The Anti-Corruption and Economic Potential of E-Services study demonstrates how the implementation of electronic services affects the economy, reduces corruption risks, and simplifies the process of service delivery for citizens and businesses.

The main goal was to quantitatively assess the impact of transitioning public services to an online format, namely:

• Saving time and money for users;
• Reducing the administrative burden on business;
• Reducing corruption risks in the provision of public services.

As part of the preparation of the study, 67 e-services across 15 areas were assessed, such as business registration, pension receipt, construction, licensing, social benefits, etc. The Standard Cost Model (SCM) methodology was used to assess the economic impact, and surveys were conducted with users to assess the anti-corruption effect.

Specifically, the experts who worked on the report analysed the costs incurred by citizens and businesses when receiving services in both offline and online formats, considering three main categories of costs:

• Time costs — how much time citizens spend to receive a service;
• Financial costs — transportation expenses and payment for related services (e.g., notaries, intermediaries);
• Administrative costs — fees paid when obtaining services.

As part of the report, the average bribe costs for both formats of receiving administrative services were calculated (based on reports from respondents regarding corruption situation). The likelihood of a corruption situation was also considered, calculated as the share of users among the surveyed respondents who reported being asked for a bribe.

In this context, the study shows that the potential economic effect of implementing electronic administrative services in Ukraine amounted to over UAH 7.5 billion in 2020. In absolute terms, time savings are estimated at over 12,400 person-years per year.

These and other indicators, presented in the full text of Anti-Corruption and Economic Potential of E-Services study, confirm that digitalization is a key factor in the fight against corruption and economic growth. The study highlights the significant advantages of e-services for society, including the reduction of bureaucratic procedures and the lowering of corruption risks. Further development of this area is critically important for enhancing the efficiency of public administration in Ukraine.

The report was prepared by Better Regulation Delivery Office (BRDO) with the support of E-Governance for Accountability and Participation (EGAP) Program, funded by Swiss Agency for Development and Cooperation and implemented by East Europe Foundation.