The Intersectionality of Data Innovation, Privacy and Security

Jun 10 , 2023.

The recent Prosperity Party (PP) convocation unfolded under the incumbent leader’s intent gaze, Abiy Ahmed (PhD). The gathering was not just a political spectacle; it was the manifestation of an ideological evolution among the Prosperitians, with an ambitious discourse appearing to be influenced by the theories of Mariana Mazzucato (Prof.), an Italian American economist. In this cerebral milieu, a vision for an “entrepreneurial state” for Ethiopia was unveiled.

Mazzucato, a reputable scholar at the University College of London, is a champion of the concept of a proactive, innovative state. Her renowned work, “The Entrepreneurial State,” is a testament to her belief in the transformative power of the state in an era marked by rapid technological change. Drawing on Mazzucato’s theory, Abiy projected a vision of an Ethiopia led by an entrepreneurial state.

He highlighted the remarkable increase in digital access among Ethiopians, which had surged to 70 million, almost twice the number when he took office. However, he cautioned that without a collective urgency for innovation and forging shared narratives, the country risked sliding into chaos. The belief in the state’s essential role in fostering innovation was palpable in his homily. This premise, shared by Mazzucato, suggests that the state is a catalyst for innovative ideas and services, mainly where private capital is either uninterested or incapable.

Such is a vision that needs to consider the state’s obligation to safeguard its citizens from the potential dangers of laissez-faire data mining and exploitations while simultaneously promoting an open data policy not to stifle innovation and growth. Abiy would be better off acknowledging the delicate equilibrium that must be maintained in an era where the digital might of Silicon Valley is unchallenged, and tech titans from the East are on the rise, putting national “sovereignty” to the test.

The proliferation of digital devices worldwide has triggered an unprecedented outpouring of data. The exponential digitisation and the rise of tech companies capitalising on this data have given rise to public anxieties and widespread concerns. Misuse of data is becoming rampant, stoking the demand for prudent regulation of the tech industry.

In the digital age, data is the lifeblood that powers the machine learning ecosystem. Industry giants like Google, Facebook, Amazon and their Chinese counterparts, Baidu, Alibaba, and Tencent, harvest unfathomable volumes of data. They acquire information ranging from basic demographics to intricate browsing habits. Domestically, the state-owned Ethiotelecom is a significant player, gathering data on everything from fuel consumption to purchases and asset acquisition.

It is no lone actor, as several startups are churning out apps of all kinds almost daily. They all harvest a vast data reservoir, propelling innovation, and paving the way for targeted advertising, personalised services, and AI-driven advancements in numerous sectors. However, such progress does not come without a price. As the digital axiom goes, “If you don’t pay for the product, you’re the product.”

The trade-off between privacy and progress is coming under increasing scrutiny. While technological advancement promises enhanced services and societal benefits, the invasion of personal privacy has become a thorny issue. The escalating incidences of data misuse and breaches are realities too invasive to be dismissed.

Striking a balance between individual rights and technological advancement is vital, especially for less developed countries like Ethiopia. Adopting an open data policy can yield substantial benefits, provided it is implemented with care.

The necessity for robust regulation is undisputed in the face of these challenges. The European Union’s General Data Protection Regulation (GDPR) is a trailblazer in this respect, ensuring user control over their data and transparency in business data usage. Yet, regulatory measures alone cannot address all the woes associated with the data deluge of the digital age.

The promotion of data privacy and protection through technology is essential. End-to-end encryption, differential privacy, and homomorphic encryption are some of the emerging technologies that can safeguard user data.

The principle of open data is simple yet potent: certain data should be freely available to all for use, reuse, and redistribution. Such a policy can stimulate economic growth, bolster governance, and enhance transparency, particularly in vital health, agriculture, and education sectors. Herein, open data holds the potential to revolutionise decision-making and policy formulation. However, potential limitations — like a dearth of IT infrastructure, inadequate digital literacy, and regulatory vacuum — should be viewed as challenges to be tackled, rather than deterrents.

While external aid can provide a boon in technical assistance and financial resources, commitment from Ethiopia’s policymakers is paramount. The path to an open data policy must be paved with a robust data privacy and security framework, aimed at protecting citizens' privacy and ensuring the anonymisation of shared data. A 'privacy by design' approach can help allay public concerns and bolster trust.

With a secure foundation in place, attention must be focused on infrastructure development and capacity building. Ethiopia needs to establish or upgrade data repositories, digital platforms, and data collection methodologies. Digital literacy programs should also be initiated, enabling citizens to make full use of and benefit from the available data.

The initial scope of the open data policy should be tried on public data, including demographic information, budgets, public tenders, and health statistics. This would not only serve as a tangible starting point but also promote transparency and accountability in public affairs.

The next phase involves encouraging the use of open data by businesses, academia, and the media. Incentivising research and innovation using publicly available data could stimulate the growth of local startups and technology-based solutions, driving job creation and economic growth. For a political force aspiring to recraft the Ethiopian state as an entrepreneurial state, an open data policy offers an avenue to build a thriving digital economy.

However, an open data policy needs to be flexible and iterative, evolving in tandem with societal needs and technological advancements. Regular user feedback and periodic policy reviews would ensure its continued relevance and efficacy. Implementation must be stringent and consistent, and penalties for violations should be substantial enough to serve as a deterrent rather than just a cost of doing business.

Digital literacy among the public is crucial. Members of the public need to be aware of their digital rights and the risks associated with data sharing. Empowering individuals to make informed choices about their data can significantly curb misuse and foster trust in digital systems.

Ethiopia stands on the cusp of a data revolution, a transformative journey filled with immense opportunities and significant challenges. In navigating this landscape, creating an environment where data is both respected and responsibly harnessed will be pivotal. Abiy believes his vision of an entrepreneurial state guided by innovation could well be the beacon leading Ethiopia into a new era of technological advancement and prosperity. In the absence of a robust digital policy that balances an open data ecosystem with the need for privacy and security, it is unlikely to accomplish its dreamer ambition.

PUBLISHED ON Jun 10,2023 [ VOL 24 , NO 1206]

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