State of the Nation Address of President of the Republic of Kazakhstan Nursultan Nazarbayev,

October 5, 2018

 

GROWING WELFARE OF KAZAKH CITIZENS: INCREASE IN INCOME AND QUALITY OF LIFE

 

Dear Kazakh citizens!

Over the years of our independence we have achieved a great deal.

Having created a modern progressive state with a dynamic economy, we have ensured peace and public harmony.

We have made qualitative and historically significant structural, constitutional and political reforms.

We have managed to strengthen the international standing of Kazakhstan and its geopolitical role in the region.

We have proved to be a responsible and international partner, in-demand to address regional and global challenges.

Kazakhstan has become the first state among the CIS and Central Asian countries to be chosen by the global community to host the international exhibition - EXPO 2017.

We have built a new capital, Astana, which has become a financial, business, innovative and cultural centre of the Eurasian region.

The population of the country now exceeds 18 million people, with life expectancy reaching 72.5 years.

We have established a strong economic framework.

Over the past 20 years, the country has raised $300 billion of direct foreign investment.

We see the development of small and medium-sized enterprises serving as the foundation for our economic prosperity.

Kazakhstan now ranks 36th among 190 countries in the World Bank Doing Business index.

We have always responded to external challenges in a timely manner and have been prepared for them.

In this regard, I have put forward relevant policy initiatives to modernise the country. Their implementation has become the main factor of our successful development.

Our strategic goal is to join the club of 30 developed countries of the world by 2050.

In 2014, we started implementing a comprehensive programme Nurly Zhol designed to modernise the country’s infrastructure.

Three years ago we announced the Plan of the Nation – 100 Concrete Steps.

Furthermore, we launched the Third Modernisation of the country. Its main aim is creating a new model of economic growth ensuring Kazakhstan’s global competitiveness.

The sustainable development of our country inspires great hope to further increase our quality of life.

We are ready to tackle new challenges.

 

Dear compatriots!

Recently we have seen the strengthening of the world’s political and economic transformation.

The world is changing rapidly.

The foundations of the global security system and international trade rules that seemed unshakable are now crumbling.

New technology, robotics and automation complicate the requirements for labour resources and the quality of human capital.

A completely new financial system architecture is being built. At the same time, stock markets are creating another “bubble” that may provoke another financial crisis.

Today, global and local problems are intertwined. In this context, the development of the state’s main asset – an individual – is the response to challenges and the guarantee of its success.

The Government, each and every head of a state agency or state company needs to reconsider their work approaches. The growing welfare of Kazakh citizens must be the highest priority.

This is the criterion I will refer to in assessing personal performance and compliance with the office.

***

Well-being of Kazakh citizens depends, first and foremost, on the steady growth of income and quality of life.

 

I. GROWING INCOME OF THE POPULATION

Income grows if a person is a hard-working professional in his or her area, has a decent salary or has an opportunity to start and develop his or her own business.

Only by concerting our efforts can we create the Universal Labour Society.

First, I instruct the Government to raise the minimal salary by 1.5 times from 28 thousand to 42 thousand tenge from January 1, 2019.

This will directly cover 1.3 million people, who work in enterprises of different types of ownership in all industries.

The increase will apply to 275 thousand workers of state-funded organisations, whose salaries will grow on average by 35%.

For these purposes, we have to allocate 96 billion tenge annually from the republic’s budget for 2019-2021.

From now on, the minimal salary will not depend on the subsistence level. In general, the amount of the new minimal salary will boost the labour remuneration covering the whole economy.

I hope this initiative will be supported by large companies in terms of increasing the salaries of low-paid workers.

Second, we need to create stable sources for business growth and foster private investment and facilitate freedom of the market.

It is business that creates new jobs and provides higher income to the majority of Kazakh citizens.

 

FIRST. In 2010, we launched the Business Road Map - 2020 Programme.

I realised its effectiveness while visiting regions of the country.

The programme should be prolonged until 2025.

An additional 30 billion tenge has to be annually allocated to implement the programme.

In three years this will allow the additional creation of at least 22 thousand new jobs, ensure 224 billion tenge of taxes and production of goods for an amount of 3 trillion tenge.

 

SECOND. We need to take decisive measures to develop economic competition and get utilities tariffs and natural monopolies under control.

Tariff setting and spending of consumers’ money are still not transparent in the field of utilities and regulation of natural monopolies.

We lack the efficient monitoring and control over investment obligations of monopolies.

The Government needs to address this issue within three months and reform the anti-monopoly agency, significantly strengthening functions for competition protection.

This is important because this leads to the growth of business costs and reduction of real income for people.

 

THIRD. We need to enhance the protection of business from unlawful administrative pressure and criminal prosecution threats.

I am instructing to raise from January 1, 2019, the threshold of criminal liability with regard to tax violations up to 50 thousand MCI and increase fines.

In addition, we need to reorganise the Service of Economic Investigation by transferring its functions to the Financial Monitoring Committee that should be focused on the fight against the shadow economy.

We need to move towards a cashless economy. Here we have to be guided by not only repressive tools but also incentives, for example, by encouraging business to use cashless transactions.

Completion of the integration of tax and customs information systems will make administration more transparent.

The Government needs take effective measures to reduce the shadow economy by at least 40% within three years.

To give business an opportunity for a fresh start, I instruct to launch tax amnesty for SMEs starting from January 1, 2019 by cancelling fines and penalties provided the principal tax amount is paid.

 

FOURTH. Export-oriented industrialisation should be a central element of economic policy.

The Government must focus on supporting exporters in the manufacturing sector.

Our trade policy needs to stop being passive.

We need to make it vigorous in order to effectively promote our goods at regional and global markets.

At the same time, we need to support our enterprises in developing a wide range of consumer goods and promote the so-called “simple things economy”.

This is essential not only to develop export potential, but also to fill the internal market with domestic goods.

I instruct the Government to allocate additional 500 billion tenge to support the manufacturing industry and non-commodity export in the next three years.

To address the issue of affordable loans for priority projects I task the National Bank to allocate long-term tenge liquidity of no less than 600 billion tenge.

The Government together with the National Bank needs to ensure strict control over the targeted use of these funds.

To implement big breakthrough projects we need to consider the establishment of a direct investment fund in the non-commodity sector that will function based on the principle of co-investing with foreign investors.

We also need to intensify our activity to develop transport, logistics and other service sectors.

We need to pay special attention to the development of inbound and internal tourism to use our rich natural and cultural potential. The Government should adopt a sectoral programme at short notice.

 

FIFTH. We need to fully develop our agricultural and industrial potential.

The main objective is to increase labour productivity and export of processed agricultural products 2.5 times by 2022.

All state support measures should be focused on the large-scale attraction of modern agricultural technology to the country.

We need to use the best experience in managing the sector by introducing flexible practical standards and attracting reputable and experienced foreign experts to oversee agriculture specialists.

We need to build a system of comprehensive teaching of new management skills among rural entrepreneurs.

For these purposes, I instruct the Government to additionally allocate at least 100 billion tenge annually in the next three years.

 

SIXTH. Special attention should be paid to the development of innovation and service sectors.

First of all, we need to ensure the development of areas of the “future economy” such as alternative energy, new materials, biomedicine, big data, the internet of things, artificial intelligence, block chain, etc.

They determine the global position and role of the country in the future.

I instruct the Government together with Nazarbayev University to develop special programmes with specific projects for each area.

The opening of a think-tank for the development of artificial intelligence technology within the university may be one of them.

 

SEVENTH. We need to strengthen the role of the financial sector in developing the real economy and ensure long-term macroeconomic stability.

Now people are mainly concerned with the rise in prices, access to financing and banks’ stability.

The National Bank together with the Government has to finally start using a systemic approach to make the financial and real sectors of the economy healthy and to carry out a comprehensive anti-inflation policy.

Given the current situation, it is crucial to increase loans for the economy, especially for the manufacturing sector and SMEs.

We also need to enhance the efficiency of managing pension assets and social insurance system resources, and effectively develop alternative financial tools – securities market, insurance, etc.

The Astana International Financial Centre should play a pivotal role in providing business with foreign investment and access to capital. To this end, we have created a separate court, financial regulator and stock exchange.

All state agencies and national companies should actively use this platform and facilitate its rapid evolvement and development.

***

The effective implementation of the above-mentioned measures will boost the income of Kazakh citizens thanks to the growth of salaries and creation of new jobs.

These processes should constantly be in the focus of the Government.

 

II. NCREASE IN QUALITY OF LIFE

The second component of wellbeing is the growth of quality of life.

Quality and access to education, healthcare, housing, comfortable and safe life concerns every Kazakh family.

In this regard, the Government should review priorities of budget expenditures focusing on the social sector, security and infrastructure.

 

FIRST. We need to increase expenditures on education, science and healthcare from all sources up to 10% from the GDP within 5 years.

The funds should be used to carry out the planned reforms ensuring significant improvement of quality of services for the population.

 

SECOND. We need to drastically improve the quality of pre-school education.

The thinking framework, intelligence, creativity, and learning new skills are built in early childhood.

The emphasis in education is shifting towards the 4C model: creativity, critical thinking, communication skills and co-working.

In this area we need to review qualification requirements, training methods, the labour remuneration system for teachers and other employees of kindergartens.

This year the Ministry of Education and Science together with akimats needs to draft a relevant road map.

 

THIRD. We have defined the major approaches to secondary education, and at the current stage we need to focus on them.

The teaching system and methods of Nazarbayev Intellectual Schools must  become a single standard for state schools. This will be a final stage in reforming school education.

The system of knowledge evaluation should be based on international standards.

Professional analysis and guiding of children in terms of choosing the most in-demand professions should be carried out starting from secondary school. This will help to shape an individual education track and reduce the academic load on students and teachers.

Given the importance of child safety, I task to equip all schools and kindergartens with video surveillance systems, to optimise activities of school psychologists and to adopt other consistent measures.

To make education more accessible, I instruct the Government to allocate an additional 50 billion tenge from the republic’s budget for 2019-2021 to support regions facing the biggest deficit of school places and problems with three-shift schools or those in critical condition.

 

FOURTH. I suggest it is necessary to develop and adopt a Law on the Status of Teachers next year.

It should envisage all incentives for teachers and employees of pre-school organisations, to reduce workload, protect from unscheduled inspections and uncharacteristic functions.

 

FIFTH. We need to raise the bar to the quality of education in academic institutions in the higher education system.

We have increased the number of scholarships, now the time has come for greater responsibility.

The main criterion of a successful university is the employment of graduates and high-paid jobs.

We need to conduct a policy of the integration of higher educational institutions.

Only those providing high quality education should remain in the market. It is crucial to establish partnerships with the world’s leading universities while attracting best foreign senior managers as Nazarbayev University does.

I find it necessary to open a new regional higher education institution following the example of the Nazarbayev University based on the existing education infrastructure.

 

SIXTH. The quality of medical services is a key component of social well-being of the population.

First of all, we need to make primary health care more accessible, especially in rural areas.

To motivate PHC workers, from January 1, 2019, I task to gradually increase by 20% the salary of district medical workers that introduced new approaches for treating diseases.

Next year 5 billion tenge will be allocated for these purposes.

All hospitals and clinics need to switch to paperless digital medical documentation from January 1, 2019.

This will allow the creation of electronic health passports for the whole population, eliminating queues and bureaucracy, and improving quality of services by 2020.

In 2019 we need to start the construction of a National Oncology Research Centre in Astana using the experience of operating cardiological and neurosurgery clusters.

By doing so, we will save many human lives.

 

SEVENTH. We need to find reserves at the regional level to increase the access to sport and physical education.

I instruct the Government and akims to construct at least 100 physical and health facilities.

In addition, we need to effectively use existing sports facilities, in particular in schools, and to equip outdoor areas, parks and squares for physical education purposes.

 

EIGHTH. The health of the nation is the main priority of the state. This means that Kazakh citizens should consume good-quality products.

Currently, we lack a comprehensive policy aimed at protecting our population from low-quality goods and services and those posing a threat to health and life.

I task the Government to take measures and get this activity under control.

A Committee on the Control over Quality and Security of Goods and Services should start operating from the next year.

It will be responsible for expert examination of food products, medicines, potable water, children’s goods and medical services.

For this, we need to establish state-of-the-art laboratories and to build teams of skilled specialists.

Furthermore, public associations protecting consumer rights should be institutionally strengthened and actively involved.

We always support business, but for a human being, his or her rights and health are more important.

As part of the reduction of administrative barriers, the state has cancelled numerous inspections, permits, etc.

That is why the business community also bears responsibility for the quality and security of offered goods and services.

In general, business should think not only about profit, but together with the state should ensure security and a comfortable environment for our citizens.

***

Qualitative social services provided for the population should be harmoniously complemented by broad opportunities to improve housing conditions, ensure comfortable and safe living in any residential area of the country.

 

III. CREATING A COMFORTABLE LIVING ENVIRONMENT

A comfortable environment means, first and foremost, affordability of housing, a beautiful and safe outdoor area, and a residential area that is convenient to live and work in as well as having qualitative infrastructure.

 

FIRST. Qualitative and affordable housing.

Today, we are successfully implementing the Nurly Zher Programme that gives a powerful impetus to the housing construction.

We have launched a new large-scale programme 7-20-25 that enhances the affordability of housing mortgages.

I instruct akims to work on a partial subsidising of down payments according to mortgage benefits from the local budget.

The allocation of such housing certificates will enhance the affordability of mortgages for highly-skilled teachers, medical workers, police officers and other experts the region needs.

In addition, we need to enhance the construction of rental housing for socially vulnerable population in big cities.

These measures will help more than 250 thousand families to improve their housing conditions.

Taking into account the construction of utility infrastructure for massive housing areas, in five years the state will help 650 thousand families or more than 2 million of our citizens.

 

SECOND. We need to ensure the introduction of new approaches to the territorial development of the country.

Currently, economies of leading countries are mostly represented by global cities and megalopolises.

Over 70% of global GDP is generated in cities.

Throughout history, we have developed our own way of life dominated by agricultural economy with mono-cities and small regional centres.

Therefore, it is a great achievement for a country with 18 million people to have three cities with a million-plus population, two of them having become so during Kazakhstan’s independence.

Astana and Almaty already generate over 30% of the country’s GDP.

However, the city infrastructure does not always correspond to the rapidly growing needs of enterprises and population.

In recent years, we have built infrastructure of republican importance in line with the Nurly Zhol Programme.

Since 2015, we have built and reconstructed 2.4 thousand kilometers of roads. This work is ongoing, and we will commission an additional 4.6 thousand kilometers of roads by 2020.

Now, we need to ensure the systemic development of regional and urban infrastructure.

To this end, this year financing for local roads has been increased up to 150 billion tenge, and funds for rural water supply up to 100 billion tenge.

Akims should focus on addressing the most acute problems in the regions using these funds.

The Government also needs to develop a systemic approach to this task, draft a list of additional infrastructure issues, assess projects and find sources to finance them.

The construction of new schools, kindergartens and hospitals needs to be synchronised with plans on the development of residential areas, it is also necessary to create conditions to bring private investors to this sector.

At the same time, we need to gradually transit from the “infrastructure-people” model to the “people-infrastructure” model.

This will facilitate the development of residential areas, enhancing the efficiency of using the allocated funds.

Each region and big city should develop based on their own model of sustainable economic growth and employment taking into account the current competitive advantages.

In this regard, we need to develop a regional standards system for different residential areas – from backbone villages to cities with the republican status.

The standard should include specific indicators for the listing and accessibility of social benefits and public services, transport, cultural, sport, business, production and digital infrastructure, etc.

We need to intensify activities aimed at improving the environmental situation, including polluting emissions, soil condition, land, air, waste disposal, as well as developing environmental monitoring systems with free online access.

Special attention should be paid to the creation of a “barrier-free environment” for people with disabilities.

I task the development of a Predictive Scheme for Territorial and Spatial Development of the Country until 2030 that will serve as a New Map of Administered Urbanisation of the Country until September 1, 2019.

To implement practical steps, I task the draft of a pragmatic Regional Development Programme until 2025 outlining specific events, projects and financing.

The above-mentioned aspects of regional development should be taken into account in Nurly Zhol and Nurly Zher state programmes, their implementation terms should also be prolonged until 2025.

The first programme should focus on the development of transport infrastructure. The second one should centre on utilities and housing construction.

We need to give these programmes “a new lease of life”.

 

THIRD. We need profound and qualitative transformations in the activity of law-enforcement agencies.

Security is an integral part of quality of life.

Internal affairs officers are at the forefront of the fight against crime and protect citizens from it, quite often risking their lives.

At the same time, society expects a drastic improvement in the work of law-enforcement agencies, mainly, of the police.

I task the Government together with the Executive Office of the President to adopt a road map to modernise internal affairs agencies.

These reforms must be launched on January 1, 2019.

First, we need to optimise the staffing of the Ministry of Internal Affairs and relieve the police of uncharacteristic functions.

The funds saved should be allocated to raise the salaries of police officers, solve their housing and other social problems.

Second, we need to adopt a new standard for police officers and change the system of career advancement, as well as training and selecting personnel in police academies.

All officers must be recertified. Only the best ones will continue to serve.

Third, we need to introduce new modern formats of working with the population, drastically changing police assessment criteria.

We need to switch the police to a service model.

It should be ingrained in the minds of citizens that a police officer does not punish but helps in a difficult situation.

We need to create comfortable conditions for receiving citizens in city and regional internal affairs agencies on a Public Service Centre basis.

All cities of Kazakhstan must be equipped with public security monitoring systems.

Public trust and a sense of security among the population should become the key parameters for assessing the work of the police.

 

FOURTH. Further judicial system modernisation.

We have achieved a lot over the past years, but we have not tackled the main problem: ensuring a high level of trust in courts.

Moreover, the rule of law is a key to success of our reforms.

First, we should continue introducing modern formats of the work of courts and advanced electronic services.

Every year 4 million of our citizens are dragged into litigations.

We invest so much effort and funds!

We need to reduce the number of excessive judicial procedures, which require an unreasonable spending of time and resources. Processes which used to require personal presence can now be implemented remotely.

Second, we need to ensure a qualitative development and an upgrade of judicial personnel management system, providing incentives so that the best lawyers would strive to become judges.

Third, we need a clear and predictable legal practice, especially for legal disputes between business and state agencies, as well as excluding the possibilities of having an unlawful influence on judges.

I task the Supreme Court, together with the Government, to develop a relevant set of measures by the end of the year.

***

A smaller and efficient state apparatus, which should consider all of its actions through the prism of increasing the wellbeing of the nation, will play a crucial role in the implementation of any reforms.

 

IV. CITIZEN-ORIENTED STATE APPARATUS

How should the state apparatus change in a new reality?

 

FIRST. Drastic increase in the effectiveness of state agencies

“Quality” should become a new lifestyle of civil servants, and personal growth – their main principle.

The new kind of civil servants should shorten the gap between the state and society. This means regular feedback, lively discussion and explaining specific measures and results of the state policy to people.

The Public Administration Academy together with the Nazarbayev University needs to develop a “Brand-new Leader” programme and special retraining courses when appointing to senior positions.

It is important to attract specialists from the private sector that have work experience in the best foreign companies or graduated from leading universities of the world.

This year we have introduced a new remuneration model in four state agencies.

All pilot projects have achieved good results.

We made the civil service more attractive, which is especially relevant at the regional level.

By optimising ineffective expenditures and reducing the number of senior positions, salaries of lower and mid-level civil servants grew 2-2.5 times.

The so called brain drain decreased by two times. The intake of highly-skilled professionals from the private sector increased by three times, including graduates of top higher education institutions.

The competition to the central administration at the Agency for Civil Service Affairs has increased up to 28 people per job position, at the regional offices – up to 60 people per job position.

16 people apply for one vacant position in the akimat of Mangystau, and 13 people on average in the Ministry of Justice.

We managed to save up over 30 billion tenge in Astana thanks to new approaches to financing PPP projects alone.

In order to move to a new remuneration model I granted heads of state agencies the right to make a budget and personnel maneuver.

They gained an opportunity to use the funds saved to increase the salaries of civil servants.

Now, many state agencies want to switch to a new model.

However they must understand that it is not a mere automatic increase in salaries, this means, first of all, the increase in effectiveness of their performance.

I task to ensure that the growth of expenditure on remuneration is compensated by optimisation and saving of budget expenses including the expenses of subordinate organisations.

Red tape and egalitarianism must not be allowed to keep this project from being discredited.

 

SECOND. In this challenging time, we need to ensure the maximum return for each tenge allocated.

Inspections show that the cost of construction is set too high as early as at the drafting stage of the project documentation.

There are projects that have not been finished or those that had no future in the first place.

If we take a responsible approach to the task assigned, we can free hundreds of billions of tenge from the budget and channel them to the real needs of population.

The Government needs to take systemic measures to optimise spending and save funds by excluding ineffective and untimely expenditures.

 

THIRD. Active fight against corruption will be continued.

First, we need to decrease direct interaction of civil servants with the population when providing public services.

One of the issues that concern people is red tape around land and construction.

This area lacks transparency, requiring full access for the population and business to information.

I task to create a single information database on land reserves and real estate properties.

We need to take this issue under control and give land to real investors!

This is just one example.

We also need to carry out relevant activities on other remaining areas criticised by people and business communities.

In 2019, 80% and in 2020 at least 90% of public services must be digitalised.

To this end, the Law on Public Services should be updated as soon as possible.

Second, we need to address the increase in personal disciplinary responsibility of senior officials when committing corruption-related offences by their subordinates.

At the same time, diligent workers should not be afraid of inspectors.

Third, we need to spread the capital’s experience in implementing the anti-corruption strategy as part of “Corruption-free Regions” projects.

 

FOURTH. We need to reduce formality and red tape in the work of the Government and all states agencies.

Recently, we have seen a dramatic increase in the number of lengthy meetings and sessions in the Government, state agencies, as well in the paperwork.

Sometimes the Government holds up to seven meetings attended by akims and their deputies per day.

When should they have time to work?

We need to put an end to this practice and take this issue under control.

We need to give decision-making freedom to ministers and akims, who should undertake specific responsibilities and be publicly accountable.

This should be based on the developed map of indicators of the Strategic Country Development Plan until 2025.

 

FIFTH. To effectively implement the objectives set, we need to strengthen the mechanism of control over reforms.

By the end of the year the Government and state agencies must develop specific indicators and road maps covering all mentioned development issues, as well as submitting all necessary reforms-related bills to the Parliament in due time.

Parliament, in turn, should consider and adopt them in a qualitative and timely manner.

To monitor and assess the implementation of reforms and main strategic documents, I task to create a National Modernisation Office in the Executive Office of the President and grant it the relevant mandate.

Apart from monitoring statistic indicators, it will be responsible for conducting regular opinion polls among the population and business regarding issues of interest to the population as it is done in the OECD.

The Office will regularly report to me on the situation in each area.

Each Government member, head of a state agency, head of a state company will be personally responsible for achieving the objectives set.

 

V. EFFECTIVE FOREIGN POLICY

We need to further implement a proactive foreign policy in order to ensure the successful modernisation of Kazakhstan.

Our peaceful vision and clearly defined principles in this area prove their worth.

Interaction between Kazakhstan and the Russian Federation is exemplary for interstate relations.

The Eurasian Economic Union is successfully functioning as a fully integrated association and an active participant of global economic relations.

A new chapter of cooperation in the Central Asian region has been opened.

A comprehensive strategic partnership with the People’s Republic of China has been gradually developing.

The One Belt - One Road programme gave a new impetus to our relations with China.

During my January official visit to Washington and negotiations with President Donald Trump, we reached an agreement on an enhanced strategic partnership between Kazakhstan and the USA in the 21st century.

We will continue our dynamic collaboration with the EU as our biggest trade and investment partner.

Mutually beneficial bilateral ties with CIS countries, Turkey, Iran, Arab and Asian countries have also been advanced.

The Convention on the Legal Status of the Caspian Sea adopted on the Aktau Summit opens new opportunities for cooperation with other Caspian states.

Kazakhstan is successfully completing its mission within the UN Security Council.

The Astana Process on Syria is nearly the only effective working format of talks on a peaceful settlement and recovery of this country from the crisis.

Additionally, in the context of difficult modern conditions, the foreign policy of the Republic of Kazakhstan requires adaptation and promotion of national interests based on the principles of pragmatism.

***

The Strong will to succeed and people’s unity have always shaped the future of countries.

Only by uniting our efforts can we reach great heights.

 

VI. ENGAGEMENT OF EVERY KAZAKH CITIZEN IN TRANSFORMATION OF THE COUNTRY

Every Kazakh citizen should clearly understand the essence of the conducted reforms and their significance for prosperity of our Homeland.

To successfully implement them, it is important as never before to consolidate the society around common goals.

The Rukhani Zhangyru Programme was widely supported and gave a powerful impetus to modernisation processes in society. 

This initiative should not only be continued, but also filled with new content and directions.

Comprehensive support to youth and institution of the family should become a priority for state policy.

We need to create a wide platform of social mobility, which will cover a full set of support measures for all youth categories.

I suggest declaring the next year as the Year of Youth.

We should start the modernisation of the social environment in rural areas.

This will be facilitated by the launch of a special project “Auyl – Yel Bessigi” (“Village is the cradle of the nation”).

This project will help us to promote a labor ideology in the regions.

We need to establish child and youth associations Sarbaz similar to the Boy Scout movement, and to strengthen the role of military and patriotic education in schools.

We should restore mass school tourism in the regions of the country within the new “Discover Your Land” initiative.

Today, unique measures are offered in the main fields determining the social well-being of the population.

The financial value of the initiatives is over 1.5 trillion tenge, and their aggregate effect is even more ensuring a huge leap in the quality of the population’s life.

This is the most reliable and beneficial investment.

 

Dear Kazakh citizens!

Well-being of the population and accession of Kazakhstan to the list of 30 developed countries are the long-term goals of our independent state.

We always adequately respond to the challenges of the time.

We manage to do so, primarily, thanks to our unity.

As we say, “A rich country is the country where people live in harmony”.

We face complex challenges at this current time.

If we have harmony, there are no heights we cannot reach.

In all my addresses I pay special attention to improving social conditions and people’s quality of life.

The main purpose of today’s 7-20-25, Nurly Zhol, Nurly Zher and other state programmes is the improvement of the population’s quality of life.

Kazakhstan still has a lot of heights to climb.

People’s trust raises our spirits and gives us strength on this path.

There is nothing greater than this noble goal!

 

 

***

The President of Kazakhstan Nursultan Nazarbayev’s Address to the Nation of Kazakhstan. January 31, 2017
"Third Modernization of Kazakhstan: Global Competitiveness"

Dear People of Kazakhstan!
I am addressing the people of Kazakhstan as we approach the new era.
The country has honorably passed its 25-year development phase. We are proud of our country. As part of the festivities on the 25th anniversary of Independence we have highlighted Kazakhstan’s achievements and progress. They are well known and appreciated by the world community.
Kazakhstan has become a non-permanent member of the UN Security Council since the beginning of 2017.
"EXPO-2017" international exhibition will be held in Astana this year. We are the first among the CIS countries and Central Asia to hold such an important global event.
Sports events within the Universiade-2017 have started in Almaty, with the participation of over 2,000 athletes and delegates from 57 countries.
All that is the result of a correct political path and Kazakhstan’s high authority in the international arena.
Kazakhstan shall join the world’s top 30 developed countries by 2050. We will surely go for this purpose.
In conditions of growing competition and the lack of stability in the world relevance of my proposed Strategy-2050 to the people in 2012 is increasing. We have been able to timely anticipate the forthcoming hard time.
Due to "Nurly Zhol" Economic Policy and "100 Specific Steps" Nation’s Plan we are worthily going through the initial stage of a complex global transformation. Additional KZT 1.7 trillion have been allocated to support the economy only during 2014-2016. That provided an opportunity for economic growth and business support, and creation of more than 200 thousand new jobs.
The result ensured the gross domestic product growth by 1% in 2016. That is particularly important under the current difficult conditions.
The world situation is changing rapidly. That is a new global reality, and we have to accept it.
Dear Compatriots!
Only those nations, which manage to get ahead of the future and decisively meet the challenges, without standing and waiting, are the winners.
The next and fourth industrial revolution starts in the world.
Universal economic digitalization will lead to disappearance of entire industries and creation of fundamentally new ones. Great changes before our eyes are both a historic challenge and opportunity for the nation.
Today I pose a challenge of carrying out the implementation of Kazakhstan’s third modernization. It is necessary to create a new model of economic growth that will provide the country's global competitiveness.
Currently, many countries are trying to solve the same problem. I am sure that the transition recipes to the new growth model are not equal. We should have regard to our strong points and not to lose our opportunities that we have together created over 25 years of our Independence.
We all remember the 1st modernization of Kazakhstan. We have a memory of starting our way a quarter century ago on the ruins of the Soviet Union. Then from the foundation our generation created a new state, which was not on the world map.
There was a transition from a planned to a market economy. It is crucial for me that together we have then managed to hold the country from the turmoil of internal conflicts and economic collapse. Kazakhstan came out of that period with minimal losses and the largest acquisitions.
The 2nd modernization began with adopting the Strategy-2030 and creating a new capital city Astana. The results are undeniable. The country broke away from the economic crisis zone and joined the world’s 50 most competitive economies.
Two successful modernization processes have given us invaluable experience. Now we need to boldly step forward and start the 3rd upgrade.
This upgrade is not as plan of combatting the current global challenges, but a reliable bridge to the future, to fulfil the Strategy-2050 objectives. It will be held based on the "100 Specific Steps" Nation’s Plan.
I see its five key priorities. They are designed to ensure the economic growth above the world average, and steady advance to the 30 leading countries.
The 1st Priority is the accelerated technological modernization of the economy.
We should cultivate new industries, which are created involving the use of digital technologies. That is a far reaching complex task.
It’s critical to cultivate such sunrise industries as 3D printing, online commerce, mobile banking, digital services, including health and education sectors, and others. These sectors have changed the economic structure of the developed countries and have given a new quality to senile industries.
In this regard, I charge the Government to work out and adopt a separate program called "Digital Kazakhstan".
It is necessary to fit our legislation to the new realities.
It is also important to make provision for development of communications and ubiquitous access to a fiber-optic infrastructure. The digital industry development will provide impetus to all other sectors. Therefore, the issue of IT-sphere development should be kept under special control of the Cabinet.
Factor of great significance in forming new industries is to support innovation and fast introduction into production.
I entrust the Government with establishing the IT-startup International TechnoPark on the basis of one of EXPO-2017 facilities. It has to become a platform for attracting entrepreneurs and investors from around the world. That requires appropriate infrastructure and the enabling environment, including tax breaks, simplified visa and labor regimes.
We also need to develop the research and innovative potential of universities based on Nazarbayev University and "Alatau" Innovation Park.
The 2nd complex task. In parallel with creating new industries, we should give impetus to the development of traditional basic industries.
They are industry, agriculture, transport and logistics, construction and other sectors.
Firstly, it is important to boost productivity.
The main factor here should be the widespread introduction of elements of the 4th industrial revolution. They are automation, robotics, artificial intelligence, exchange of "big data" and others.
I entrust the Government, together with business, with working out a package of measures on technological re-equipment of basic industries until 2025.
Secondly, there is a need to continue industrialization with emphasis on the development of competitive export industries in priority sectors.
I entrust the Government with the task of increasing non-oil exports in half by 2025.
To activate the work in this direction is necessary to concentrate the tools of development and promotion of exports in the same department. Exporters need to provide support for the principle of "single window", including in the regions.
I entrust the Government with creating a Council for Export Policy. It should include the business community representatives.
Prior to September 1 this year, the Government together with the akims and businesses need to develop a unified export strategy.
Kazakhstan should keep the leading position in attracting foreign investment. "Astana" International Financial Center should play an important role in attracting financial resources in the country’s economy.
It is critical to fit into global chains of production and distribution of goods and services. This should be done primarily by attracting multinational companies.
It is necessary to effectively implement a joint investment program with China to establish production facilities in Kazakhstan. The agreements have been inked with the Chinese side. The facilities have been identified. We need to work specifically.
That will be modern production with creation of about 20 thousand new jobs for Kazakhstan. For the present the actualization of six projects has started and two projects have already been launched. One of them is a plant for large-assembly of JAC hybrid and all-electric vehicles.
I instruct to study the issue of further development of electric vehicle production with export orientation, making provision for the necessary infrastructure.
In general, Kazakhstan should have its own investment strategy. The government should prepare it before September 1 of the current year.
Protection and promotion of national economic interests in the framework of international cooperation shall be provided. This includes, before everything else, the activities within the EAEC, SCO, interfacing with the Economic Belt of the Silk Road. Economic diplomacy work shall be rebuilt and strengthened.
Thirdly, the country’s mining and oil and metallurgical complex shall retain its strategic importance for the economic growth sustainability.
In the context of global demand slowdown it is critical to enter new markets and expand the geography of supplies. Much attention shall be given to expanding the mineral resource base. Active exploration is necessary to be held.
Further development of these industries should be strictly linked to the deepening of raw materials complex processing.
I entrust the Government with ensuring the adoption of a new Code on Mineral Resources and making the necessary amendments to the tax legislation by the end of the year.
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Fourthly, the agricultural sector shall become the new driver of the economy.
Kazakhstan’s agriculture has a promising future. Upon many items, we can be one of the world's largest manufacturers of agricultural exports, especially for organic food production. ‘Made in Kazakhstan’ brand shall become the standard of such products.
At the same time we have to be a so-called "bread basket" for grain production for the entire Eurasian continent. A shift from primary production to the production of high-quality and processed products shall be provided. Only then will we be able to compete in international markets.
In this regard, the Government and the governors are instructed the following:
Firstly, the principles of allocation of subsidies and gradual move to production insurance shall be reconsidered;
Secondly, during the 5 years all conditions for combining more than 500 thousand households and small farms into cooperatives shall be created;
Thirdly, the level of product processing shall be increased, and the effective storage, transportation and distribution of goods shall be created;
Fourthly, the level of productivity shall be increased and production costs shall be reduced;
Fifthly, we must improve the efficiency of land use. Within 5 years, the area of
​​irrigated land shall grow by 40%, thereby raising it to 2 million hectares;
Sixthly, investment in agricultural research shall boost, to be in demand in a business environment.
I instruct to make provision for the export of food products increase by 40% by 2021 through the agricultural production diversification.
These tasks should be fulfilled within the framework of the new agriculture development state program.
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Fifthly, the new Eurasian logistics infrastructure development is an important priority.
Substantial investment has already been made. Now economic returns are necessary.
I instruct the Government in 2020 to provide an increase in the annual volume of transit:
- 7 times for goods, carried in containers - up to 2 million containers;
- 4 times for passenger transport by air - up to 1.6 million passengers in transit.
It is necessary to increase earnings from transit traffic by 5.5 times - up to $ 4 billion a year.
In 2015, I initiated "Nurly Zhol" infrastructure development program. Over the past two years, the program has fully justified itself.
During the current year 4,400 kilometers of roads of national importance will be covered by construction and reconstruction. Among them, no less than 600 kilometers with the staged at a fee implementation will be put in before the end of the year.
Coordination with neighboring countries is critical to unlock the country’s transport and transit potential. It is necessary to ensure the goods transit freedom, creation and modernization of transport corridors. Particular attention should be paid to the transport infrastructure management, service level increase and elimination of administrative barriers.
Due to the increasing traffic volume along the Trans-Caspian corridor it is necessary to proceed with the second phase of
Kuryk port construction, a car way.
Sixthly, urbanization processes necessitate the construction sector development. It shall become a full driver of the domestic economy.
Remember that investing in construction of roads, buildings and other infrastructure we define the physical and technological shape of our cities for years to come. It is therefore important to ensure the transfer of the latest technologies both to the construction and manufacture of building materials. At present we have good opportunities to accomplish that
By my instructions, "Nurly Zher" Housing Program realization begins since the current year. It addresses a critical goal - housing provision for 1.5 million households in the coming 15 years.
The program includes comprehensive measures of housing market development. It is cheaper bank loans for constructors by providing grants through "Damu" JSC. Subsidizing mortgage loans, issued by banks, for the population will take place through "Kazakhstan Mortgage Company" JSC. Construction of credit housing for
ZhilstroySberBank depositors by Akimats will continue. Previously allocated funds by a "revolving" principle will be reused for that purpose.
For vulnerable social groups the Akimats will continue developing rental housing without the right of redemption. For mass housing the akims should allocate appropriate land plots.
We will strive to ensure that the construction of individual houses in the cities is carried out in a single architectural style. With this aim in view the government will assist with the necessary infrastructure.
The Government together with the akims shall take measures for developing transport links with the nearest large city settlements.
The 3rd complex task is the labor market modernization.
Human resources will become available with technology implementation in senile industries. However, creation and development of new industries should become an additional source of employment and real income growth.
I instruct the Government and governors to create the conditions for a controlled flow of workers into other sectors.
Our sizeable enterprises should, jointly with
akimats, develop appropriate "road maps". They need to provide co-investment in retraining downsized workers and their further employment. We need to support the labor mobility processes from labor-surplus regions, and from rural to urban areas as well.
The Government should reform the employment centers and create a single online platform for all vacancies and all settlements.
The 2nd Priority is massive improvement and the business environment expansion.
One of our strategic goals is ensuring the contribution of small and medium-sized businesses in GDP of at least 50% by 2050.
It is an ambitious but achievable goal. To achieve it at that stage the following is needed.
Firstly, by my instructions, since this year the Government has launched a program of effective employment and business activity growth.
Now the citizens of Kazakhstan in rural regions and towns can get a microloan of up to KZT 16 million for business operations.
It is meaningful to broaden the geography of micro-lending, actively using tools to guarantee and service support of entrepreneurs. These measures should be accompanied by organization of business training and financial literacy.
It is necessary to further improve support tools for business activity. Each region of Kazakhstan has to offer complex measures to develop mass entrepreneurship, including family businesses.
The number of created new jobs, as before, is one of the key criteria for assessing the effectiveness of the Government and akims’ activities.
Secondly, the Government and "Atameken" National Chamber of Entrepreneurs shall take measures on front end reduction of all kinds of costs for businesses. That especially refers to cost of services in the energy, transport and logistics, and utilities as well.
Public services procedures should be optimized as much as possible. It is necessary to reduce the time and a list of documents and eliminate duplicate procedures. Thus it is necessary to change them over fully to electronic format, without physical presence.
In addition, the existing regulatory burden on business is incompatible with the task of creating a new model of growth.
I challenge the Government and akims to elaborate the action framework on business deregulation by July 1 of this year.
It is necessary to implement the best standards and practices of developed countries. It is especially important to carry out this work at the regional level.
Akims and the Government shall develop detailed plans to improve the conditions for doing business in the regions based on the World Bank ranking.
Rating of regions and cities on the ease of doing business is critical to be introduced. We will institute a special award for the best. It shall be awarded once a year, on Industrialization Day.
Thirdly, a reduction in the share of the state in the economy to 15% of GDP, up to OECD levels should give a new impetus to economic growth.
Previously there was a list of about 800 enterprises for privatization until 2020. The work is in progress.
The Government is assigned to speed up and complete the privatization of companies in this list until the end of 2018.
There is also need of accelerating the preparation and output of our largest companies on the IPO. Introduction of Yellow Pages has reduced the types of activities for the state in the economy by 47% (from 652 to 346).
The next stage is transfer to the private sector or elimination of all state-owned enterprises and organizations, which do not conform to these principles until 2020. And these are several thousand enterprises.
The practice, when we created legal entities under each program or task, is meant to finish.
It is critical to ensure privatization’s transparency and efficiency. There is also need of reconsidering the role of state holdings.
The Government is tasked to provide a qualitative transformation of "Samruk-Kazyna" holding. It is necessary to conduct a thorough audit and optimization of both managerial and production business processes. As a result, it shall become a highly efficient, compact and professional. Management and corporate governance needs to get improved to the international level.
It is necessary to clearly define what to leave for the state, in which important sectors and with what degree of participation.
Natural monopolies and implementation of strategic projects, including with the participation of TNCs, shall be for the state to be left. These projects should give a multiplier effect.
"Baiterek" and "KazAgro" are to be exposed to organizational change without fail. They must be operators on the implementation of government development programs. At the same time it is necessary to optimize their functions. All that can be done by the private sector is necessary to transfer to the business.
They should also deal with the involvement of funding from non-state sources for program implementation.
Fourthly, public-private partnership outspread is a strong potential for promotion of entrepreneurship. This refers to transfer of a number of government services to business.
We already have good results on their involvement in preschool education. If during previous 3 years the state has built 189 kindergartens with 40 thousand places, the private sector has opened more than 1 300 per 100 thousand people. South Kazakhstan (397), Almaty (221), Kyzylorda (181) regions have opened more of private kindergartens.
For me the PPP example in this sector is of fundamental importance. It shows how government and business together solve one of the most important national problems – to completely cover 3-6 year old children with pre-school education by 2020.
The PPP growth depends on the akims’ specific and professional activities.
All possible kinds and forms of PPP are critical to be used for utilization of private funds: trust management of state property, service contracts and other
ы. Thus it is necessary to simplify and speed up all the negotiation procedure, particularly in relation to smaller projects.
PPP is set to become a primary mechanism for infrastructure development, including the social one.
To modernize housing and utility infrastructure it is critical to transfer it in trust or to PPP with feasible pending privatization. The government shall stop going rounds in circles. We need to become active in that process.
Fifthly, it is important to prevent price and tariff fixing.
The Government is assigned, together with "Atameken", to carry out "audit" of all legislation to identify regulations that hinder competition.
The 3rd priority is macroeconomic stability.
The key objective here is restoration of the monetary policy incentive role and involvement of private capital in financing the economy.
Firstly, at present the National Bank has an important task for inflation targeting regime development. It is necessary to achieve the phased reduction of inflation to 3-4% in the medium term.
Secondly, the financial sector’s "reset" is necessary.
The National Bank is assigned to work out a set of measures for the banking sector enhancement.
It is necessary to step up activities for clearing the banks' balance sheets from the sub-prime loans and, if needed, to make provision for their follow-on capitalization by the shareholders. The National Bank needs to be given more rights for the state banks’ operational control. It must move from a formalized approach to a risk-based in order to take measures of influencing the banks, without waiting for technical infringement on their part.
It is also necessary to strengthen the responsibility of audit companies, to ensure transparency and shareholders and, as a whole, to improve corporate governance. All that should be fixed in terms of legislation.
With a focus on handling a problem of money stringency in the economy and high interest rates on loans the National Bank and the Government are assigned to take measures for ensuring availability of medium- and long-term funding in KZT.
The National Bank shall be responsible not only for inflation but also for economic growth together with the Government.
Thirdly, the stock market’s further development.
Privatization should give impetus to its development. It is necessary to float "Samruk-Kazyna" Fund, as I have said before. Further increasing the opportunities for people to invest their savings primarily in various types of securities is critical.
At the end of 2016 we completed the legalization process. More than 140 thousand citizens of our country have taken part in it. In total KZT 5.7 trillion have been legalized, including KZT 4.1 trillion in cash.
The task of the Government is that these funds work in the economy, through participation in privatization as well. At the same time there is also a need to consider issues of subsidizing private bond issues of Kazakhstani enterprises.
The Government, together with the National Bank, is assigned to take measures aimed at enhancing the domestic stock market.
Another key challenge lies in bringing the fiscal policy to the new economic realities.
Firstly, it is necessary to radically improve the efficiency of budget spending.
We fully provided the national programs with the necessary resources in 2017. The ministries and departments shall check the use of funds’ effectiveness.
The Ministries of Labour and Social Welfare, Health, Education and Science should be the first, as they account for over 40% of the national budget. The reports are to be presented upon the results.
It is critical to reallocate funds from ineffective programs on the program, making provision for accomplishing the tasks of the 3rd Modernization. Besides, the budgetary procedures shall be simplified for faster and more effective bringing of the funds to the real economy.
Fiscal decentralization policy is critical to be carried on. In previous years a large number of functions and powers have been delivered from the central to the local level. Now they need to back up sufficient financial autonomy. At the same time it is important to avoid concentration of spending authority at the regional level. It is necessary to pass them on to the district and village levels. Akims must decide the issues of regional and local importance, and the Government is to focus on the national issues.
Secondly, it is essential to more efficiently deal with the National Fund.
The size of the guaranteed transfer from the National Fund must be gradually reduced to KZT 2 trillion by 2020.
Tax policy should focus on stimulating business exit from the "shadow" and the tax base expansion in the non-primary sector. Optimization of the existing tax incentives is critical. New special tax regimes shall be taken into consideration in a new angle on the eve of the universal declaration.
Tax administration arrangements remain wanting. First of all, it concerns VAT.
Thirdly, the government needs to build monitoring and control system for the external and internal loans of the quasi-public sector and bring it to order.
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The 4th Priority is improvement of human capital in quality.
Firstly, the role of the education system shall change. Our task lies in making education central to a new model of economic growth. Training programs should focus on the development of critical thinking abilities and skills of independent search for information.
At the same time, IT-knowledge formation, financial literacy and education of youth patriotism shall be focused on. Reducing the gap in quality of education between urban and rural schools is critical.
The Government is assigned to submit relevant proposals.
Gradual transition to trilingual education.
The Kazakh language retains its dominant position. Much attention shall be paid to its further development. Today, however, English is the language of new technologies, new industries and new economy. Currently, 90% of the world information is in English. Every two years its volume doubles. Kazakhstan cannot reach national progress without mastery of the English language.
Since 2019 teaching in some subjects for the tenth- and eleventh-graders will be conducted in English. It is necessary to carefully consider this issue and take reasonable solution on it.
Schools and teachers’ level in urban and rural areas differ greatly. Problem of competent teachers’ shortage is relevant. Therefore, considering all these aspects, introduction of the English language should be in a phased approach.
Relevant proposals are to be submitted.
"Free Vocational Education for All" Project implementation starts on my initiative since the current year.
Free education, first of all, should cover unemployed and self-employed young people and people of working age who do not have professional education. It is necessary to give impetus to the development of vocational education system for training human resources for new productions within the marked economy.
In pursuing these aims the professional standards’ upgrade in accordance with labor market requirements and best international experience of in-service training is essential.
At the same time special attention shall be paid to the higher education system quality. It is necessary to enhance monitoring and requirements for the staff of higher education institutions, their level of business logistics and educational programs.
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Secondly, the health care system must change along with the educational system.
From July 1 this year, a system of compulsory social health insurance starts to be implemented based on joint and several liabilities of the state, employers and citizens. This system’s effectiveness has been proven by the world’s practice.
Participants in the health insurance system will be given a wide range of medical services. Participation of socially vulnerable groups in it will be supported by the government.
The government needs to provide the health service informational support. Promotion of competition among private health institutions should be provided equal conditions within the CSHI (
compulsory social health insurance) system.
The Government and governors are assigned to conduct broad awareness-raising activities.
It is also necessary to introduce medication price management legislation.
Thirdly, the social security.
Under my instructions, pensions for 2.1 million retirees will be increased by 20% compared to 2016 to July 1, 2017.
In addition, the basic pension appointment will be based on the new methodology from July 1, 2018. Its size will depend on the length of participation in the pension system.
All of these measures in 2018 will provide an increase of 1.8 times of the new basic pension size as compared to 2017.
About 400 thousand children are annually born in the country, which is higher than the 1999 level by almost two times. This good trend should be backed up.
Upon my instructions, the size of a lump sum birth benefit will increase by 20% from 1 July 2017.
The living minimum wage shall be reviewed. It is supposed to accord with the actual consumer spending of Kazakhstan’s population. This will allow increasing for 3 million people the size of the basic pension benefits for people with disabilities and families without supporters, targeted assistance and benefits for disabled children to January 1, 2018.
Starting January 1, 2018 the threshold has to raise for providing targeted social assistance from 40 to 50% of the subsistence minimum and implement its new format. At the same time all those who can work should be supported only on the condition of participation in the employment program.
The 5th Priority is the institutional transformation, security and anticorruption efforts.
Firstly, as part of the 3rd Modernization the Government needs to ensure the work on implementing the best practices and the OECD recommendations.
Secondly, we carry out reforms aimed at protecting private property, the rule of law and equality before the law. The activity needs to be continued.
The Government, together with "Atameken" NCE (
National Chamber of Entrepreneurs) and civil society, are assigned to conduct an audit of all legislation to strengthen protection of property rights.
The administrative and criminal law also needs to be humanized. Administrative fines should be fair and proportionate to the offense committed.
It is necessary to carry out further work to reduce the penalties for offenses in the sphere of business. It is necessary to decriminalize economic compositions with a low degree of public danger.
It is necessary to achieve greater confidence in the judicial system. It is important to avoid any undue influence on the work of judges.
Thirdly, the security status becomes the measure of a strong and capable state.
In modern conditions the humanity is faced with terrorism growth. The key here is the fight against financing the destructive forces and links with foreign terrorist organizations.
It is critical to prevent religious extremism propaganda, including on the Internet and social networks. It is necessary to form a society of zero tolerance for any action related to radical manifestations, especially in the sphere of religious relations.
The prisons should carry out organized purposeful activity of theological rehabilitation services to convicted persons. It is necessary to take additional steps to spiritual and moral education of the younger generation.
Non-governmental sector and religious associations should be actively connected to that sort of activity.
All these measures have to be taken into account in the worked out, on my behalf, State Program on combating religious extremism and terrorism for 2017-2020.
Fight against cybercrime becomes more urgent.
The Government and the National Security Committee are assigned to take action to create a "Cyber Shield of Kazakhstan" system.
Fourthly, we have made significant steps to reduce the level of corruption in the country. At the same time, the main focus is on combating the effects of corruption.
It is necessary to intensify efforts to identify and eliminate the causes of corruption and assumptions.
One key issue is the procurement sector improvement.
I instruct the Government to introduce a unified public procurement system on the principle of centralized services.
The approaches for conducting procurement in the quasi-public sector, natural monopolies and subsoil sector also need to turn them around.
Much in anticorruption efforts shall depend on the whole society’s active participation. With the social networks and other media resources growth the unified non-admission should be a powerful tool in combating corruption.
Dear People of Kazakhstan!
By this Address I would like to convey to every citizen my view of development trends in the new reality.
I instruct the Government to develop a strategic plan for development until 2025 for the country’s 3rd modernization titled “Kazakhstan’s National Technology Initiative".
We have no other choice but meet the challenge gracefully and solve the problem for the country’s further modernization.
I believe our great nation fully takes advantage of the unique historical chance.
Dear Friends!
Kazakhstan is a new multi-ethnic, confident in its future, and dynamically developing country! We have passed the 25-year-old path of development. In the next 25 years we expect even higher frontiers.
By accumulating a unique wealth of experience when creating a state, we have entered a new stage. I am sure that no matter what difficulties are ahead of us, we will overcome them.
Our main strength is unity.