World Development Report 2021 Data for Better Lives

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Contents xi Foreword xiii Acknowledgments xvii Abbreviations 1 Overview 3 Overview 3 Advancing development objectives through data 10 Aligning data governance with the social contract 16 Moving toward an integrated national data system 18 Notes 19 References 21 Part I: Advancing development objectives through data 23 Chapter 1: Harnessing the value of data for the poor 24 The untapped potential of data to serve development objectives 25 A brief history of data 27 A data typology 30 The economics of data and political economy issues 33 Data for development: A conceptual framework 38 A data governance framework to enforce the social contract for data 41 Putting it all together: Establishing an integrated national data system 42 Organization of this Report 43 Notes 44 References 48 Spotlight 1.1: Helping communities to gain the ability to collect and analyze their own data 50 Spotlight 1.2: The importance of good data in helping low- and middle-income countries to manage debt during and after the COVID-19 pandemic 53 Chapter 2: Data as a force for public good 54 The central role of public intent data 54 Public intent data and development: Three pathways for adding value 59 Gaps in the coverage, quality, and usability of public intent data 65 Why data gaps persist: The political economy of public intent data 71 Realizing the potential of public intent data 75 Notes 78 References Contents | iii

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85 Spotlight 2.1: Deploying data to curtail violence against women and girls 89 Spotlight 2.2: The role of international organizations in improving public intent data 91 Chapter 3: Data as a resource for the private sector 92 Creating value and solving development challenges through data-driven business models 92 The role of data in the production process of firms 93 Data-driven businesses and the technologies that help them create value 95 Focus on platform firms in low- and middle-income countries 98 Data inputs for economic activity 100 The positive development impacts of data used in the production process 103 How use of data in the production process is transforming sectors 107 Some potential risks and adverse outcomes of data-driven businesses to be addressed by policy 111 Notes 113 References 117 Spotlight 3.1: The huge potential of open data for business applications 121 Chapter 4: Creative reuses of data for greater value 122 The power of repurposing and combining different types and sources of data 125 New insights from repurposing and combining data 134 Limitations in using private intent data for development 136 Investments in data innovations: Building a culture of data 143 Notes 144 References 150 Spotlight 4.1: Gathering, sharing, and using better data on weather, water, and climate from low- and middle-income countries 152 Spotlight 4.2: Making roads safer by repurposing private intent traffic data 155 Part II: Aligning data governance with the social contract 157 Chapter 5: Data infrastructure policy: Ensuring equitable access for poor people and poor countries 158 Data infrastructure as a source of inequity 160 Connecting poor people 168 Connecting poor countries 174 Conclusions and recommendations 178 Notes 180 References 184 Spotlight 5.1: How the COVID-19 pandemic has recalibrated expectations of reasonable data consumption and highlighted the digital divide 186 Spotlight 5.2: Data’s carbon footprint 189 Chapter 6: Data policies, laws, and regulations: Creating a trust environment 190 A trust framework of data safeguards and enablers 191 Building safeguards for trusted data use 199 Creating enablers for data sharing 206 Recommendations for crafting a holistic legal framework 208 A maturity model for strengthening the legal and regulatory framework 209 Notes 215 References 222 Spotlight 6.1: The evolving social contract on data: Balancing data sharing and data protection to facilitate contact tracing to control COVID-19 224 Spotlight 6.2: The debate over ownership of personal data iv | Contents

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Section 1 — 1 24 What this Report means by data 3

Section 2 — 1 55 Six types of public intent data 4

227 Chapter 7: Creating value in the data economy: The role of competition, trade, and tax policy 228 Shaping data regulation to support competition, trade, and taxation 229 Competition policy 237 Trade policy 246 Tax policy 250 Conclusion 250 Notes 254 References 259 Spotlight 7.1: Understanding the interface between data protection and competition policy 261 Spotlight 7.2: The role of regional and international cooperation in addressing data governance challenges 265 Chapter 8: Institutions for data governance: Building trust through collective action 266 How can institutions help govern data for development? 267 Data management across the data life cycle 269 Data governance functions 271 Mapping data governance functions to illustrative institutions 277 Data intermediation and collaboration 280 Making data governance institutions effective 284 Sustainable outcomes through inclusive multistakeholder governance 286 Assessing the institutional foundation through the lens of a maturity model 288 Notes 291 References 297 Spotlight 8.1: The need for a new global consensus on data: A call to action 299 Spotlight 8.2: Promoting citizen science in the Amazon basin 301 Part III: Moving toward an integrated national data system 303 Chapter 9: Creating an integrated national data system 304 Toward an integrated national data system 305 The vision of an integrated national data system 309 Realizing the vision 322 Notes 324 References Boxes O.1 18 Toward an integrated national data 2.3 61 Gender data and the COVID-19 system: Country examples pandemic 1.1 24 What this Report means by data 3.1 94 Technologies and methods that 1.2 29 Innovation in traditional surveys: support data-driven decision-making A COVID-19 example in Brazil and intermediation 1.3 32 The challenges of trading data 4.1 122 Using cellphones to combat through markets COVID-19 1.4 36 Using private intent data to tackle 4.2 126 Leveraging private intent data to COVID-19 tackle COVID-19 2.1 55 Six types of public intent data 4.3 131 Preventing illegal fishing in protected maritime areas 2.2 60 The World Bank’s Statistical Performance Indicators Contents | v

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Section 3 — 1 94 The role of data in the production

Section 4 — 4 135 Using statistical methods and S1

Section 5 — 1 174 The brain drain

Section 8 — 1 266 Uruguay’s whole-of-government real-time sensor data to reduce repair

Section 9 — 1 304 Relationship between an integrated

4.4 135 Using statistical methods and S1.2.1 50 In six years, the composition of debt private intent data to improve has shifted dramatically representativeness and geospatial 2.1 55 Certain data features can maximize precision the value of public intent data 5.1 174 The brain drain—ICT professionals 2.2 56 Improving access to water: Using 8.1 266 Uruguay’s whole-of-government real-time sensor data to reduce repair approach to data governance time for broken hand pumps in Kenya 8.2 269 The importance and complexity of data governance institutions: The 2.3 60 Gaps in geospatial datasets are example of digital identification especially large in lower-income systems countries 8.3 279 Increased scrutiny of and constraints B2.3.1 61 Proportion of COVID-19 cases on private data intermediaries reported with sex-disaggregated data for 190 countries 8.4 286 Building multistakeholder data governance into smart city initiatives 2.4 63 Lower-income countries, especially through “digital democracy” those affected by fragility and conflict, have less comparable 9.1 304 Relationship between an integrated poverty data than other country national data system and a national groups statistical system 2.5 64 Lower-income countries are Figures less likely than other countries to adhere to international best- O.1 4 How data can support development: practice statistical standards and A theory of change methodologies O.2 6 A social contract for data founded on 2.6 65 A positive feedback loop can connect value, trust, and equity enablers and features of public intent data with greater development value O.3 11 Data governance layers at the national and international levels 2.7 66 Most countries do not fully fund their national statistical plans O.4 13 The legal and regulatory framework for data governance remains a work 2.8 68 The older a country’s statistical in progress across all country income laws, the lower is its statistical groupings performance and the less open are its data O.5 14 Since 1990, the global trade in data-driven services has grown 2.9 69 Greater NSO independence and exponentially and now constitutes freedom of the press are positively half of trade in services correlated with better statistical performance O.6 17 What happens in an integrated national data system? 2.10 70 Data supply and demand can generate either virtuous or vicious 1.1 26 The share of people counted in a cycles of data production and use census grew from about 1 in 10 in 1850 to 9 in 10 today 2.11 71 Policies to realize the potential of public intent data 1.2 30 The data life cycle S2.1.1 85 Prevalence of female genital 1.3 34 Three pathways along which data can mutilation in women ages 15–49, by foster development country income level, 2010–19 B1.4.1 36 Use of repurposed data to study 3.1 94 The role of data in the production COVID-19: Published articles, by type process: Pathways to development of private intent data used 3.2 96 The role of data in economic activity 1.4 39 Data governance layers at the national and international levels 3.3 97 Platform firms are numerous in some lower-income countries but tend to 1.5 41 Data flow safely across all be small stakeholders in an integrated national data system 3.4 97 The importance of domestic versus foreign-headquartered firms differs S1.1.1 49 A citizen-led method to ascertain who across countries as indicated by firm has authority in household decision- share of top websites making in rural Indian villages vi | Contents