Prepared by the UNCTAD Secretariat for the Commission on Science and Technology for Development, 2023-2024 Inter-sessional Panel

At a time when digital connectivity defines our lives, the importance of data in shaping the trajectory of global development cannot be understated. As economies and societies become increasingly interwoven with digital technologies, data emerge not only as an asset but as a catalyst for transformative change. While data-driven insights harbor the potential to spur innovations and foster sustainable growth, the pathway is riddled with both unparalleled prospects and formidable challenges.

There is a multifaceted relationship between data and sustainable development, a vast potential and a lot of inherent risks, especially in the context of the 2030 Sustainable Development Agenda. Through an in-depth exploration of relevant literature and country case studies contributed by the members of the United Nations Commission on Science and Technology for Development (CSTD) and international organizations, the UN aims to offer a comprehensive understanding of how nations, both developed and developing, can harness data as a formidable ally in their quest for sustainable progress.

Data are more than a mere information record

In today's digital age, data are not just a mere information record. It serves as a fundamental building block for economic advancement and policymaking. Data fuel the creation of innovative business models and paves the way for transformative breakthroughs. When organizations adopt data-centric approaches, it not only redefines their governance structures but can also amplify their productivity. By opening up new markets and catering to a myriad of customer needs, data stand out as a pivotal catalyst. More importantly, its ability to provide a systemic evidence means we can better understand the intricate interplay of Sustainable Development Goals (SDGs) and their interconnected impact.

Data can combat pressing global issues

When managed wisely, data have the potential to combat pressing global issues, ranging from poverty eradication to climate change mitigation, from ensuring food security to disaster risk management, and even in mounting responses to pandemics. However, it is crucial to remember that like all powerful tools, data come with its set of challenges. If mishandled, it can accentuate the disparities in developmental outcomes, magnifying the digital divide and potentially morphing it into a broader developmental chasm. This is especially concerning when we consider the widening gulf between the developed and developing nations. If left unregulated, data can inadvertently lead to market monopolies, spawn discriminatory practices, and even pose threats to fundamental human rights, among other issues.

What Data really is

Data, in its essence, can be defined as “observations that have been converted into a digital form that can be stored, transmitted or processed, and from which knowledge can be drawn” (Statistics Canada, 2019)2. Observations, in the broadest sense, refer to any form of information or facts about the world around us, captured through various means such as sensors, human inputs, or automated systems. These observations can encompass a multitude of aspects - from physical quantities like temperature and pressure to more abstract concepts like human emotions or market trends.

The transformation of these observations into a digital form signifies the conversion of this information into a language that machines and digital systems can understand. The subsequent storage, transmission, and processing of digital data enable us to retain information for future use, share it across geographical boundaries, and manipulate it in ways that allow us to derive meaningful insights (UNCTAD, 2021). Data, in its raw form, may not hold much value. It is through careful analysis and interpretation that data are converted into actionable knowledge, insights, or intelligence. This transformation is what truly defines the value of data, as it allows us to make informed decisions, discover patterns, predict trends, and ultimately drive progress in various fields. The ability to utilize data holds significant potential for enhancing social welfare across the entire economy. This value extends beyond just the private interests of organizations that manage specific data sets, benefiting society at large (Coyle et al., 2020).

Data are a critical enabler

Data are increasingly recognized as a critical enabler of sustainable development goals (UN, 2022c). When effectively managed, data have the potential to address significant global challenges such as poverty reduction, ensuring food security, mitigating climate change impacts, managing disaster risks, and responding to pandemics (UNCTAD, 2022b). However, if data are mishandled or mismanaged, it can exacerbate inequalities in development outcomes and undermine the development potential of the digital economy (Vinuesa et al., 2020).

In stark contrast to conventional production inputs such as raw materials or labor, data are not naturally occurring. Rather, data are a product of complex technological systems and socio-cultural interactions. When creating data, social actors, including individuals and organizations, make several choices about what information to focus on, what to record, and how to encode it (Aaltonen et al., 2023). These choices are influenced by a wide range of factors, including the actors' goals, values, and biases, as well as broader social, cultural, and economic factors. Data are not simply objective representations of reality; instead, data reflect the choices and values of the individuals and systems involved in their creation. This non-neutrality shapes our perception and communication by determining what information is collected, how it is represented, and how it is interpreted.

Data and technology

Simultaneously, the creation and transformation of data into digital form are strongly influenced by the capabilities and limitations of digital technologies, including their ability to handle, store, and process information. Such a relationship between data and technology affects how data functions as a filter of perception (Alaimo & Kallinikos, 2022). Viewing data as part of technological infrastructures highlights the fact that the value and significance of data are not intrinsic but emerge from the broader systems in which they are situated. Within these technological systems, data are transformed into facts that serve as the foundation for evidence-based decisions. The notion of "evidence" in this context possesses limited objectivity, as it is jointly shaped by socio-cultural perceptions and technological affordances. This perspective emphasizes the significance of the algorithms, models, and other analytical tools that accompany data throughout its value chain. Organizations must diligently design, manage, and update their data infrastructures, keeping in mind the accuracy, reliability, and fairness of thetools and methodologies employed.

The generation and use of data are intrinsically tied to the advent and deployment of digital technologies such as broadband networks, Internet of Things (IoT), mobile phones, and more. Broadband networks have vastly expanded the reach and speed of data communication, enabling real-time, high-volume data transfer across vast geographical distances. Internet of Things (IoT) devices, ranging from home automation systems to industrial sensors, are another major source of data. By embedding connectivity and computing capabilities into everyday objects, IoT devices generate a constant stream of data about their operation and environment. Similarly, the ubiquity of mobile phones has led to an explosion in user-generated data. From geolocation data to social media posts, mobile phones provide a constant feed of digital data that reflects a wide range of human activities and behaviors. Each of these technologies plays a crucial role in the lifecycle of data, serving as both a source and a conduit for data.

Multi-step value chain

The generation of data is just the first step in data value chain. Data need to be collected, stored, and analysed, often across various systems, before it can be used effectively. In this context, data represent a new kind of resource – one that is inherently linked to the technological infrastructure that generates, manages, and uses it. As such, understanding and navigating the complexities of synergies between novel technological innovations and data is a crucial aspect of harnessing the potential of data for sustainable development. In order to leverage the full potential of data, it is essential that data governance efforts consider the intrinsic connectivity of data and digital technologies and involve all relevant stakeholders.