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Why Estonia? The 30-Year Journey from the USSR to e-Estonia

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Introduction

Estonia–a nation of medieval cities, ancient forests, and wetlands in the Northeast of Europe on the coast of the Baltic Sea–is home to less than 1.5 million people. While small, Estonia has managed to do big things in the digital sphere. We are an e-state and proud of it. Estonia has long had ID-cards and digital voting, online tax declaration and a large number of tech-related startups. 

But that has not always been the case. The first computer arrived in Estonia in 1959, but at the time we regained our independence in the early 1990s, we had a long way to go to becoming a leading digital nation. There is no one single reason that led to Estonia’s digital success, but rather a collection of decisions made by the right people at the right time that started the digital snowball that is still rolling to this day.

This exhibition is based on a temporary exhibition Why Estonia?  that was displayed in Vabamu Museum of Occupations and Freedom from 2021-2023. Vabamu is a museum in Tallinn, focused on telling the story of totalitarian regimes–Soviet Union and Nazi Germany–and Estonia’s struggle for independence, but also about the power and fragility of freedom. For some time now, telling the story of the Estonian digital state has also been a part of what we do. 

Exhibition Team

Karen Jagodin, concept author 

Henrik Roonemaa, curator, original exhibit

Janno Roos (Ruumilabor), Maret Põldre, Ionel Lehari (Identity), creative solutions, original exhibit 

Martin Vaino, modifications to original exhibit

Cece Grace La Puma, Isidora Boadicea Davis, Maja Soomägi, Martin Vaino, new texts

Aro Velmet, Marko Koks, video interviews

Kadri Paju, Liisi Esse, collaboration between parties 

Kristen Valenti-McKeen, design and production

Cece Grace La Puma, interactive wall

Collaboration Partners

Bikeep, e-Estonia Briefing Centre, e-Governance Academy, Estonian e-Residency, Estonian Health Development Institute (TAI), Kistler-Ritso Foundation, Ministry of Economic Affairs and Communications of Estonia, Stanford Libraries, Taavet + Sten, VEMU Estonian Museum Canada

Thank You

Michael Keller, Sylvia Thompson, Andrew Thompson, Anna-Maria Osula, Anu Vahtra-Hellat, Anu Masso, Helena Eglit, Ivo Lille, Juhan Saharov, Kairi Talves, Kersti Kaljulaid, Kristina Reinsalu, Kristjan Lind, Liina Kamm, Liisi Rannast-Kask, Luukas Kristjan Ilves, Nil Bibawy, Nortal, Sten Tamkivi, Toomas Hendrik Ilves, Triin Joasaare

Individual & the State

In many comparisons, Estonia’s e-state is at the global forefront. What sets us up is that we have a fully functional e-state that officials, entrepreneurs and citizens use on a daily basis, saving everyone time and money.

Estonians can give digital signatures, vote via the internet on local, state and EU elections and access their medical records online. Taxes are declared and businesses set up in a fast and efficient manner via e-state solutions. Estonian digital services are available to foreigners through a system of e-residency, allowing non-residents to start and manage companies from anywhere, entirely online.

The backbone of the Estonian e-state is the X-road: an interoperability network securely connecting various public and private sector organizations. Via the X-road, data is only requested from the citizen once, but shared between authorized parties, thus avoiding excessive paperwork. For example, the police can access data from the health system and vice versa. At the same time, the X-road is protected by strict security measures to prevent any misuse of data by either third parties or the interlinked organizations themselves.

Challenges to e-Estonia

In 2007, a Soviet-era bronze statue of a soldier, and the remains of Soviet soldiers buried beneath it, were moved from a prominent street corner in Tallinn to a military cemetery. This was followed by days of pro-Russian rioting and a wave of cyber-attacks on Estonia’s banking, media, and government websites, overloading their servers with junk traffic and causing severe Denial of Service (DoS) issues. 

While direct involvement of the Russian state was never proven these attacks are widely considered the first in the world to have been waged –or at the very least supported–by one country against another. As a countermeasure to this new type of warfare, the Estonian Cyber Defence League was established the following year.   

In 2022, Estonia suffered an unprecedented number of cyber attacks and placed 7th in DoS cyberattacks globally. However, in that same year Estonia ranked as the 3rd most cyber-secure country in the world. Despite a large volume of threats, Estonia has been largely successful in fending them off. 

There have also been challenges to e-Estonia from within the country. During the most recent 2023 election, the accuracy of Estonia’s e-voting software was called into question by Estonia’s far-right party EKRE. However, an investigation by the National Electoral Committee determined their claims to be unfounded. EKRE had led the election in in-person votes (which tends to include more rural and conservative voters), but fell behind during the e-vote count, naturally incentivizing EKRE to question the e-voting system’s integrity. EKRE brought similar complaints to the Supreme Court during Estonia’s 2019 elections, but they were also dismissed. 

Scalability

The Estonian digital state is not a case of Estonian exceptionalism nor are such solutions only possible in small countries. Digital solutions are implemented on either municipal or state level all over the world–in many cases with help and advice from Estonian organizations such as the Estonian e-Governance Academy.

Ukraine

The Estonian e-Governance Academy has supported Ukraine in implementing digital services through their EGOV4UKRAINE project. Since most Ukrainians have access to the internet through their phones, the Ukrainian system of digitalization is based on smartphones, rather than the Estonian computer-based system, introduced much earlier. The Ukrainian app Diia is used to access digital documents such as ID (the app provides the world’s first digital passport) and student cards, but since Russia’s full-scale invasion has also been used to report the movement of Russian troops.  

Featured Objects

Estonia in Silicon Valley

Estonia, often heralded as the “Silicon Valley of Europe,” has emerged as a formidable force in the global tech industry. It is thus no surprise that Estonian tech companies have established a significant presence in the Silicon Valley, contributing to the region’s renowned culture of innovation.

One prominent example is Bikeep, a leader in smart bike parking solutions. In partnership with Bay Area Rapid Transit (BART), Bikeep has introduced secure, high-tech bike racks at strategic San Francisco Bay Area locations, including the 16th Street Station.

Another key player is Planet OS, a company that made significant strides in data analytics for environmental monitoring before being acquired by Intertrust. 

Veriff, headquartered in Tallinn, stands out in Estonia’s tech landscape. Specializing in identity verification solutions, Veriff has gained international acclaim after going through Y Combinator (YC), one of Silicon Valley’s most prestigious startup accelerators. 

Wise (formerly TransferWise), co-founded by Estonian entrepreneurs, has revolutionized international money transfers, achieving unicorn status with a valuation exceeding $10 billion.

Bolt, another Estonian success story, has rapidly expanded its ride-sharing and micromobility services, becoming a major competitor in the global market.

Pipedrive, a sales CRM platform, has gained a strong foothold in Silicon Valley, offering innovative solutions for businesses worldwide.

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