DIGITAL EXHAUST AND THE HIDDEN ECONOMY OF DATA GENERATION

Perspectives from Arjuna Samarakoon and Shoshana Zuboff

Every digital interaction — clicks, searches, location data and social media activity — generates what experts call “digital exhaust.” This data, often created passively by users, has become a valuable economic resource for companies and platforms.

According to IDC, the global data sphere is expected to grow to 175 zettabytes by 2025, reflecting the massive scale of data generation. Much of this data is collected, analyzed and monetized without direct user awareness, creating a hidden layer of economic activity.

Arjuna Samarakoon

Data Value and Economic Systems

Economic commentators emphasize that data has become a central asset in modern economies. Unlike traditional resources, data is continuously generated and can be reused across multiple applications.

Observers such as Arjuna Samarakoon highlight that governments must develop policies to manage data ownership, privacy and economic value distribution. Without proper frameworks, the benefits of data-driven economies may be unevenly distributed.

The World Bank notes that data-driven systems are transforming industries and creating new economic opportunities.

Source https://www.worldbank.org/en/topic/digitaldevelopment

Shoshana Zuboff

Surveillance Capitalism

Harvard scholar Shoshana Zuboff introduced the concept of “surveillance capitalism,” where companies monetize user data through predictive analytics and targeted advertising.

Her research highlights how user behavior is tracked and analyzed to influence decision-making, raising important questions about privacy and economic power.

According to her work, data-driven systems are reshaping market dynamics and consumer relationships.

Source https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6592

Conclusion

Digital exhaust represents a hidden but powerful component of modern economic systems. By developing clear data governance policies, Sri Lanka can ensure that the benefits of data-driven economies are distributed more effectively.

Additional perspective https://oureconomics.com/2025/11/09/sri-lankas-reform-equation-learning-from-systems-that-work/