## Shaping a Data Economy ## Source details **Canonical URL:** [Shaping a Data Economy](https://www.imf.org/en/publications/fandd/issues/2020/12/shaping-a-data-economy-wef-sonmez) ## Other formats - [Markdown version](/en/publications/fandd/issues/2020/12/shaping-a-data-economy-wef-sonmez/index.md) - [Structured JSON version](/en/publications/fandd/issues/2020/12/shaping-a-data-economy-wef-sonmez/index.json) - [Bundle manifest](/en/publications/fandd/issues/2020/12/shaping-a-data-economy-wef-sonmez/bundle-manifest.json) ## Bibliographic details - Authors: MURAT SONMEZ - Published: December 1, 2020 --- ### Harnessing data’s economic power and the Fourth Industrial Revolution - Data fuels AI, precision medicine, robotics, and the Internet of Things and will determine the success or failure of the 4IR. - Technology adoption accelerated during the global pandemic: - "More than 80 percent of business executives are accelerating plans to digitalize work processes and deploy new technologies." - "By 2025, employers will divide work equally between humans and machines." - The valuation of technology companies demonstrates data’s economic value; a transparent and equitable mechanism could unlock value for individuals and organizations while protecting privacy. ### Four-tiered "data operating system" (data OS) — core policy recommendations - Reimagine notice and consent mechanisms: - Allow owners of data to specify purposes, duration, and payment rights. - Attach rules to data sets (analogous to media digital rights management) so data "cannot be used out of bounds." - Certification mechanism for applications using data sets: - Certify data-mining algorithms and applications via a trusted agency (a 4IR "app store") for compliance with consent protocols and restrictions. - Transparent mechanism for valuation of data: - Treat data as a tradable asset; use market forces to price it for specific uses. - Recognize that data can be used repeatedly and for a variety of purposes, unlike single-use commodities. - Cross-border data flow and digital remittance mechanism: - Countries could form bilateral treaties to share data for agreed purposes and pool data assets via a secure mechanism. - Facilitate cross-border payments digitally, ensure timely payment to owners, and align taxation: owners pay taxes on income received; users pay taxes at consumption in their jurisdictions. ### Expected benefits and systemic effects - Continuous income stream for individuals from data. - Companies can mark-to-market data assets on balance sheets, creating assets benefiting stakeholders. - Early detection and prevention: the data OS could "reverse-engineer breakdowns and glitches before they occur," alerting to risks and guiding responses. - If designed correctly, the system could boost economic growth and minimize negative societal impacts. ### Case study 1 — Treating rare diseases - Scope and challenge: - "Worldwide, 400 million are affected by a rare disease, more than cancer and AIDS combined." - "There are 7,000 identified rare diseases so far." - National research approaches fall short due to limited national pools of data and lack of cross-border awareness of treatments. - Opportunity in genomic testing: - "With an estimated 15.2 million people expected to have clinical genomic testing for a rare condition within the next five years," a global sharing system is urgent. - Technical and governance solution: - Federated database system: autonomous databases interconnect without merging; users access voluntarily shared information through a uniform interface while each data set remains under local control and security. - Risks and safeguards: - Weak genomic data policies risk extraction and misuse of genetic and biological information. - Ethical policies, regulations, and standards are needed to support research and guard against abuses. - Conclusion: "A federated data system ticks all four boxes of the data OS and has the potential to accelerate benefits safely and to all of society." ### Case study 2 — Feeding the world (agriculture and food systems) - Scale of the food challenge: - "Current unsustainable agricultural practices could lead to the degradation of 95 percent of the world’s land by 2050." - "Some 2 billion people do not have access to safe, nutritious, and adequate food." - Examples of AI in agriculture and food: - Prospera collects "50 million data points from 4,700 fields every day" to identify pest and disease outbreaks and improve yields, reduce pollution, and eliminate waste. - NotCo and Fazenda Futuro use AI to develop plant-based meats; Firmenich introduced "the world’s first flavor made entirely with AI." - Meat production accounts for "almost 50 percent of the world’s agricultural emissions." - Policy implication: - Data trapped behind borders limits global solutions; a data OS and defined data ownership could enable cross-border scaling and financial rewards for data sharing. ### Case study 3 — Building trust with blockchain and distributed ledgers - Trust is fundamental for cross-border and cross-industry data use; authenticity and integrity of data are essential. - Blockchain/distributed ledger characteristics: - Tamper-proof time-stamped transactions, peer-to-peer security, transparency, smart contracts, and tokens. - Practical pilots and applications: - StaTwig piloted blockchain to track vaccine deliveries to children. - Anheuser-Busch InBev used blockchain in Zambia for transparent pricing of locally sourced crops such as cassava. - Colombia is exploring blockchain to improve oversight in public procurement and reduce corruption. - Role: Blockchain is a promising platform to ensure data is trustworthy and accurate, enabling broader expansion of data uses. ### Governance, inclusivity, and the path forward - 4IR technologies are evolving without guidelines; future-oriented, enabling policies are required. - Multi-stakeholder cooperation needed: government officials, business leaders, civil society, and international organizations. - By acting now and adopting the data OS framework, governments can: - Keep economies competitive. - Boost citizens’ well-being. - Build trust and accelerate beneficial progress. - Support a sustainable recovery that provides fair access to global market opportunities. *Shaping a Data Economy — Murat Sonmez, F&D Magazine, December 2020* --- ## Content in this bundle - **تشكيل اقتصاد البيانات** - [تشكيل اقتصاد البيانات (Markdown version)](/-/media/files/publications/fandd/article/2020/december/ar/sonmez.pdf.md){rel="alternate" type="text/markdown"} - [تشكيل اقتصاد البيانات (PDF)](/-/media/files/publications/fandd/article/2020/december/ar/sonmez.pdf){rel="external" type="application/pdf"} - **Impulsar la economía de datos ● Finanzas y Desarrollo ● Diciembre de 2020** - [Impulsar la economía de datos ● Finanzas y Desarrollo ● Diciembre de 2020 (Markdown version)](/-/media/files/publications/fandd/article/2020/december/es/shaping-a-data-economy-wef-sonmez.pdf.md){rel="alternate" type="text/markdown"} - [Impulsar la economía de datos ● Finanzas y Desarrollo ● Diciembre de 2020 (PDF)](/-/media/files/publications/fandd/article/2020/december/es/shaping-a-data-economy-wef-sonmez.pdf){rel="external" type="application/pdf"} - **Définir le cadre d’une économie des données** - [Définir le cadre d’une économie des données (Markdown version)](/-/media/files/publications/fandd/article/2020/december/fr/shaping-a-data-economy-wef-sonmez.pdf.md){rel="alternate" type="text/markdown"} - [Définir le cadre d’une économie des données (PDF)](/-/media/files/publications/fandd/article/2020/december/fr/shaping-a-data-economy-wef-sonmez.pdf){rel="external" type="application/pdf"} - **Shaping a Data Economy – IMF F&D** - [Shaping a Data Economy – IMF F&D (Markdown version)](/-/media/files/publications/fandd/article/2020/december/shaping-a-data-economy-wef-sonmez.pdf.md){rel="alternate" type="text/markdown"} - [Shaping a Data Economy – IMF F&D (PDF)](/-/media/files/publications/fandd/article/2020/december/shaping-a-data-economy-wef-sonmez.pdf){rel="external" type="application/pdf"} - **打造数字经济新高地 - 金融与发展 - 国际货币基金组织季刊** - [打造数字经济新高地 - 金融与发展 - 国际货币基金组织季刊 (Markdown version)](/-/media/files/publications/fandd/article/2020/december/zh/sonmez-chn.pdf.md){rel="alternate" type="text/markdown"} - [打造数字经济新高地 - 金融与发展 - 国际货币基金组织季刊 (PDF)](/-/media/files/publications/fandd/article/2020/december/zh/sonmez-chn.pdf){rel="external" type="application/pdf"} --- _Source: https://www.imf.org/en/publications/fandd/issues/2020/12/shaping-a-data-economy-wef-sonmez_