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This project is funded by the European Union REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) IN WESTERN BALKAN ECONOMIES
REPORT
Title:
REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY
SOCIETY INDEX (DESI) IN WESTERN BALKAN ECONOMIES ON THE STATE OF APPLICATION
Publisher: Regional Cooperation Council
Trg Bosne i Hercegovine 1/V, 71000 Sarajevo OF DIGITAL ECONOMY SOCIETY
Bosnia and Herzegovina
Tel: +387 33 561 700; Fax: +387 33 561 701 INDEX (DESI) IN WESTERN
E-mail: rcc@rcc.int
Website: www.rcc.int
BALKAN ECONOMIES
Authors: Zoran Jordanoski and Morten Meyerhoff Nielsen, United Nations
University Operating Unit on Policy-Driven Electronic
Governance (UNU-EGOV)
Editor: Tanja Maraš, RCC
Design & Layout: Samir Dedić
April 2021
©RCC2021 All rights reserved.
DISCLAIMER:
The information and views set out in this report are those of the author(s)and do not necessarily
reflect the official opinion of the Regional Cooperation Council (RCC) or the European Commission.
The RCC or the Commission does not guarantee the accuracy of the data included in this report.
Neither the Commission nor any person acting on the Commission’s behalf may be held responsible
for the use which may be made of the information contained therein.REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) List of Abbreviations
IN WESTERN BALKAN ECONOMIES
Content List of Abbreviations
LIST OF ABBREVIATIONS.....................................................................................................................5 3G Third-generation technology
LIST OF TABLES.....................................................................................................................................8 4G Fourth-generation technology
LIST OF FIGURES...................................................................................................................................9 5G Fifth-generation technology
EXECUTIVE SUMMARY.......................................................................................................................10 AEC Agency for Electronic Communications (North Macedonia)
1. INTRODUCTION.......................................................................................................................14 AIS Agency for Information Society (Kosovo*)
1.1. BACKGROUND..................................................................................................................15 AKEP Agency for Electronic Communications and Post (Albania)
1.2. OBJECTIVES OF THE REPORT..........................................................................................18
AL Albania
1.3. APPROACH AND METHODOLOGY..............................................................................18
ARKEP Regulatory Authority of Electronic and Postal Communications (Kosovo*)
2. DIGITAL ECONOMY AND SOCIETY INDEX.........................................................................22
BA Bosnia and Herzegovina
2.1. STRUCTURE OF THE DESI................................................................................................23
BCE Broadband Coverage in Europe
2.2. METHODOLOGICAL CONSIDERATIONS.....................................................................26
BCO Broadband Competence Office (North Macedonia)
2.2.1. Indicator Requirements.............................................................................................26
BEREC Body of European Regulators for Electronic Communications
2.2.2. Data Sources and Methodologies.............................................................................26
2.2.3. Frequency of data collection.....................................................................................38 BHAS Agency for Statistics of Bosnia and Herzegovina
3. ASSESSMENT OVERVIEW..........................................................................................................40 CDMA Code-Division Multiple Access
3.1. STATE OF APPLICATION OF DESI INDICATORS IN WESTERN BALKAN CEFTA Central European Free Trade Agreement
ECONOMIES.......................................................................................................................41
COCOM Communication Committee Commission
3.1.1. Connectivity dimension.............................................................................................42
CRM European Commission Common Regional Market
3.1.2. Human capital dimension..........................................................................................44
DESI Digital Economy and Society Index
3.1.3. Use of internet services dimension..........................................................................45
DG CONNECT Directorate-General for Communications Networks, Content and Technology
3.1.4. Integration of digital technology dimension.............................................................46
DOCSIS Data Over Cable Service Interface Specifications
3.1.5. Digital public services dimension...............................................................................46
DSL Digital Subscriber Lines
CONCLUSION.....................................................................................................................................50
ANNEX 1: ECONOMY REPORTS.....................................................................................................53 eDAMIS Electronic Dataflow Administration and Management Information System
ALBANIA......................................................................................................................................53 EDP European Data Portal
BOSNIA AND HERZEGOVINA.................................................................................................59 EEA European Economic Area
KOSOVO*....................................................................................................................................65 EFTA European Free Trade Association
4 MONTENEGRO..........................................................................................................................71 eID Electronic identification 5
NORTH MACEDONIA...............................................................................................................77 EKIP Agency for Electronic Communications and Postal Services (Montenegro)
SERBIA ........................................................................................................................................84 EU European Union
ANNEX 2: STAKEHOLDER CONSULTATIONS PHASE..................................................................90
EU-LFS European Union – Labour Force Survey
ANNEX 3: QUESTIONNAIRE............................................................................................................92
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the
REFERENCES ........................................................................................................................................94 Kosovo declaration of independence.REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) List of Abbreviations
IN WESTERN BALKAN ECONOMIES
Eurostat Statistical office of the European Union RCC Regional Cooperation Council
FIS Institute for Statistics of Federation of Bosnia and Herzegovina RS Serbia
FTTP Fiber to the premises RSIS Institute for Statistics of Republika Srpska
FWA Fixed wireless access SIM Subscriber Identity Module
GPRS General Packet Radio Service SMEs Small and medium-sized enterprises
GSM Global System for Mobile Communications SORS Statistical Office of the Republic of Serbia
HSPA High Speed Packet Access SSO State Statistical Office (North Macedonia)
ICT Information and Communications Technology UK United Kingdom
INSTAT Institute of Statistics (Albania) UMTS Universal mobile telecommunications system
ISCED 2011 International Standard Classification of Education UNESCO United Nations Educational, Scientific and Cultural Organisation
ISCO International Standard Classification of Occupations UNESCO-UIS UNESCO Institute for Statistics
ISP Internet Service Provider UNU-EGOV United Nations University Operating Unit on Policy-Driven Electronic
Governance
KAS Kosovo* Agency of Statistics
UOE UNESCO OECD Eurostat
LFS Labour Force Survey
USA United States of America
LTE Long Term Evolution
USIM Universal Subscriber Identity Module
MAP REA Multi-annual Action Plan for a Regional Economic Area
VDSL Very high bit rate digital subscriber line
Mbps Megabits per second
VHCN Very High Capacity Network
ME Montenegro
WB Western Balkans
MISA Ministry of Information Society and Administration (North Macedonia)
XK* Kosovo*
MK North Macedonia
MNO Mobile Network Operator
MONSTAT Statistical Office of Montenegro
MPA Ministry of Public Administration, Digital Society and Media (Montenegro)
MQ Eurostat Model Questionnaire
MKT Ministry of Transport and Communications of Bosnia and Herzegovina
(Bosnia and Herzegovina)
NAIS National Agency for Information Society (Albania)
NGA Next Generation Access
NRA National Regulatory Authority
6 NSI National Statistical Institute 7
NUTS Nomenclature of territorial units for statistics
OECD Organisation for Economic Co-operation and Development
RAK Communications Regulatory Agency (Bosnia and Herzegovina)
RATEL Republic Agency for Electronic Communications and Postal Service (Serbia)REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) List of Figures
IN WESTERN BALKAN ECONOMIES
List of Tables List of Figures
Table 1: Evaluation of each DESI Indicator........................................................................................18 Figure 1: Data available per DESI indicators in each WB economy.................................................39
Table 2: Structure of the DESI............................................................................................................19 Figure 2: Alignment with DESI Methodology....................................................................................40
Table 3: Connectivity sub-dimensions and indicators.......................................................................20
Table 4: Human capital sub-dimensions and indicators.....................................................................21
Table 5: Use of internet services sub-dimensions and indicators.....................................................21
Table 6: Integration of digital technology sub-dimensions and indicators........................................22
Table 7: Digital public services sub-dimensions and indicators.........................................................23
Table 8: DESI indicators sources.........................................................................................................25
Table 9: Indicators derived from the ICT usage in households and by individuals survey...............26
Table 10: Indicators derived from the ICT usage in enterprises survey...........................................27
Table 11: Indicators derived from the COCOM data collection on broadband.............................27
Table 12: Indicators derived from the Labour Force Survey.............................................................29
Table 13: Indicators derived from the UOE joint data collection on Education..............................30
Table 14: Indicators derived from the Broadband Coverage in Europe Study................................31
Table 15: Changes in indicators for the series 2012-2015 and after 2016 in the eGovernment .......
Benchmark ........................................................................................................................................33
Table 16: Indicators derived from the eGovernment Benchmark Report.......................................33
Table 17: Indicators derived from the European 5G Observatory and iDATE DigWorld..............34
Table 18: Indicators derived from the Study on Mobile and Fixed Broadband Prices in Europe....35
Table 19: Open Data Maturity dimensions and dimension-specific metrics....................................36
Table 20: Indicators extracted from the Open Data Maturity Report.............................................37
Table 21: Frequency for data collection for each indicator...............................................................38
Table 22: Connectivity dimension assessment..................................................................................41
Table 23: Human capital dimension assessment................................................................................43
Table 24: Use of internet services dimension assessment................................................................44
8 Table 25: Integration of digital technology dimension assessment...................................................45 9
Table 26: Digital public services dimension assessment....................................................................46EXECUTIVE SUMMARY
This report was prepared for the Regional Coop- govina (27 indicators). However, the analysis
eration Council by the United Nations University reveals that data for some indicators remain un-
Operating Unit on Policy-Driven Electronic Gov- available in five of the six WB economies and
ernance (UNU-EGOV). The objective is to pro- that all six economies have to further align their
vide an overview of the state of application of the domestic methodologies with that of the EU ac-
Digital Economy and Society Index (DESI) meth- quis on Statistics.
odology in Western Balkans (WB), the availabil-
In terms of mandates, all six WB economies have
ity of datasets for calculating all DESI indicators
mandated authorities responsible for collection
and identify the responsible institutions for data
of data for DESI indicators. The Connectivity
collection. The aim is to identify gaps and needs
dimension is monitored by the WB National
and to provide short-term recommendations to
Regulatory Authorities (NRAs) and Broadband
harmonise the domestic methodologies with the
Competence Office (BCO), while National Sta-
DESI and European Union (EU) methodologies.
tistical Institutes (NSIs) have the responsibility to
The methodological aspects for data collection, collect data for the Human capital, Use of Inter-
indicator requirements, updates, corrections and net services and Integration of digital technology.
normalisations are important elements and are The ministries or agencies responsible for infor-
defined in the DESI Methodologies each year. mation society and digitisation are mandated to
Four aspects of the DESI methodology are rele- monitor developments in the Digital public ser-
EXECUTIVE SUMMARY
vant for this assignment: indicator requirements, vice dimension.
data sources; methodologies used for data col-
However, the main challenge to ensuring data
lection; and frequency of collection for each in-
availability for all DESI indicators is the indicators
dicator.
that use data from the Commission ad hoc stud-
ies (Study on Broadband Coverage in Europe,
Findings Study on Mobile and Fixed Broadband Prices
in Europe, European 5G Observatory Reports,
eGovernment Benchmark Study and Open Data
The analysis finds that all WB economies, and Maturity Study). This challenge applies to all six
the responsible authorities, are aware of the im- WB economies. As most of the WB economies
portance of data collection and measuring the are not included in these studies, the data avail-
progress in the context of DESI. In that regard, ability for these indicators remains a challenge.
the analysis finds that the WB economies can Moreover, domestic data collection and calcula-
provide data for calculation for the majority of tions by each of the WB economies for some
DESI indicators. of these studies is not feasible due to their com-
Currently, Serbia is the most prepared econo- plexity, specific methodological requirements,
my in WB able to provide data for all 37 DESI and tools for collection (e.g. mystery shopper).
indicators, followed by Montenegro and North To fill the gaps and improve the quality of data
Macedonia (34 indicators), Albania (32 indica- collection, the European Commission will need
tors), Kosovo* (31 indicators) and Bosnia and to provide additional technical and financial sup-
Herzegovina (27 indicators). In the context of port to WB economies.
the methodological alignment, Serbia is also the 11
most prepared among the WB economies, able
to provide methodologically aligned data for 36
Recommendations
of 37 DESI indicators followed by North Mace-
donia (32 indicators), Montenegro and Kosovo* To address the findings of this Report, five gen-
(28 indicators), Albania and Bosnia and Herze- eral recommendations are made for improvingREPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) EXECUTIVE SUMMARY
IN WESTERN BALKAN ECONOMIES
the level of preparation and data collection in the 4. Domestically, the institutional capacities of
context of DESI. all NSIs, NRAs, ministries or agencies for in-
formation society and digitisation need to be
1. RCC and the six WB economies should ad- further strengthened. This includes increasing
vocate the inclusion of all WB economies the capacities and skills of the existing staff
in the Study on Broadband Coverage in Eu- and increasing the number of professionals
rope, Study on Mobile and Fixed Broadband that will (where necessary) work on the sta-
Prices in Europe, European 5G Observatory, tistical operations, monitoring the global and
eGovernment Benchmark Study and Open European trends and changes in methodolo-
Data Maturity Study. If not feasible, the RCC gies, and capacities to participate in complex
and the six WB economies should advocate studies on European or regional level.
Commission to support preparation of the
5. Further strengthen the level of internal co-
same or similar studies for the WB econo-
operation and collaboration between all
mies or the economies not included in the
relevant institutions in each of the WB
European studies.
economies. Formal or informal networks,
2. Coordinated by RCC, a regional network intergovernmental bodies or forums have
for coordination and collaboration between proven to be beneficial to increase local and
the responsible authorities from the six WB international collaboration. Appropriated
economies should be established. The net- funding and capacity building should be pro-
work will ensure stronger coordination and vided.
collaboration between the WB economies
and will increase the knowledge-sharing for In addition to these recommendations, a set of
data collection and calculation for WB using 48 economy-specific recommendations has been
DESI methodology. Where necessary, RCC provided in the six WB economy reports, Annex
will strive to provide technical assistance for 1 of this report.
data collection and calculation using the DESI
methodology. Once established, RCC will be
able to publish annual DESI reports for the
WB based on data or reports obtained from
WB economies with an indication of the
data sources for each indicator.
3. NRAs and ministries or agencies for infor-
mation society and digitisation should make
all necessary internal preparations required
for participation in the studies at the Euro-
pean or regional level. These include the
Study on Broadband Coverage in Europe,
Study on Mobile and Fixed Broadband Pric-
es in Europe, European 5G Observatory,
12 eGovernment Benchmark Study and Open 13
Data Maturity Study. Until included each of
the six WB economies should, where pos-
sible, commence the collection of data and
calculate the scores using the methodologies
applied in these ad hoc studies.1. INTRODUCTION
Globally, ICT has become a strategic tool and an icies for gradual integration. The EU-Western
enabler for public sector innovation and growth Balkan Summit Declaration in June 20036 con-
of productivity. Digital technologies enable gov- firmed the prospect of future EU membership
ernments to function both efficiently and effec- for the WB economies once the European stan-
tively, and provide both more customer-orient- dards and criteria are met (i.e. the Acquis Com-
ed public services and public value, but also to munautaire). However, only Croatia (in 2013)
radically transform the way the public sector has subsequently become a member of the EU,
operates.1,2 The digital transformation brings and other economies are still in the enlargement
about both socio-economic opportunities and process. As of January 2021, Albania, Montene-
challenges.3,4 gro, North Macedonia and Serbia are candidates,
while Bosnia and Herzegovina and Kosovo* are
To track the progress of the digital performance
still potential candidates for EU membership.
and digital competitiveness made by the Euro-
pean Union (EU) Member States, the European Recognising the potential and benefits of the re-
Commission (Commission) launched the Digital gional cooperation and digital transformation,
Economy and Society Index (DESI) in 2014. Di- the WB leaders endorsed the Multi-annual Ac-
vided into five dimensions, the DESI measures tion Plan for a Regional Economic Area (MAP
five key areas: connectivity, human capital, use of REA)7 in 2017, prepared and coordinated by
internet by individuals, integration of digital tech- RCC. One of the four components of MAP REA
1. INTRODUCTION nologies by the business sector and digital public
services. As candidates or potential candidates
is the digital integration focused on the integra-
tion of WB economies into the pan-European
for EU membership, the Western Balkan (WB) digital market. This underlines the importance of
economies are required to use DESI indicators the WB Digital Agenda to enhance regional co-
for measurement of the progress made. operation in digital matters and accelerate inte-
gration into the European Digital Single Market.
Specific focus areas for regional and EU-WB co-
1.1. Background operation include ensuring a modern and robust
digital infrastructure, improved regional connec-
The integration of WB economies5 into the EU tivity, harmonised spectrum policies, coordinat-
is an ongoing process supported by the EU’s pol- ed roaming policies, increased cybersecurity and
1 Meyerhoff Nielsen, Morten and Jordanoski, Zoran. 2020. Digital transformation, governance and coordination models:
A comparative study of Australia, Denmark and the Republic of Korea. In The 21st Annual International Conference on
Digital Government Research (dg.o ‘20). Association for Computing Machinery, New York, NY, USA, 285–293. Source:
https://dl.acm.org/doi/10.1145/3396956.3396987
2 Meyerhoff Nielsen, Morten and Millard, Jeremy (2020). Local context, global benchmarks: Recommendations for an
adapted approach using the UN E-Government Development Index as an example. In The 21st Annual International Con-
ference on Digital Government Research (dg.o ‘20). Association for Computing Machinery, New York, NY, USA, 253–260.
Source: https://dl.acm.org/doi/10.1145/3396956.3396969
3 Manda, More Ickson & Backhouse, Judy. (2017). Digital transformation for inclusive growth in South Africa: challenges
and opportunities in the 4th industrial revolution. Source: https://www.researchgate.net/publication/318395119_Digital_
transformation_for_inclusive_growth_in_South_Africa_challenges_and_opportunities_in_the_4_th_industrial_revolution
4 Ossiannilsson, Ebba & Ioannides, Nicolas. (2017). Towards a Framework and Learning Methodology for Innovative
Mobile Learning: A Theoretical Approach. 1-8. Source: https://dl.acm.org/doi/10.1145/3136907.3136929
15
5 This report examined Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia and Serbia. For easier
interpretation, the six economies are referred to as a Western Balkan (WB) economies through the report.
6 EU-Western Balkan Summit Declaration. 2003. Declaration, Thessaloniki, 21 June 2003. 10229/03 (Presse 163).
Source: https://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/misc/76291.pdf
7 Regional Cooperation Council (RCC). 2017. Consolidated Multi-annual Action Plan for a Regional Economic Area in the
Western Balkans Six. 06072017 Version. Sarajevo, 16 March 2017. Source: https://www.rcc.int/download/docs/map_re-
gional_economic_area_06_july_2017_clean_version.pdf/5511a1f61b9f7165f7d539bfd4df5bae.pdfREPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) 1. INTRODUCTION
IN WESTERN BALKAN ECONOMIES
data protection, digital literacy and use of smart economies. The Commission also highlighted Another important aspect of digital transfor- istence of a statistical infrastructure while the
technologies.8 the need for increased cooperation and collabo- mation and integration is the monitoring and acquis covers methodology, classifications, and
The Commission reinforced the enlargement ration between the Commission and WB econ- evaluation of the progress. The objective of the procedures for data collection in various areas.
perspective for WB in its Report “A credible omies, in which the RCC will continue to play a monitoring of digital transformation progress is This alignment is particularly important as the
enlargement perspective for and enhanced EU significant role.12 to inform public policy-making as part of sustain- statistics form a significant component of other
engagement with the Western Balkans”.9 Section able governance.15 chapters as it allows screening and monitoring
Motivated by the MAP REA achievements, the
five of the report is focused on digital agenda and of the progress. According to the Commission
WB leaders endorsed the Common Regional In order to measure the progress of EU Member
indicates the need for launching a Digital Agen- October 2020 reports,20 Albania, Montenegro,
Market (CRM) Action Plan 2021-2024 at the States in digital competitiveness, Commission
da for the WB. The report also notes that the North Macedonia, and Serbia are moderate-
Berlin Process Summit held in November 2020, launched DESI in 2014. Consequently, the use
Commission together with the WB will launch ly prepared, while Kosovo* has some level of
in Sofia.13 One of the four target areas includes of DESI is necessary to measure the progress
a Digital Agenda for the region and sets out five preparation, and Bosnia and Herzegovina is at
establishing a regional digital area to integrate made by WB economies and reveal the priority
main areas to be covered by the Digital Agenda, the early stage of preparations in the area of sta-
the Western Balkans into the pan-European dig- action dimensions. To assist the WB economies
including: lowering the cost of roaming based on tistics.
ital market. To achieve the goal, the Action Plan to measure the progress, the Commission is car-
a roadmap; deployment of broadband; develop- recognises the need for the six WB economies Western Balkan economies have recognised
rying out a study to monitor the progress made
ment of eGovernment, eProcurement, eHealth, to remove obstacles to e-Commerce, introduce the need to monitor digital transformation and
and digital skills; capacity building in trust and se- towards compliance with the EU rules and reg-
interoperability frameworks and standards for ulations. The DESI indicators are used to allow progress towards compliance with the EU acquis
curity, and digitalisation of industries; and adop-
improved data exchange, mutual recognition comparison with the EU Member States. The for electronic communications and information
tion, implementation and enforcement of the
of electronic identification schemes across the three Study Reports aimed to “monitor progress society. By signing the Conclusions at the Digi-
acquis in the area of digital single market.10
Western Balkans, and upgrade digital infrastruc- made by the WB and Turkey” (201816, 201917 and tal Summit in Belgrade, they have committed to
As a result of the joint effort by the Commission ture. For that purpose, the Action Plan defines work towards setting a commonly agreed base-
202018) noted gaps in the performance between
and WB authorities, the Commission launched four priority areas (Digital infrastructure and line and monitoring progress in the main areas
the EU Member States and WB economies.
the Digital Agenda for the WB in June 2018 in- connectivity, Digital skills and competence, Digi- of the digital transformation, including through
More significantly, the three studies noted that
tending to support the transition of the region tal economy in the era of new ICT technologies, the collection of data to benchmark Western
into a digital economy and bring the benefits of “complete datasets from the region for all DESI
and Trust and security), further divided into 21 Balkan economies using DESI. Recognising the
the digital transformation, such as faster eco- dimensions are currently missing, and therefore
regional actions. A timetable, supporting organi- importance of progress monitoring, the CRM
nomic growth, more jobs, and better services. integration with the EU DESI can only take place
sations and expected results are associated with Action Plan defines the need to undertake re-
The focus areas include: investing in broadband progressively as the relevant WB authorities are
all regional actions. In order to ensure proper gional activities to improve availability, analysis
connectivity; increasing cybersecurity, trust and able to provide the full datasets, in accordance
monitoring, RCC is tasked to develop an appro- and monitoring of high-quality digital economy
digitalisation of industry; strengthening the digi- with the EU acquis on statistics, where applica-
priate monitoring tool, including the establish- statistics, building on EU’s DESI and ITU’s ICT
tal economy and society; and, boosting research ble.”19
ment of a dynamic scorecard, designed to reflect Development Index. Expected results include:
and innovation.11 These efforts are to be comple- The obligation for ensuring reliable data aligned
changes in real-time; track the implementation progress regarding regional digital competitive-
mented by enhanced support for the adoption,
of measures agreed in the CRM Action Plan; with EU rules and methodologies is part of the ness tracked; priority areas for data collection to
implementation and enforcement of the acquis
support policy reforms where needed and allow enlargement process. Specifically, Chapter 18 calculate DESI indicators identified; and use of
in the area of digital single market.
stakeholders, including citizens, to provide input which specifies that statistics requires the ex- data collection for reporting purpose enhanced.
The implementation of the Digital Agenda fore- on the effectiveness of steps taken.14
15 Boulanger, Paul-Marie. (2008). Sustainable development indicators: A scientific challenge, a democratic issue. Sapiens.
sees concrete actions by the EU and the WB
Source: https://journals.openedition.org/sapiens/166
16 European Commission. 2018. Monitor Progress made by the WB and Turkey. Smart 2016/2024. Source: https://
8 Ibid.
op.europa.eu/en/publication-detail/-/publication/2e0e1320-5118-11e9-a8ed-01aa75ed71a1
9 European Commission. 2018. A credible enlargement perspective for and enhanced EU engagement with the Western
17 European Commission. 2019. Monitor Progress made by the WB and Turkey. 2019 Follow-up Study Report. Smart
Balkans COM (2018) 65 final. Source: https://ec.europa.eu/commission/sites/beta-political/files/communication-credi-
2016/2024. Source: https://op.europa.eu/fr/publication-detail/-/publication/a54e990d-1fb3-11ea-95ab-01aa75e-
ble-enlargement-perspective-western-balkans_en.pdf
16 10 Ibid.
d71a1/language-en
17
18 European Commission. 2020. Monitor Progress made by the WB and Turkey. Smart 2016/2024. Source: https://
11 European Commission. 2018. Press release: European Commission launches Digital Agenda for the Western Balkans. op.europa.eu/en/publication-detail/-/publication/baf459a2-6698-11eb-aeb5-01aa75ed71a1/language-en/format-PDF/
Brussels, 25 June 2018. Source: https://ec.europa.eu/commission/presscorner/detail/en/IP_18_4242 source-192754717
12 European Commission. 2018. Commission Staff Working Document: Measures in support of a Digital Agenda for the 19 Ibid, European Commission 2018, 2019 and 2020.
Western Balkans. Brussels, 22.6.2018. SWD (2018) 360 final. Source: https://ec.europa.eu/neighbourhood-enlargement/
20 European Commission. 2020. Country Reports 2020. Albania 2020 Report SWD(2020) 354 final. Montenegro 2020
sites/near/files/swd_measures_in_support_of_a_digital_agenda_for_the_western_balkans.pdf
Report SWD(2020) 353 final. North Macedonia 2020 Report SWD(2020) 351 final. Serbia 2020 Report SWD(2020) 352
13 RCC. 2020. Common Regional Marked. Source: https://www.rcc.int/pages/143/common-regional-market final. Kosovo* 2020 Report SWD(2020) 356 final. Bosnia and Herzegovina 2020 Report SWD(2020) 350 final. Source:
14 Ibid. https://ec.europa.eu/neighbourhood-enlargement/countries/package_enREPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) 1. INTRODUCTION
IN WESTERN BALKAN ECONOMIES
1.2. Objectives of the 1.3. Approach and »» Identifying any shortcomings and gaps in data
collection and methodological misalignments
The questionnaire was distributed to the follow-
ing institutions:
report Methodology in each WB economy;
»» Albania:
»» Proposing potential short-term interventions
The overall objective of the report is to provide In line with the overall and specific objectives of to improve the gaps identified. ♦♦ Agency for Electronic Communications and
an analysis of the application of DESI indicators the report, the core activities were grouped into Post (AKEP);
Based on the findings of the desk review and
in the individual WB economies. The report will three phases:
identified stakeholders (Annex 2) in the WB ♦♦ Institute of Statistics (INSTAT);
assist the RCC and the responsible authorities in
1. Desk review; economies, the stakeholder consultations phase
the WB economies in their process of harmon- ♦♦ Ministry of Infrastructure and Energy; and
2. Stakeholder consultations; and, was divided into two specific activities. The first
isation of data collection for all DESI indicators, ♦♦ National Agency for Information Society
activity included development and dissemina-
and thus ensure reliable monitoring and evalu- 3. Gap analysis. (NAIS).
tion of an online questionnaire which was sent
ation, aligned to the DESI methodology, of the
The desk review aimed at identifying the relevant to all relevant institutions in the WB economies »» Bosnia and Herzegovina:
performance in digital competitiveness in all WB
data and methodologies used for each DESI indi- (Annex 3). The aim was to identify and confirm
economies.
cator in each of the WB economies. This includes the institutions responsible for data collection in ♦♦ Agency for Statistics of Bosnia and Herze-
More specifically, this report aims to establish identifying the entity responsible for collecting each of the WB economies, the data collected, govina (BHAS);
the foundations of the DESI methodology in the the data used to calculate DESI indicators. A re- the degree of alignment with DESI methodology,
♦♦ Communications Regulatory Agency
six WB economies. This includes identification view of documents relevant to the assignment the frequency of data collection, and other rele-
(RAK);
and analysis of associated indicators, data sourc- was also carried out. Documents included rele- vant information. All institutions were invited to
es, methodologies used for data collection, fre- vant EU and domestic WB policies, regulations, answer several multiple-choice questions related ♦♦ Council of Ministers of Bosnia and Herze-
quency of data collection, and all other relevant guidelines, strategies, reports and other docu- to each of the DESI indicators.21 Questions rele- govina - Department for Maintenance and
statistical operations. ments relevant for the Information and Com- vant to all 37 DESI indicators were: Development of e-Business and e-Govern-
munications Technology (ICT) sector in general, ment; and
To assess the state of application of DESI indica-
»» Is your institution responsible for data collec-
tors in all WB economies, this report maps the and more specifically, the acquis on statistics and ♦♦ Ministry of Transport and Communications
tion for this indicator?
available datasets for individual WB economies application and measurement of DESI indicators. (MKT).
for all DESI indicators, and reviews domestic The analysis of the relevant portals, websites, »» Does your institution collect data for this in-
methodologies used for data collection in the documents was done in the official languages of dicator? »» Kosovo*
WB region and assesses their alignment with each of the WB economies, i.e. Albanian (for »» Is your methodology aligned with DESI Meth-
♦♦ Agency for Information Society (AIS).
DESI and other EU methodologies. As part of Albania and Kosovo*), Bosnian (Bosnia and Her- odology?
the assessment, the report analyses the aware- zegovina) Croatian (Bosnia and Herzegovina), ♦♦ Kosovo* Agency of Statistics (KAS);
»» What is the frequency of data collection?
ness of relevant WB authorities of the impor- Macedonian (North Macedonia), Montenegrin ♦♦ Ministry of Economy;
tance to align their methodologies and collect (Montenegro), and Serbian (Serbia, Bosnia and For the first three questions, respondents had
the full datasets required for the calculation of Herzegovina and Kosovo*). The overall aim of ♦♦ Ministry of Education; and
the opportunity to choose between “yes”, “no”
DESI. The report also assesses readiness of the the review was to gain a deep understanding of and “unsure”. The option “unsure” was insert- ♦♦ Regulatory Authority of Electronic and
relevant WB authorities to align their data collec- the current availability and use of DESI indicators ed as a possible alternative in case mandates for Postal Communications (ARKEP).
tion methods with those of the DESI. in the WB economies in terms of: data collection were unclear, issues surrounding
the definition of indicators, or the respondent’s »» Montenegro:
Lastly, this report provides an analysis of the »» Current framework for supporting the mea-
identified gaps, needs and challenges faced by inability to confirm the level of alignment of the
surement of DESI indicators. ♦♦ Agency for Electronic Communications and
the relevant WB authorities. In doing so, the domestic methodology with DESI and EU meth-
Postal Services (EKIP).
»» Institutional framework, processes and odologies.
18 report provides short-term recommendations
mechanisms in place in all WB economies; ♦♦ Ministry of Public Administration, Digital
19
to the relevant WB authorities on how to align The invited institutions were asked to add links
Society and Media; and
their methodologies and work to enable the col- »» Identifying main institutions and stakehold- to the methodologies used and datasets collect-
lection, in accordance with the EU rules on sta- ers responsible for data collection in each ed (if they are publicly available), and to provide ♦♦ Statistical Office of Montenegro (MON-
tistics, of the full data sets required for the DESI WB economy; additional comments where deemed necessary STAT).
calculation. by the respondent.
21 With limited resource and the time available for the project, the questionnaire was distributed in English only.REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) 1. INTRODUCTION
IN WESTERN BALKAN ECONOMIES
»» North Macedonia: 2019), this assessment focused on the availability methodologies used for data collection and the
of data and application of DESI Methodology in official methodologies applied for each DESI in-
♦♦ Agency for Electronic Communications WB economies for the same years (i.e. 2018 and dicator was carried out.
(AEC); 2019). Where available, an assessment of 2020
The final assessment evaluates the readiness of
♦♦ Broadband Competence Office (BCO); data was included to align with the timeliness of
each of the WB economies to provide the meth-
data collection and reporting. The matrix used
♦♦ Ministry of Information Society and Admin- odologically aligned data for all DESI indicators.
for the findings of assessment is colour-based as
istration (MISA); and The readiness assessment is made based on the
shown in Table 1.
following scale of data available and fully aligned
♦♦ State Statistical Office (SSO).
with DESI Methodology:
»» Serbia: Data available and fully aligned with DESI »» Highly prepared: 76-100%
Methodology
♦♦ Office for Information Technologies and »» Moderately prepared: 51-75%
eGovernment; Data available but not fully aligned with
DESI Methodology »» Some level of preparation: 26-50%
♦♦ Republic Agency for Electronic Communi-
»» Early-stage of preparation: 0-25%
cations and Postal Service (RATEL); and Data not available
♦♦ Statistical Office of the Republic of Serbia
(SORS). Table 1: Evaluation of each DESI Indicator (Authors, 2021)
As a follow-up, the second activity of the stake-
holder consultations phase included individual When assessing the data availability for each in-
and group interviews. It was divided into 15 ses- dicator, the green colour is assigned to all indi-
sions, one per institution. The aim was to validate cators for which data is available and fully aligned
and complement the findings of the Desk Review with DESI Methodology and/or other relevant
and data collected through the questionnaires. EU methodologies. This data is useful for DESI
Special focus was given to ascertain the level of and can be used to compare the performance of
awareness of the institutions of the importance the assessed economy with its WB peers and EU
of DESI index, institutional readiness and capac- Member States.
ities to participate in the data collection process The yellow colour is assigned to all indicators
for all indicators, and any other challenges which for which some data is available but there is a
the institutions are facing in this respect. degree of methodological misalignments with
The gap analysis phase was based on the findings DESI Methodology and/or other relevant EU
of the desk review and stakeholder consultations methodologies identified. The methodologies
phases and mapped the availability of DESI indi- applied for the data collection associated with
cators and methodologies in each WB economy these indicators need to be revised in order to
and detected any gaps in data or misalignments be fully aligned with DESI Methodology and/or
with the EU methodologies. The objective was other EU methodologies.
to provide an economy-specific assessment of The red colour is assigned to all indicators for
the state of application of DESI indicators, in- which data is not available.
20 cluding short-term recommendations to enable
To ascertain whether data is available or not, it 21
and facilitate application of DESI index in all WB
must appear in an official database or officially
economies.
published source databases (e.g. Eurostat, do-
As the most recent DESI results, published in mestic statistics database, annual reports, or
2020, are based on the data collected and re- other sources). To ascertain the degree of meth-
ported annually or bi-annually (i.e. in 2018 and odological alignment analysis of the domestic2. DIGITAL ECONOMY AND SOCIETY INDEX
The Digital Economy and Society Index is a com- »» Follow-up: to monitor and assess the prog-
posite index that summarises relevant indica- ress over time.
tors on Europe’s digital performance and tracks
»» Comparative analysis: to compare the Mem-
the evolution of EU Member States in digital
ber States and cluster them according to
competitiveness. It is used by the Commission
their index scores and similar stages of digital
to monitor the Member States’ progress since
development in order to identify the policy
2014. Four main types of analysis are possible
areas that need improvement.23
through DESI:
»» General performance assessment: perfor-
mance assessment of an individual Member
2.1. Structure of the DESI
State through their general index score and
the scores of the main DESI dimensions. DESI is made up of five dimensions, each of them
measuring different aspects of the digital society.
»» Zooming-in: to identify the areas where
All five dimensions reflect the principal policies
Member State can improve its performance
relevant to the digital economy and society. The
by analysing scores of all DESI sub-dimen-
structure of DESI is presented in Table 2.
sions and indicators.
2. DIGITAL ECONOMY Connectivity
Fixed broadband take-up, fixed broadband coverage, mobile broadband
and broadband prices
AND SOCIETY INDEX
Human capital Internet user skills and advanced skills
Use of internet services Citizens' use of internet services and online transactions
Integration of digital technology Business digitisation and e-commerce
Digital public services e-Government
Table 2: Structure of the DESI (Source: DESI Methodological Note 2020)
The five dimensions are further divided into 12 All these factors have also proven crucial during
sub-dimensions and 37 indicators. Each of the the pandemic. The crisis showed the importance
dimensions, sub-dimensions and indicators have of the quality of digital infrastructure as all net-
different weight in the final DESI score, which works have faced increased demand. Reflecting
also reflects the current EU’s digital policy. the EU’s digital policy, the connectivity represents
25% of the total weighted score of DESI. It mea-
Dimension 1: Connectivity
sures up the fixed and mobile broadband cover-
The existence of modern and robust digital infra- age, take-up and affordability. The Connectivity
structure is the main precondition for any large dimension is composed of four sub-dimensions,
scale digital transformation of governments, each of them further divided into eight indicators
economy, and society in general. The access and in total, as shown in Table 3.
use of a fast and reliable broadband connection 23
are necessary to enable online delivery of the
key economic and social services. Affordability
is also another important factor for increasing
broadband take-up.
22 European Commission. 2020. DESI Methodological Note 2020. Source: http://ec.europa.eu/newsroom/dae/docu-
ment.cfm?doc_id=67082REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) 2. DIGITAL ECONOMY AND SOCIETY INDEX
IN WESTERN BALKAN ECONOMIES
Sub-dimension Indicator The internet use by citizens (defined as all cit- of three sub-dimensions, each of them further
1a1 Overall fixed broadband take-up izens and residents within the EU) is weighted divided into eleven indicators, as presented in
1a Fixed broadband take-up at 15% of the total DESI score. It is composed Table 5.
1a2 At least 100 Mbps fixed broadband take-up
1b1 Fast broadband (NGA) coverage
1b Fixed broadband coverage
1b2 Fixed Very High Capacity Network (VHCN) coverage Sub-dimension Indicator
1c1 4G coverage 3a1 People who never used the internet
1c Mobile broadband 1c2 Mobile broadband take-up 3a Internet use
3a2 Internet users
1c3 5G readiness 3b1 News
1d Broadband price index 1d1 Broadband price index 3b2 Music, videos and games
Table 3: Connectivity sub-dimensions and indicators (Source: DESI Methodological Note 2020) 3b3 Video on demand
3b Activities online
3b4 Video calls
3b5 Social networks
Dimension 2: Human Capital tions, as well as the integration of new tech- 3b6 Doing an online course
nologies (e.g. distance learning, telemedicine, 3c1 Banking
Human capital and digital skills are also key to teleworking, etc.). By comparison, the basic and 3c Transactions 3c2 Shopping
any digital society and digital transformation. above basic digital and software skills of citizens 3c3 Selling online
Two elements are essential. First, the number of have enabled easier adaptation of various digi-
Table 5: Use of internet services sub-dimensions and indicators (Source: DESI Methodological Note 2020)
ICT specialists and ICT graduates annually that tal tools for access to information and services
shows the human resources potential of every online.
economy regarding further development of digi-
Recognised as an essential enabler of a success- Dimension 4: Integration of digital ments and large enterprises. A large number of
tal society. Second, the digital skills of all citizens
ful digital economy and society in the EU, the technology SMEs remained closed during restrictions and
and non-ICT professionals enable the take-up of lockdowns without being able to offer their
Human Capital dimension is weighted at 25% in
internet use, digital public services and the inte- The integration of digital technology in small and products and services online. Further research
the total DESI score. It measures up the internet
gration of digital technologies. medium-sized enterprises (SMEs) (including mi- is needed to identify the underlying reasons for
user skills (all individuals aged 16-74) and the ad-
croenterprises) is an important aspect of digital the limited capacities of SMEs to adapt to the
The current pandemic showed that the digital vanced skills and development of ICT specialists
transformation of the economy. Businesses are current pandemic as it will serve as an indicator
skills of non-ICT professionals in public admin- and graduates. The human capital dimension is
constantly adopting new technologies and pro- of their ability to embrace IT and technology in
istration (e.g. teachers, health workers, civil ser- composed of two sub-dimensions, each of them
viding information about their products and ser- the medium- to long-term.
vants, etc.) are essential for business continuity further divided into six indicators, as shown in
vices online. Online transactions and selling on- As one of the important elements of EU’s dig-
respecting the physical distance recommenda- Table 4.
line cross-border in another EU Member State ital policy, Integration of Digital Technology di-
are also important for the integration and adop- mension weight 20% in the total DESI score. It is
Sub-dimension Indicator tion of digital technologies by SMEs. composed of two sub-dimensions, each of them
2a1 At least basic digital skills The current pandemic has nonetheless shown further divided into seven indicators, as shown
2a Internet user skills 2a2 Above basic digital skills that SMEs ability to adapt by reducing physical in Table 6.
2a3 At least basic software skills interaction has not been as easy as for govern-
2b1 ICT specialists
2b Advanced skills and devel-
2b2 Female ICT specialists
opment Sub-dimension Indicator
2b3 ICT graduates
4a1 Electronic information sharing
Table 4: Human capital sub-dimensions and indicators (Source: DESI Methodological Note 2020) 4a2 Social media
4a Business digitisation
24 4a3 Big data 25
4a4 Cloud
Dimension 3: Use of internet the internet is on a downwards trajectory. The
4b1 SMEs selling online
services frequency of internet use, activities online and
the transactions made are important elements 4b e-Commerce 4b2 e-Commerce turnover
The internet penetration and frequency of use for the measurement of EU Member States 4b3 Selling online cross-border
is another key factor for digital society develop- progress and also of the actual benefits of the Table 6: Integration of digital technology sub-dimensions and indicators (Source: DESI Methodological Note 2020)
ment. The number of people who never used ICT and technology investments made.REPORT ON THE STATE OF APPLICATION OF DIGITAL ECONOMY SOCIETY INDEX (DESI) 2. DIGITAL ECONOMY AND SOCIETY INDEX
IN WESTERN BALKAN ECONOMIES
Dimension 5: Digital public services ity, efficiency and effectiveness of government readiness to collect data for all indicators are methodologies for data collection, it is important
services. present, data collection for some indicators re- to reveal all data sources for all DESI indicators.
Digital transformation of public service pro- mains challenging for all economies. As the aim Table 8 summarises the sources of all DESI indi-
In that regard, the current pandemic shows the
duction and delivery is an important element of this report is to assist the various WB author- cators.
benefits of economies with well-established dig-
of public sector modernisation and digitisation. ital infrastructure and functional eGovernment ities to harmonise their domestic processes and
The availability of key eGovernment has enabled ecosystem. This measurement is important to
interoperability, one-stop-shop and specialised monitor the change of users’ behaviours and Indicator Source
portals and platforms, well-developed portfolios authorities and serve as an indicator of the ben- 1a1 Overall fixed broadband take-up Survey on ICT usage in households and by individuals
of online services for citizens and business, and efits generated by ICT investments. Digital pub- Communication Committee (COCOM) based on the
1a2 At least 100 Mbps fixed broadband take-up
ha increased take-up of online services over the lic service dimension is weighted at 15% of the Survey on ICT usage in households and by individuals
years across the EU. The use of new emerging total DESI score It is composed of one sub-di- 1b1 Fast broadband (NGA) coverage
technologies for service delivery (e.g. AI, Big mension, further divided into five indicators, as 1b2 Fixed Very High Capacity Network (VHCN)
Study on Broadband Coverage in Europe
data, Blockchain, etc.) will also increase the qual- shown in Table 7. coverage
1c1 4G coverage
COCOM based on the Survey on ICT usage in
Sub-dimension Indicator 1c2 Mobile broadband take-up
households and by individuals
5a1 e-Government users 1c3 5G readiness COCOM based on European 5G Observatory
5a2 Pre-filled forms Study on Mobile and Fixed Broadband Prices in
5a e-Government 5a3 Online service completion 1d1 Broadband price index
Europe
5a4 Digital public services for businesses 2a1 At least basic digital skills
5a5 Open data 2a2 Above basic digital skills Survey on ICT usage in households and by individuals
2a3 At least basic software skills
Table 7: Digital public services sub-dimensions and indicators (Source: DESI Methodological Note 2020)
2b1 ICT specialists
EU-Labour Force Survey (EU-LFS)
2b2 Female ICT specialists
2.2. Methodological yearly basis (or at least with a pre-defined
regularity).
2b3 ICT graduates
UNESCO OECD Eurostat (UOE) joint data collec-
tion on education
considerations »» Must be relevant for a policy area of interest.
3a1 People who have never used the internet
3a2 Internet users
All indicators in the index must be accepted
3b1 News
The methodological aspects for data collection, as relevant metrics in their specific policy ar-
3b2 Music, videos and games
indicator requirements, updates, corrections and eas.
3b3 Video on demand
normalisations are defined in the DESI Method- »» Must not be redundant. The index should not 3b4 Video calls Survey on ICT usage in households and by individuals
ological Manuals each year. Four aspects of the contain redundant indicators, either statisti- 3b5 Social networks
DESI methodology are relevant for this assign- cally or in terms of interpretation.23 3b6 Doing an online course
ment: indicator requirements; data sources; 3c1 Banking
methodologies used for data collection; and fre- Following these conditions, all WB economies 3c2 Shopping
quency of collection for each indicator. must align their domestic regulations and meth- 3c3 Selling online
odologies in order to ensure the collection of 4a1 Electronic information sharing
2.2.1. Indicator Requirements data for all DESI indicators on regular basis. 4a2 Social media
4a3 Big data25
DESI Methodological Manual 2020 defines that 2.2.2. Data Sources and
4a4 Cloud Survey on ICT Usage in enterprises
all indicators must comply with the following re- Methodologies
26 quirements:
4b1 SMEs selling online 27
The issue of data sources and methodologies 4b2 e-Commerce turnover
»» Must be collected regularly. In order to fulfil used for each DESI indicator was detected as 4b3 Selling online cross-border
the monitoring function, the indicators used one of the most challenging issues for WB au-
in the index must be collected ideally on a thorities. Although strong institutional will and
24 Last year of collection or the Big data indicator (4a3) as defined in DESI 2020 Methodology was 2018. Since 2019,
23 Ibid. Eurostat replaced this indicator with other indicators related to Big data.You can also read
