"New possibilities of development in the conditions of the Fourth Industrial Revolution"
Today the world enters the era of the Fourth Industrial Revolution, the era of profound and rapid changes: technological, economic and social.
The new technological order radically changes the way we work, we execute our civil rights, raise children.
The need to be prepared for global changes and challenges has prompted us to adopt the "Kazakhstan-2050" Development Strategy.
We set out to enter the list of thirty most developed countries in the world.
The National Plan - 100 specific steps is being implemented, 60 of which have already been fulfilled. The rest are mostly long-term in nature and are implemented systematically.
Last year, the Third modernization of Kazakhstan was launched.
The Industrialization Program is being successfully implemented.
A comprehensive program "Digital Kazakhstan" was adopted.
A comprehensive Strategic Plan for the Development of the Republic of Kazakhstan was developed until 2025.
Our long-term goals remain unchanged.
We have all the necessary programs.
This Address determines what we have to do for successful navigation and adaptation in a new world - the world of the Fourth Industrial Revolution.
We created an independent Kazakhstan, which became a brand that inspires trust and respect in the world.
In 2017, our country became a non-permanent member of the UN Security Council.
In January 2018, Kazakhstan chairs in it.
We became the first State among the countries of the CIS and Eastern Europe, which the world community chose for the International Specialized Exhibition "EXPO".
A successfully functioning model of a market economy has been built in Kazakhstan.
In 2017 the country, having overcome the negative consequences of the global crisis, returned to the trajectory of confident growth.
At the end of the year, the growth of gross domestic product was 4%, and industrial production - more than 7%.
At the same time, in the total volume of industry, the processing sector exceeded 40%.
The successful development of Kazakhstan allowed the formation of the middle class.
Poverty declined 13-fold, the unemployment rate fell to 4.9%.
At the core of the socio-economic successes of the country are the civil peace, interethnic and interfaith consent, which continue to be our main value.
Nevertheless, we must clearly realize that Kazakhstan's achievements are a reliable base, but not a guarantee of tomorrow's success.
The era of "oil abundance" is almost coming to an end. The country needs a new quality of development.
Global trends show that it should be based primarily on the broad implementation of elements of the Fourth Industrial Revolution.
It carries with it both challenges and possibilities.
I am sure that Kazakhstan has everything necessary to become a leader of the new world.
To do this, we need to concentrate on the following tasks.
THE FIRST TASK. Industrialization shall become the flagship of the introduction of new technologies.
It was its results that became one of the main stabilizing factors in the crisis years 2014-2015, when oil prices fell sharply.
Therefore, the benchmark for the manufacturing sector with high labor productivity remains.
At the same time, industrialization should become more innovative, taking all advantage of the new technological order 4.0.
It is necessary to develop and test new instruments aimed at modernizing and digitizing our enterprises with a focus on exporting products.
They should primarily stimulate the transfer of technology.
A pilot project on digitization of several Kazakhstani industrial enterprises should be implemented, and then this experience should be widely disseminated.
The most important issue is the development of own ecosystem of developers of digital and other innovative solutions.
It should be created within innovation centers, such as the Nazarbayev University, the AIFC and the International Technopark of IT-Startups.
A serious revision of the organization of activity of the "Alatau" Park of Innovative Technologies is required.
The main factors for the success of the innovation ecosystem are the stimulation of the demand for new technologies by the real sector and the functioning of the private venture financing market.
This requires an appropriate legislation.
In addition, the development of IT- and engineering services is of particular importance.
Digitalization of the economy, apart from dividends, carries the risks of the mass release of work force.
It is necessary to work out an agreed policy on the employment of the released work force in advance.
It is necessary to adapt the education, communication system and the sphere of standardization to the needs of the new industrialization.
In 2018, it is necessary to begin the development of the third five-year industrialization period devoted to the development of the "digital age" industry.
THE SECOND TASK. The further development of resource potential.
The world of the 21st century continues to need natural resources, which in the future will have a special place in the development of the global economy and economy of our country.
However, it is necessary to critically rethink the organization of commodity industries, approaches to the management of natural resources.
It is necessary to actively implement integrated information and technology platforms.
It is important to increase the requirements for energy efficiency of enterprises, as well as the environmental friendliness and efficiency of the energy producers themselves.
The exhibition "EXPO-2017" held in Astana showed how rapidly progress in the sphere of alternative, "clean" energy is moving.
Today, renewable energy sources (RESs) account for a quarter of the world's electricity production.
According to forecasts, by 2050 this figure will reach 80%.
We set the goal to increase the share of alternative energy in Kazakhstan to 30% by 2030.
Today, we have 55 establishments of RESs with a total capacity of 336 MW, which in 2017 generated about 1.1 billion kWh of "green" energy.
It is important to stimulate business, to invest in "green" technologies.
Governors of the regions need to take measures on the modern utilization and processing of solid domestic waste with a broad involvement of small and medium-sized businesses.
These and other measures will require the updating of legislation, including the Environmental Code.
THE THIRD TASK. "Smart technologies" is an opportunity for a breakthrough in the development of the agro-industrial complex.
The agrarian policy should be aimed at a radical increase in labor productivity and growth in exports of processed agricultural products.
We have learned how to grow various crops and produce grain.
We are proud of this.
But this is not enough.
It is necessary to ensure the processing of raw materials and enter the world markets with high-quality finished products.
It is important to radically reorient the entire agro-industrial complex to this task.
The development of agricultural science requires priority attention.
It should deal primarily with the transfer of new technologies and their adaptation to domestic conditions.
It is necessary to revise the role of agrarian universities.
They should not just issue diplomas, but prepare specialists who will really work in the agro-industrial complex or engage in scientific activities.
These universities need to update training programs and become centers for the dissemination of the most advanced knowledge and best practices in the agro-industrial complex.
For example, a multiple increase in productivity can be achieved through technologies for predicting the optimum time for sowing and harvesting, "smart irrigation", intelligent systems of mineral fertilization, and pest and weed control.
Unmanned technology can significantly reduce the cost of farming, minimizing the human factor.
The introduction of new technologies and business models, increasing the science intensity of the agro-industrial complex intensify the need for cooperative farms.
It is necessary to provide all-round support to agricultural cooperatives.
The State together with business should find strategic niches in the international markets and promote domestic production.
Intensification of agriculture should take place with preservation of quality and ecological compatibility of products.
This will create and promote a brand of natural food "Made in Kazakhstan", which should become recognizable in the world.
In addition, it is necessary to stimulate those who use the land with the best return, and take measures to inefficient users.
It is necessary to reorient ineffective subsidies to reduce the cost of bank loans for agribusiness entities.
I charge to increase labor productivity in the agro-industrial complex and export of processed agricultural products at least 2.5 times within 5 years.
THE FOURTH TASK. To increase the efficiency of the transport and logistics infrastructure.
Today several transcontinental corridors pass through Kazakhstan.
Much has been said about this.
In general, the transit of goods through Kazakhstan in 2017 increased by 17% and amounted to almost 17 million tons.
The task is to bring annual revenues from transit in 2020 to 5 billion dollars.
This will make it possible to return the funds spent by the State on infrastructure in the shortest possible time.
It is necessary to ensure the large-scale introduction of digital technologies, such as blockchain, to track the movement of goods in the online mode and their unhindered transit, as well as to simplify customs operations.
Modern solutions allow to organize interaction of all links of logistics.
The use of "big data" (Big data) will provide high-quality analytics, identify reserves of growth and reduce excess costs.
For these purposes, it is necessary to introduce the Intelligent Transport System.
It will allow to effectively manage transport flows and determine the needs for further development of the infrastructure.
To improve intraregional mobility, it is important to increase funding for repair and reconstruction of the local road network.
The total amount of budget funds allocated annually for this should be brought to 150 billion tenge in the medium term.
It is necessary to ensure active participation of all Governor's Offices of the regions in this work.
THE FIFTH TASK. The introduction of modern technologies in the construction and municipal sector.
As a result of the implemented programs, the volume of housing construction in Kazakhstan exceeded 10 million square meters per year.
The system of housing savings is effective, which made affordable for the general public to obtain housing.
The provision of housing per capita has increased by 30% in the last 10 years and is now 21.6 square meters.
It is necessary to bring this figure in 2030 to 30 square meters.
In this task, it is important to apply new construction methods, modern materials, fundamentally different approaches to the design of buildings and urban planning.
It is necessary to establish increased requirements for the quality, environmental friendliness and energy efficiency of buildings.
Building and existing houses and infrastructure should be equipped with intelligent management systems.
This will increase the comfort for the population, reduce the consumption of electricity, heat, water, will encourage natural monopolists to increase their efficiency.
It is important to introduce appropriate amendments to the legislation, including to those regulating the sphere of natural monopolies.
Governors need to more actively address issues of modernization of housing and communal infrastructure on the basis of public-private partnership.
To solve the issue of providing rural settlements with high-quality drinking water, the Government needs to provide annually at least 100 billion tenge from all sources for this work.
THE SIXTH TASK. "Reloading" of the financial sector.
It is necessary to complete the cleaning of the bank portfolio from "bad" loans.
At the same time, the owners of banks should bear economic responsibility, recognizing losses.
The withdrawal of funds from banks by shareholders in favor of affiliated companies and individuals must be a serious crime.
The National Bank should not be a spectator of such acts.
Otherwise, why do you need such a state body?
Supervision of the activities of financial institutions by the National Bank should be tough, timely and effective.
The State will continue to guarantee the observance of the interests of ordinary citizens.
It is necessary to accelerate the adoption of the law on bankruptcy of individuals.
In addition, I instruct the National Bank to finally resolve the issue of foreign currency mortgage loans of the population that were provided before January 1, 2016, when the law prohibits their issuance to individuals.
The National Bank and the Government should jointly solve the issue of providing long-term lending of the business at rates that take into account the real profitability in the sectors of the economy.
It is important to further improve the investment climate and the development of the stock market.
This is one of the main tasks of the International Financial Center "Astana", which began its work.
Using the best international experience, it should become a regional hub, applying English law and modern financial technologies.
The development of the stock market will also be facilitated by the successful withdrawal of shares of National NWF "Samruk-Kazyna" on IPO.
THE SEVENTH TASK. Human capital - a base of modernization.
New quality of education.
The creation of our own advanced educational system, embracing citizens of all ages shall be accelerated.
The key priority of educational programs shall be the development of the ability to constantly adapt to changes and assimilation of new knowledge.
In the pre-school education by September 1, 2019, it is necessary to introduce single standards for programs for the early development of children, developing social skills and self-study skills.
In secondary education, the transition to an updated content has begun, which will be completed in 2021.
These are absolutely new programs, textbooks, standards and personnel.
It will be necessary to revise the approaches to training and the development of teachers' qualifications.
At universities of the country, pedagogical departments and faculties shall be developed.
It is necessary to strengthen the quality of the teaching of mathematical and natural sciences at all levels of education.
This is an important condition for preparing young people for a new technological order.
To increase competition between educational institutions and attract private capital, per capita financing in urban schools will be introduced.
Taking into account that the burden on students is the highest among the CIS countries, and on average by more than a third higher than in the OECD countries, it is necessary to reduce it.
In all regions, on the base of the Palaces of Schoolchildren, it is necessary to create a network of children's technoparks and business incubators with all the necessary infrastructure, including computers, laboratories, 3D printers.
This will help successfully integrate the younger generation into the research and industrial and technological environment.
The future of Kazakhstan people is for free possession of Kazakh, Russian and English languages.
A new methodology for studying the Kazakh language for schools with Russian as the language of instruction has been developed and is being implemented.
If we want the Kazakh language to live in the centuries, it is necessary to modernize it, without creating redundant terminology.
However, in recent years, 7 thousand well-established and generally accepted terms in the world have been translated into the Kazakh language.
Such "innovations" sometimes can be ridiculous.
For example, "Galamtor" ("Internet"), "Koltyrauyn" ("crocodile"), "kui sandyk" ("piano") and there are a lot of such examples.
It is necessary to revise the approaches to the validity of such translations and to bring our language to the international level in terms of terminology.
The transition to the Latin alphabet helps to resolve this issue.
A clear schedule for the transition to the Latin alphabet until 2025 shall be established at all levels of education.
Knowledge of the Russian language remains important.
Since 2016, the Russia language has been taught in schools with Kazakh as the language of instruction from the 1st grade.
From 2019, the transition to teaching the individual natural science disciplines in English in the 10th and 11th grades will be started.
As a result, all our graduates will master three languages at the level necessary for life and work in the country and in the global world.
Then a real civil society will emerge.
A person of any ethnic group will be able to choose any kind of work up to the election by the President of the country.
Kazakhstanis will be a single nation.
The content of training should be harmoniously complemented by modern technical support.
It is important to continue the work on developing digital educational resources, connecting to broadband Internet and equipping with video equipment of our schools.
It is necessary to update the training programs in technical and vocational education with the involvement of employers and taking into account international requirements and digital skills.
It is necessary to continue the implementation of the project "Free Vocational Education for Everyone".
The State gives the young man the first profession.
The Government shall implement this task.
On the Internet, it is necessary to post video lessons and video lectures from the best teachers of secondary schools, colleges and universities.
This will allow all Kazakhstanis, including in remote settlements, to gain access to the best knowledge and competencies.
In higher education, it is necessary to increase the number of graduates trained in information technology, work with artificial intelligence and "large data".
At the same time, it is necessary to develop university science with a priority on research in metallurgy, oil and gas chemistry, agro-industrial complex, bio- and IT-technologies.
It is required to conduct a phased transition of applied scientific research to English.
Universities need to actively implement joint projects with leading foreign universities and research centers, large enterprises and multinationals.
Co-financing from the private sector shall become a mandatory requirement for all applied research and development.
We need to build a system policy to support our young scientists with the allocation of quotas within the framework of scientific grants.
It is time for education to be treated as a separate branch of the economy with its investment projects and export potential.
It is necessary to legislatively consolidate the academic freedom of universities, giving them more rights to create educational programs.
It is required to strengthen the retraining of teachers, to attract foreign managers to universities, to open campuses of world universities.
The building of the potential of the nation requires the further development of our culture and ideology.
This is the essence of "Rukhani zhangyru" (Modernization of conscience).
The ideal of our society shall be a Kazakhstani person who knows his history, language, culture, at the same time modern, fluent in foreign languages, having advanced and global views.
First class healthcare and a healthy nation.
With the increase in the life expectancy of the population and the development of medical technologies, the volume of consumption of medical services will grow.
Modern health care should focus more on the prevention of diseases, rather than on expensive hospital treatment.
It is necessary to strengthen the management of public health, promoting a healthy lifestyle.
Particular attention shall be paid to protect and strengthen the reproductive health of young people.
It is necessary to pass from ineffective and costly for the state medical examination to management of the main chronic diseases with the use of remote diagnostics, as well as outpatient treatment.
This experience exists in the world for long.
It is necessary to implement it boldly and actively.
It is necessary to adopt a comprehensive plan to combat cancer, to create a scientific oncological center.
Highly effective early diagnosis and treatment of cancer shall be provided on the basis of international best practices.
It is necessary to conduct the same work that we conducted in cardiology, tuberculosis control and obstetrics.
Public health will be gradually transferred to the system of obligatory social health insurance (OSHI), based on the joint responsibility of the population, the State and employers.
The need for its implementation is beyond doubt.
However, more preparatory work is required, which has not been carried out by the Ministry of Health and the Ministry of Labor and Social Protection.
It is necessary to develop a new model of the guaranteed volume of free medical care (GVFMC), defining clear boundaries of state obligations.
Services that are not guaranteed by the State, the population will be able to receive by becoming a member of OSHI or through voluntary medical insurance, as well as co-payment.
It is necessary to increase the availability and effectiveness of medical assistance through the integration of information systems, the use of mobile digital applications, the introduction of electronic health passports, the transition to "paperless" hospitals.
It is required to start introducing technologies of genetic analysis, artificial intelligence in medicine, which improve the efficiency of diagnostics and treatment of diseases by an order of magnitude.
An important issue is the availability and quality of training of medical personnel.
Today we have a unique School of Medicine of the Nazarbayev University, in which an integrated university clinic functions.
This experience shall be broadcasted to all medical universities.
To implement these and other measures, a new edition of the Code "On the Health of the People and the Healthcare System" shall be developed.
Qualitative employment and an equitable social security system.
It is important to ensure the efficiency of the labor market, to create conditions for everyone to fulfill their potential.
It is necessary to develop modern standards for all major professions.
In these standards, employers and businessmen will clearly state what knowledge, skills and competencies the workers should have.
It is necessary, based on the requirements of professional standards, to develop new or update existing educational programs.
The reserve of economic growth is self-employed and unemployed.
I repeatedly demanded to understand the issue of self-employed.
The Ministry of Labor and Social Protection of Population has shown irresponsibility and superficiality in this matter.
It is necessary to provide more opportunities for involving people in productive employment - starting a business or getting a new profession and getting a job.
The work of NCE "Atameken" on training business deserves to be supported.
It is important to expand the coverage of these categories of the population with the Program for the Development of Productive Employment and Mass Entrepreneurship, strengthening its instruments.
The process of registering self-employed shall be simplified as much as possible, creating conditions under which it would be advantageous to conscientiously fulfill their obligations to the State.
Kazakhstanis should be able to quickly find a new job, including in other localities of the country.
A full-scale introduction of a single electronic labor exchange is required, where all information on vacancies and job-seekers should be consolidated.
Without leaving home, a person will be able to pass vocational guidance tests, learn about training courses, state support measures and find interesting work.
Also, labor books should be translated into electronic format.
The law on electronic labor exchange shall be adopted before April 1, 2018.
Social policy will be implemented through the involvement of citizens in a full-fledged economic life.
The pension system is now completely tied to the work record.
The more he works a larger pension he gets.
In this regard, all Kazakhstani people need to seriously approach the legalization of their labor activities.
The system of social insurance will also strengthen the relationship between the length of service and the size of payments.
Since 2018, we have moved to a new order of providing targeted social assistance to low-income segments of the population.
Increased the threshold of its provision from 40 to 50% of the subsistence minimum.
For able-bodied low-income citizens, money assistance will be available provided they participate in employment promotion measures.
For disabled citizens, state support measures will be strengthened.
Dear people of Kazakhstan!
All the social obligations of the State will be fulfilled in full.
I want to remind you that in 2016-2017, pensions and benefits were increased three times.
The base pension has grown by a total of 29%, solidarity - by 32%, childbirth allowances - by 37%, and by disability and loss of the bread-winner - by 43% each.
Wages of health workers increased to 28%, education - up to 29%, social protection - up to 40%, civil servants of corps "B" - 30%, scholarships - 25%.
Today is the time of crisis. And not many countries in the world have also been able to increase social expenditures.
Expenditures of the republican budget for the social sphere in 2018 were increased by 12% and exceeded 4.1 trillion tenge.
The increase in social payments, including pensions, will increase the incomes of more than 3 million Kazakhstanis.
Since January 1, 2018, solidarity pensions have increased by 8%.
The increase in benefits for disabled people, families who lost their bread-winner, raising disabled children, amounted up to 16%.
From July 1, 2018, the base pension will increase by an average of 1.8 times, depending on the length of service.
In addition, I instruct, from July 1, 2018, to additionally introduce state benefits for parents caring for adults of the 1st group from childhood.
Such benefits in the amount of not less than one subsistence level will be received by about 14 thousand families on a month basis
For these purposes up to 3 billion tenge will be required in 2018.
To increase the prestige of the profession of a teacher, I instruct, from January 1, 2018, the official salary of teachers who pass to the updated contents of the teaching material, to increase by 30%.
Updated content is modern curricula that meet international standards and have been adapted in the Nazarbayev Intellectual Schools.
They give our children the necessary functional literacy and critical thinking.
In addition, I order to introduce in 2018 a new scale of categories for teachers, taking into account the level of qualifications with the increase in gaps between categories.
Categories should be appropriated through the national qualification test, as it is done all over the world.
This will stimulate teachers to continual improvement.
As a result, depending on the confirmed qualification in general, the salaries of teachers will grow from 30 to 50%.
To do this, in the current year it is necessary to allocate an additional 67 billion tenge.
THE EIGHTH TASK. Efficient State Governance.
It is necessary to continue the work to reduce costs for entrepreneurs and the population in the state governance.
In this regard, it is important to accelerate the adoption of a law aimed at further deregulating the business.
It is necessary to provide digitalization of the processes of obtaining state support by the business with its rendering on the principle of "one window".
Integration of information systems of state bodies will allow to pass from rendering separate state services to complex ones on the principle of "one application".
Also, it is necessary to continue work on improving the quality of services provided by natural monopoly entities.
It is important to establish reasonable tariffs for them and energy producers taking into account investment programs.
Strong action is required to improve the business climate, especially at the regional level.
The Government should prepare a new package of systemic measures to support business, withdrawing it out of the shadows.
It should accelerate the implementation of the privatization plan, expanding it by reducing the number of subordinate organizations of state bodies.
Those subordinate organizations that are really needed should, if possible, be consolidated to reduce administrative costs.
The released means should be directed to the introduction of a new system of payment for state employees on the basis of a factor scale.
It will reduce disproportions in the salaries of civil servants from the regions and the center, and will also take into account the nature of the work and its effectiveness.
I instruct the Government together with the Civil Service Agency to implement in 2018 pilot projects in central and local state bodies to implement this system.
It is necessary to more fully reveal the potential of the effectiveness of public service in the regions through increasing their economic independence and responsibility.
In general, the focus of regional policy should be shifted from equalizing expenditures to stimulating the growth of regions' revenues.
In particular, one of the most promising sources for any region is the development of inbound and inland tourism, which today creates every tenth job in the world.
The Government, in turn, shall take a package of measures, including simplifying visa procedures, developing infrastructure and removing barriers in the tourism industry.
Within the framework of fiscal decentralization, it is necessary to solve the issue of transferring corporate income tax to the regional budgets from small and medium-sized businesses.
Since January 1, 2018 in the cities of regional significance, villages and rural districts with a population of more than 2 thousand people, the legislation provides for the introduction of an independent budget and municipal ownership of local government.
Since 2020, these norms will operate in all settlements.
7 types of tax and other non-tax revenues were transferred to the budget of the village, as well as 19 directions of expenditures.
This will involve the population in solving local issues.
In addition, state bodies should use modern digital technologies to take into account remarks and suggestions of citizens in real time and prompt response.
Introducing new technologies, the State and companies should ensure reliable protection of their information systems and devices.
Today, the notion of cybersecurity includes protecting not just information, but also access to the management of production and infrastructure facilities.
These and other measures should be reflected in the National Security Strategy of Kazakhstan.
THE NINTH TASK. Fight against corruption and the Rule of Law.
A preventive fight against corruption will continue.
A lot of work is being done.
Over the past three years, more than 2,500 people, including top officials and state-owned company executives, have been convicted of corruption.
During this period, about 17 billion tenge of the damage caused by them was reimbursed.
The digitization of processes in state bodies, including their interaction with the public and business is important.
In particular, citizens should see how their appeals are handled, and receive timely and qualitative answers.
Institutional reforms of judicial and law enforcement systems are being carried out.
Legislation has been introduced to provide for strengthening the protection of the rights of citizens in criminal proceedings, reducing its repressiveness.
The rights of lawyers have been expanded, as well as judicial control at the pre-trial stage.
The powers and areas of responsibility of law enforcement bodies are delineated.
The work on strengthening the guarantees of the constitutional rights of citizens, ensuring the rule of law, humanizing law enforcement must continue.
In the sphere of protection of public order and security, it is necessary to actively introduce intelligent systems of video surveillance and recognition on the streets and in places of mass stay of citizens, control over traffic.
THE TENTH TASK. "Smart cities" for "smart nation".
2018 is the year of the 20th anniversary of our capital - Astana.
Its formation and becoming one of the most important centers of Eurasia development is our common pride.
Modern technologies provide effective solutions to the problems of a fast-growing metropolis.
It is necessary to implement the management of the urban environment in a comprehensive manner on the basis of the "Smart City" concept and the development of the competences of people moving to the city.
The world came to the understanding that it is cities that compete for investors.
They choose not a country, but a city in which it is comfortable to live and work.
Therefore, based on the experience of Astana, it is necessary to form a "reference" standard of "Smart City" and start spreading best practices and exchange of experience between the cities of Kazakhstan.
"Smart cities" will be the locomotives of regional development, the spread of innovations and the improvement of the quality of life throughout the country.
Here are 10 tasks. They are understandable and clear.
Dear people of Kazakhstan!
Owing to the political stability and public consensus, we began to modernize the economy, politics and conscience.
The impetus to the new stage of technological and infrastructural development is given.
Constitutional reform has established a more precise balance of power branches.
We have deployed the process of updating the national conscience.
In fact, these three basic directions are the systemic triad of Kazakhstani modernization.
To meet the new time, we have to unite in a single nation - a nation on the verge of a historic ascent in the conditions of the Fourth Industrial Revolution.