The Finnish government has for years aspired to achieve international leadership in the digital economy by 2030. In this endeavor, A public-private partnership has resulted in a new project called the “Real-Time Economy” that aims to conduct trade digitally.

The concept of digital economy refers to the employment of information and communication technologies in all economic and social activities, In order to increase opportunities, advance development and improve the quality of public services. Of course, For a successful digital economy model in a country, All its operations and relationships should be managed online.

According to the European Commission’s Digital Society and Economy Index, Finland ranked first in digital performance for two consecutive years, Then in 2021 it fell to second place. Despite its leadership in the areas of human capital and the integration of digital technology and digital public services, It found other factors that caused it to lose the European lead, The most important of which are the uneven quality of communication services and the poor coverage of fixed networks, Digital infrastructure in densely populated areas is not up to par. SMEs in Finland are also less active in providing e-commerce services than in other countries.

Because achieving change requires the commitment of all authorities, companies and financial management service providers, The Ministry of Economic Affairs and Labour has collaborated with the Finnish Patent and Registration Office to launch the “Real-Time Economy” project. which will run until 2024 as part of Finland’s sustainable growth programme.

The project was supported by several private sector organizations such as the Federation of Industries, the financial institution, The Federation of Technological Industries, Finnish Confederation of Companies, and the Association of Accounting Firms. These entities saw the project as a low-risk entry point to participate in state-led programs to promote digitization in the “real-time economy.” On the government side, Several important government agencies participated in the project, Such as agencies of digital data services, population, statistics, tax administration, and state treasury, With partial funding from the EU Recovery and Resilience Authority, The latter provided Member States with loans worth 385.8 billion euros, and grants totaling 338 billion euros, These funds will be used to implement innovative projects in the digital field between 2021 and 2024.

The Finnish project sought to enhance the international competitiveness of local companies within the global digital transformation. Whereas, the Government has chosen to invest its share in research, development and innovation activities in the 2021 budget, The project’s focus has been on prioritizing initiatives that achieve positive and profound societal impacts.

The Ministry of Economic Affairs has appointed a steering group comprising representatives of partner ministries and entities. It was tasked with directing and supporting the project and monitoring its implementation in accordance with its objectives, Besides making the necessary changes in its budget or schedule.

In depth, The aim is to harness the real-time digital economy to create an ecosystem that includes all business transactions in Finland. Exchanges within this system are conducted based on structured digital information that can be read and processed automatically. This idea represents an operating model in which key business data is transmitted entirely electronically “in real time”.

In the long run, The Finnish government plans to enact legislation regulating new fiscal policy measures that will employ digital solutions to combat the grey economy or the informal economy. And to simplify regulations and reduce administrative burdens on companies.

After the real-time economy project, A plan has been launched for a new project called “Digital Compass”. It is scheduled to come into effect in 2022 under the joint management of the Ministries of Transport, Communications, Finance and Economic Affairs. The new program was named “Compass” because it focuses on formulating a common national vision and goals to achieve the hoped-for transformation of the data economy by 2030. His executive team will develop policies governing four key areas: namely skills, Establishing reliable and sustainable digital infrastructures, Securing the digital transformation of business, and public services.

In line with this trend, Finland supported the European Commission’s proposal to implement the Connected Wallet and the establishment of a legislative framework to support the development of the European Digital Identity which was proposed as an easy-to-use digital identification tool for EU citizens, companies and residents. This concept intersects with the digital certificate issued by the Finnish Ministry of Finance, It allows Finnish citizens to be identified electronically through government-run services and entities in other European countries.

By employing advanced digitization technologies, Companies will be able to process their business data automatically, This means shortening time and capital expenditure as well as increasing efficiency and productivity, It is a natural consequence of companies’ ability to digitize invoices and receipts and transfer information electronically.

It can be said that the authorities are looking to create the conditions for Finnish companies for an ideal and smooth transition to the economy of the future and build the best government department in the world.

References:

• https://www.computerweekly.com/news/252511044/Finnish-government-launches-digital-economy-transformation-projects
• https://valtioneuvosto.fi/en/-//1410877/new-project-to-help-companies-digitalise-their-financial-administration
• https://valtioneuvosto.fi/en/-//10623/finland-continues-to-rank-high-in-eu-digital-comparison