This paper examines the role of e-government (EG) in fostering economic transition and development, focusing on the Estonian case. Positioned as a development strategy, EG utilizes information and communication technologies in the public sector to enhance competitiveness and well-being. Drawing from Weberian bureaucracy, it highlights two crucial institutions: secure property rights and governance rules emphasizing transparency, trust, and security (TTS). These institutions offer a comprehensive perspective on the positive impacts of EG. The paper suggests strategies for optimizing these effects, concluding with recommendations for EG implementation and proposing avenues for further research in developing country contexts. © 2024 Taylor & Francis Group, LLC.