Why Democracy Needs to Go Digital

Faith in democracy is fading, as citizens increasingly find self-rule slow, tired, and opaque. It’s time for democratic institutions to lean into the tech revolution. Digital governance isn’t a gadget; it’s democracy’s lifeline.

By Madhav Dhakal

November 2025

When Estonia moved almost all its government services online in 2001, citizens could file taxes in three minutes, check health records instantly, and vote securely from their laptops. Corruption fell, efficiency improved, and trust in government increased. This is not a distant dream; it’s a reality today. It shows what the rest of the world, including the United States, urgently needs: digital governance that places transparency at the center of democracy.

Governments around the world are facing pressure. From the halls of power in Washington and Brussels to village councils in Africa and Asia, people are tired of opacity, slow services, and unchecked corruption. Trust in public institutions is fading, civic participation is declining, and democracies, even in well-established countries, are having a hard time keeping their promises. In this environment, the world does not just need better governance; it needs digital governance that is open, participatory, accountable, and ready for the future.

Digital governance provides a chance not only to digitize bureaucratic tasks, but also to reshape who holds power and how. When designed with transparency, inclusivity, and ethics in mind, digital systems can cut down on corruption, empower citizens, and restore trust in democratic institutions. This is more than a technical update; it is a moral and political necessity. In a time when institutions struggle with a loss of legitimacy and corruption thrives in complicated environments, using technology for governance may be our best way forward.

The Global Governance Crisis

Today we are seeing what many scholars describe as a governance deficit. The World Economic Forum indicates that more than US$3.6 trillion is lost to corruption each year. This amount is larger than the entire GDP of countries like Brazil or the United Kingdom. Public perception is also bleak. A 2022 Pew Research survey found that more than 60 percent of respondents from 24 countries think their governments serve only a privileged few. In many countries, corruption and bureaucratic red tape have become the norm. And citizens in developed democracies are increasingly turning to populist movements, often fueled by the belief that democracy is failing to meet their needs.

But while traditional institutions are struggling, digital platforms are growing quickly. AI, big data, blockchain, and biometric systems are changing who holds power and how it is exercised. Too often, algorithms repeat biases, large tech companies put their interests above the public’s, and surveillance creeps in where rights are vague. If we don’t take action now, digitization will worsen inequality instead of fixing it.

What Is Digital Governance?

Digital governance isn’t just about websites, mobile apps, or online services. It refers to the wider system in which governments use digital technologies. This includes data systems, digital IDs, real-time dashboards, and civic tech platforms. These tools help engage citizens, deliver services, make decisions, and ensure accountability. As highlighted by the World Bank and United Nations Development Programme, digital governance is about more than efficiency. We must build it according to four principles: transparency, participation, oversight, and human rights.

Digital governance includes e-governance, which focuses on public-service delivery; e-agriculture, which offers real-time market information for farmers; e-education, which involves digital learning platforms; e-health, which includes telemedicine and digital prescriptions, and more. Additionally, open-data ecosystems reveal misuse of funds. This approach spans various sectors and places citizens at the center of governance. Digital governance is power exercised through code and data, and it transforms citizens from petitioners into auditors.

Estonia: Democracy by Design

Nowhere is this vision more clearly realized than in Estonia. Since the early 2000s, Estonia has created the world’s most advanced digital state. More than 99 percent of its public services — including voting, taxes, and healthcare — are available online. The country’s X-Road platform allows secure data exchange between agencies. This ensures that data is collected only once and improves efficiency.

Every Estonian has a digital ID that authenticates their identity and allows citizens to see who has accessed their personal data. This transparency feature is rare, even in most democracies. Elections at all levels occur online. Businesses can register in minutes. With layered security and distributed “data embassy” backups (from an Estonian-owned, Luxembourg-based data center), Estonia has had no known breach of core registries and recovered rapidly from attacks.

But what really makes Estonia different is its commitment to democracy. The system was not only designed for efficiency — it was created to build trust in post-Soviet governance. It demonstrates to the world that digital governance is not a luxury; it is essential for democratic renewal.

The United States: Innovation amid Fragmentation

The United States, even without a central digital-governance model, shows strong examples of civic tech innovation and public transparency tools. Platforms such as Data.gov, USASpending.gov, and the Office of Government Ethics provide unmatched access to federal spending, lobbying, and ethics data. Initiatives like 18F and the U.S. Digital Service are updating old systems in areas such as veterans’ benefits, immigration, and procurement.

Yet the U.S. system is still very fragmented and politicized. The absence of federal leadership in digital governance leads to uneven access and differences from state to state, especially in areas such as digital ID, unemployment systems, and election cybersecurity. To reach its full potential, the United States needs to move from random digital improvements to a clear digital-governance strategy that focuses on citizens, not just users.

India and Europe: Lessons in Scale and Regulation

India’s Digital India initiative has shown that digital governance can work on a large scale. Its JAM trinity — Jan Dhan bank accounts, Aadhaar digital ID, and mobile phones — enable direct benefit transfers to more than 400 million people. Biometric authentication and real-time dashboards have significantly reduced corruption in welfare schemes. Platforms like e-NAM in agriculture and GeM in public procurement have improved transparency and saved the country billions.

Europe’s focus has been on rules and data rights. The General Data Protection Regulation (GDPR) and the Digital Services Act (DSA) are seen as global models for fair digital governance. Cities including Barcelona and Helsinki are testing citizen-owned data commons: shared digital infrastructures where citizens collectively own, manage, and decide how their personal data is shared and used. Finland’s AuroraAI project uses machine learning to tailor public services while respecting personal privacy. Europe provides a values-based model of digital governance that emphasizes inclusion, rights, and consistent policies across the continent.

Digital Tools Against Corruption

According to the World Bank’s GovTech initiative, one of the strongest uses of digital governance is in the battle against corruption. By digitizing workflows, automating approvals, publishing real-time dashboards, and enabling citizen audits, governments can reduce red tape, decrease discretion, and reveal fraud.

In Moldova, an e-licensing system has cut down the time it takes to issue permits and decreased opportunities for bribery. In Nigeria, a public portal was used to monitor covid-19 relief funding. In Brazil, blockchain is being tested to make land records more secure. In each instance, digital governance is changing power dynamics, not just updating processes.

But digital governance does carry risks. Poorly designed systems can exclude the poor, increase biases, or allow for state surveillance. Corruption can continue when algorithms are kept secret, audits are weak, or procurement processes are manipulated. Recent research from New York University and the University of Tartu (Estonia) shows that digitization without democratic accountability might result in technocratic control instead of citizen empowerment.

The Way Forward: Building Accountable Digital Governance

To protect democracy in the digital age, we must focus on five key areas. First, to promote transparency, auditability, and public trust, open-source platforms should be the norm in public systems. Estonia’s X-Road demonstrates how transparent digital infrastructure can enable citizens and foster confidence in digital governance.

Second, countries must embrace global digital standards rooted in democratic values. The UN’s proposed Global Digital Compact offers a great opportunity for nations to unite around data rights, algorithm accountability, and ethical governance.

Third, low-income countries need to improve their digital capacity. Many governments lack the infrastructure to establish reliable digital systems. International organizations should support safe and inclusive digital governance in the Global South.

Fourth, using AI ethically is essential, especially in public decisionmaking. Governments must ensure that AI systems are fair, transparent, and responsible. They should steer clear of bias and harm when delivering services.

Fifth, inclusivity should drive all digital reforms. Digital transformation must not leave anyone behind. Access to the internet, services, and digital skills should be guaranteed for everyone, including rural, marginalized, and underserved populations.

Together, these steps can help build a model of digital governance that protects human rights, encourages responsibility, and strengthens democracy. Digital governance isn’t just a technical solution. It is a political decision. It requires software engineers and data scientists, along with creative thinking and a commitment to democracy. The focus should be on efficiency, equity, accountability, and human dignity.

In a world where people are losing trust in government and autocracy is on the rise, action is necessary. We need to create systems that empower citizens rather than just digitizing processes. Estonia is forging the way. The United States is making innovations and improvements. Europe is setting appropriate regulations. India is expanding its reach to more citizens. Now it’s time to shift from isolated projects to a global framework for digital democracy. If we don’t govern digitally, we risk being governed by the digital, without choice, voice, or justice.

Madhav Dhakal is a PhD scholar at Manipal University Jaipur, India.

Copyright © 2025 National Endowment for Democracy

Image credit: TGI/Tetra Images.