Georgia should reap the benefits of the EU Digital Single Market on the way to digital transformation

David Tsiskaridze, Chairman of the Board, International Business and Economic Development Center

Recently, the European Commission has released the Digital Economy and Society Index, a composite index that summarizes relevant indicators on Europe’s digital performance and tracks the evolution of the EU Member States in digital competitiveness.

The Index assesses key dimensions of the European information society: Telecom sector, Broadband, Mobile, Internet usage, Internet services, eGovernment, eCommerce, eBusiness, ICT Skills, Research and Development.

StrategEast has interviewed leading experts from EaP countries on the perspectives of IT development in their countries. Here are the answers from the expert on Georgia.

Can Georgia compete with the EU states in terms of ICT sector development?

The digital agenda is a key priority for the government of Georgia. The ‘Georgia 2020’ Social Economic Development Strategy outlines several target areas to enhance the digital ecosystem, including High-speed Broadband Internet for future development, e-Literacy and Capacity Building, Innovation and High-Tech, and e-Government.

The main question is how Georgia should transpose all the benefits from the EU Digital Single Market on the way to digital transformation. However, more actions are needed still to fully comply with the HDM requirements on the way to EU integration. Georgia should transpose all benefits of the Digital Single Market of the EU. The government should engage more actively in the improvement of governance and coordination by the means of elaborating HDM policies, strategies, developing action plans in the relevant field, and creating national roadmaps to promote the development of the HDM ecosystem in Georgia.

Development of the digital economy and social potential in Georgia is supported by the EU to foster economic growth, increase the employment rate, improve the level of life, and help businesses. The introduction of EU best practices will trigger the faster development of mature ICT innovation and start-up ecosystem supported by properly managed Georgian organizations. Researchers and innovative businesses will also benefit from gaining access to EU funding instruments.

More importantly, Georgia will develop a common legislative framework with the EU Digital Single Market that will provide better opportunities for sharing and creating new ideas with the representatives of their field from different EU member states.

ICT Innovation is vital to economic development in the digital age. Information and Communication Technology (ICT) plays an important part in the process of development of the Georgian economy. Georgia remains reliant on imports of ICT goods and services, but it is also expected to increase exports of services to adjacent markets in line with further market development. The penetration of telecommunication services has been growing, but there is still significant domestic demand to fill in before the country catches up with other countries in the region.

To shape the competitive ICT innovation ecosystem, Georgian government should focus on assisting digital start-ups and SMEs to improve their access to finance, better reach to EU markets, and strengthen links with EU innovation ecosystems.

The EU4Digital Facility conducted a gap analysis for Digital innovation SMEs in EaP countries, which revealed the main gap is access to finance for Georgia and Ukraine. SMEs can access finance in all phases of their lifecycle (creation, expansion, business transfer).  Relevant aspects of the financial ecosystem and policy include regulatory sandboxes for alternative finance, crowdfunding, business angels, venture capital, fast track support for high-risk innovations, and funding of digital transformation of traditional enterprises.

 

What success stories can you name in e-Government services?

One of the effective tools is the administration and management of multi-tiered government organizations and increasing their effectiveness by the active use of electronic platforms. One-stop portal www.my.gov.ge is an e-governance model providing users with various information and services. Electronic resources of the Georgian government are managed by the agency via the web portal, simplifying communication between Government to citizens, Government to employees, Government to Government, and Government to Business. DEA is tasked to manage the development of E-governance in Georgian government.

Due to the coronavirus pandemic, citizen mobility has been restricted in Georgia, and a state of emergency was declared as in many other countries in the world. Electronic state services have become highly demanded during the named period.

LEPL Data Exchange Agency of the Ministry of Justice of Georgia switched to remote work,  completing the integration of more than 150 new electronic services into a Unified Portal of e-Services www.my.gov.ge, which has allowed customers to receive several critical services without leaving home. Integrated services include primary and recurring certificates such as passport, identity, marriage, divorce, birth, death, adoption, paternity, name and / or surname change; The procedure for receiving existing services has also been optimized.

Minister of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia has developed a centralized COVID-19 monitoring system that is updated twice a day, as well as other solutions like contact tracing through mobile app use (even though the user take-up on the mobile app was not as high as expected), and the highly effective and innovative practice of combining e-Prescription platform with Georgian Post capabilities for medicine delivery to at-risk groups. Notably, ePrescription use has expanded beyond the Tbilisi area to all the country’s regions.

Can you say that your country possesses a strong human capital skilled in IT?

Digital skills are a key framework condition for the development of the digital economy and society. Digitization speeds up, the demand for digital skills is growing in Georgia as in other countries of the world. Citizens need adequate and appropriate digital skills to be empowered in a digital economy and society.

The following should be identified to foster sustainable long-term growth and innovation in Georgia: existing gaps in digital skills, market trends, and requirements for ICT education and skills development. Education, training, and workforce advancement should be supported to develop and adapt its offer in meeting the changing needs of the digital economy. The training aimed at fostering digital competence and digital skills is commonly believed to be the most appropriate tool to tackle the digital challenge. Modernization of our education and training systems for the digital age, bringing digital skills and competences to all levels of education and training are required.

The availability of digital skills should be expanded through the education and training system, while also preparing experts who will be able and willing to share their knowledge with others. Many of those experts are country expats, who want to give back to their communities and will be able to engage with IT and educational communities to visit places and teach digital skills.

More young people should be educated and trained in digital professions so that we can create a large pool of talented young digital professionals, with increased female participation, ready to work, and take up the growing number of unfilled vacancies for ICT professionals in Georgia.

Up-skill and re-skill Georgia labor force with the digital skills as they need to remain productive in the jobs they have and become employable for new ones.

Improve the digital skills of all citizens so that they can play an active role in modern society, and strengthen social inclusion.