Digitalization is one of the most significant factors contributing to economic development. It encompasses a wide range of aspects, from improving the efficiency of public services to creating conditions for innovation in the private sector. The “Business Ready 2024” report provides useful data on the state of digitalization in different countries and highlights important challenges faced by governments and businesses.
According to the report, on average 56% out of the countries surveyed have implemented certain digital solutions in public services. However, only 14% of them have fully realized electronic platforms for all key services. This indicates that most countries are still at the level of basic solutions and their digitalization capabilities remain underdeveloped.
Among the countries that have achieved success in digitalization are Estonia and Singapore.
Estonia hosting one of the highest levels of digitalization provides access to more than 99% of public services online. This allows citizens and businesses to interact with the government quickly and efficiently. Singapore has also demonstrated outstanding results by implementing systems that minimize administrative barriers and significantly reduce service acquisition time.
On the other end of the spectrum there are countries like the Central African Republic and Chad facing significant issues with digitalization.
In these countries the level of an access to the internet access and digital services remains extremely low. For example, in the Central African Republic only 12% of the population has internet access. This hampers business development and lowers investment attractiveness.
The digitalization of public services directly affects the private sector.
Rapid access to licenses, permits, and other documents is made possible only through the implementation of digital platforms. Countries that do not accelerate their digitalization risk losing competitiveness. For instance, in Georgia the introduction of electronic services has significantly shortened the time required to register a business. This process now takes only 3 days, whereas in less developed economies, it can take several weeks.
Despite the advantages that countries experience, transitioning to digital solutions comes with several challenges.
One of the primary challenges is the lack of infrastructure. In low-income countries, stable internet connectivity is often absent, making the full implementation of digital services impossible. Additionally, many public servants lack the necessary digital skills to work with new systems.
Another challenge is the low level of trust among citizens in digital platforms. Many people fear data breaches or fraud. This leads to a reluctance to adopt electronic services, despite their convenience.
Studying international experience shows that successful digitalization requires a comprehensive approach.
For example, Singapore has implemented numerous initiatives aimed at enhancing digital skills among citizens and businesses. This includes educational programs that teach people how to use digital platforms effectively.
Moreover, ensuring the transparency and security of digital solutions is crucial. Estonia, for instance, provides a high level of data protection and transparency in its electronic systems, which fosters trust among citizens.
Countries aiming to enhance the level of digitalization of public services should focus on the following recommendations:
• Invest in infrastructure to ensure stable internet access.
• Develop training programs for public servants so they can effectively use digital solutions.
• Conduct awareness campaigns to inform citizens about the benefits of digital services and data security.
These steps will help not only improve access to public services but also increase trust among citizens.
Digitalization of public services is a necessary condition for economic growth and development. Analyzing data from the “Business Ready 2024” report shows that countries successfully implementing digital solutions gain significant advantages. They not only improve the efficiency of their services but also create conditions for the growth of the private sector. However, achieving these goals requires targeted efforts from both governments and businesses.
Prepared by: Lina Yegil kizi, expert of the Economy KZ portal
