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eGovernment can be described as a permanent commitment of the Government to improve relations between citizens and public sector through enhanced, cost-effective, and efficient delivery of services, information and knowledge. Broadly defined, eGovernment includes the use of all information and communication technologies, from fax machines to wireless pilot in order to facilitate the daily administration of government, solely as an Internet-oriented activity that improves public access to government information, services and expertise to ensure citizen participation, and satisfaction with government processes. Narrower definition, eGovernment is the production and delivery of government services through IT application, it is used to rationalize and improve transactions between governments and constituents, businesses and other government agencies. Having in mind the economic aspects of development of eGovernment, it is necessary to make the difference between the implementation of eGovernment in the developed and developing countries. In this paper we analyze the challenges and opportunities of eGovernment development in developing countries, as well as the achieved level of development, with special reference to Montenegro.