Digital Transformation and Public Sector Reform: Western Balkans' Progress Toward EU Accession and Economic Growth

The Western Balkans—Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—are transforming rapidly. Despite global challenges, the region’s steady economic growth is driven by modernizing public institutions and adopting digital innovations, which boost business confidence and job creation. As European Union (EU) accession approaches, accelerating reforms is increasingly crucial.

Governments across the region have laid the groundwork for public sector modernization. Albania stands out for its rapid progress in digital transformation. The “E-Albania” portal now offers over 95% of government services online, and service requests through the portal increased by 40% between 2023 and 2025. The upcoming portal 2.0 will further enhance accessibility, including for people with disabilities.

In education, Albania has equipped 200 primary schools with 216 Education Smart Labs since 2023, helping students develop digital and numeracy skills. Youth Innovation Centers are also preparing young people for the demands of the digital economy. The country’s Open Data Portal has been upgraded to meet international standards, and the Government Gateway platform now enables seamless inter-agency data sharing, further improving public service delivery.

Other countries in the region are also making significant strides. Montenegro is preparing to introduce e-Wallet and eIDAS2 systems, aligning with EU digital identity regulations. Kosovo has expanded its eKosova platform, allowing parents to register newborns, obtain birth certificates, and access pediatric and insurance services online. Kosovo aims to digitize half of its public services by 2027 and all key services by 2030.

Key achievements to date include:

• Over 95% of Albania’s government services are now available online, with a 40% increase in service requests in two years.
• 216 Education Smart Labs established in Albanian schools, boosting digital skills for students.
• Kosovo’s eKosova platform now covers major life events, with ambitious targets for full digitalization of public services by 2030.

Despite these achievements, challenges persist. The Western Balkans continue to lag behind EU averages in key governance indicators—accountability, regulatory quality, political stability, the rule of law, government effectiveness, and control of corruption. Addressing these gaps will require reforms underpinned by public-sector innovation and digital tools, with the aim of:

• Making it easier for businesses to operate and grow by modernizing regulations and automating business services, thereby creating more jobs and attracting investment.
• Delivering public services that are more user-friendly and inclusive, particularly for vulnerable groups such as the elderly, people with disabilities, and those with lower incomes or education. This includes expanding online services and establishing support centers.
• Strengthening local governments so they have the tools and resources needed to support job creation and economic development in their communities.
• Updating the management of public finances and investments to improve transparency, oversight, and long-term planning.

Looking ahead

The World Bank and its partners are helping the Western Balkans accelerate reforms through programs such as Albania’s GovTech initiative. Serbia is also working to strengthen public financial management for the green transition. A new regional program, supported by Austria through the Governance & Institutions Umbrella Program, will speed up digital government and public sector innovation, scale successful approaches across borders, and back key reforms for EU accession, deepening ongoing work in Albania.

Regional workshops with EU peers will share knowledge on digital services, justice, and skills. The program will benchmark progress against EU accession criteria and provide hands-on support to implement reforms, helping countries prepare for membership.

Sustained progress toward EU accession and quality job creation depends on continued investment in strong institutions and digital innovation. The World Bank is proud to partner with the Western Balkans as it builds on its achievements and advances inclusive growth and opportunity.

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The work featured in this brief is financed by the World Bank’s Governance and Institutions Umbrella Program (G&I).  G&I is a multi-donor trust fund established in 2022. It receives generous support from the Federal Ministry of Finance of the Republic of Austria, Global Affairs Canada, the Chandler Foundation, the Ministry of Foreign Affairs of Estonia, the European Union, the Hewlett Foundation, the MacArthur Foundation, the Ministry of Economy and Finance of the Republic of Korea, the Swedish International Development Cooperation Agency (SIDA), the Swiss State Secretariat for Economic Affairs (SECO), and the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO). To learn more, please visit www.worldbank.org/giup.