The Western Balkans—comprising Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—are undergoing rapid transformation as they modernize public institutions and embrace digital technologies. Despite global uncertainties, the region continues to experience steady economic growth supported by improvements in governance, increased business confidence, and expanding job opportunities. As the countries move closer to European Union accession, accelerating reforms has become essential to ensure competitiveness and sustainable development.
Albania has emerged as a regional leader in digital transformation. Its “E-Albania” portal now provides more than 95% of government services online, with usage rising by 40% between 2023 and 2025. Plans for a more accessible portal 2.0 aim to improve service delivery for all citizens, including people with disabilities. The country is also advancing digital education, equipping primary schools with over 200 Smart Labs to strengthen students’ digital and numeracy skills, while Youth Innovation Centers help prepare young people for the digital economy. Enhancements to the national Open Data Portal and improved inter-agency data sharing through the Government Gateway platform have further modernized public administration.
Across the region, other countries are making notable progress. Montenegro is preparing to introduce e-Wallet and eIDAS2 digital identity systems to align with EU standards. Kosovo has expanded its eKosova platform to allow online registration of newborns, access to birth certificates, pediatric services, and insurance information. Its goal is to digitize half of all public services by 2027 and all key services by 2030. These developments demonstrate rising momentum, although significant gaps remain. Governance indicators across the region—such as accountability, regulatory quality, rule of law, and political stability—still trail EU averages.
To close these gaps, countries will need to strengthen public-sector innovation and broaden the use of digital tools. Reforms should focus on creating a more business-friendly environment through modern regulatory systems and automated services, improving the accessibility and inclusiveness of public services, and ensuring that vulnerable groups, including the elderly and people with disabilities, can benefit fully from digital solutions. Strengthening local governments and modernizing public financial management will also be essential for sustaining growth and ensuring transparent, well-planned investments.
Looking ahead, the World Bank and its partners are supporting these reform efforts through initiatives such as Albania’s GovTech program and Serbia’s work on public financial management for the green transition. A new regional program supported by Austria will accelerate digital government modernization, encourage innovation, and help countries align more closely with EU accession standards. Through regional workshops and capacity-building activities, the program will facilitate knowledge exchange with EU peers and support the implementation of priority reforms.
Continued progress toward EU membership and stronger job creation will depend on persistent investment in effective institutions and digital innovation. With ongoing support from development partners, the Western Balkans are positioned to build on recent achievements and advance toward more inclusive economic growth and greater regional integration.
