Is Estonia the Silicon Valley of digital government?

UCL IIPP
UCL IIPP
Sep 28, 2018 · 8 min read
“snow covered brown, white, and gray concrete castle under cloudy skies” by Ilya Orehov on Unsplash

What does success look like?

The Estonian e-government infrastructure and its success rest on two main pillars, both introduced in 2001, which essentially create digital access to state and digital citizens: the data infrastructure x-road and a compulsory national digital ID. X-road is an interoperability platform for existing decentralised databases and a data exchange layer that can be used by public and private sector actors. It is independent of platforms and architectures and provides secure interoperability for data exchanges and identification of trusted actors in digital service delivery. The digital ID makes it possible for citizens to be identified digitally and to use digital signatures. Together, x-road and the digital ID make it possible to digitally sign any contract, access essentially any public service, order prescriptions, file taxes, vote and so forth.

How did the success come about?

Perhaps most surprisingly, Estonia has never had a central office for digital transformation, such as the UK’s Government Digital Service (GDS), even though such a central agency was initially envisioned to manage (among other things) vital public registries. Estonia’s digital transformation has been an extended and on-going process over three decades, starting in the early 1990s, when Estonia regained its independence and continuing to the present day. Much of this process has been ad hoc and informal. For example, many strategic policy documents for digital transformation have followed the rhythms of European (structural) funding periods rather than responding to domestic challenges and planning processes. Similarly, various overlapping and mostly self-managed public-private networks have provided the informal dynamic capacity and capability for change, few of which have been institutionalised or formalised. And above all, the process relied initially on what Albert Hirschman has called the principle of the hiding hand: policymakers push visionary changes without anticipating all the challenges and risks involved upfront, an approach that sometimes results in unexpected learning, creativity and — in this case — success.

  • Estonia has geographical proximity to Scandinavia, and in the 1990s the Nordic countries had one of the fastest developing telecommunications sectors globally. Opening up both policy-making processes (through advice and joint ventures) and markets (through privatisation and regulations) to Scandinavian partners brought know-how and investment.
  • Estonia is a small country with a high population concentration in its capital city: almost one-third of its 1.3 million inhabitants live in Tallinn. This clustering of population facilitated agile networks that were able to gain quick and lasting political support, and which required low initial infrastructure investment.
  • public digital architecture that is universal in nature; and
  • decentralised digital agendas (including databases) of line ministries and agencies.

Silicon Valley of digital government?

Estonia’s focus on ICT as general-purpose technology has proved to be one of the critical success factors as it enabled Estonia to create a digital infrastructure that is universal in nature. Yet by relying on decentralised and mostly informal networks to build this infrastructure, Estonia now faces a challenge to develop capacities and capabilities within the public sector to take advantage of the public digital infrastructure.

  • While digital infrastructure — from data registries to identification and payment systems — are sine qua non for digital governments, so are institutional innovations that would create, as John K Galbraith put it, “countervailing powers” to existing powers and routines within the bureaucracy and but also in the broader political landscape. Such examples would be public ownership option of private data.
  • Public sector organisations need new forms of capabilities that centre on socially conscious design and software skills in order to harness the power digital technologies for greater common good.

UCL IIPP Blog

The official blog of the UCL Institute for Innovation and Public Purpose | Rethinking how public value is created, nurtured and evaluated | Director @MazzucatoM | https://www.ucl.ac.uk/bartlett/public-purpose/

UCL IIPP

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UCL IIPP

UCL Institute for Innovation and Public Purpose | Rethinking how public value is created, nurtured and evaluated | Director @MazzucatoM

UCL IIPP Blog

The official blog of the UCL Institute for Innovation and Public Purpose | Rethinking how public value is created, nurtured and evaluated | Director @MazzucatoM | https://www.ucl.ac.uk/bartlett/public-purpose/