Data sovereignty and data transfers as fundamental elements of digital transformation: Lessons from the BRICS countries

Abstract

When talking about digital transformation, data sovereignty considerations and data transfers cannot be excluded from the discussion, given the considerable likelihood that digital technologies deployed along the process collect, process and transfer (personal) data in multiple jurisdictions. An increasing number of nations, especially those within the BRICS grouping (Brazil, Russia, India, China, and South Africa) are developing their data governance and digital transformation approaches based on data sovereignty considerations, deeming specific types of data as key strategic and economic resources, which deserve particular protection and that must be leveraged for national development. From this perspective, this paper will try to shed light on how data sovereignty and data transfers interplay in the context of digital transformations. Particularly, we will consider the various dimensions that compose the concept of data sovereignty and will utilise a range of examples from the BRICS grouping to back some of the key considerations developed with empirical evidence. We define data sovereignty as the capacity to understand how and why (personal) data are processed and by whom, develop data processing capabilities, and effectively regulate data processing, thus retaining self-determination and control. We have chosen the BRICS grouping for three reasons. First, research on the grouping's data policies and digital transformation is still minimal despite their leading role. Second, BRICS account for over 40 % of the global population, or 3.2 billion people (which can be seen as 3.2 billion “data subjects” or data producers, depending on perspective, thus making them key players in data governance and digital transformation. Third, the BRICS members have realised that digital transformation is essential for the future of their economies and societies and have shaped specific data governance visions which must be considered by other countries, especially from the global majority, to understand why data governance is instrumental to foster thriving digital environments.