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The digital republic msc slide show

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The digital republic msc slide show

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The digital republic msc slide show

  1. 1. Estonia, the Digital Republic Key elements to digitize a society (and how we did it) Toomas Hendrik Ilves
  2. 2. social indicators 1.3 million population 194 585 smart-ID users 171 351 mobile-ID users 1 296 712 active ID-cards 90% of population uses the Internet regularly 86% broadband coverage in households 88% of households have computers
  3. 3. e-government 98,2% ID-card penetration 31,7% usage of internet voting 115 countries votes cast from +31 000 e-residents 5033 business owned by e-residents 2375 e-services available 476 621 816 digital signatures used 2% GDP savings though digital signature
  4. 4. 115 countries votes cast from +31 000 e-residents +500 e-services for citizens +800 yr working time saved by the X-Road 476 621 816 digital signatures used 2% GDP savings though digital signature 52 000 organizations as indirect users of X-Road services ICT sector 3933 companies 3,564 B/€ 20 333 avg. nr of employees 7% of GDP
  5. 5. the X-Road ICT sector 3933 companies 3,564 B/€ turnover 45 000 € value added per employee 20 333 avg. nr of employees 7% of GDP ICT sector
  6. 6. our highest ratings #1 OECD tax competitiveness #1 BARCLAYS 2016 Digital Development Index #12 WORLD BANK Global Ease of Doing Business ranking #1 GLOBAL IT REPORT Mobile Network Coverage #1 EUROPEAN COMMISSION EU Digital Economy and Society Index, Public Services #2 FREEDOM HOUSE Internet Freedom #9 FREEDOM HOUSE Index of Economic Freedom #1 WORLD ECONOMIC FORUM Entrepreneurship
  7. 7. My talk in 5 bullet points • With the cost of computing decreasing at Moore’s law, money is no longer an obstacle to digitization. • It comes down to: • Political Will, which begets: • Policy, which begets: • Legislation and legislative frameworks, which beget: • Regulation
  8. 8. What you need for effective e-governance in four bullet points • A Strong, Secure, Identity with Legal efficacy with wide use to guarantee: • Digital Services that people and businesses, not just the Ministry of Finance bureaucrats want • A secure architecture for citizen and private sector services, preferably with a distributed exchange layer • You need to guarantee data integrity
  9. 9. The Estonian e-Governance System •Built on existing standards •Open source, non-proprietary software •Strong Private sector participation and investment •Infrastructure set up in 2001 •All new services rely on this infrastructure •Thus easy to set up
  10. 10. How and why we got here… our cousins, the Finns • The last full year before WWII Estonia and Finland GDP per capita was identical • 1992, first full year of re-established Estonian independence Estonian GDP per capita was 2 832 USD • Finnish GDP per capita in 1992: 22,337.49 USD
  11. 11. They had the Nokia
  12. 12. Estonia had…
  13. 13. What to do? • Do no reforms, i.e. follow Soviet path? • Become Hong Kong? • Radical economic reforms (privatization, property restitution, elimination of tariffs, own fully-backed currency
  14. 14. Still looked bleak • 50 years of shoddy or absent infrastructure it would take decades to build • Reforms take years, even decades to have an effect • Poor population (but well educated)
  15. 15. 1993! Mosaic. The first Web Browser where the world, rich and poor, competes on a level playing field
  16. 16. Step 1: get them young Tigerleap: all schools online
  17. 17. Access for everyone
  18. 18. The fundamental issue:
  19. 19. A digital Identity needs • To be secure and unique, i.e. belonging only to you • Legal efficacy (Digital signature law) • Use at least Two Factor Authentication • Use End-to-End Encryption. • Wide-spread if not mandatory distribution (but not mandatory use)
  20. 20. 2000 Digital Signature Law • Digital Signature equivalent to physical signature • Underlies all legal digital transactions — contracts, applications, money transfers, prescriptions, tax returns, votes… etc. • Allows Estonia a far more robust and powerful e-governance system than in most places.
  21. 21. 2001 Rollout of Digital Identity card
  22. 22. End-to-End Encryption (E2EE) Based on the chip in the ID or mobile SIM card
  23. 23. Two-factor authentication (2fa)
  24. 24. How to access services securely with a secure ID • The Architecture must be secure • Estonia chose a distributed data exchange layer. We call it the X- Road. • No Central Data Base • You can only access data by verifying yourself with 2FA
  25. 25. Think of a modern ship with separate holds
  26. 26. X-Road: A distributed Data Exchange Layer exchange + saving 840 years annually + over 900 connected organizations, databases + over 500 million transactions per year + exported to Finland, Azerbaijan, Kyrgyzstan, Namibia, Faroe Islands The busiest highway of e-Estonia – X-Road from 2001.
  27. 27. A Revolution in bureaucracy: Sequential vs Parallel processing
  28. 28. Which leads to… the Once Only rule • You never have to add information the system already has • No addresses, phone numbers or any other information already existing • Your digital identity allows you to access anything you are entitled to access.
  29. 29. Privacy vs. Integrity • Privacy is to ensure others do not see or copy my data • Integrity is to ensure your data is not changed by others
  30. 30. Some subsequent developments • E-voting • E-prescriptions • E-residency • Data embassies
  31. 31. From this…
  32. 32. To This…
  33. 33. Data Embassies
  34. 34. Gracías Thank you

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