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Data Localization—a Hidden Tax on the Poor

Technology facilitates the rapid flow of vast quantities of data across the world. These cross-border flows have the potential to unlock substantial benefits for development and poverty reduction. Yet, many policymakers worry about the issues this raises, such as data protection and security, national security, law enforcement and supervisory data access, and competition. In response, many countries turn to a set of policies known as “data localization” in an effort to exercise more control over nationally generated data.

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