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Kreston Ukraine on Diia Summit in Davos

On May 25, Mykhailo Fedorov, Minister of Digital Transformation of Ukraine, shared a broad perspective of Ukraine’s digitalization at the first international Diia Summit, held on the sidelines of the World Economic Forum in Davos. 

Kreston Ukraine employees had the opportunity to attend this event, so we share the main points of Mykhailo Fedorov’s speech.

The presentation included Ukraine’s key achievements in the digital transformation of the government and society before the full-scale war, key decisions and successes in tech-related areas over the past three months, and the Ukrainian government’s vision of a new Ukraine recovered from the consequences of Russian aggression.

Specifically, before the large-scale Russian invasion, Ukraine strived to become the most convenient country in terms of public services, stipulating the following strategic goals in the area of digitalization:

  • 100% of public services are available online.
  • 95% of the population with access to high-quality Internet.
  • 6 million Ukrainians involved in digital skills development program.
  • The IT sector’s share in GDP increases from 5% to 10% (from 6.5 billion to 17 billion USD).

To achieve these goals, the government introduced digital transformation bodies at all levels of state administration well before the current phase of the war. Yet the most noticeable innovation for individual Ukrainians was the launch of the Diia app. As of the beginning of extensive military operations, 17.3 million Ukrainians were using the app, having access to:

  • 11 electronic documents (including the electronic ID card, used by more than 1 million Ukrainians monthly);
  • 15 digital public services;
  • Diia.Signature service, which allows creating and using an electronic digital signature without attending certification offices and submitting paper documents;
  • targeted financial support with automatic determination of eligibility.

Ukraine’s achievements in digital transformation also included:

  • Launch of the Diia.Education online platform, which 1.3 million Ukrainians used before the large-scale aggression, and the number of issued national digital literacy certificates reached 2 million;
  • Establishment of 6,000 offline hubs with free computers and Internet access;
  • Introduction of a special tax residency Diia.City, enjoyed by more than 300 IT companies;
  • Creation of the Ukrainian Startup Fund, the largest angel investor in Ukraine;
  • Technical education reform.

With the outbreak of intense hostilities, strategic activities yielded to addressing urgent wartime challenges. In particular, the Diia app offered new services such as:

  • obtaining an internally displaced person certificate and related welfare assistance;
  • receiving a one-time aid for evacuees, which more than 5 million Ukrainians applied for;
  • notification about property damage;
  • online television and radio;
  • reporting on the enemy army’s movements.

Thanks to SpaceX and the European Union, Ukraine received more than 10,000 Starlink satellite Internet terminals, widely supplied to social and energy infrastructure facilities, military units, and liberated settlements.

The Ukrainian IT Army now has more than 300,000 volunteers. Among the most significant successes are DDOS attacks on critical websites of the aggressor, hacking TV channels, erasing the Rutube service, launching an AI-based facial recognition system for occupiers, and a campaign to inform Russians about their army’s losses. At the same time, Ukraine has been under constant pressure over the last three months from at least six Russian hacker groups, which have attempted more than 430 attacks on our nation’s IT infrastructure and services.

To raise financial aid for Ukraine, the government has founded the first crypto-fund (which has already raised about $60 million in cryptocurrencies and NFT) and the Ukraine24 fund.

While the war keeps leaving bloody wounds in our hearts, the victory of Ukraine is imminent. As Mykhailo Fedorov noted, the Ukrainian government is already considering a postwar recovery, which should not be only a way to restore the pre-war conditions of the economy but also a powerful transformational factor.

For today, the government has assumed the following strategic vectors of Ukraine’s transformation after the war:

  1. Increasing the governance flexibility.
  2. Introduction of the best tax system in the world.
  3. Close cooperation between the government and business, including outsourcing certain public services.
  4. Implementation of the most technologically advanced security system.

The vision of a new Ukraine recovered from the consequences of war includes:

  • Digitized government resembling an IT company in terms of the efficiency of decision-making;
  • Implementation of “paperless” and “cashless” concepts;
  • Large-scale privatization and economic recovery through new industrial design and public-private partnerships;
  • “Patronage” of foreign countries and companies over certain regions;
  • The world’s fastest customs where private businesses partially manage processes;
  • The most powerful cyber army in the world;
  • The most advanced territorial protection system provides each major facility with its own ‘iron dome.

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