A small country in the Baltics is shaking up the world of digitalization. Over the past three decades, Estonia has built up a technological lead that even leaves large industrialized nations wondering.
Restart with daring
When Estonia regained its independence in 1991, the starting position was extremely modest. The infrastructure dates back to Soviet times, and modern communication networks were practically non-existent. But instead of laboriously making up the deficit step by step, the young republic decided on a radical path forward. The “Tiger Leap” program was launched in 1996, equipping schools nationwide with computers and the Internet. According to educationestonia.org, in 2000 all schools were already equipped with computers and the following year they had Internet access.
The backbone of the administration
Today, X-Road is considered the heart of Estonia’s digital strategy. The system connects public and private databases so that information can be exchanged securely and in real time. The e-ID card, mandatory for all citizens, serves as the key to this world. It replaces ID cards, enables digital signatures and makes it possible to complete tax returns in less than five minutes, according to Estonia. The “once-only principle” ensures that data once stored does not have to be submitted multiple times – a concept that noticeably streamlines everyday administrative work.
Everyday life on the internet
Anyone who sets up a business in Estonia, fills a prescription or applies for a new passport usually does so online. Even more sensitive processes such as a divorce can be initiated digitally. The Digitalization has made the administrative apparatus leaner and saved the population time and travel. Bureaucracy doesn’t act like a hindrance here, but rather like a service.
Democracy from afar
Digital has long been part of everyday life in politics too. Since 2005, Estonians have been able to cast their votes in elections online. About a third make use of it. The technology is considered safe and participation is high. In 2014, the country took another step: With the e-residency program, people from all over the world can apply for a digital identity and do business in Estonia. More than 120,000 e-residents from over 185 countries have now founded around 33,000 companies, reports baltictimes.com.
Fiberglass as a foundation
The foundations for this were not left to chance. In 2009, Estonia started an ambitious project with EstWin: fiber optic cables were supposed to reach every corner of the country. By 2015, the expansion had been completed to such an extent that even remote villages had fast internet. On this foundation, a start-up ecosystem grew that is unrivaled in Europe. Names like SkypeWise or Bolt have their origins in Tallinn and Tartu. Politics supports founders with lean processes and open technologies.
Security as a state responsibility
A massive cyberattack in 2007 was a wake-up call for Estonia. Since then, the country has continuously invested in protecting its digital infrastructure. NATO has set up its cyber defense center in Tallinn. A blockchain technology called KSI is used to secure sensitive data, which practically eliminates manipulation. Estonia also operates so-called data embassies – outsourced data centers abroad that ensure administrative operations in the event of a crisis.
Editorial team finanzen.net