Comparative Analysis of ICT in the Public Sector in Estonia and Republic of Macedonia

Abstract

Computer based information systems have been increasingly proposed for solving problems in the public sector facing governments around the world. The challenges facing developing countries are even greater. Developing countries try to use ICT to help them skip whole stages in the development of their economies, and to approach the developed countries. This paper intends to present a comparative analysis of the role of ICT in the public sector in the case of two developing countries, Estonia and Republic of Macedonia. Estonia is a country with a similar historical and socio-economic setting as the Republic of Macedonia. Estonia has achieved significant economic growth in the last 20 years, and its public sector is advanced user of ICT. Macedonia lags behind Estonia, in economic growth and in the application of ICT. Our thesis is that one of the factors that led to these differences between the two countries is the intensity of application of ICT in the public sector, in several ways: the government as a user of ICT; the government as a provider of ICT services to the individuals, private companies, NGOs, and others in the public sector; and the government as a creator of a political framework, legal framework, and climate for the diffusion and application of ICT. The comparative analysis is focused on five areas, which we consider are key to explaining the differences between two countries: the policies and legal framework regarding ICT, organizational structure of the institutions in charge of ICT, the degree of development of information society, the budget allocated for ICT development and projects, and the contribution of ICT in the governance of the public sector. Furthermore, we will compare the educational structure of the labor force in the two countries, as an important complementary asset for the application of ICT. The analysis will be based on statistical data from multiple sources and publicly available information on the situation concerning the application of ICT in the public sector in both countries. In the comparative analysis section we will offer benchmarks for Macedonia to accelerate the process of the development of ICT application. At the end of this paper, we will propose answers, based on this analysis, which are the reasons that led Estonia to its success.