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Commentary: Understanding digitalization’s impact on Eurasia [1]

['Klara Lisinski', 'Irakli Machaidze']

Date: 2025-06

Once, the Silk Road was a physical network of trade and exchange, ferrying goods across mountains and deserts. Today, it is not just goods that traverse borders, but information moving via Starlink connections, fiber-optic cables and the hum of data centers. This digital Silk Road is connecting places as disparate as the Baltics, Iran, and Kazakhstan – societies shaped by wildly different histories, faiths, and political systems – yet now converging in their embrace of digital transformation.

In the Baltics, digitalization is not just a policy, it has become a pillar of national identity. Estonia’s e-Residency program – which has issued over 100,000 digital IDs to entrepreneurs worldwide – is emblematic of a region where e-governance and digital trust have become part of the social contract. Latvia and Lithuania, too, have woven digital signatures and smart IDs into the fabric of daily life, turning what was once a vulnerability – their small size and history of occupation – into a source of agility and resilience. As the anthropologist Chris Hann has noted, this is digital sovereignty as a form of self-assertion, a way to project soft power and ensure survival in a world of shifting alliances.

Kazakhstan’s experience is also compelling. In just a few years, the country has leapt from cash and bureaucracy to a society where nearly everyone uses online banking and government services are a biometric scan away. The eGov.kz portal and apps like Kaspi.kz have become ubiquitous, and the government’s ambition to double IT exports by 2026 signals a desire not just to catch up, but to lead. Astana also has ambitions to turn Kazakhstan into a regional AI and crypto hub. The digital leap is both state-driven and powered by private innovation, a blend that has propelled Kazakhstan into the global top 30 for e-government readiness. The new Silk Road here is as much about attracting startups as it is about connecting citizens.

Iran, meanwhile, serves as a paradox. Despite sanctions, censorship, and infrastructural challenges, the country has carved out a unique path toward digital modernity, at least in an ‘enclave’ style. Tehran’s smart city initiatives and the government’s ambitious ICT development plans have transformed urban management, banking, and healthcare. Mobile payments and digital dashboards are now commonplace, and even as the state negotiates the tensions between tradition and innovation within the context of the Islamic republic, the digital revolution continues apace. As Hann and other anthropologists have observed, Iran’s experience is a reminder that digitalization is never a one-size-fits-all process; it is always shaped by local negotiation, adaptation, and resistance. Iran’s example makes it clear that digital transformation does not necessarily go hand in hand with the democratization of society.

The Baltics, Iran, and Kazakhstan are hardly alone on the digital journey. Across the Eurasian landmass, digitalization is bringing down borders and forging new connections. Georgia’s Digital Georgia 2020 initiative has expanded broadband access and e-government services, while Armenia’s High-Tech Development Strategy is nurturing a startup ecosystem and attracting some foreign investment. Even Azerbaijan, with its own unique blend of tradition and ambition, is seeing a surge in mobile and digital services, especially in urban centers.

Ukraine’s Diia app also deserves a shout-out. Launched in 2020, Diia lets Ukrainian citizens access a wide range of government services – from digital IDs and driver’s licenses to tax payments and business registration – all from their smartphones. Even amid war, Diia has helped maintain access to public services, distribute aid, and pilot remote voting. Its success has drawn attention from neighboring countries, with Moldova and Estonia among those interested in adopting similar platforms. Diia’s story is a powerful reminder of how digital government can foster resilience and civic engagement, even under the most challenging of circumstance.

In the war-torn enclaves – South Ossetia, Abkhazia – the digital picture is more complicated. These isolated territories face profound challenges in joining the digital age. Yet, digital platforms offer a rare lifeline. In Abkhazia, for instance, researchers have found that digital technologies can help integrate isolated economies, offering new ways for people to connect, trade, and even access education and healthcare.

Russia represents a special case in the region. The country’s quest for digital sovereignty – its drive to control its own segment of the Internet, foster domestic tech champions, and wall off Western influence – casts a long shadow. Like Iran, Russia’s own digital sector is paradoxical: highly innovative in some areas, yet increasingly isolated and securitized, with growing dependence on Chinese technology and a relentless focus on information control, instead of proliferation.

The digital transformation of Eurasia is not just a story of individual nations forging their own paths. There is a quieter, but equally significant, movement toward cooperation among more liberal-minded states in the digital sphere. While authoritarian governments like Russia, Belarus, and Iran are well-known for sharing surveillance tactics and information control methods, the Baltics and some South Caucasus states are charting a different course. Estonia, Latvia, and Lithuania have not only made e-governance a pillar of their national identities, but have also worked together through frameworks like the Baltic Assembly and the Nordic-Baltic cooperation to harmonize digital services. Initiatives such as the Baltic Data Space and mutual recognition of digital signatures are making it easier for citizens and businesses to access services across borders, helping to set a regional standard for digital trust and efficiency.

Georgia and Armenia, inspired by the Baltic model, have actively sought technical exchanges and partnerships to adapt e-government solutions to their own contexts. Georgia’s Digital Georgia 2020 strategy, for example, benefited from Estonian expertise, while Armenia’s High-Tech Ministry has participated in regional forums to standardize digital services. These collaborations are about more than just sharing code – they reflect a shared commitment to transparency, efficiency, and citizen empowerment.

So, while the digital Silk Road is sometimes paved with firewalls and surveillance, it also features bridges – linking open societies, sharing expertise, and quietly reinventing what it means to be connected in Eurasia.

As historian Tim Winter has argued, the Silk Road was never just about trade; it was about the constant reinvention of connection, adaptation, and identity. Today’s digital Silk Road is no different. The Baltics, Iran, Kazakhstan, and their neighbors are not merely catching up with the West – they are pioneering new models of digital transformation that are deeply rooted in their own histories and aspirations.

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