In Estonia, the phrase ‘small but mighty’ resonates in their digital government transformation

Mohammad J Sear

December 11, 2023

In the European Commission’s 2023 eGovernment Benchmark, there were two names mentioned as leaders. One of them was Estonia.

Of course, this is no surprise to those who have followed Estonia’s digital government journey.

I’ve been a long-time admirer of Estonia’s digital government initiatives, and it’s a nation that consistently impresses me.

With a population just shy of 1.4 million, Estonia can be compared to some cities in larger countries. Yet, in terms of its transition to a digital economy, it stands as a true giant.

It’s small…but mighty.

Estonia is like a digital powerhouse despite its small size. They have more new tech companies per person than any other European country, and they’re also the top in Europe when it comes to investing money in tech projects per person.

No wonder Estonians have founded several “unicorns” – startups that have grown to over 1 billion dollars in value.

Why is this relevant to this topic?

Well, I believe that focusing on entrepreneurship and transforming it’s economy into a digital economy has given Estonia leadership in a number of other areas.

Statistics about Estonia's digital government

I got all the facts and figures mentioned here on their website.

99% of people use Internet banking services
The strongest digital ID since 2002
64% of the population uses ID cards regularly
100,000 e-residents (services given to every world citizen by the Estonian government)
Home of NATO Cybersecurity Centre
Home of EU IT agency
First state ever to use blockchain technology
The first and (still) the only country in the world to introduce i-voting since 2005 (voting online, which is optional, of course)
98% of income taxes are declared online (with pre-filled forms, I might add)

While many countries are still working on their digital ID, Estonia has had it since 2002!

In Estonia, they have one digital ID that serves multiple purposes. This single ID allows you to do a whole bunch of things:

Travel within the European Union (EU)
It works as your health insurance card
It serves as your proof of identification when logging into your bank accounts online
It’s used to certify your digital signatures, which is important for online transactions
You can even use it to vote in elections online, making the voting process more convenient
You can access and manage your medical records, submit your tax claims, and handle various other official tasks with it
It’s also used for the e-prescription service, making it easier to get your prescriptions

Estonians like to joke that the only thing you can’t do online is get a divorce – at least for now.

It’s a lighthearted way of highlighting just how advanced their digital ID system is and how it simplifies many aspects of daily life.

Sharing their success

Estonia has shown the world that governments can become more efficient and provide better services to their citizens by offering a superb digital experience.

They’ve not only established a remarkable model for digital government but have also been exceptionally generous in sharing their knowledge. As their website at e-estonia.com proudly states, “We have built a digital society, and we can show you how.”

For that, Estonia provides various resources to help other countries achieve what they have. These resources include the opportunity to connect with the Estonian companies responsible for their e-solutions and gain insights on how to build a similar e-state.

One key reason for Estonia’s early success in digital government is its unique historical context. In 1991, when Estonia gained independence from the Soviet Union, the internet was still a relatively new concept.

Just three years after gaining their independence, they began utilizing technology to build their digital government. It was a forward-thinking group of leaders who recognized the potential of technology in governance.

I believe that Estonia was fortunate to have a government led by young individuals early on who brought fresh perspectives on how technology could improve the lives of their citizens. This innovative and tech-savvy approach has played a significant role in Estonia’s success story.