Digital progress in the European Union is a catalyst for economic development. The COVID-19 pandemic significantly accelerated the pace of digitalization, thereby creating not only challenges for the European Union but also new opportunities for economic development in Europe. The present research focuses on an analysis of digital economy and society index scores for Latvia and Lithuania, comparing the performance of both countries with the European Union average. The research aims to identify the critical areas that hinder digital progress in Latvia and Lithuania. Accordingly, the digital economy and society index was analysed for the period from 2018 to 2023. The empirical part of the research includes a sociological survey, and the survey data were analysed in order to identify population needs for and experience in using digital technologies in Latvia and Lithuania. The survey involved 146 respondents. The research results allowed us to identify the critical areas for Latvia and Lithuania to focus on for further digital progress. Latvia and Lithuania both show high scores, well above the EU average, in the ‘digital public servicesʼ component, indicating that both countries have a high level of e-government users and widespread access to digital public services. The results of the sociological survey further confirm this, showing that a large majority of 84.25% of respondents in both Latvia and Lithuania use digital solutions in their daily lives.

Covid-19 has affected the whole economy of Latvia, leading to various social and economic problems in the country. Social economy actors applying an innovative approach to solving social problems could make a significant contribution to improvement in social life, especially during the Covid-19 crisis and the post-crisis by supplying various services and products, helping the state to solve gaps that it cannot cope with without the help of the private or non-governmental sector. The research aims to describe the challenges faced by social economy actors in Latvia during Covid-19 and their responses to the crisis. The research employed case study analysis to describe the responses of 9 social economy organizations to mitigate the consequences of the crisis. The research found that Covid-19 had a negative impact on the performance of social economy actors faced by financial, organizational, social and psychological challenges, which overall did not significantly differ from those faced by other market actors in the particular situation. To solve the current problems in society and ensure their self-existence, social economy actors implemented an innovating strategy that focused on three priorities: new digital experiences, products and services in response to changes in customer behaviours and needs; development of new offers for a new or the current target group; new partnerships both within and outside the industry.

Today in Ukraine, a digital transformation of the educational system of higher education is taking place at a rapid pace, in which information and communication technologies are not becoming an additional ʻload’ in learning, but an integral part of a comprehensive educational process, which increases its efficiency. At the same time, there are a number of challenges, including such specific ones as unprovoked military aggression, which complicates the process of entry of higher education in Ukraine into the global educational digital environment. To assess the significance of the digitalization of the educational system of higher education in Ukraine in specific conditions, to analyse the attitude of the teaching staff and students to online education, to establish technical means of participation in the educational process, to determine the advantages and disadvantages of distance learning through the prism of the experience of teaching staff and students, we used three main methods: the survey method, the method of analysis and synthesis, the graphical method. As a result of the study, the authors revealed the general concept of digitalization and its educational dimension; identified the main challenges faced by higher education institutions in the digital environment; determined the impact and scale of military aggression by the Russian Federation on the activities of Ukrainian universities; established the features of training in the digital environment by institutions of the higher education of Ukraine.