E-formalization case study

e-Estonia: A digital society for the transition to formality

This ILO case study will first situate the discussion of the link between technology and the formalization of the economy and the relevance of e-formalization policies. It then delves into the Estonian case by first giving a historical background of the country’s digitalization process before moving to a full overview of the range of e-formalization measures in place. It concludes with lessons learnt about the conditions for success and replicability. Particularly given the Covid-19 pandemic which saw many countries shift to increased usage of digital technologies, this case study can provide useful insights for countries looking for innovative solutions for the transition to formality whilst also adapting and recovering from the Covid-19 pandemic.