9
THE DANGERS OF DIGITAL PROTECTIONISM
by Ziyang Fan and Anil Gupta
Many governments are rethinking their policies regarding cross-border data flows. Although cross-border data flows grew by a factor of 45 between 2005 and 2014, according to a McKinsey analysis, events since 2014 have pushed the pendulum to swing away from unconstrained data globalization.
Some policy makers are concerned about individual privacy rights, consumer rights regarding the ownership of data, domestic law enforcement, and cybersecurity. Others are driven by the desire to control or censor online media. Still others hope to create market barriers for global companies—a form of digital protectionism.
Our view is that too much regulation will create, in effect, data ...
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