The Estonian Model of Designing and Providing Public Services: From Governance to E-Governance

In Estonia, replacing the traditional, non-digital model of providing public services with an electronic model is a clear example of good governance. With the X-Road initiative, implemented in stages since 2000, Estonia has successfully digitized 99% of public services offered to citizens, saving 2 percent of its gross domestic product (GDP) annually (2004). .-s., 2004) (Organization for Economic Co-operation and Development – OECD, 2020). In 2023, the savings amounted to 754 million euros.

A New Model of Public Administration in the Post-Soviet Space

With independence from the Soviet Union, the Estonian public sector faced a new challenge, which in turn meant an urgent need to modernize the public services offered to citizens. In 1992, the objective of the public administration reform dictated by the new constitution was to prepare for future sector and national initiatives by strengthening the principles of accountability, efficiency and transparency in public institutions (Office of the United Nations High Commissioner for Human Rights – OHCHR). In parallel with the problems in the public sector, the Estonian authorities began to care about universal access to the Internet. In 1996, within the framework of the so-called Tiger Leap (Est. Tiigrihüpe) program, the Estonian government provided Internet access to all public schools in the country within five years. Although the aforementioned program was implemented only in public schools, it is considered fundamental in the process of building a digital society (Education Estonia, 2024). The significance of the Tiger Leap is emphasized by the government's reference to the achievements in the field of education in 1998 when drafting the document defining the Principles of Estonian Information Policy (Electronic Governance Academy – EGA, 1998). The document outlined the future directions of the development of the digital society in Estonia.In order to raise public awareness of the rapidly changing situation in the public sector and reduce scepticism towards e-governance, the government established the Data Protection Inspectorate (Estonian: Andmekaitse Inspektsioon) in 1999.

An indirect result of the productive work of the said agency was the adoption of the legal framework for electronic signatures in Estonia in 2000, which, together with the electronic tax system (e-Tax) approved in the same year, significantly changed the financial situation in the sector (EUR-Lex, 2000). Currently, more than 95 percent of tax returns in Estonia are completed electronically, which in turn reduces the bureaucratic and financial resources spent on this process (Invest in Estonia, 2024).

The first stage of digital transformation in Estonia in 2001-2002, with the start of preparations for e-elections and within the framework of the United Nations Development Programme, the Government of Estonia, the Open Society Foundation (OSF) and the Bratislava Regional Support Centre (Bratislava Regional Support Centre (BRC) Within the framework of the common initiative, the non-governmental organization “E-Governance Academy” was established (National Interoperability Framework Observatory – NIFO, 2017). It is significant that in the parliamentary elections held in March 2005, the majority of votes - 51 percent - were recorded online, using the “i-Voting” system (e-Estonia, 2023).

X-Road Initiative: Digital Citizen in a Digital State

With the advent of digital information systems in Estonia, the authorities began to care about creating a secure data exchange ecosystem. The new “X-Road” platform, created in 2001, in addition to regulating the databases necessary for the provision of public services, also ensured their safety.

The success of the initiative has led to its implementation in other countries. Today, the platform is used not only by Estonia, but also by more than 52,000 entities from 20 countries and more than 3,000 services offered by them. The efficient data exchange process provided by the initiative is on average 1,407 times faster than it would be without the platform (e-Estonia, 2024) (E-Estonia, 2019).

Among the services provided by the Estonian platform, the following have the status of “critical importance”:

• The digital taxation and settlement system (e-Tax), created in 2000 by the Estonian Customs and Tax Board, which allows citizens to fill out financial declarations online. The said system not only ensures greater transparency, but also - significantly reduces the time required to complete the said procedure to an average of 3 minutes (Invest in Estonia, 2024);

• Electronic health system (e-Health), which aims to provide health services to users anywhere in the country by exchanging data from private and public health service providers. In addition to digitizing 99 percent of patient health data, Estonia began issuing digital medical prescriptions and referrals in 2019, allowing its citizens to receive fast health services in other EU Member States (Council of Europe, 2024);

• Digital justice system (e-Justice), implemented by the Estonian Ministry of Justice in first and second instance courts, which allows citizens to apply to city and appellate courts at any time, twenty-four hours a day (e-justice). Estonia, 2024);

• The Digital Residence (E-Residency) program, established in 2014, which provides over 100,000 foreign citizens with the right to remote access to Estonian services and the opportunity to register and manage a business in the European Union, adding 60-70 million euros to the Estonian budget annually (Enterprise and Innovation Fund – EISA, 2024);

• The Estonian Data Embassy in Luxembourg, based on the Vienna Convention on Diplomatic Relations, is an outstanding example of innovative use of cloud technology. The aforementioned data center, located in Luxembourg under the fourth level of protection, allows the authorities to safely host state information outside the country, which in turn ensures the continuity of state processes in the event of a cyberattack on Estonian infrastructure (Electronic Estonia, 2019).

The digital identification (e-Identity) and electronic signature system, created in 2002, helps citizens use the above-mentioned services. It provides Estonian citizens, regardless of their place of residence, with a state-issued digital identity document. Using an electronic signature speeds up the receipt of the above-mentioned services, which allows each citizen to save an average of 5 days a year (e-Estonia, 2024).

Improving the digital landscape in Estonia

Despite the successes achieved in the area of e-government, the Estonian authorities are actively working to eliminate the problems that have arisen in the context of improving the country's digital ecosystem. Among the main problems that exist today, the following are significant:

• Improving data security - with a high level of "digitization" of the population, which, in turn, is evidenced by the active use of electronic ID cards by 98 percent of citizens, the Estonian authorities are aware of the cybersecurity risks associated with large-scale transformations (Electronic Estonia, 2017). In order to combat cyber threats, the NATO Joint Cyber Defence Training Centre (CCDCoE) operates in Estonia in cooperation with Western partners, which has a positive impact on the country's National Cyber Security Index (NCSI). According to the index, Estonia's level of national cyber security ranks fifth after the Czech Republic, Poland, Belgium and Australia (NCSI, 2024);

• Strengthening digital equality - despite the high level of successful access to public services offered to them electronically by a significant part of the population, the Estonian authorities take into account a small group of citizens who do not have access to the above-mentioned services. In this direction, the framework document developed by the Estonian Ministry of Economic Affairs and Communications - "Digital Agenda 2030" (eng. Digital Agenda 2030) focuses on increasing the digital awareness of citizens (Estonian Ministry of Economic Affairs and Communications, 2021);

• Creating conditions for technological progress. In line with the above-mentioned digital agenda, the Estonian authorities are aware of the potential of integrating artificial intelligence into the provision of public services and e-governance. At this stage, state and public institutions are actively using the virtual assistant “bureaucrat” (Estonian: bürokratt), created on the principle of artificial intelligence, the purpose of which is to “track” citizens in the process of receiving digital services. It is significant that today the mentioned initiative is enjoying great success and 68% of Estonian citizens rate the “bureaucrat” as positive and safe (e-Estonia, 2023).

Summary

The Estonian e-governance model is exemplary in the world in terms of taking into account the interests of citizens. Since gaining independence from the Soviet Union, thanks to the successful transformation of the public sector, Estonia has created a constantly evolving national digital landscape that provides citizens with simple, fast and effective means of accessing public services.

 

 

Resources used:

e-Estonia (2024). E-Governance Portal;

Organisation for Economic Co-Operation and Development (OECD) (2020). Seizing the Productive Potential of Digital Change in Estonia;

Office of the United Nations High Commissioner for Human Rights (OHCHR) (nd). Estonia's Constitution of 1992 with Amendments through 2015;

Education Estonia (2024). Tiger Leap;

E-Governance Academy (EGA) (1998). Principles of Estonian Information Policy;

EUR-Lex (2000). Estonia;

Invest in Estonia (2024). Estonia’s Advantageous Tax System Brings Companies to Grow Here;

National Interoperability Framework Observatory (NIFO). Estonia Shares its e-Governance Practices;

e-Estonia (2023). How did Estonia Carry Out the World’s First Mostly Online National Elections;

e-Estonia (2019). Data Economy in Estonia and Public-Private Collaboration;

Invest in Estonia (2024). e-Tax System;

Council of Europe (2024). Digital Health System – Estonia; 

e-Estonia (2024). Justice & Public Safety;

Enterprise and Innovation Foundation (EISA) (2024). Estonian E-Residency Success Metrics are Impossible to Verify;

e-Estonia (2019). Data Embassy – the Digital Continuity of a State;

e-Estonia (2017). Estonian e-ID Card: Entering the Contactless World;

National Cyber Security Index (NCSI) (2024). Order = Rank;

Estonian Ministry of Economic Affairs and Communication (2021). Digital Agenda 2030;

e-Estonia (2023). #bürokratt.

Appendix 1. To illustrate the article. Author: Eiko Ojala