A good strategy to e-government development is the one that treats e-government as a lever to speed up positive transformations aiming at electronic knowledge-based economy and information society. This strategy is valid for all the countries, independently how rich or poor they are, because its goal is to find social cohesion between younger, better educated generation of people in a country and the older, worse educated one. The first generation needs knowledge-based job as economical activity to reap profit from its education. The second generation needs cheap knowledge-based services that may be efficiently delivered on the mass scale only by the Internet. The lecture contributes to better understanding of relationships between electronic public administration and electronic business. A bothering question arises: Why e-business develops much faster than e-government? The lecture put light on this problem showing how paper (paper documents), as an information medium, influences organization of public administrations. It is proposed, how to transform organization of public administrations to fully benefit from the features of electronic information. Second question considered is how to use e-government to stimulate development of e-business as a part of electronic knowledge-based economy? It is proposed to allow businesses to deliver integrated and augmented services basing on simple, electronic public services and data. Integrated and augmented e-services delivered by business are a way to achieve customer centricity required to increase efficiency of economy and to improve quality of life of the society.