From Fragmentation to Coordination: The Case for an Institutional Mechanism for Cross-Border Data Flows

The report examines the economic importance of cross-border data flows and the challenges posed by increasing regulatory fragmentation and data localization. It proposes a new multistakeholder institutional mechanism, potentially led by the G7, to coordinate data governance and promote interoperability without infringing on national regulatory discretion.

• Cross-border data flows provide substantial economic value, with the data transfer relationship between the United States and Europe alone valued at approximately $7.1 trillion.
• Data access and sharing across borders can generate social and economic benefits of up to 2.5% of global GDP, with potential benefits as high as 5% in India by 2030.
• Regulatory fragmentation is increasing, with the number of countries enacting data localization requirements nearly doubling from 35 in 2017 to 62 in 2021.
• Data localization and fragmented regulations disproportionately harm small and medium enterprises (SMEs) by increasing compliance costs and creating barriers to international market entry.
• Existing mechanisms for regulatory interoperability, such as trade agreements and adequacy decisions, have limited reach and are often non-binding or sector-specific.
• Data localization can undermine critical security objectives, such as cybersecurity and anti-money laundering efforts, by hindering the real-time analysis of global threat patterns.
• The report recommends that G7 countries establish a permanent institutional mechanism with a secretariat to test practical solutions for DFFT and coordinate between governments, businesses, and civil society.

APA

World Economic Forum (2023). From Fragmentation to Coordination: The Case for an Institutional Mechanism for Cross-Border Data Flows. https://www3.weforum.org/docs/WEF_From_Fragmentation_to_Coordination_2023.pdf

Chicago

World Economic Forum. From Fragmentation to Coordination: The Case for an Institutional Mechanism for Cross-Border Data Flows. 2023. https://www3.weforum.org/docs/WEF_From_Fragmentation_to_Coordination_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=From Fragmentation to Coordination: The Case for an Institutional Mechanism for Cross-Border Data Flows |date=April 2023 |url=https://www3.weforum.org/docs/WEF_From_Fragmentation_to_Coordination_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023from, author = {{World Economic Forum}}, title = {{From Fragmentation to Coordination: The Case for an Institutional Mechanism for Cross-Border Data Flows}}, institution = {World Economic Forum}, year = {2023}, month = apr, url = {https://www3.weforum.org/docs/WEF_From_Fragmentation_to_Coordination_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }