Write executive summary:
e-Estonia

The e-Estonia system was created as a result of Estonia's efforts to become a leader in digitalisation. Initially, the country tried to catch up with its Western counterparts 

after the fall of the Iron Curtain. In pursuit of this goal, Estonia implemented legislative reforms and launched the Tiger Leap initiative to expand and modernise its computer and network infrastructure, with a particular focus on education. As a result of these efforts, all Estonian schools had Internet access by 2001.  The country has also used low business taxes to attract private sector innovators to set up their businesses in Estonia. The e-Estonia system was built with the help of banks and telecommunications companies, which initially managed client data, facilitated by a large state-funded infrastructure. 

Estonia gradually moved most of its bureaucracy online. As early as 2000, the government introduced databases and schedulers to streamline decision-making and reduce meeting times tenfold. In addition, the e-tax administration system has enabled citizens to file their tax returns online. Some Estonian systems have been adopted by other countries, such as the m-parking system, which allows payment of parking fees via mobile phones. The X-Road project acts as a connecting platform for the entire Estonian e-government system. In addition, Estonia follows the principle of e-Identity, which means that each citizen owns a unique card that serves as a substitute for traditional signatures.

Since 2005, Estonia has been introducing modern technologies that allow citizens to vote electronically. In order to participate in the electoral process, citizens have to authenticate themselves by logging into the system with their unique identity card, after which they can use PIN1 to select their preferred candidate and PIN2 to confirm their choice. It should be stressed that if the voter decides to reconsider their choice, they can do so by repeating the whole process, with the system only taking into account the last choice.


The introduction of electronic health care systems has had a significant impact on the Estonian health care system, resulting in reduced bureaucracy, cost savings and streamlined operations. A comprehensive electronic health profile is created for each patient, linking hospitals, doctors and insurance companies. In addition, the introduction of electronic prescriptions has enabled patients to obtain medicines quickly while reducing paper consumption. Similarly, the Czech Republic has integrated e-prescription into its e-government system.

Estonia has in the past been exposed to hacker attacks on their databases and systems, this has led to the implementation of many measures including the use of blockchain technology. Today, the entire e-Estonia is backed up on cloud storage with a server in Luxembourg to ensure its functioning even if its territory is attacked. 

Today, Estonia is setting an example for the rest of the world and helping foreign countries to progress in the field of digitalisation. It is itself taking advantage of its lead and is a base for innovative technologies in Europe, working closely with private companies and pushing the citizen-friendliness of its systems further. Examples include the use of artificial intelligence and overall efforts to automate all processes, such as child benefit systems.


2.2 X-Road and e-Identity

Estonia has become a world leader in e-government and digital innovation thanks to its groundbreaking initiatives and advances in this area. The cornerstones of Estonian e-government are the X-Road and e-Identity systems.   These two interconnected platforms have revolutionised the way citizens, businesses and government communicate and share information. In this section of the paper, we will discuss the importance of X-Road and e-Identity in the development of e-government in Estonia and assess how their implementation contributes to the broader success of e-government in the country.

The X-Road system, introduced in 2001, is an open-source data exchange platform that facilitates the extension of physical services of state and non-state organisations into the electronic environment.   The X-Road system ensures efficiency and data protection by allowing different participating organisations to access and share important data such as population records, health records or business registers. With a decentralised architecture consisting of multiple servers and the ability to provide transparent data exchange, X-Road successfully addresses security and interoperability issues.
On the other hand, e-Identity is a digital identity system that allows Estonian citizens to access many e-government services using one secure form of identification. The e-Identity infrastructure, based on a unique personal identification code and an electronic ID card containing an encrypted chip, simplifies digital authentication and increases the security of online transactions.

The reciprocal relationship between X-Road and e-Identity is evident from their complementary functions. The X-Road system relies on the e-Identity platform to authenticate and identify users when accessing public and private sector services online, ensuring a seamless use of e-government services for Estonian citizens. The importance of X-Road and e-Identity in the development of the Estonian eGovernment system can best be understood by examining their impact on important elements such as efficiency, security, innovation and cost savings. The introduction of these systems has enabled citizens and businesses to access various government services online, saving considerable time and resources. The X-Road system administrator estimates that in the last calendar year, citizens have saved over 1,800 man-hours by using their system.   In addition, these systems provide a high level of security and encryption for data exchange, thereby protecting personal data and facilitating secure online transactions. The transparency, stringent security measures and convenience of these systems have fostered trust between citizens, businesses and government institutions, which has encouraged their widespread adoption.

In addition to these benefits, the use of X-Road and e-Identity has led to significant cost savings for government by reducing the need for paper-based processes and face-to-face contacts. These savings from the use of digital identities and more specifically digital signatures amount to 2% of annual GDP. The systems have also supported and sustained Estonia's innovative and digitally advanced culture over time by encouraging the development of new digital services that rely on secure data sharing and strong digital identities.


2.3 e-Tax and e-Customs board

The e-Tax and e-Customs Board electronic platforms are key digital systems in Estonia that enable a wide range of processes, including tax and customs procedures in the country. These platforms are a testament to their innovation and have enabled citizens and businesses to increase efficiency, transparency and convenience in managing tax and customs matters.

E-Tax is an electronic tax system that allows individuals and businesses to manage their taxes through an online platform. The system is designed to provide a user-friendly interface that brings together all tax services and information in one place. Using e-Tax, taxpayers can securely and efficiently file their tax returns, track payments, update their tax information and correspond with tax authorities.  The introduction of e-Tax has simplified the tax process and promoted greater transparency in the tax regime.

E-Customs has become an important digital system that manages customs procedures in Estonia. The system facilitates the electronic administration and handling of customs operations, which include the filing of import and export declarations, the monitoring of customs duties, fees and other customs-related matters. The use of e-Customs eliminates the need for excessive paperwork and time-consuming administrative procedures as customs matters can now be handled online. In addition, the system provides a mechanism to track the movement of goods and ensure compliance with customs regulations.

It should be noted that currently the e-Tax and e-Customs systems are integrated into a single platform known as the Estonian Tax and Customs Board. This integration has led to the creation of a one-stop shop where businesses can manage their tax and customs affairs online.

2.4 e-Residency

The Estonian government offers a digital identification and residency programme known as e-Residency, which provides individuals from all over the world with the opportunity to obtain a digital identity in Estonia. Upon registration, successful applicants will receive an electronic identification card containing encrypted personal data including a digital signature.  This card allows access to many online services and applications in Estonia, such as e-banking, company formation and tax filing, among others.
The e-residency initiative was introduced to facilitate digital business and interaction with Estonian authorities for people residing outside Estonia. The main objective of the programme is to extend flexibility and benefits to individuals who want to use digital technologies to enhance their business. A robust digital infrastructure has made Estonia an attractive destination for foreign entrepreneurs. The e-Residency programme is a seamless platform to take advantage of these benefits and establish a business in Estonia regardless of where you live. The programme is remarkable in that it is available to people of all nationalities and residency statuses and is the first initiative of its kind in the world. It is worth noting that the programme has received a positive response worldwide and since its launch in 2014, more than 100,000 people from over 170 countries have obtained Estonian e-Residency.  

The benefits of e-Residency in Estonia are manifold, ranging from the ability to conduct secure banking transactions online and easily manage financial matters from the comfort of home to the hassle-free establishment and management of companies in Estonia. With e-Residency, entrepreneurs can set up their businesses remotely and access a range of tools and resources that simplify the process of setting up and managing a company.