E-government, inclusive growth, and the legitimacy of capitalism: lessons from estonia

Abstract

This paper examines how e-government (EG) can help re-legitimize capitalism by embedding the principles of transparency, trust, and security (TTS) into public governance. Using Estonia’s post-Soviet digital transformation as a case study, we argue that TTS-based EG reduces corruption, curbs rent-seeking, fosters inclusive growth, and rebuilds public confidence in market institutions. While Estonia is not a universally replicable model, it offers a compelling proof of concept: when digital reforms are grounded in democratic norms, EG can enhance the perceived fairness, accountability, and legitimacy of capitalism. We adopt a within-case process-tracing approach, combining institutional analysis with international indices and public opinion data. The findings offer both theoretical and policy-relevant insights for democracies seeking to modernize capitalism through principled digital transformation.