of AI and other digital technologies that facilitate data collection. The increased digitization of society and collection of sensitive personal data by governments and private companies amid the pandemic is exacerbating existing cybersecurity challenges and elevating the urgency of developing international norms for cyberspace.
Unlike the increasingly restrictive data privacy laws applied to private consumer-facing companies, such as Alphabet (Google) and Baidu, governments largely benefit from a range of exceptions. At least 39 countries also have laws that allow governments notably more access to citizens’ and private companies’ data than private-sector actors can obtain. These expansive and increasing data collection capabilities carry wide-ranging implications for economic growth and social innovation in the digital age —from more efficient public works and smarter cities to breakthroughs in medicine and beyond. However, increased government access to data is also enabling widespread monitoring and surveillance capability—presenting myriad risks for privacy and civil liberties, with some tools being used for a range of political purposes, including the repression of minorities, silencing of opposition movements, and quelling of political dissent. While the harnessing and utilization of big data will undoubtedly drive future economic and social development, Part II of our Data Governance series focuses on the latter—issues that are exceptionally pressing given mounting concerns around privacy, policing, cybersecurity, and governments’ consolidation of power around the world.
The Scope and Impacts of Government Data Collection
National governments are rapidly expanding their data collection capabilities, driven by a range of security concerns and policy objectives. Whether a national government sees international terrorism, domestic extremism, popular uprisings, or foreign powers as its primary threat (or threats), nearly all governments in the world are increasing their efforts to collect and access data by monitoring private citizens, gaining permission to use data collected by corporations, or gathering intelligence on foreign governments. The efforts are producing an integrated digital infrastructure enabling mass surveillance within and across borders.
Key Takeaways
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The Issue
Government data collection and monitoring capabilities are rapidly increasing beyond the scope of existing data privacy regulations. Government data collection laws differ throughout the world but generally allow governments to bypass data privacy laws, ultimately resulting in increased global data collection and expansion of monitoring infrastructure.
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The Reaction
To boost their data collection capacity, many governments are moving to limit or bypass encryption by establishing their legal authority to access encrypted data or end the practice completely. The weakening of encryption often occurs upon request of law enforcement and national security agencies, but it increasingly conflicts with government’s cybersecurity objectives, putting companies’ and individuals’ sensitive data at risk.
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What’s at Stake
Since governments often include certain exclusions and exemptions in their own data privacy laws, companies and citizens are often unaware of the scope of data that is collected as well as how it accessed and used within a country, carrying implications for other nations’ national security, companies’ competitiveness, and civil liberties.
The Role of the Private Sector in Government Data Collection and Surveillance
Governments’ exceptions to data privacy laws are further enabled by a well-established, but relatively unknown, surveillance industry in the U.S., the UK, France, Germany, and Israel that is exporting data collection technology, which can be used to enable surveillance in the rest of the world. Sophisticated data collection software and equipment developed by private companies and sold to governments (foreign and domestic) is enabling officials to circumvent data privacy laws that apply to companies and other groups. The utilization of these services is effectively allowing governments unregulated access to data beyond what private companies are permitted to collect.
Key Takeaways
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The Issue
Global mass surveillance infrastructure is enabled by an opaque multi-billion-dollar surveillance industry that supplies surveillance technology platforms to governments around the world. Eighty-seven percent are in OECD countries. While there is a market globally, the technology is predominantly sold to governments in the developing world, with the Middle East and Africa being the largest importing regions.
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The Reaction
The private surveillance industry can sidestep data privacy regulations by selling underlying surveillance technologies directly to governments. By not operating the technology and merely selling the tools, these companies are not subjected to the data privacy laws that apply to companies such as Google and Baidu. This industry is largely self-regulated, with minimal restrictions such as those imposed by sanctions or trade controls.
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What’s at Stake
The unregulated sale of data collection technologies to governments of developing countries has been used to strengthen existing autocratic regimes in Africa, the Middle East, and Southeast Asia, while simultaneously boosting data collection capabilities elsewhere around the world. Notably, this industry is a key contributor to the rapid improvement in data collection capabilities throughout the developing world.
Looking Ahead
Both governments and private companies are rapidly expanding their data collection capabilities, unleashing potential for transformative public benefits and more concerning impacts on civil liberties. In Part I of our series, Emerging Data Governance Practices, we chronicled how private-sector data collection methods have faced recent public backlash, resulting in the widespread adoption of data privacy laws and data localization measures. The proliferation of regulations is restricting companies’ and organizations’ access to user data (and increasing operational costs), creating new challenges for large tech companies, already facing widespread government backlash. However, governments are not imposing similar limits on themselves, often moving to expand their legal authority to collect data and monitor citizens’ activities through legislation aimed at limiting or ending encryption. These efforts are being further enabled by the private surveillance industry and new developments in AI technology, creating significant risks as increasing amounts of sensitive data are exposed to cyberattacks. The rapid digitization of society and expansion of AI during the COVID-19 pandemic accelerated the adoption of new data-collection technology, but regulation and oversight have been lacking. As more emerging technologies such as machine learning and quantum computing are developed, the pace and volume of data collection will further accelerate, prompting new security challenges and highlighting more regulatory gaps. Together, these forces are shaping data governance regimes globally, carrying immense implications for accessing, monetizing, and analyzing data in the digital age.
Many monitoring technologies have transformational potential for society, but the lack of government accountability, to date, and limited ability of the public, the private sector, or research institutions to access this data remains controversial. This underscores the need for multi-stakeholder engagement on, and development of, legal frameworks ensuring greater transparency and accountability. Open-government data legislation, such as the U.S.’s Open Government Data Act, which gives the public access to “non-sensitive” government data, is one effort that could help ensure that data is used responsibly and for public benefit. Such legislation allows private companies, research institutions, and other organizations or individuals to benefit from government data on matters such as weather, traffic, the census, and national budgets. At the same time, governments, private-sector firms, and civil society organizations must collaborate to develop rules and establish norms on ethical data collection and usage and must press state and non-state actors to engage in responsible behavior in cyberspace. Existing efforts by each of these groups present an important starting point, but in order to be effective, coordination and enforcement must improve. As the digitization of the global economy continues, it will require continual efforts by all stakeholders to ensure that its full potential is realized.
Written by Christian Perez. Edited by Allison Carlson. Copyedited by David Johnstone. Design by Andrew Baughman and Jon Benedict. Development by Andrew Baughman. Art direction by Lori Kelley. Graphics by Remie Geoffroi for Foreign Policy.

Learn more about how FP Analytics can enable your organization to act strategically through data-driven insights at ForeignPolicy.com/FP-Analytics.
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