Dear people of Kazakhstan! On the eve of a new era, I am addressing the Message to the people of Kazakhstan. The country has passed its 25-year development stage with honor. We are proud of our country. In celebration of the 25th anniversary of Independence, we noted the achievements and successes of Kazakhstan. They are well known and highly appreciated by the world community. Since early 2017, Kazakhstan has become a non-permanent member of the UN Security Council. This year in Astana the international exhibition EXPO-2017 will be held. We are the first among the countries of the CIS and Central Asia to hold such a significant event of a global scale. In Almaty, sports competitions started in the Universiade-2017, in which more than 2,000 athletes and members of delegations from 57 countries take part. All this is the result of the right political path and high authority of Kazakhstan in the international arena. Kazakhstan should become one of the 30 developed countries of the world by 2050. We are confidently moving towards this goal. In the conditions of increasing competition and lack of stability in the world, the urgency of the Strategy-2050, proposed by me to the people in 2012, is growing. We were able to foresee the forthcoming difficulties in time. Thanks to the economic policy of Nurly Jol and the Plan of the Nation 100 concrete steps, we are worthy of going through the initial stage of a complex global transformation. Only in 2014-2016 to support the economy we additionally allocated 1.7 trillion tenge. All this provided an opportunity for economic growth and business support, creating over 200,000 new jobs. As a result, in 2016 the growth of the domestic gross output was ensured by 1%. This is especially important in the current difficult conditions. The situation in the world is changing dynamically. This is a new global reality, and we must accept it. Dear compatriots! Only those people who manage to get ahead of the future and resolutely meet the challenges, and not stand and wait, will be winners. In the world the next, already the Fourth industrial revolution has begun. The widespread digitalization of the economy will lead to the disappearance of entire industries and the creation of fundamentally new ones. The great changes taking place before our eyes are both a historic challenge and a chance for the nation. Today I set the task of ensuring the implementation of the Third Modernization of Kazakhstan. It is necessary to create a new model of economic growth, which will ensure the global competitiveness of the country. Currently, many countries are trying to solve the same problem. I am confident that the recipes for the transition to a new growth model will be different everywhere. We should proceed from our strengths and not lose the potential that we created together in 25 years of our Independence. We all remember the First Modernization of Kazakhstan. We remember how they began their journey a quarter of a century ago on the ruins of the USSR. Then our generation from the foundation created a new state that was not on the world map. There was a transition from a planned economy to a market economy. For me it is fundamentally important that together we kept the country from shocks, civil war and economic disruption. Kazakhstan emerged from that period with minimal losses and the largest acquisitions. The second modernization began with the adoption of Strategy-2030 and the creation of a new capital of Astana. Its results are undeniable. The country escaped from the zone of economic backwardness and entered the list of 50 competitive economies of the world. Two successful upgrades have given us invaluable experience. Now we must bravely step forward and begin the Third Modernization. This modernization is not a plan to combat current global challenges, but a reliable bridge to the future, towards the goals of Strategy-2050. It will be conducted on the basis of the Plan of the Nation 100 concrete steps. I see its five main priorities. They are designed to ensure the growth rate of the economy above the world average and steady progress in the number of 30 advanced countries.   The first priority is the accelerated technological modernization of the economy. We must cultivate new industries that are created using digital technologies. This is an important complex task. It is necessary to develop such promising industries as 3D-printing, online trading, mobile banking, digital services, including healthcare and education, and others. These industries have already changed the structure of the economies of developed countries and have given new quality to traditional industries. In this regard, I instruct the Government to develop and adopt a separate program Digital Kazakhstan. We need to adapt our legislation to new realities. It is also important to ensure the development of communications, ubiquitous access to fiber-optic infrastructure. The development of the digital industry will provide an impetus to all other industries. Therefore, the government should keep the issue of developing the IT sector under special control. An important condition for the formation of new industries is the support of innovations and their rapid introduction into production. I instruct the Government to create an international technopark of IT startups on the basis of one of the EXPO-2017 facilities. It should become a platform for Attract entrepreneurs and investors from around the world. This requires an appropriate infrastructure and favorable conditions, including tax benefits, simplified visa and labor regimes. We also need to develop our scientific and innovative potential on the basis of universities, Nazarbayev University and PIT Alatau. The second complex problem. In parallel with the creation of new industries, we should give impetus to the development of traditional basic industries. This industry, agribusiness, transport and logistics, construction sector and others. First. It is important to significantly increase labor productivity. The main factor here should be the widespread introduction of elements of the Fourth Industrial Revolution. This automation, robotization, artificial intelligence, the exchange of large data and others. I instruct the Government, together with business, to develop a set of measures for the technological re-equipment of basic industries until 2025. The second. It is necessary to continue industrialization with an emphasis on the development of competitive export industries in priority sectors. The Government is already facing the task of increasing the non-oil export by half by 2025. In order to intensify the work in this direction, it is necessary to concentrate the instruments of export development and promotion in one department. Support for exporters should be provided on the principle of one window, including in the regions. I entrust the creation of an Export Policy Council under the Government. It should include representatives of the business community. Until September 1 of this year, the Government together with the akims and business should develop a unified export strategy. Kazakhstan needs to retain leadership in attracting foreign investment. The International Financial Center Astana should play an important role in attracting financial resources to the country's economy. We should be integrated into global chains of production and marketing of goods and services. This should be done primarily through the involvement of multinational companies. It is necessary to effectively implement a joint investment program with China to establish production facilities in Kazakhstan. Agreements with the Chinese side have been achieved. Objects are marked. We need to work specifically. It will be modern production with the creation of about 20,000 new jobs for Kazakhstanis. To date, the implementation of six projects, and two projects have already been launched. One of them is a plant for the large-assembly assembly of hybrid and all-electric JAC cars. I entrust to work out the issue of further development of the production of electric vehicles with export orientation, providing for the creation of the necessary infrastructure. In general, Kazakhstan should have its own investment strategy. The government needs to prepare it before September 1 this year. It is necessary to ensure the protection and promotion of national economic interests in the framework of international cooperation. This concerns, first of all, the work within the EAEC, the SCO, the interface with the Economic belt of the Silk Road. For this purpose, the work of economic diplomacy should be restructured and intensified. Third. The country's mining, metallurgical and oil and gas complexes must remain strategic in order to sustain economic growth. In conditions of slowing global demand, it is necessary to enter new markets and expand the geography of supply. Much attention should be paid to expanding the mineral and raw materials base. An active geological exploration is necessary. The further development of these sectors must be rigidly linked with the deepening of complex processing of raw materials. I instruct the end of the year to ensure the adoption of a new Code on Subsoil and the introduction of the necessary amendments to tax legislation. Fourth. The agrarian sector should become the new driver of the economy. The agro-industrial complex of Kazakhstan has a promising future. In many respects, we can be one of the world's largest producers of agricultural exports. Especially for the production of organic food. The brand made in Kazakhstan should become the standard of such products. At the same time, we must become the so-called bread basket for the production of grain throughout the Eurasian continent. We need to ensure the transition from raw materials production to the production of quality, processed products. Only then can we compete in international markets. In this regard, the Government and akims are instructed to: First, it is necessary to revise the principles of subsidies and gradually switch to product insurance; Secondly, within 5 years it is necessary to create all conditions for uniting more than 500,000 households and small farmers into cooperatives; Thirdly, it is necessary to raise the level of processing products, create an effective system of storage, transportation and sale of goods; Fourth, it is necessary to increase the level of labor productivity and reduce production costs; Fifthly, we must increase the efficiency of land use. Within 5 years, it is necessary to increase the area of ​​irrigated land by 40%, thereby increasing to 2 million hectares; Sixthly, it is necessary to increase the volume of investments in agricultural research that will be in demand in production. I instruct you to ensure an increase in the export of food products by 40% by 2021 through the diversification of agricultural production. These tasks should be implemented within the framework of the new state program for the development of the agro-industrial complex. Fifth. The development of a new Eurasian logistics infrastructure is one of the important priorities. Already invested significant investment. Now it is necessary to receive from them an economic return. I instruct the Government to ensure, by 2020, an increase in the annual volume of transit traffic: - 7 times for goods transported by containers - up to 2 million containers; - 4 times for passenger transportation by air transport - up to 1.6 million transit passengers. It is necessary to increase revenues from transit traffic by 5.5 times - up to $ 4 billion per year. In 2015, I initiated the infrastructure development program Nurly Jol. Over the past two years, the program has fully justified itself. In the current year, 4,400 kilometers of highways of national importance will be covered by construction and reconstruction works. Of these, until the end of the year will be introduced at least 600 kilometers with a phased introduction of pay. For full disclosure of the transport and transit potential of the country, coordination with neighboring countries is needed. It is necessary to ensure freedom of transit of goods, creation and modernization of transport corridors. Particular attention should be given to managing transport infrastructure, improving the level of service and eliminating administrative barriers. In connection with the increase in traffic volumes along the Trans-Caspian Corridor, it is necessary to start implementing the second phase of the construction of the Kuryk port - a road crossing. The sixth. The processes of urbanization necessitate the development of the construction sector. It should become a full-fledged driver of the domestic economy. It is important not to forget that by investing in the construction of roads, houses and other infrastructure, we determine the physical and technological appearance of our cities for many years to come. Therefore, it is important to ensure the transfer of the latest technologies both in construction and in the production of construction materials. For this, we now have good opportunities. On my behalf this year, the realization of the housing program Nurly Gere begins. It is aimed at solving the most important task - to provide housing to 1.5 million families in the next 15 years. The program includes integrated measures to develop the housing market. This is cheaper for developers of bank loans by providing State subsidies through JSC Damu. Subsidizing of mortgage loans for the population issued by banks through the JSC Kazakhstan Mortgage Company will be made. The construction of credit housing will be continued by the akimats for the investors of Zhilstroysberbank. This will be re-used previously allocated funds for the revolver principle. For socially vulnerable layers of the population, akimats will continue to develop rental housing without the right to buy out. For a mass housing construction akims should allocate appropriate land plots. We will strive to ensure that the construction of individual houses in cities is carried out in a single architectural style. For this, the state will help with the necessary infrastructure. The government together with akims should take measures to develop the transport communication of large cities with the nearest settlements. The third complex task is the modernization of the labor market. With the introduction of new technologies in traditional industries, labor resources will be released. At the same time, the creation and development of new industries should become an additional source of employment and growth of real incomes of citizens. I instruct the Government and akims to create conditions for a controlled flow of workers to other spheres. Our large enterprises need to develop together with akimats appropriate road maps. They need to provide for joint investment in the retraining of retired workers and their further employment. It is necessary to provide support for the processes of labor mobility from labor-surplus regions, and also from villages to cities. The government should reform employment centers and create a single online platform for all vacant jobs and all localities.  The second priority is the cardinal improvement and expansion of the business environment. One of our strategic goals is to ensure by 2050 the contribution of small and medium-sized businesses in the country's GDP of at least 50%. Ambitious, but achievable goal. To solve it at this stage, the following is necessary. First. On my instructions, the Government has since this year launched the Program for Productive Employment and the Development of Mass Entrepreneurship. Now, citizens of Kazakhstan in the countryside or in the city can get a micro loan of up to KZT 16 million for their business. It is important to expand the geography of microcredit, actively use tools of guarantee and service support for entrepreneurs. These measures need to accompany the organization of business training and financial literacy. We need to further develop tools to support mass entrepreneurship. Each region of Kazakhstan should offer a set of measures for the development of mass, including family entrepreneurship. The number of new jobs created, as before, is one of the key criteria for assessing the effectiveness of the Government and akims. The second. The government together with the National Chamber of Entrepreneurs Atameken must take measures to reduce all types of costs for business. Especially it concerns the cost of services in energy, transport and logistics, as well as in housing and communal services. The processes of rendering public services should be maximally optimized. It is necessary to shorten the time and the list of documents, exclude duplicate procedures. At the same time, it is necessary to translate their rendering completely into an electronic format, without the obligatory physical presence. In addition, the existing regulatory burden on business is incompatible with the task of creating a new growth model. Before the Government and akims I set the task of developing systemic measures to deregulate the business by July 1 of this year. It is necessary to introduce the best standards and practices of developed countries. It is especially important to carry out this work at the regional level. Akims together with the Government need to develop detailed plans to improve the conditions for doing business in the regions on the basis of the World Bank rating. It is necessary to introduce a rating of regions and cities in the country for ease of doing business. For the best, we will establish a special award. We will hand it out once a year, on the Day of Industrialization. Third. A new impetus to economic growth should be given by the reduction of the state's share in the economy to 15% in GDP, to the level of the OECD countries. Earlier, a list of 800 enterprises for privatization until 2020 was determined. The work here is under way. I instruct the Government to expedite and complete the privatization of enterprises from this list by the end of 2018. We must also speed up the preparation and output of our largest companies for an IPO. The introduction of the Yellow Pages principles allowed reducing the types of activity for the state in the economy by 47% (from 652 to 346). The next step is to transfer to the private sector until 2020 or liquidate all enterprises and organizations of state property that do not meet these principles. And this is several thousand enterprises. Practice, when we created legal entities for each program or instruction, should be terminated. It is necessary to ensure transparency and effectiveness of privatization. We also need to review the role of state holdings. I instruct the Government to ensure a qualitative transformation of the holding Samruk-Kazyna. It is necessary to conduct a complete audit and optimization of both managerial and production business processes. As a result, it should become highly efficient, compact and professional. Quality Management and corporate governance need to be tightened to the international level. It is necessary to clearly define what to leave behind the state, in what important sectors and with what degree of participation. The state needs to leave natural monopolies and implement strategically important projects, including those involving TNCs. These projects should have a multiplier effect. The Baiterek and KazAgro holdings should also be reorganized. They should be operators for the implementation of state development programs. At the same time, their functions need to be optimized. All that can be done by the private sector must be transferred to the business. They should also engage in funding from non-state sources for the implementation of programs. Fourth. The large potential for the development of entrepreneurship is provided by the expansion of public-private partnership. It's about transferring a number of government services to business. We already have good results on their involvement in preschool education. If in the previous 3 years the state built 189 kindergartens for 40,000 places, then the private sector opened more than 1,300 for 100,000 places. Most private gardens are open in South Kazakhstan (397), Almaty (221), Kyzylorda (181) regions. For me, the example of PPP in this sector is fundamentally important. It shows how the state and business jointly solve one of the most important national tasks - to fully cover children of 3-6 years of preschool education by 2020. The development of PPP depends on the specific and professional work of the akims. To attract private capital, it is necessary to use all possible types and forms of PPP: trust management of state property, service contracts and others. At the same time, it is necessary to simplify and speed up all the coordination procedures as much as possible, especially with regard to small projects. PPP should be the main mechanism for the development of infrastructure, including social infrastructure. For the modernization of housing and communal services it is necessary to transfer them to management or a concession with possible further privatization. The government will have enough time to stand still. We need to step up in this direction. Fifth. It is important not to allow price and tariff collusion. I instruct the Government, together with the Atameken Scientific and Production Enterprise, to audit all legislation in order to identify rules that hinder competition. The third priority is macroeconomic stability. The key task here is to restore the stimulating role of monetary policy and attract private capital to finance the economy. First. Today, the National Bank faces an important task to develop an inflation targeting regime. It is necessary to achieve a gradual reduction in the level of inflation to 3-4% in the medium term. The second. We need a reset of the country's financial sector. I instruct the National Bank to work out a set of measures to improve the banking sector. It is necessary to speed up the work on clearing the balance sheets of banks from bad loans and, if necessary, ensure their capitalization by shareholders. The National Bank needs to be given more rights for operational control over the state of banks. He must move from a formalized approach to risk-oriented to take action against banks, without waiting for a formal breach on their part. It is also necessary to strengthen the responsibility of audit companies, ensure transparency of shareholders and, in general, improve corporate governance. All this must be fixed at the legislative level. In order to solve the problems of shortage of money in the economy and high interest rates on loans, I instruct the National Bank and the Government to take a set of measures to ensure affordable medium- and long-term funding in tenge. The National Bank should be responsible not only for inflation, but also together with the Government for economic growth. Third. Further development of the stock market. Privatization should give impetus to its development. It is necessary to place shares of Samruk-Kazyna fund companies on it, as I mentioned above. We need to further expand the opportunities for the population to invest their savings primarily in various types of securities. At the end of 2016, we completed the legalization campaign. Over 140 thousand citizens of our country took part in it. In total, 5.7 trillion tenge was legalized, out of them in the form of money - 4.1 trillion tenge. The task of the Government is that these funds work for the economy, including through participation in privatization. At the same time, it is also necessary to work out the issues of subsidizing bond issues of private Kazakhstani enterprises. I instruct the Government, together with the National Bank, to take measures aimed at activating the domestic stock market. Another key task is to bring fiscal policy to new economic realities. First. It is necessary to radically improve the efficiency of budget expenditures. In 2017, we fully provided the necessary government development programs. It is necessary to check the effectiveness of the use of funds by ministries and departments. It is necessary to start with the ministries of labor and social protection of the population, health, education and science, which account for more than 40% of the republican budget. As a result, report to me. It is necessary to redistribute funds from inefficient programs to programs that ensure the implementation of the tasks of the Third Modernization. In addition, you need Simplify the budgetary procedures for more rapid and effective delivery of funds to the real economy. We need to continue the policy of fiscal decentralization. In previous years, a large number of functions and powers were transferred from the central to the local level. Now they need to be backed up with sufficient financial independence. At the same time, it is important not to allow concentration of expenditure powers at the regional level. You should transfer them further to the district and rural levels. The akims should solve issues of regional and local significance, and the Government should concentrate on state-wide issues. The second. It is necessary to be more rational about using the resources of the National Fund. The size of the guaranteed transfer from the National Fund should be phased down to 2 trillion tenge by 2020. The tax policy should be aimed at stimulating the exit of business from the shadow and expanding the tax base in the non-primary sector. It is important to optimize the existing tax incentives. It is necessary to review the special tax regimes in a new light on the threshold of universal declarations. The mechanisms of tax administration require improvement. First of all, this concerns the levying of value-added tax. Third. The government needs to build a system for monitoring and controlling external and internal borrowings of the quasi-public sector and to establish order here. The fourth priority is to improve the quality of human capital. First. First of all, the role of the education system must change. Our task is to make education the central link of a new model of economic growth. Curricula should be aimed at developing the abilities of critical thinking and the skills of self-searching information. Along with this, great attention should be paid to the formation of IT knowledge, financial literacy and the upbringing of the patriotism of young people. It is necessary to reduce the gap in the quality of education between urban and rural schools. I instruct the Government to submit relevant proposals. On the issue of phased transition to trilingual education. The Kazakh language will retain its dominant position. Much attention will be paid to its further development. At the same time, today the English language is the language of new technologies, new industries, a new economy. Currently, 90% of the information is created in the world in English. Every two years its volume is doubled. Without mastering English, Kazakhstan will not achieve national progress. Starting in 2019, training in some subjects in 10-11 grades will take place in English. It is necessary to carefully consider this issue and make a reasonable decision on it. The level of schools and teachers in cities and villages varies significantly. The problem of the shortage of qualified teachers is also urgent. Therefore, considering all these aspects, it is necessary to introduce the English language in stages. I instruct you to submit the relevant proposals. From this year, on my initiative, the project Free Vocational Education for All begins. First of all, free education should cover unemployed and self-employed youth, as well as people of working age who do not have professional education. We need to give impetus to the development of the system of vocational education for training specialists in new industries within the framework of the designated economy. To this end, it is necessary to update professional standards in accordance with the requirements of the labor market and advanced world experience in training at work. Along with this, special attention will be paid to the quality of the higher education system. It is necessary to strengthen control and requirements with respect to the staff of higher education institutions, their level of material and technical support and educational programs. The second. Along with the education system, the health care system must also change. From July 1 of this year, the system of compulsory social health insurance, based on the joint responsibility of the state, employers and citizens, will be introduced. The effectiveness of this system is proved by world practice. Participants in the medical insurance system will be provided with a wide range of medical services. Participation in it of socially vulnerable layers of the population will be supported by the state. The government needs to ensure the necessary informatization of health care. To develop competition, private medical organizations should be provided with equal conditions in the OSMS system. I instruct the Government and akims to conduct a wide-scale awareness-raising work. It is also necessary to legislatively introduce price regulation for all medicines. Third. In the sphere of social security. On my instructions, from July 1, 2017, pensions for 2.1 million pensioners will be raised to 20% of the level of 2016. In addition, from July 1, 2018, the appointment of a basic pension will be carried out according to a new methodology. Its size will depend on the length of participation in the pension system. All these measures in 2018 will provide an increase of 1.8 times the new size of the basic pension in comparison with 2017. Annually, about 400 thousand children are born in the country, which is almost double the level of 1999. Such a good trend should continue to be maintained. On my instructions, from July 1, 2017, the amount of a one-time birth grant will be increased by 20%. It is also necessary to revise the living wage. It should correspond to real consumer spending of Kazakhstan people. This will allow starting January 1, 2018 to increase for 3 million people the amount of basic pensions, benefits for the disabled, families that have lost their bread-winners, targeted assistance and benefits for educating disabled children. Since January 1, 2018, it is necessary to raise the threshold of targeted social assistance from 40 to 50% of the subsistence level and to introduce its new format. At the same time, all those who can work should receive support only if they participate in the employment program. The fifth priority is institutional transformation, security and the fight against corruption. First. In the framework of the Third modernization, the Government needs to ensure work on the implementation of the best practices and recommendations of the OECD. The second. We carry out reforms aimed at protecting private property, the rule of law and ensuring the equality of all before the law. This work must be continued. I instruct the Government, together with the Atameken and the civil society, to audit all legislation in order to strengthen the protection of property rights. It is also necessary to humanize the administrative and criminal legislation. Administrative fines must be fair and proportionate to the committed offense. It is necessary to carry out further work to reduce sanctions for violations in the business sphere. It is necessary to decriminalize economic structures with a low degree of public danger. It is necessary to increase the credibility of the judicial system. It is important to exclude any undue influence on the activities of judges. Third. The state of security becomes the yardstick of a strong and capable state. In modern conditions, mankind has faced the growth of terrorism. The key issues here are the fight against the financing of destructive forces and relations with foreign terrorist organizations. It is necessary to work to prevent the propaganda of religious extremism, including on the Internet and social networks. It is necessary to form Society zero tolerance for any actions related to radical manifestations, especially in the sphere of religious relations. In the places of deprivation of liberty, purposeful work of theological rehabilitation services with convicted persons should be organized. It is necessary to take additional steps for the spiritual and moral upbringing of the younger generation. It is necessary to actively involve non-governmental sector and religious associations in this activity. All these measures should be taken into account in the State Program on Counteracting Religious Extremism and Terrorism for the period 2017-2020, developed on my behalf. The fight against cybercrime is becoming increasingly important. I instruct the Government and the National Security Committee to take measures to create the CyberSpace of Kazakhstan system. Fourth. We have taken significant steps to reduce the level of corruption in the country. At the same time, the main focus is on combating the consequences of corruption. It is necessary to strengthen efforts to identify and eliminate the causes and prerequisites for corruption. One of the key issues is improving the scope of procurement. I instruct the Government to introduce a single system of public procurement on the principle of centralized service. In the quasi-public sector, the sphere of natural monopolies and subsoil use, it is also necessary to radically revise the procurement approach. Much of the fight against corruption will depend on the active participation of the whole society. With the development of social networks and other media resources, general rejection should become a powerful tool in countering corruption. Dear people of Kazakhstan! Through this Message, I wanted to convey to every citizen my vision of the directions of development in the new reality. I instruct the Government to develop a Strategic Development Plan until 2025 on the Third Modernization of the country, entitled National Technological Initiative of Kazakhstan. We have no choice but to adequately accept the challenge of the times and solve the tasks of further modernization of the country. I believe that our great people will take full advantage of the unique historical chance. Dear friends! Kazakhstan is a young multinational, confident in its future, dynamically developing state! We have passed the 25-year path of becoming. In the next 25 years, we are expecting even higher levels. Having collected a unique rich experience in the creation of the state, we entered a new stage. I am sure that no matter what difficulties we face, we will overcome them. Our main force is unity. We will turn Kazakhstan into an even more prosperous country for our descendants!