Dear Compatriots, Distinguished Members of Parliament and Members of the Government,
In accordance with Article 59 of the Constitution of the Republic of Kazakhstan, I declare the second session of the Parliament of the VIII convocation open.
Dear Members of Parliament,
Congratulations to all of you on the opening of this next session, and I wish you success in your responsible endeavors!
After the spring elections, the number of parties in Parliament increased, and the composition of MPs changed significantly. The fractions representing political parties, as well as single-mandate MPs, have actively engaged in work, initiating many relevant bills and raising important issues concerning the country's development.
Parliamentarians have also been busy during the summer months. In just two months, they visited over 1,200 settlements and met with voters to become acquainted with the situation on the ground. I express my sincere gratitude to everyone for their fruitful efforts. I am confident that the pace of work will increase even further during this new session.
Dear Compatriots,
As many of you know, I deliver my annual State of the Nation Address at the opening session of Parliament. This has evolved into a meaningful tradition.
At this juncture, representatives from all branches of Government convene. We outline key directions for the medium-term, issue specific instructions, and set new objectives. This event breathes new life into the work of Parliament, the Government, and other authorized bodies, playing a pivotal role in the smooth and effective functioning of our state apparatus.
To date, the majority of my initiatives have been implemented, while some are nearing completion. I would like to highlight a few measures that have had a direct impact on the quality of life for our citizens.
For instance, salaries of teachers have doubled since 2020. Medical professionals have also seen significant salary increases, and their incomes now exceed the national average. Citizens have been afforded the opportunity to access part of their pension savings, a move that has positively impacted the well-being of nearly one million people, enabling them to address their housing needs. Within the framework of the "Comfortable School" project, around 400 schools are slated for construction. Additionally, over 300 healthcare facilities are being built in rural areas. The National Fund for Children has been launched, and starting from the new year, funds will be deposited into children's accounts. Lastly, the state has reclaimed ownership of 8 million hectares of land that was either unused or illegally allocated.
These initiatives represent just a portion of the work already accomplished. There is still much to be done, and we will continue to work diligently.
As you are well aware, the country has been undergoing large-scale political transformations since last year. In just eighteen months, we have made significant changes, and you have been both witnesses and active participants in the implementation of these reforms.
These measures have ensured an optimal balance among the branches of Government. We have transitioned to a model of a presidential republic with a strong Parliament. As a result, the formula "a strong President—a influential Parliament—an accountable Government” has become more deeply entrenched. Our mission now is to put into practice the concept of a listening state, with Parliament playing a pivotal role.
We have also made important strides in human rights protection. A considerable amount of work has been devoted to upholding the rule of law and ensuring justice. Additionally, we have expanded opportunities for citizens to participate in decision-making processes. The political culture within our society has ascended to a qualitatively new level.
However, to become a truly developed nation, it is imperative that we complement political reforms with deep and comprehensive socio-economic transformations.
Despite a complex geopolitical landscape, our country continues to show a positive trend across all key indicators of economic development. Last year, Kazakhstan's GDP reached 104 trillion tenge, and we attracted a record-breaking $28 billion in foreign direct investment. Our foreign trade turnover hit a record level of $136 billion, with exports accounting for $84 billion. The bedrock of our economic stability—our external reserves—has approached the $100 billion mark.
However, it's essential to recognize that most countries are also advancing. Today, we are witnessing fundamental shifts in the global economy and the international division of labor. The pace of technological innovation is accelerating, and competition for resources is intensifying globally. Issues such as climate change, food security, and sustainable demographic development have moved to the forefront. In summary, humanity has entered a new era characterized by unprecedented challenges and radical changes.
In this critical juncture, we possess all the opportunities needed for a robust economic leap. To realize this, we must steadily, yet assertively and decisively, transition to a new economic model. Our focus should not merely be on abstract accomplishments, but on the tangible improvement of our citizens' lives.
The guiding principles for the country's new economic direction will be fairness, inclusiveness, and pragmatism.
The new paradigm for Kazakhstan's economic development will hinge on the effective exploitation of our competitive advantages and the full realization of the potential of all key production factors—labor, capital, resources, and technologies.
As part of this new economic policy, we will eschew the practice of setting long-term, ephemeral goals. All objectives outlined in this Address should be accomplished within three years; for the most complex tasks, specific deadlines will be set.
Let me now delineate the main contours of the upcoming structural economic reforms.
At this stage, our most crucial task is to establish a robust industrial framework for the country to ensure economic self-sufficiency. Therefore, our primary focus should be on the rapid development of the manufacturing sector.
We must initiate projects that will genuinely transform our nation. The urgency for economic diversification has never been greater. Our attention should be on sectors such as deep metal processing, oil, gas and coal chemistry, heavy machinery, uranium conversion and enrichment, automotive component manufacturing, and fertilizer production. In essence, we need to build clusters that generate high added value.
We must fully leverage the tourism potential of our country. The tourism sector calls for the execution of transformative projects as well. Regrettably, we have yet to see significant achievements in this vital industry, and we trail behind other nations.
Broadly speaking, a specific list of at least 15 major projects is essential. We cannot afford to replicate past errors. Effective support measures and concrete implementation timelines must be identified. Both foreign and domestic businesses should be actively engaged in executing these projects.
It's crucial to make optimal use of our raw materials, workforce, and products—in short, all elements that constitute domestic value.
With our new industrial policy, we must transition to a qualitatively different development model. The state, in partnership with large enterprises, should close the production cycle within the country. Achieving this will necessitate both regulatory and incentive mechanisms. The manufacturing sector should have access to raw materials in sufficient quantities and at reasonable prices.
Additionally, it is vital to expand the proportion of domestic goods in regulated procurement and fully execute the off-take system. The share of off-take contracts with domestic manufacturers should increase to at least 10%, amounting to an annual two trillion tenge.
Last year, I directed the creation of a fundamentally new public procurement system to address the shortcomings of the existing framework, which include lengthy lead times, frequent appeals, and a lack of transparency. The Government has drafted new legislation aimed at ensuring the rational and accountable use of budgetary resources.
Additionally, this new system should bolster domestic entrepreneurship and, crucially, address urgent issues efficiently through budgetary financing.
Streamlining the procurement process is essential. We must prioritize quality over price, thereby effectively countering dumping practices, and fully automate the procedures. For the first time, full completion construction solutions will be incorporated into public procurement. Transparency should be ensured through a new complaint-handling mechanism and the establishment of public oversight. As a result, the share of Kazakhstan-produced content in regulated procurements should increase to at least 60% within the next three years.
Many countries are now taking active steps to protect their domestic markets. Even in developed countries, there has been a shift toward protectionist industrial policy. In Kazakhstan, however, according to WTO classification, the level of protection for the domestic market is considered low, with only 128 non-tariff measures applied. Therefore, we need new, bold approaches to trade policy.
The state has a duty to protect domestic producers. This is not a signal to close our economy to the outside world; it should remain open, but with the interests of national businesses in mind.
It is well known that Kazakhstan has a well-developed mining industry, which is a reliable source of growth for the national economy. This should continue to be the case. On the world market, prices for most types of metals have reached historic highs. However, there has recently been growing discontent among citizens living near large-scale production facilities. They have been complaining about environmental deterioration and health risks. The number of injuries and deaths among workers is also on the rise. The Government must take decisive measures to improve technological and environmental conditions, as well as worker health and safety. Major industrial enterprises should undergo technological and environmental audits every five years. This requirement should also apply to infrastructure companies.
Geological exploration is an area of particular concern. In 2018, new legislation to manage the mining sector was adopted in order to upgrade the sector. However, it has not been fully effective. As a result, there have been no major geological discoveries in our resource-rich country for a long time. This situation needs urgent change.
We must modernize the management system of the mining sector as soon as possible. In most countries, private companies are the main drivers of the industry. Therefore, attracting large private investments is crucial for unlocking the sector's potential. This requires a flexible regulatory and fiscal environment. Preferential rights to use the subsoil should be granted to investors who undertake geological exploration at their own expense. The time and procedures for project approvals should be halved by introducing comprehensive state expertise and full digitalization of the process.
The Government’s task is to increase the area of geological and geophysical exploration from the current 1.5 million square kilometers to at least 2.2 million square kilometers by 2026. Developing deposits of rare and rare-earth metals, which have essentially become new oil, should be a priority task. Countries that succeed in this area will set the course for technological progress worldwide.
By the end of this year, we need to develop a comprehensive vision for industrial development. To support manufacturing, foreign and domestic investors should be exempted from taxes and other compulsory payments for the first three years of their investment. This is a fundamental issue that should give a serious boost to the manufacturing industry.
Another important issue is to fully strengthen the defense industry, which plays a key role in ensuring national security in developed countries. The most important task is to create a production cycle with a high degree of localization to reduce dependence on imported supplies. Our army should be equipped with high-tech weapons and military equipment, including armored vehicles, unmanned aerial vehicles, and modern small arms. It is essential to strengthen production capacities for operational repair and support domestic enterprises. We possess the necessary material and technical base, skills, and personnel. These assets need orders from the relevant agencies. Work should continue transferring modern technologies and localizing new production facilities. A special Defense Industry Development Fund will serve as a mechanism for the direct financial support of domestic enterprises.
We face another task: achieving a real breakthrough in the agro-industrial complex. The potential of the domestic agricultural sector is enormous, but we have not yet fully tapped into it. Large markets surround Kazakhstan that require quality food products. Our country's strategic goal is to become one of the leading agricultural centers on the Eurasian continent. This will only be possible with a gradual transition from primary production to higher value-added products. The aim is to increase the share of processed products in the agro-industrial complex to 70% within three years. To do so, we will need to revise tax policy to stimulate processing.
A qualitative breakthrough in the industry requires a critical mass of large players. In order to retain our own markets and increase exports, we must have enterprises capable of ensuring volume, quality, and regularity of supplies. Therefore, consolidation of domestic agro-firms should be encouraged, along with active engagement of transnational corporations on mutually beneficial terms. Priority should be given to sectors that are promising for us: deep processing of meat, milk, and grain, and the development of industrial greenhouse farming. At the same time, we should not overlook the potential of domestic agricultural enterprises. The example of the North Kazakhstan region, where more than 100 large dairy farms are being built, illustrates this point well. The professionalism of agrarians and the availability of a fodder base, combined with well-designed government support, are yielding good results. This experience should be extended to the construction of poultry farms, vegetable warehouses, and meat cattle breeding enterprises.
Support for small farms is crucial for rural development. The "Auyl Amanaty" program has proven its relevance. The next stage of its development should not only provide soft loans but also stimulate cooperation among private subsidiary farms.
The deterioration of machinery and the tractor fleet has become a serious problem; this indicator currently stands at 80%. Therefore, the renewal rate of agricultural machinery should be increased to 8-10% per year. The interests of domestic machinery manufacturers and agrarians must be considered.
Sales policy is especially important amid growing global competition and the reorientation of commodity flows. The Government faces the task of systematically expanding export geography. Measures should be taken to promote Kazakh goods in foreign markets.
Modern agriculture is a high-tech industry. Land and climate are no longer the determining factors for the success of agrarians; innovative solutions have come to the fore. Without modern science, the industry will not just stagnate but deteriorate. Measures should be taken to develop agro-science, especially its practical application in agriculture. The National Agricultural Research and Education Centre should be transformed into a vertically integrated agro-technological hub.
Scientific and practical cooperation with recognized foreign agro-science centers should be established. Private scientific and technological initiatives will be supported, and educational programs will be adapted to the needs of the agricultural sector.
Serious reforms are needed in plant science. Focus should be on diversifying crops, increasing areas under high-yielding varieties, and reducing water-intensive and monoculture crops. Providing farmers with indigenous seeds and breeding new productive varieties should be prioritized.
It is important to address the issue of excessive price regulation, which seriously hampers the development of the agro-industrial complex. The Food Contract Corporation should play a more active stabilizing role. If necessary, it will intervene to restrain price growth and should support the private market in creating a comprehensive network for the production, storage, and marketing of agricultural products.
Last winter, a series of failures at thermal power stations sharply highlighted the problems of our worn-out infrastructure that have been accumulating for years. Outdated infrastructure directly impacts both the social well-being of citizens and the pace of industrialization. A new economic model cannot be implemented without renovating our infrastructure. The Infrastructure Plan being developed by the Government should identify all problems in this sector and outline ways to rectify them.
Energy security must also be addressed. We should rely as much as possible on our own resources. The key role is assigned to the power generation sector. Over the next five years, at least 14 gigawatts of new energy capacity will be introduced. The reconstruction of the first unit of the Ekibastuz Hydroelectric Power Station-1 will be completed this year. For the first time, the plant will operate all eight units. The project to expand Hydroelectric Power Station-2 is in process, while the project on Hydroelectric Power Station-3 is about to start.
Kazakhstan should not have to import electricity or be dependent on neighboring countries. The current situation is unacceptable from all viewpoints, particularly in terms of state security.
Of course, the implementation of renewable energy projects will continue. Special emphasis should be placed on the development of hydroelectric power plants. Energy, heat, and water supply constitute a single, technologically interconnected system. This system should be treated as an important, separate branch of the economy. The current approach has largely exhausted itself. Today, new solutions are required.
It is necessary to reset the tariff policy, implement new methods of tariff setting, and increase the investment attractiveness of the industry. Adequate market tariffs should be introduced for all natural monopolies for a period of 5-7 years. A guaranteed long-term tariff will allow for better planning of investments and serve as reliable collateral when attracting credit funds.
At the same time, the responsibility of monopolists should be significantly increased. Digital control tools will be introduced, and citizens' access to information on the execution of tariff estimates and investment programs will be expanded. Further gasification of the country is also on the agenda.
Expanding the resource base of marketable gas is a priority task for the Government and the national gas company. It is necessary to accelerate the construction of new gas processing plants and to fully involve existing processing capacities in the circulation. Our oil and gas giants—Tengiz, Kashagan, Karachaganak—must be reliable suppliers of affordable gas. Attracting investment in the exploration and development of new gas fields is also important.
Electricity, heat, and water are basic goods necessary for a comfortable life. These resources should be used responsibly and carefully. This approach should serve as the basis for a new household culture in our country. This notion applies not only to households but also to all participants in economic relations. Wasteful consumption is no longer acceptable.
The Government needs to fundamentally revise the current energy efficiency policy in line with OECD standards. Clear regulatory requirements for energy efficiency and resource conservation should be introduced step-by-step. The goal is to reduce key energy consumption indicators and energy intensity by at least 15% by 2029.
Emphasis should be placed on the development of a green economy. It is clear that in the long-term period, a global transition to clean energy is inevitable. According to international analysts, about a third of global capital investment is already being invested in renewable energy projects. Kazakhstan has also made significant progress in this field, adopting a new Environmental Code and a Strategy for achieving carbon neutrality by 2060. The share of renewable energy in total generation has increased to almost 5% over the last five years. By 2027, another 1.4 gigawatts of capacity will be commissioned. The structure of the country's energy balance will inevitably change. Therefore, it is necessary to enhance approaches to managing the entire energy industry, from generation to sales.
The development of hydrogen generation is necessary. The expansion of generation facilities serves as the basis for technology transfer and the localization of production in power engineering, as well as the creation of the battery industry. Fortunately, we have abundant raw materials. New solutions are needed in the field of creating balancing capacities and energy storage systems. The transition to carbon neutrality can be accelerated by greenhouse gas emissions trading. The Government and businesses should seize the opportunities in these areas.
Attracting green finance is becoming increasingly important for leading economies. Over the past seven years, more than two and a half trillion dollars have been spent on green bonds worldwide. ESG principles (Environmental, Social, Governance) have become standard practice for financial organizations in a short period of time. In this regard, the Astana International Financial Centre should become the main platform for attracting green funding in our region.
The development of nuclear power is a particularly important economic and political issue. There are different opinions on the feasibility of building a nuclear power plant in our country. On the one hand, Kazakhstan, as the world's largest uranium producer, should have its own nuclear generation. Some experts support the idea of building plants with small reactors. On the other hand, many citizens and some experts have safety concerns about nuclear power plants. This is understandable, given the tragic legacy of the Semipalatinsk nuclear test site. Public hearings and comprehensive discussions on this issue should continue. In my 2019 election platform, I promised that decisions on the most important strategic issues would be made through referendums. The decision to construct or refrain from building a nuclear power plant is a highly significant issue that greatly impacts the future of our country. Therefore, I propose to submit it to a national referendum. Specific dates will be determined later.
The issue of water availability and quality remains critical. Given the growth of population and the economy by 2040, the water deficit in Kazakhstan may reach 12-15 billion cubic meters. Our country depends on transboundary water resources. Eurasia's rivers and canals are a shared natural asset designed to unite peoples and economies. We should always seek understanding and a mutually beneficial consensus with our neighbors and friends on this issue. Therefore, conducting a balanced water policy and solving issues of transboundary water use are the most important tasks of the Government.
Farmers and industrialists need qualitative analyses and forecasts on water supply, covering both annual supplies and the medium-term perspective. Therefore, planning in advance is necessary. At the same time, it is crucial to manage inland water resources in a rational manner. The process of introducing water-saving technologies is extremely slow, and there is no culture of responsible water consumption. Losses in agriculture, as a key water consumer, reach up to 40% in some regions. The existing condition of water management facilities exceeds 60% deterioration. Decisive and quick measures are needed to rectify the situation. Firstly, the introduction of advanced water-saving technologies should be accelerated, targeting up to 150,000 hectares per year. It is necessary to address the issue of meltwater accumulation and losses during its transfer, as this represents our internal reserve. For this purpose, we should build 20 new and reconstruct at least 15 existing reservoirs, and modernize and digitize at least 3,500 kilometers of canals. The aim is to provide about two additional cubic kilometers of water by 2027.
Introduction of water-saving technologies is a pressing issue that requires immediate action. Concurrently, we cannot do without a new tariff policy that suits the current circumstances. The outdated infrastructure is operating to the limit of its capacity. Creating a new one is a market task. Excessive water consumption will result in increased tariffs. In summary, it is necessary to conserve water in every possible way. At the same time, the black market for water must be completely eradicated. Water is a limited resource; its availability is crucial for the survival of farmers. Therefore, violations in this area will be strictly suppressed and punished to the full extent of the law.
Water resources are no less important for our country than oil, gas, or metal. In this regard, I am ordering the establishment of a full-fledged independent department to manage water resources effectively. The Ministry of Water Resources and Irrigation will be created. The National Hydrogeological Service will be reconstituted within this new ministry. The entire water management system, including key water companies like "Kazvodkhoz" and "Nurinsk group water pipeline," will be reformed. This will require significant material and, most importantly, personnel investments in the sector.
Growing water scarcity is a common problem for Central Asian countries. Rational use of water resources, coupled with energy and transportation, can become another important element in a new model of regional cooperation. I instruct the Government to address this issue thoroughly with our neighboring countries.
Realizing the full potential of transport and logistics is of strategic importance. We are witnessing the emergence of a new global economic geography. Trade flows from China to Europe, Russia, Central Asia, and back are expected to grow rapidly.
Kazakhstan is at the crossroads of the global North and South, as well as the West and East. This presents a significant advantage that opens up wide prospects for us.
The transportation and logistics industry should become a cornerstone of the country's economic development. In a competitive environment, it is vital to promptly address this industry's key issues. First and foremost, we should implement several major railway projects, such as "Dostyk – Moyinty," "Bakhty – Ayagoz," "Darbaza – Maktaaral," and the Almaty bypass line.
In the transportation sector, Kazakhstan will continue its cooperation with Russia and China. The Trans-Caspian route will play an important role in strengthening our transit potential. In the medium term, the volume of transportation along this corridor could increase fivefold. To accomplish this, coordinated efforts with partner countries—China, Azerbaijan, Georgia, and Turkey—are necessary.
A new dry port is slated for construction at the "Bakhty" crossing point. Steps will be taken to accelerate the construction of a container hub in Aktau and to expand port capacity in the Black Sea along the Middle Corridor. Construction of Kazakh terminals in the Chinese city of Xi'an and the Georgian port of Poti has already begun. These are tangible examples of how the Chinese "Belt and Road" megaproject can synergize with our national initiatives.
Maintaining constructive and good-neighbourly relations with all neighboring countries is essential for realizing our transportation potential. This includes Russia, China, and our neighbors in Central and South Asia.
Furthermore, we need a comprehensive plan for developing maritime infrastructure, wherein the port of Kuryk will play a designated role. It should evolve into a full-fledged logistics cluster akin to Aktau.
The international corridor known as "North-South" is another key focus, providing our country with access to the Persian Gulf ports. Incrementally, the capacity of the railroad portion of this route should be doubled. It is necessary to start the modernization of the Kazakhstan section of the "Bolashak-Chelyabinsk" railway line.
For effective integration into international routes, it is important to provide a full range of logistics services. The airports in Astana, Almaty, Shymkent, and Aktobe should evolve into multimodal centers offering competitive and high-quality cargo storage and distribution services.
Generally, the industry's development will require an appropriate tariff and regulatory policy, as well as active private investment.
It is necessary to complete the transformation of Kazakhstan Temir Zholy into a full-fledged transportation and logistics company as soon as possible.
Addressing issues in highway construction is also imperative. The quality of the work is often subpar, and the sector is plagued by corruption and a lack of competition. Concrete measures should be taken by year's end, with all responsible companies held accountable according to the law. I am paying special attention to this issue. We need to tighten control and adopt new regulatory documents.
By 2029, over four thousand kilometers of highways are slated for quality reconstruction.
Overall, Kazakhstan should strengthen its position as a transit hub in Eurasia and to eventually become a full-fledged power in the transport and logistics sector. The dynamic development of this sphere is a strategic task. Over the next three years, the share of the transport and logistics sector in the GDP should reach a minimum of 9%, up from 6.2% in 2022. To achieve this, it is fundamentally important to ensure effective management of the industry. The Ministry of Transport should be re-established and will also be responsible for road infrastructure construction.
As you already know, I place great emphasis on the issues of digitalization and the implementation of innovation. We have a strategically important task: to transform Kazakhstan into an IT-centric country.
We have already achieved significant milestones in the field of digitalization; we are among the world leaders in e-government and fintech development indices. The export volume of our domestic IT industry grew fivefold just last year. By the end of this year, this figure may reach $500 million, and this is not the limit.
The Government's new goal is to increase the exports of IT services to $1 billion by 2026. To facilitate this, we plan to open joint ventures with major foreign IT companies. The Government should produce detailed proposals on this issue.
The use of artificial intelligence technologies requires special attention. It is predicted that more than one trillion dollars will be invested in this sector in the next few years. Successful development in this area could significantly increase the GDP of individual countries. By fully utilizing the capabilities of artificial intelligence, we could make a qualitative leap toward a knowledge-based economy.
Cooperation with leading international companies should be established. It is also crucial to focus on training qualified specialists. At least three renowned universities should be involved in both training and research in this field.
Our country has the potential to become a platform for selling computing power to global players. To achieve this, we need to create attractive conditions, including incentives to attract investment for the construction of large data centers, as well as to promote Kazakhstan's interests in data storage and processing.
The time has come to establish guiding principles for digitalization through legislation. I call on the Government, the expert community, and members of Parliament to prepare a comprehensive sectoral document.
My election program included an initiative to develop a law on Science and Technology Policy. It is crucial that the bill currently being prepared aligns with our principles of economic development through science and innovation. We need more than declarative statements; we need effective measures to support private initiatives for creating innovative infrastructure—such as business incubators, commercialization centers, technology parks, and design bureaus. Leveraging successful foreign experience is essential.
Venture capital financing should become the primary source for launching innovative projects. Therefore, resolving all legal and financial issues is necessary to increase the interest of both domestic and foreign investors in these projects.
Next, the current focus of innovative development is on creating suitable ecosystems in Astana and Almaty. However, this is insufficient. During my trips to various regions, I consistently encounter talented and creative citizens. It's crucial to establish conditions that allow individuals to realize their full potential. I have set the task of building a comprehensive innovation ecosystem in all regional centers, closely coordinated with the real sector and based on regional universities. The experience of Astana Hub should be expanded and replicated.
Another area for economic and employment growth is the creative industry, which includes media, cinema, music, design, education, and information technology. In today's world, a genuinely inclusive economy is developed through creative production that harnesses the creative potential and intellectual capital of its citizens. Moreover, the creative economy is increasingly becoming the driving force behind the development of large cities that attract talented and creative individuals.
This sector is still underdeveloped in Kazakhstan. The contribution of the creative industry to the GDP does not even reach 1%, and its share in the employment structure is also extremely low. However, we have many compatriots who have gained international recognition due to their talent.
We must create all the conditions necessary for the large-scale development of the creative economy in our country. This includes legal tools to protect intellectual property, which is a fundamentally important asset, akin to equipment or technology.
Currently, the centers for the creative industry are concentrated in three major cities: Astana, Almaty, and Shymkent. Meanwhile, the regions remain neglected. This needs to change. Talent attraction points, also known as Creative Industry Centers, should be established in every regional center and major city. These centers should also assist participants in the commercialization of their products. The unique characteristics of the production process within creative industries often prevent them from fully participating in existing entrepreneurship support programs and gaining access to funding. Therefore, I believe it is necessary to develop a separate package of measures to support creative individuals.
Next, I will focus on the development of medium-sized businesses. Measures taken in recent years have ensured the stable growth of both small and large businesses. However, the development rate for medium-sized businesses is lagging. To successfully transition to a new economic model, this sector's growth will require more hands-on attention.
Firstly, it is necessary to remove the obstacles that hinder the growth of medium-sized businesses. It is no secret that many such businesses, as they grow, fragment themselves to fit into the more convenient category of small businesses. The Government should amend legislation to encourage the consolidation of these smaller entities.
Not many medium-sized enterprises are actively developing markets within the country, and they need support. A specific plan should be drawn up for each, aimed at doubling or tripling their capacity and production. Existing programs like the "Business Roadmap" and the "Economy of Simple Things" should be merged into a comprehensive program to support small and medium-sized enterprises.
State support should be differentiated based on the level of technological complexity of production and business categories. Operational efficiency in state support is of utmost importance. Therefore, restructuring the "Baiterek" Holding and implementing a comprehensive digitalization process are necessary steps.
Export promotion also requires careful attention. While mechanisms exist, there is a lack of a systematic approach. A full-fledged export promotion institute should be established on the basis of the "KazakhExport" company, consolidating all the necessary tools within it.
Additionally, it is important to restart the operations of "Otbasy Bank," shifting its focus from regional centers to districts, single-industry towns, and villages.
It is clear that the successful development of entrepreneurship cannot happen without fostering competition. Currently, a few large players dominate several basic industries, leading to market distortions. To address this, the Agency for Protection and Development of Competition should collaborate with the Government to take measures aimed at breaking up monopolies in key markets.
While we have created favorable conditions for commodity exchanges to facilitate organized trade, inadequate regulation has given rise to what are termed "pocket" commodity exchanges. These have become platforms that eliminate competition by sidestepping procurement procedures in favor of imports and engaging in unproductive intermediation. To rectify this, regulatory requirements should be tightened to eliminate these shortcomings. Simultaneously, it is crucial to ensure that domestic producers gain full access to advanced trading tools.
We cannot afford to limit ourselves to just the national trading system. In collaboration with the business community, we should explore the creation of a robust regional commodity exchange.
Another pressing issue is the limited ability of the antimonopoly authority to take swift action against violations. Currently, two-thirds of antimonopoly investigations are challenged in court before they even begin, and the legal process can stretch on for years. This effectively cripples the agency's work. To address this, the Government needs to introduce legislative amendments to Parliament.
Denationalization of the economy is another serious task at hand. Assets that have been illegally privatized and transferred are now being returned to the state. As we are committed to building an open, competitive economy, these assets must be reintroduced to the market, but in a transparent manner that benefits the state.
In sum, the privatization processes and public IPOs need to be significantly accelerated. The primary goal is to enhance both transparency and efficiency in asset management. I direct the Government to initiate the privatization of all non-core assets and to start conducting public IPOs for companies under the "Samruk-Kazyna" Fund, beginning in 2024. For the next year, we should aim to carry out a public IPO for "Air Astana," prepare "QazaqGaz" for market entry, and divest state assets in major companies.
Another important issue is the state of the entrepreneurial climate in our country. A constructive dialogue between the Government and businesses is essential, especially during this transitional period. It is clear that government agencies are prone to certain shortcomings and excesses in their operations. Therefore, further decriminalization of economic crimes is warranted. This applies specifically to entrepreneurs and economic offenses. A just mechanism for setting the parameters of criminal liability for tax crimes should be introduced.
The harassment of entrepreneurs by law enforcement agencies must come to an end. While I acknowledge that such reports may sometimes be intentionally exaggerated or entirely false, this issue should not be ignored in any case.
The topics of supporting domestic entrepreneurship, easing regulatory pressures, and fostering competition deserve separate, in-depth discussions. To that end, I plan to convene a special meeting with local businesses soon.
Next, we need to recalibrate our macroeconomic policy.
I have outlined the primary directions for reforms across various economic sectors. A precondition for their successful implementation is macroeconomic stability. This is a given. It is necessary to establish coordination of financial, fiscal, and monetary policy.
The main problem limiting economic growth is a lack of investment. A deficit in investment means no future growth. Last year, investment in fixed capital amounted to only 15% of GDP. This is largely because domestic banks have little involvement in the development of the economy. This situation forces the Government to be involved in direct financing, guaranteeing, and subsidizing. This is costly, inefficient, and contrary to the principles of a market economy.
In addition, amid the decline in lending to the real sector, the focus of banks' activities shifted to consumer loans. This led to an increase in risks for the financial system and to excessive borrowing by citizens.
My decision in 2019 to write off unsecured loans for 500,000 citizens, as well as the law on individual bankruptcy that came into force, have reduced the severity of the issue. However, new systemic measures are needed to fundamentally rectify the situation.
At the same time, it is extremely important to improve the financial literacy of citizens themselves. In this regard, I would like to mention the project "Qaryzsyz qogam" (Debt-free society) implemented by the Amanat Party. Within the framework of this project, more than 20,000 people in eight regions of the country improved their financial literacy. Many of them had already taken out 10 or more loans in the past. This project has shown its effectiveness in a short period of time. I am instructing the Government, together with the Amanat Party, to expand its coverage. The "Qaryzsyz qogam” project should work for the benefit of citizens throughout the country.
The problem of insufficient lending to businesses needs to be addressed drastically; the economy needs money.
The net profit of banks last year was almost one and a half trillion tenge, and for the first half of this year, it was more than one trillion tenge. Such super-profitability is not the result of efficient work by the banks, but mainly a consequence of the high key interest rate used by the National Bank to fight inflation. The Government and Parliament should consider a more equitable redistribution of these profits, taking into account the interests of the country.
Also relevant is the issue of the huge profits made by financial organizations by placing liquidity in tax-exempt government securities, also known as bonds. There is no logic here and no governmental approach. The Government is already addressing this paradoxical situation. The relevant legislative amendments will be introduced to the Mazhilis. I ask the deputies to consider them carefully.
At the same time, banks need to be encouraged to participate actively in corporate lending and to support entrepreneurs. Business lending should be subject to more favorable prudential and fiscal regulation than other types of banking activities. I am aware that this is a difficult and sensitive issue. I instruct the Government and financial regulators to give their final opinion on this important issue within a year.
Measures need to be taken to bring the frozen assets of banks totaling 2.3 trillion tenge into economic circulation. In this regard, I instruct the creation of a transparent digital platform through which interested businesses will be able to purchase these assets and return them to the economy.
In order to expand the real sector's access to "long money," mechanisms of joint and syndicated lending should be used more actively. Industrialists and entrepreneurs should not act as a "credit hoover"; they are required to provide high-quality projects that will ensure real diversification of our economy. To increase the interest of commercial banks, we should consider providing them with guarantees from development institutions when financing priority projects.
Another problem of the banking sector is its high concentration. Currently, there are 21 banks operating in the country. At the same time, only a few large banks are involved in corporate lending, i.e., the financing of economic projects. To increase competition in this sphere, three reliable foreign banks should be attracted to the country.
In general, the fundamental objective is to ensure annual growth of loans to the real sector at a level of 20% and above.
Discussions about potential sources for financing the economy frequently involve the role of the National Fund's resources. Experts debate the balance between the fund's savings and development functions. Undoubtedly, the primary role should be that of savings. The resources of the National Fund serve as a robust safeguard for financial stability in the face of unforeseen challenges.
At the same time, some of the Fund's resources can and should be deployed now to finance strategic projects that will shape Kazakhstan's future. The National Fund is already backing several significant initiatives. However, we lack a systematic approach to project selection. Therefore, it is crucial to ensure comprehensive evaluation of incoming proposals, so that every tenge from the National Fund yields tangible returns.
Another source of "long money" is a fund to be created under the Law on the Return of Capital. All incoming funds should be used as efficiently and transparently as possible to solve national problems.
The next priority is the development of the stock market. Currently, Kazakhstan has two stock exchanges that largely duplicate each other and sometimes even compete. This redundancy is excessive for our financial system. To enhance the capacity and appeal of the domestic market, I instruct that the issue of consolidating these exchanges under a single management structure be explored.
The sustainability of payment systems remains a highly relevant financial topic. Last year, the National Bank launched the first component of the National Payment System, which is currently running in pilot mode. I entrust the National Bank to complete the process of full-fledged implementation of the National Payment System by 2024.
Now, I would like to address fiscal policy, which is a very important issue. Last year, I instructed a transition from budget management to results management. This task will be accomplished through the adoption of a new code designed to increase the openness, responsibility, and autonomy of participants in the budget process.
In addition, to further improve the effectiveness of budget policy, new tools and opportunities must continually be sought. Therefore, I instruct the Government to pilot a full-fledged block budget project involving several ministries and regions.
Furthermore, important reforms in regional policy have already been implemented, including the introduction of direct elections of akims (mayors) and administrative reforms. However, a fundamental change in inter-budgetary relations is also urgently needed.
As part of the transition to a new economic model, the level of budgetary autonomy of the regions will be increased. The decision to transfer a portion of corporate income tax revenues and other types of payments to the regions has already yielded positive results. Last year, the growth of regional revenues exceeded 30%. Therefore, as a next step, this approach will be extended to other taxes, including VAT.
The task is to transfer at least an additional two trillion tenge to the second level of the budget. As a result of gradual fiscal decentralization, the share of transfers from the republic in the structure of local budget revenues should decrease to an average of 25% (currently 50%).
In addition, I believe that district akims should be given the authority to independently form their budgets, which will significantly speed up the resolution of urgent local issues.
It is also necessary to consider transferring to the regions the authority to determine preferences for the portion of taxes collected in the local budget. This measure will provide a significant impetus to business development and contribute to the sustainable progress of the regions. Therefore, when transitioning to a new model of budget relations, all akims should focus on efficiency and benefits for the country as a whole.
Another important point: the differentiation of tax rates across various sectors of the economy, which I announced earlier, should ensure the distribution of the tax burden in proportion to the complexity of production.
Entrepreneurs rightly complain about the complex VAT refund procedure, as it significantly worsens the investment climate in the country. The Government should promptly address this long-standing problem.
It is time to finally simplify tax incentives, which should be utilized as a focused tool for economic growth. Uncollected taxes result in unbuilt hospitals, roads, and schools.
The volume of tax benefits should be carefully analyzed and reduced by at least 20%. The remaining preferences should be granted according to clear rules and not be tied to individual projects or persons.
As for tax administration, the transition to a service model of interaction between fiscal authorities and taxpayers is necessary. The goal is not to punish, but to prevent.
Complete digitalization of tax control is needed, and forms of tax reporting should be reduced by 30%. It is also feasible and necessary to reduce the total number of types of taxes and other mandatory payments to the budget by a minimum of 20%. In cases where there is no significant fiscal impact, these should be completely eliminated; the remaining types can be combined.
The initiative to introduce a retail tax has proven its relevance. Taking into account this positive experience, the Government will double its scope.
The introduction of progressive taxation should also be accelerated.
As part of the reset of tax policy, both the Government and Parliament are required to make bold and verified decisions.
I want to emphasize that Kazakhstan's economic development strategy will be based on the interests and needs of our citizens; it should be as human-centered as possible. To that end, we must gradually but steadily move away from being solely reliant on raw materials as a state.
More than 400,000 children are born in our country every year. By the end of the year, Kazakhstan's population will reach 20 million. The average life expectancy is also rising; it surpassed 74 years at the end of last year. Our country is considered one of the youngest in the world— the average age of citizens is only 32. About a third of the population is young. The Government's task is to turn current demographic trends into competitive advantages.
The foundation for forming a harmonious personality and responsible citizen is laid in childhood. Every child in the country should have a happy and safe childhood.
As Head of State, I demand stricter punishment for any form of violence against minors.
Special attention should be paid to the safety of road infrastructure, buildings, clothing, and food for children.
The mental health of the younger generation is important as well. It is crucial to institutionally strengthen psychological support services in educational institutions, establish a centralized helpline, and develop an effective program to help those affected by violence and bullying.
An inalienable right of every child is to receive a quality school education; "quality" is the key term here. Therefore, we must consistently improve the quality of education and elevate the competence of teachers.
The process of ensuring educational equality should be accompanied by increased Internet speed and free access to digital educational resources.
The educational system needs transformation to meet the labor market's demands. Several sectors of the national economy are experiencing labor shortages, especially in technical and working professions. We need to focus on relevant education, and educational institutions should build long-term partnerships with potential employers.
Flexible funding mechanisms are necessary, depending on economic priorities, regional specifics, and industry.
Demographic growth in our country is increasing the demand for education. However, state measures in the education field are incomplete and lack cohesion. Therefore, I instruct the introduction of a unified voluntary accumulation system called "Keleshek," providing coverage for children from the age of five. This program should offer government funding for educational start-ups, annual state premium payments, and investment income. These savings, along with the funds from the "National Fund for Children," will enable children to receive quality education.
We are witnessing significant changes in the labor market, where the digital economy will increasingly play a crucial role. Platform employment is becoming more common; already, more than half a million people work in this sector. However, their labor rights are still poorly protected. Effective mechanisms for labor rights protection in this category must be developed and fully regulated.
The high rate of industrial injuries remains a significant issue. By year's end, the Government needs to adopt the Concept of Safe Labor through 2030, aiming to prevent and eliminate occupational risks. On my instruction, the Government has developed a social support mechanism for long-term workers in hazardous conditions. The issue has been under discussion for a long time, and now a solution has been found. Given the significant contribution of workers to industrial development and the degree of health risk, such workers will receive a special social payment even before they reach retirement age, specifically starting at age 55. I ask Parliament to promptly consider the Government's proposals. People are waiting for a solution to this issue.
Further, as we promised, the Government will continue to gradually increase the minimum wage. In order to boost the incomes of citizens, I instruct that the minimum wage be increased to 85,000 tenge from January 1, 2024. Thus, we have doubled the minimum wage in three years. This measure will positively impact the welfare of about 1.8 million citizens, including 350,000 state employees.
In general, for the comprehensive development of the labor market, the Government should approve a Comprehensive Plan extending until 2030 as soon as possible.
In addition to clearly defining the principles and priorities of the new economic policy, the qualitative and full-fledged implementation of the planned reforms is critically important. Moreover, this process directly depends on the competence, responsibility, and political will of civil servants.
The executive branch will bear the primary burden of responsibility for these reforms. Therefore, it needs a transformation in the following basic directions:
Firstly, the preparation and execution of sectoral decisions, as well as personal responsibility for the results, will be entirely assigned to the ministers. They must make the necessary decisions through their orders promptly. The same applies to local akims (mayors).
Secondly, the Government will be fully responsible for implementing economic policy. It should have all the necessary tools for independently managing the economy, free from unnecessary red tape and bureaucracy, without the need for coordination with the Executive Office of the President.
Thirdly, the Executive Office of the President, becoming a "political headquarters,” will focus its efforts on the strategic directions of socio-economic development of the state, issues of domestic and foreign policy, defense and security, legal and personnel policies.
The work on de-bureaucratization of the state apparatus will continue. The state planning system will undergo a radical revision to become more compact and flexible. It is necessary to review the mechanism for monitoring and controlling the execution of orders.
Society’s demand for new approaches, innovative ideas, and new personnel is as high as ever. Therefore, a personnel reserve of political employees will be established, laying the groundwork for a robust "bench" of talent. This step is very important when there is a severe shortage of qualified personnel. We have more than enough people who aspire to high positions, but their qualifications do not meet the requirements. Therefore, we must address the personnel issue in detail and train high-quality specialists. To do this, we need to tap into the personnel potential of political parties.
At the same time, it is important to consistently expand the direct participation of citizens in decision-making at the level of local executive authorities. For more than two years, citizens have been choosing the akims of villages, towns, and rural districts themselves. During this time, three-quarters of the akims at the rural level were elected. Now we must test the electability of district and city akims of regional significance.
Dear Compatriots,
 
All the projects and initiatives presented today for the economic development of the country are based on detailed calculations and research. By quickly and radically rebooting the entire economic system, we will ensure the prosperity of our country and increase the well-being of the people.
The main goal of the planned reforms is stable economic growth at the level of 6-7%, in order to double the volume of the national economy to 450 billion US dollars by 2029.
Undoubtedly, this is a large-scale and challenging task. However, we need to ensure a fair distribution of national wealth so that every citizen feels the benefits of progressive economic development. This is a matter of principle. For the sustainable future of our state, we must fulfill this strategic task at all costs.
I continually discuss the key directions of the country’s development, and today I will outline our main guidelines. We have a clear vision of the future: we are building a Just Kazakhstan—a country of equal opportunities and progress. We are constructing a well-functioning State where law and order, a culture of dialogue, responsibility, and solidarity are upheld.
All provocations aimed at undermining public order must be strictly suppressed. Unfortunately, law enforcement agencies and regional leaders are not performing their duties to the required standards and fail to ensure the enforcement of the rule of law. As a result, unacceptable situations repeatedly occur in society. Therefore, acts of vandalism in our streets and natural areas, lack of discipline, lack of cultural awareness among some citizens, and various kinds of domestic conflicts negatively affect the country’s reputation in the international community.
I reiterate: our main goal is to ensure strict compliance with the law and public order.
We strive to be part of an open, modern world, developing culture, education, and science.
Achieving the ambitious goal ahead of us will not be easy. However, if we combine the efforts of citizens, businesses, and government representatives, then we can accomplish it. Only this way will we be able to radically transform the existing model of state development and overcome all difficulties.
In general, you can all see that the situation in the world is very complicated, humanity is facing various challenges. Many countries are experiencing natural disasters, experiencing shortages of electricity and food. According to experts, July this year was the hottest month on record. In many countries, inflation and rising prices are increasing. Confrontation is growing between states, armed conflicts are flaring up. The number of refugees in the world has exceeded 110 million. All this has a negative impact on Kazakhstan. However, even in the face of global turbulence and uncertainty, we will firmly follow our course.
Of course, the path of progress and development is not smooth and straightforward. No one from the outside will come and make Kazakhstan better; that responsibility lies with every citizen of our country, who must keep up with the times. In these times of crisis, our people must maintain unity and cohesion. There is no other option.
Political and economic reforms alone are not sufficient to build a Just Kazakhstan. First of all, a change in public consciousness and the aspirations of citizens is required; without this, all other efforts will be in vain. I spoke about this in detail at the second meeting of the National Kurultai (Congress).
The formation of a new quality of the nation is of particular importance for our country. All citizens, especially young people, should embody the best qualities, creating a unified system of societal values. If everyone possesses qualities like patriotism, education, hard work, discipline, responsibility, fairness, thriftiness, and responsiveness, then there will be no limits to what we can achieve. This is the deep meaning of the concept of "Adal Azamat" (Responsible Citizen), which originates from the teachings of Abai about the "Perfect Man.”
I reiterate: the concepts of Just Kazakhstan and "Adal Azamat" as fundamental values should always go hand in hand. In fact, where there is no responsibility, there can be no justice. If every person is a responsible citizen whose actions align with their words, then justice will prevail in the country.
We all share one homeland—Kazakhstan. Moreover, it is in our hands to make our country strong and successful. It is our sacred duty to ensure the protection and prosperity of our native land, the priceless heritage of our ancestors. In addition, I call on every citizen to carry out this high mission with dignity. To preserve unity and work hard, to transform the country and pass on a developed state to the younger generation—this embodies true adherence to the precepts of our ancestors.

Thank you all for your attention!

STATE OF THE NATION ADDRESS 
A FAIR STATE. ONE NATION. PROSPEROUS SOCIETY
Dear Compatriots!
Dear deputies, members of the Government!
In accordance with Article 59 of the Constitution of the Republic of Kazakhstan, I declare the third session of the Parliament of the 7th convocation open.
Dear deputies!
I congratulate everyone on the start of another session of the Parliament! 
This year our country has entered a new stage of development.
In a nationwide referendum, the majority of citizens supported the course of political modernisation. The constitutional reform was a fundamental step in the creation of the New Fair Kazakhstan.
The continuation of political modernisation should be structural economic transformation.
We are facing a profound restructuring of relations in the triad "citizen – business – state”.
First and foremost, the state will ensure equality of opportunities and justice for all.
A high level of public welfare and support for socially vulnerable categories of the population, including citizens with special needs, will be guaranteed. The relevant institution of the Ombudsperson under the President will be established.
The state will fully support economic freedom, but at the same time will resolutely protect citizens against excessive market fluctuations. 
Small and medium-sized businesses will be vigorously developed.
Now, I will outline specific areas of reform.

FIRST. NEW ECONOMIC POLICY
The systemic problems of our economy are well known. These are dependence on raw materials, low labor productivity, insufficient level of innovation, and unequal income distribution.
There is no doubt that all these problems are complex, however, there are concrete ways to solve them. 
These include ensuring macroeconomic stability, economic diversification, digitalization, and development of small and medium-sized businesses, human capital, and the rule of law.
 
However, there is still no tangible progress on these issues. Clearly, new approaches are required.
The basic goal of our economic policy remains unchanged: qualitative and inclusive growth of the well-being of our citizens.
The priorities of the new economic course will be:
- stimulating private entrepreneurial initiative, which means moving away from state capitalism and excessive government intervention in the economy;
- development of competition, which means ensuring equal opportunities for all;
- and, of course, a fair distribution of the national income.
All of this involves solving a number of high-priority tasks.
First. Administrative regulation of prices reduces the investment attractiveness of entire industries and leads to a shortage of goods as well as dependence on imports.
Therefore, the government’s interference in pricing will be phased out. The exception will be non- competitive markets - the tariffs of monopolists will remain under tight control. But control does not mean pressure.
Today, there are increasing number of cases when government agencies, including law enforcement agencies, rush to inspect businesses and demand lower prices and tariffs. Such populist actions must be stopped.
It is important to strike a balance between the need to limit monopoly profits and ensure investment in infrastructure.
Two-thirds of the country’s power supply networks, 57% of its heating networks, and almost half of its water supply networks are worn out. These figures speak for themselves. 
Artificial containment of tariffs is fraught with rolling outages, accidents, and, as a result, a threat to the health and lives of citizens.
In monopoly markets, it is necessary to switch to a new tariff policy "Tariff in exchange for investment”.
The indicators of wear and tear of networks and capacities should be reduced by at least 15%.
The tariff will be provided in exchange for investment in infrastructure and participation in the state monitoring system to ensure transparency. The owner will have to make a substantial part of the investment from their own funds, not from the tariff.
Effective incentives for innovations should be developed, to allow the redistribution of part of the costs within the tariff estimate and retention of a certain share of income.
Cross-subsidization of tariffs, in which prices for some consumers are restrained by increasing the cost of services for others, should be gradually abandoned.
Second. Institutional solutions are needed to further de-monopolise the economy.
The concept of a "conglomerate” should be defined at the legislative level. Related entities of the market are obliged to obtain a permit for economic concentration. All their transactions should be thoroughly checked, including for indications of the use of non-market prices.
The development of a market economy is negatively affected by the activities of single operators. 
Therefore, this institution should be regulated.
Existing operators should be transferred to a competitive environment or recognised as monopolists and regulated under the special antimonopoly law.
Third. Sustained economic growth depends directly on a clear, predictable tax policy.
In order to reboot fiscal regulation, a new Tax Code will be prepared in 2023. Its most problematic block - tax administration - will have to be completely updated.
It is also necessary to ensure the full digitalization of tax control, eliminating any face-to-face interaction. Another priority is increasing the effectiveness of tax incentives.
For this purpose, it is necessary to move to differentiated tax rates in different sectors of the economy. It is necessary to introduce mechanisms of reduction or exemption from corporate income tax on profits aimed at technological modernisation and scientific development. Special tax regimes should be simplified to minimise the temptation for tax evasion.
The new code should provide for the prevention of intentional fragmentation of organisations in order to reduce the tax burden.
For the development of civilized trade, the application of a retail tax with adequate rates and simple procedures is to be expanded.
As part of the tax reform, it is important to consider the possibility of introducing a so-called "luxury tax”. It would be levied on the purchase of expensive real estate, vehicles, and would not affect the middle class.
I would like to focus separately on the topic of fees when buying cars.
Everyone knows the problem with cars from some neighbouring countries. They remain outside the legal field, posing a threat to public safety.
It is necessary to take decisive measures to shut down all illegal channels for importing cars from now on. At the same time, it is necessary to regulate the situation with such cars imported before September 1 of this year.
To legalise them, I propose to apply a one-time fee for recycling and primary registration in an amount not exceeding 200,000 – 250,000 tenge. This measure should apply to vehicles that are not wanted by the police and have passed customs clearance.
Fourth, an effective tax policy is closely linked to transparent customs administration. It is important to complete the full integration of tax and customs information systems. Next. The multitude of inspectors is one of the main causes of inefficiency.
Therefore, it is necessary to introduce a mechanism of integrated customs control at the border. Customs clearance centers should operate on a "single window” basis.
Fifth. We need to learn to live within our means.
The budget policy model will be reformed by moving from "budget management” to "results management”.
Directly in the Budget Code, it is necessary to fix the marginal standards that must be observed in the planning and execution of the budget.
The practice of inefficient spending of the resources of the National Fund will be stopped. This is extremely important. At the same time, transfers from the National Fund will continue, but only for the development of critical infrastructure and projects of national importance.
Budgetary processes must be radically simplified. It is also necessary to allow government agencies to carry over unspent funds to the next year. This solution will help get rid of the inefficient practice of returning money to the budget.
At the same time, a budget risk management system should be launched, including in the quasi-public sector. We have begun to transfer tax revenues to the regions; this work must continue.
The "People’s Participation Budget" project, which has proven itself, should be scaled up to cities of district significance and villages. At least 10% of expenditures on housing and public utilities should be formed with the involvement of the public.
For the effective implementation of the approaches outlined, it is necessary to adopt a new Budget Code. 
Sixth. Systemic support for entrepreneurship.
Here, first and foremost, it is necessary to launch a full-fledged "regulation from scratch”. This mandate has been dragging on for two years.
Instead of endless adjustments to hundreds and thousands of bylaws and instructions, new compact and understandable rules of operation should be approved. This approach should be fully implemented from January 1, 2024.
Next. In providing financial support, the state will give priority to competitive small and medium-sized enterprises.
The basic criteria for such assistance will be the growth of the wage fund and an increase in tax deductions. 
In parallel, an automated system for determining the recipients of state support measures will be introduced.
It is necessary to build a qualitatively new system of public procurement. 
The priority should be the quality of purchased goods and services, not the minimum price.
Procurement of state and quasi-state organisations should be transferred to a single platform. The implementation of these approaches will require the adoption of a new law "On Public Procurement".
Seventh. We should move to a new model of public-private partnership.
Today, many PPP projects have become a "trough” for unscrupulous entrepreneurs and officials. 
Contracts in this sphere should be transparent and concluded on a competitive basis. To increase the efficiency of this mechanism, an appropriate law should be adopted.
Eighth. The lack of credit resources remains a serious problem for domestic businesses.
Underfunding of small and medium business in Kazakhstan amounts to about 42 billion dollars. At the same time, banks have accumulated multitrillion-dollar liquidity, which actually does not work for the economy.
The National Bank, the Agency for Financial Regulation, and the Government must find specific solutions to ensure stable and affordable lending to the real sector.
Taking into account the most complicated specifics of the situation, the National Bank should show more flexibility, I would say, ingenuity. There are positive examples of this abroad.
Ninth. Land is the basic factor of production. Without access to it, it is impossible to do business.
By the end of the year, it is necessary to develop effective approaches for the prompt and transparent allocation of land to entrepreneurs.
Each region and major community should assess the availability of unoccupied or underutilized land. This information should be fully available to businesses.
I am confident that these measures will improve the competitiveness of not only the entrepreneurial class, but the economy as a whole.

SECOND. DEVELOPMENT OF THE REAL SECTOR
First of all, legislation and procedures will have to be greatly simplified in order to attract investment in subsoil development.
It is necessary to complete the creation of a unified data bank of geological information. I instruct the government to increase the investment appeal of the industrial sector.
Last year, on my instructions, the effectiveness of all special economic zones was assessed. Based on its results, problematic areas were identified and new approaches were outlined.
Now we need to switch to a fundamentally different policy for the development of SEZs. This issue is of particular importance in connection with the relocation of foreign enterprises to Kazakhstan.
The provision of investment incentives for SEZs should be approached in a differentiated way. The key here is the principle: the greater the investment, the greater the benefits.
At the same time, investors not falling under the priority activities, but implementing important industrial projects, can be given land plots without the application of tax and customs preferences.
The issue of land property rights in the territory of the SEZ for enterprises that have fulfilled all their investment obligations in good faith must also be resolved.
Overall, systematic work is needed to attract investment. This is a priority task of the government. 
Next. As already mentioned, the state will consistently reduce its participation in the economy.
The sovereign wealth fund "Samruk-Kazyna” will be transformed into an investor owning only a majority stake, sufficient to control key sectors of the economy. Other assets and shares of the Fund will be privatized, including through the mechanism of "People’s IPO”.
As a co-investor, Samruk-Kazyna will participate only in critically important projects that cannot be implemented by private investors. Such projects will be determined by the President.
The next issue is the strengthening of the country's transit potential.
Given the current geopolitical situation, Kazakhstan is becoming the most important land corridor between Asia and Europe. We need to make full use of the emerging opportunities and become a transport and transit hub of truly global significance.
Kazakhstan has already begun implementing such major projects as the creation of a container hub in Aktau and the development of the Trans-Caspian corridor. Advanced logistics companies of the world will be involved in this work.
The National Company "Kazakhstan Temir Zholy” will be transformed into a full-fledged transit and logistics corporation.
Special attention should be paid to the quality of road construction, including local roads.
Despite huge budgetary injections, this problem is still on the agenda. Previously, I instructed to bring the proportion of local roads that are in good condition to 95% by 2025. The government needs to take this issue under direct control.
There is a need for concrete results in the work to identify violations in road construction.
There are still interruptions in the supply of bitumen. This is unacceptable for a major oil-producing country. The government must finally solve this problem.
Overall, frankly speaking, the systemic failures of the government, the constant shortages of fuel and sugar lead to the justified indignation of citizens. This is a consequence of the sluggishness, indecision of the Cabinet of Ministers. If this continues to be the case, specific personnel decisions will have to be made again.
Next. The construction sector occupies an important place in the structure of the national economy. It generates 5-6% of the country’s GDP, and much more if related industries are taken into account.
Meanwhile, architectural and construction activities in Kazakhstan are today regulated by more than 2,500 different documents.
A confusing, bureaucratic system has been formed that breeds corruption. 
Outdated building standards and norms are still in use.
Therefore, I instruct the Government to adopt a conceptually new document - the Urban Planning Code. 
Functional interactive maps of land plots and schemes of utility networks should be created for each city.
In the land cadaster, maps of industrial areas need to be supplemented with actual schemes of transport and utility infrastructure.
One of the key problems that remains is the issue of agricultural development.
The state of the industry directly affects the food security of the country. 
The strategic task of increasing the volume of production and increasing the added value of domestic agricultural products needs to be solved.
The time when you could just sell grain and livestock is a thing of the past. 
The government must prepare new long-term approaches to subsidizing the industry. 
Budget funds must provide an effective return.
The state will no longer throw money away right and left. 
It is necessary to strengthen control over the allocation and use of subsidies.
Rural cooperation offers great prospects for the development of the agrarian sphere.
The corresponding pilot project has been implemented. According to its results, the yield in agricultural cooperatives that participated in it doubled, and the growth of livestock - almost a quarter. 
This successful experience should be gradually scaled up throughout the country, taking into account the specifics of the regions.
The industry is in dire need of advanced technological solutions.
Currently, there is no complete information for agricultural development. 
All disparate information about the state of agricultural land, water resources, irrigation systems, and transport accessibility will be combined on a single digital platform.
In general, from next year the country’s agro-industrial complex should work under new and stable rules. I would like to focus separately on the activities of the Commission for the seizure of unused land.
As part of its work, about 2.9 million hectares of agricultural land have already been returned to the state. By the end of the year, it is planned to return at least 5 million hectares.
The total area of unused land, or land that is issued with violations of the law, is about 10 million hectares.
The government and the akims (governors) must make specific decisions on them by the end of 2023. Especially since the moratorium on inspections related to land issues has been lifted.
The lack of water resources is a serious barrier to the sustainable economic development of the country. 
In the current realities, this topic is moving into the category of national security issues.
The reduction in the external inflow of water is exacerbated by its inefficient use, with losses as high as 40%.
Other characteristic problems of the sphere include high deterioration of infrastructure, low level of automation and digitalisation, lack of scientific support and shortage of personnel.
To solve them, it is necessary to intensify the work of the Water Council under the Government with the involvement of experts. 
In order to train in-demand specialists, it is necessary to identify a strong foundational university.
In general, it is necessary to prepare a three-year project for the development of the water industry.

THIRD. STRATEGIC INVESTMENT IN THE COUNTRY’S FUTURE
People are the main value of our country.
Therefore, a fair distribution of national wealth and equal opportunity for every citizen is a key goal of our reforms.
The harmonious development of society is possible only if the health of the nation is ensured. 
Despite reforms in the health care, the state of the industry leaves much to be desired.
Obviously, the whole set of problems that have accumulated cannot be solved all at once. Therefore, efforts should be concentrated on critical aspects, one of which is the financing system.
The chronic underfunding of the industry leads to the fact that the insured citizens do not receive the amount of medical services they are entitled to.
The situation is aggravated by the artificial division of medical care into state-guaranteed and insurance packages.
We have to admit that there is no insurance model as such. This is a significant omission.
It is necessary to finally launch a system of voluntary health insurance. I instruct the government to reconsider its approaches to financing health care and the social sphere in general.
Particular attention should be paid to the comprehensive improvement of medical infrastructure, including through public-private partnerships.
Medicine is an investment-attractive industry; you just need to create the right conditions.
I have decided to begin the implementation of a national project aimed at the needs of the rural population of our country as early as next year.
Within two years, medical and obstetric stations will be built and fully equipped in 650 villages where there are currently no medical facilities. 
Thus, the state will provide access to primary health care for more than a million citizens.
As part of the national project, 32 district hospitals will be modernised and transformed into inter-district multidisciplinary institutions.
They will have centers specializing in strokes, surgery, and intensive care and rehabilitation units. 
This will improve the quality of medical services for more than four million citizens.
In addition, telemedicine will be developed, which will open up access to qualified medical care for residents of remote areas.
To improve the competitiveness of the domestic healthcare, it is necessary to consistently improve the system for training doctors. 
Multidisciplinary university hospitals and clinics will be established at medical universities. 
Within three years, the annual number of grants for residency training will be increased by 70%.
All of these measures will improve the health of our nation, not just in theory, but in practice.
The next important issue is the state of the education system, which plays a crucial role in increasing the nation's potential.
Our people have a proverb: "El bolamyn desen, besіgindi tuze” ("The future of the country is formed in the baby’s cradle”).
Therefore, the sphere of preschool education should be a priority. However, preschool education in today’s Kazakhstan covers only a little more than half of the children between the age of 2-6. This situation is inadmissible. 
It is necessary to cardinally resolve the issue of provision of kindergartens.
At the same time, effective measures should be taken to raise the social status and salaries of educators. At the same time, it is necessary to establish clear requirements for professionals in this sphere and gradually reduce the workload.
The driving force for progress in education is dedicated teachers. That is why it is not kindergartens that should be evaluated, but teachers.
Another significant factor in the formation of a successful nation is the quality of secondary education. 
Every schoolchild in Kazakhstan should have decent conditions for learning and all-round development. This is what the new national project "Comfortable School” is aimed at.
By 2025, we will create 800,000 student places that meet modern requirements. This will completely solve the problem of emergency and three-shift schools.
This measure also significantly levels the difference between the quality of educational infrastructure in urban and rural areas.
In general, the construction of new schools should be one of the priorities of the government and the akims (governors).
All illegally obtained funds that come into the possession of the state as a result of trials of corrupt officials should be spent on building schools.
The government should decide on the legal registration of this action. It is extremely important to ensure maximum availability of school uniforms for all students. 
I believe that the state should provide the uniforms for children from certain socially vulnerable categories at the expense of the budget.
Targeted state orders for the purchase of school uniforms should be aimed at the development of the domestic light industry.
I am deeply convinced that school teachers will play a decisive role in building the New Kazakhstan. 
The state has done a lot in recent years to increase the attractiveness of this profession.
However, positive changes in this direction are still needed. A new standard for accreditation of teacher training institutions and a framework of teacher competencies must be adopted.
Given the global progress of science and technology, it is important to strengthen the teaching of science and mathematics and English in high schools.
There are discussions in society around the teaching of Kazakh and Russian languages in schools. Let me be clear: we must educate children to speak fluently both Kazakh and Russian.
This is in the interests of the younger generation. The Ministry of Education should be guided by the interests of children, not by populists. The younger generation, in terms of knowledge, including language skills, should stand firmly on both feet. Their knowledge is our strength.
In turn, technical and vocational educational institutions need to focus on the real needs of the labour market and meet the challenges of the country's new economic course.
In doing so, it is necessary to consistently build partnerships with parents and students, who must bear their share of responsibility for the quality and relevance of the knowledge and skills received.
It is for this purpose that personal educational vouchers are planned to be introduced.
All funds provided by the state for a child's education, including extracurricular activities, will be accumulated in unified educational accounts.
In fact, it will become the primary targeted capital of children, which they will be able to invest in their education. 
This step will make it possible to implement in practice the principle of equal opportunities for every citizen of the country.
In this sense of development, it is necessary to continue reforms in higher education as well.
As the quality of domestic universities increases, so will the cost of studying in them.
Therefore, the government plans to allocate educational grants, which, depending on the results of the Unified National Test and other indicators, will be differentiated in size - from 30 to 100%. 
Concessional loans for education at 2-3% per annum will also be provided.
These measures will make higher education more accessible and strengthen the ideology of partnership and mutual responsibility in society.
The next sensitive issue is the provision of students with dormitories.
To solve this problem, it is necessary to actively implement the mechanism of public-private partnership with universities and construction companies.
At the same time, I believe that it is wrong to put all the problems on the shoulders of the state. 
Therefore, the availability of dormitories should be one of the criteria for private universities' access to state funding.
Undoubtedly, such requirements to educational institutions should be introduced gradually. 
The possibility of subsidizing the cost of living for certain socially vulnerable categories of students can also be worked out.
Endowment funds at universities should become a key link in the development of the educational ecosystem. 
In the world's leading universities, such endowment funds are the basis for sustainable financing of science and innovation.
The basic factor in improving the welfare of the people is the growth of wages in line with market conditions. 
The state will introduce a new methodology for determining the minimum wage, which will enable a gradual increase in its size.
I have decided to raise the minimum wage from 60,000 to 70,000 tenge. This will directly affect the income of 1.8 million citizens.
The pension system will have to be substantially rebooted.
The minimum basic pension rate should be consistently raised to 70% of the subsistence minimum, and the maximum to 120%. Together with earlier decisions, this will make it possible to increase the aggregate pension by an average of 27% by 2025.
Moreover, given the broad social demand, the retirement age for women will be fixed at 61 years until 2028.
It is necessary to develop an effective investment strategy for the Single Accumulative Pension Fund. 
Private companies with an impeccable reputation and highly professional teams could be attracted there.
The social security system will also need to be adjusted.
We will increase the childcare payment period to one and a half years as early as January 1, 2023. Parents will be with their children longer at the most important infant age.
For Social Security members, unemployment benefits will go up to 45% of average monthly income. This will help them get back to work more easily and quickly.
An important element of the well-being of citizens will be the creation of a unified system of targeted social assistance. From 2023 it is planned to introduce the Digital Family Card and the Social Wallet.
These initiatives will integrate various measures of state support. They will become clear and, most importantly, point-by-point and proactive.
Comprehensive support for young people is one of our unconditional priorities.
Next year about 100,000 young people will be covered by various employment measures.
To support youth entrepreneurship, a separate mechanism of preferential microcrediting at 2.5% per annum will be launched.
The proposed measures will increase the effectiveness of the social protection system and make our society more harmonious and fair.
The amendments to the Constitution, adopted in a national referendum, have become a symbol of a Fair Kazakhstan.
We have enshrined in the Basic Law the key principle that land and natural resources belong to the people. This is not just a beautiful declaration, but the leitmotif of all reforms.
Every family must receive a real return on the use of the country’s national wealth. That is why I think it is extremely important to launch a fundamentally new program called "National Fund for Children” within the framework of the Year of Children that I have announced.
I propose that 50% of the National Fund’s annual investment income be deposited in special savings accounts for children until they reach the age of 18, with no early withdrawal rights.
On reaching that age, the accumulated amount will be used to purchase housing and get an education. These funds will give the younger generation a real ticket to adulthood.
The fund will truly acquire the status of "national” and will serve the interests of the people. Taking into account the need for careful work on this large-scale undertaking, I instruct that the project be launched on January 1, 2024.
Another initiative in the spirit of the New Kazakhstan will be the annual transfer of at least 7% of the net income of the Samruk-Kazyna Fund to the public fund "Qazaqstan Halqyna”.
In addition, I am sure that successful entrepreneurs and wealthy citizens will continue to contribute to this fund.
In general, for the development of human potential, it is important to attract talented specialists from abroad to the country, especially those who have achieved success in the fields of creativity and entrepreneurship.
We are talking about an effective migration policy. It is necessary to reduce the shortage of the most in- demand and highly qualified personnel.
For valuable professionals in the field of science, health, industry, and IT, the state will introduce exemptions and visas with the right to obtain a residence permit.
Foreign businesspeople who have invested more than 300,000 dollars in our economy, will have an opportunity to get a ten-year visa and a residence permit.
Kandas (ethnic Kazakhs residing permanently beyond the borders of Kazakhstan) resettlement policy and the regulation of internal migration will undergo radical reform.
It is fundamentally important to use approaches that take into account demographic and economic trends, as well as the national interest.
The strength of a nation lies in its people, in their health and profound knowledge.
It is imperative that professionalism and hard work be highly valued in our society.
I repeat one again: hard-working citizens, true professionals should be the most respected people in the country. 
It is such citizens who strengthen our state.
At the meeting of the National Kurultai and the congress of the youth wing of the Amanat party "Zhastar Rukhy” I highlighted this topic.
We must honour the people of labour. No matter what a person does, the most important thing is that they do their work faithfully.
It is important that young people want to learn all the subtleties of one particular profession, because the work of professionals is always highly valued.
Our younger generation must be competitive not only in Kazakhstan, but also abroad.
Citizens of neighbouring states work abroad, not neglecting any work. Among them are many professionals who achieve great success in our country as well. We should take an example from such people.
The most important aspect is honest work. We need to educate a generation that understands this well. 
Significant attention should be paid to this issue in the ideological work.

FOURTH. RESETTING PUBLIC ADMINISTRATION
The planned structural economic reforms require a reboot of the system of public administration.
People are tired of empty declarations and endless presentations of a bright future. Citizens expect government agencies to actually fulfill their promises, not just in theory.
Emphasis should be placed on decentralising the system of state administration while increasing the personal responsibility of political officials.
Part of the government's competencies should be transferred to ministries - a specific minister should be responsible for specific sectoral policies, not a "collective cabinet”.
The government will focus on cross-sectoral issues.
The first step in this direction will be the transformation of the Office of the Prime Minister into a compact Government Office, corresponding to the advanced standards of public administration. It’s not about changing the name, but a real reform.
By optimizing the vertical of central agencies, we need to significantly expand the powers of local executive bodies.
This will bring the solution of urgent issues closer to the regions, to the people.
We need to pay close attention to issues of local self-governance, reformatting the activities of public councils, cooperatives of apartment owners and associations of property owners.
We have to deal with the improvement of residential buildings and the infrastructure of the cities. Their appearance and the functioning of internal infrastructure do not meet the expectations of citizens and, frankly, discredit the country in the eyes of foreigners.
I instruct the government to develop a new administrative reform to improve the efficiency and accountability of government agencies.
The New Kazakhstan needs new state managers.
The system of selecting and dismissing civil servants must be restructured to meet the demands of the times. It is important that the civil service become as open as possible to professionals from the private sector.
The talent pool needs to be strengthened. 
The Civil Service Agency should become a full-fledged institution of strategic HR.
The government, together with the Agency, should launch a special platform to consolidate the potential of fellow citizens around the world.
Particular attention should be paid to improving the efficiency of governance in the quasi-state sector. 
Work in this direction has begun; we need to bring it to the desired result. 
For this purpose it is necessary to finally define a new model of work of the "Samruk-Kazyna” Sovereign Wealth Fund. 
The best investment and production companies of the world should be taken as a reference point.
The management of state assets must become more transparent. 

The government will ensure that the National Report is prepared annually and sent to the Parliament.

It is necessary to ensure the rule of law and the quality of justice.
This requires the urgent renewal and rehabilitation of the judiciary.
Judges must be highly qualified, honest and incorruptible. 
First and foremost, the equal status of all judges must be ensured, reducing their dependence on their superior colleagues.
Many positions of court chairpersons will be transformed into judicial positions.
I propose to use elective mechanisms in the selection by the judges themselves of candidates for the positions of chairpersons of courts and chairpersons of judicial boards.
It is also necessary to begin introducing elements of electability of judges of the Supreme Court. For this purpose, the President will submit candidates for judges to the Senate on an alternative basis.
It is important to create appropriate incentives and conditions to attract strong lawyers to the field.
In order to increase the independence of judges, the status of the Supreme Judicial Council should be strengthened. 
The Council will be entrusted with the issues of training of candidate judges, professional development, and extension of the age limit, suspension and termination of powers of acting judges.
This state body should become a full-fledged institution with clear personnel functions, beginning with selection and ending with recommendations for the appointment of judges at all levels.
It is fundamentally important to eradicate the influence of law enforcement agencies by eliminating all instruments of administrative pressure on judges.
Along with the limitation of interference in the activities of judges, their responsibility for serious violations will be strengthened.
Every overturned judicial act in which a judge has made a gross error must be reviewed by a Judicial Jury. 
The institution of judicial evaluation and accountability on the basis of the "quality of the administration of justice" must also be reconsidered.
The institution of appeal requires reforms. Here, decisions should be made on the merits, without going back to the first instance.
It is also necessary to expand the scope of administrative justice. Transferring a wide range of administrative misconduct and civil law disputes with government agencies to the procedural code would make domestic justice humane and fair.
At the same time, it is necessary to work on issues of access to justice at the level of district and regional courts.
Businesses rightly consider excessive rates of court fees to be a serious limitation in protecting their interests. 
Therefore, reasonable fees should be established for property disputes instead of the existing percentages of the amount of the claim.
It is necessary to reduce the state’s involvement in the judicial process. It is time to deal with the judicial disputes between government agencies.
If two ministries have a different understanding of the law, it is up to the government to settle the matter. 
This approach is also applicable to disputes between state bodies and state organisations. 
It is not uncommon for different regions to make different decisions in similar cases.
A digital analytical toolkit is now being developed to ensure uniformity in the administration of justice. 
The Supreme Court should accelerate the full implementation of this intellectual system.
Of course, this is not the end of the judicial reform, it will be developed by specialists outside the Supreme Court. 
This will make the process more adversarial, open to the public, independent experts, and therefore - more effective.
Next, I will focus on the reform of the law enforcement block. This sphere is traditionally under close public scrutiny.
The days of the "Tragic January” were a serious test for the system of law and order. 
The rallies, due to provocateurs, turned into mass disturbances, which then turned into an anti-state riot.
Many of the instigators received suspended or lenient sentences. 
However, the degree of their guilt is much higher, as these people deliberately inflamed the situation and played a key role in escalating the situation that ended in tragedy.
I have been repeatedly approached by human rights defenders and representatives of the legal community with justifications for the need to toughen penalties for calls for mass disorder. 
Their arguments are quite reasonable, so I instruct authorized bodies to work on this issue and take concrete measures.
We must respond harshly to any public provocation and unlawful actions. 
People who commit such destructive actions and call for breaking the law will not be able to escape severe punishment.
I would like to remind the whole society of our general principle: "We say yes to political pluralism, we say no to extremism, gangsterism and hooliganism”.
Where purposeful provocations begin, there can be no question of freedom of speech and pluralism of opinion. This is an attack on the stability and security of society and an attempt to undermine the foundations of the state.
Today we need unity more than ever. 
Both protesters and law enforcement officers are our fellow citizens who hope not only for objective justice, but also for the forgiveness of society.
The state has already commuted the punishment for those participants in the January events who did not commit serious crimes.
Many of the lawbreakers have realized their guilt and are repentant of what they have done. 
I think they deserve a second chance. That is why I have decided to conduct a one-time amnesty for participants in the January events.
Of course, the amnesty will not apply to the main persons involved in the organisation of the riots, as well as those accused of state treason and attempted violent change of power.
Persons who committed terrorist and extremist crimes, recidivists, as well as those who used torture, will also not fall under the amnesty.
With humanism, we as a nation will learn from this tragedy and not allow it to happen again.
Families of the victims of the January events, who are in a difficult financial situation, will receive financial support. 
I believe that the "Qazaqstan Halqyna” Foundation will also make a worthy contribution to this noble cause.
An important lesson of the January tragedy was the need to significantly increase public safety.
Recently there have been more and more cases of serious crimes - murders and gang warfare. 
They are committed with a particular cynicism and are a challenge to our entire society.
This dangerous trend must be stopped at the root - by toughening punishment and eliminating parole for such crimes.
The issue of the criminalisation of domestic violence has long been raised in society.
Law enforcement agencies doubt the need for this step, as they believe that it will lead to a decrease in the detection of such offenses.
There is some truth in this. However that may be, we cannot turn a blind eye to the many cases of domestic violence.
Impunity for troublemakers unties their hands and basically leaves their victims defenseless. 
I think it is time to toughen responsibility for such acts.
Victims of domestic violence should not have to fear social condemnation or pressure from others. 
In order to ensure that, police officers must work very sensitively with them, taking all necessary measures.
The growing use of synthetic drugs poses a great threat to the health of the nation.
The dynamics are sharply negative: over the past three years, the volume of synthetic drugs seized from circulation has increased tenfold. 
Synthetic drugs are becoming cheaper and more accessible every year. 
They are almost freely sold through social networks, messengers, and even delivered to homes.
Given the scale of this extremely dangerous social disease, the fight against the production and distribution of synthetic drugs must take on a national character. 
Therefore, it is necessary to develop a comprehensive plan to combat drug addiction and drug business.
Special attention should be paid to the tide of Internet and telephone fraud.
Law enforcement agencies need to strengthen information and analytical work to identify and neutralize such threats.
It is also necessary to systematically improve the legal and financial literacy of citizens.
It is important to consistently step up efforts to uncover the underlying mechanisms, to search for the true organizers of the corrupt and shadow schemes of embezzlement of budgetary funds and the national wealth.
The Criminal Code and the Code of Criminal Procedure should be audited, and everything that does not work or hinders justice should be removed.
It is equally important that they are not subject to endless adjustments after they have been amended.
Since 2015, more than 1,200 amendments have already been made to the Criminal Code and the Code of Criminal Procedure. 
It is unacceptable that the laws should be changed to suit the momentary situation or narrow corporate interests.
Therefore, the authority to adjust criminal and criminal procedural legislation should be transferred to the Ministry of Justice. 
This will require strengthening human resources capacity and improving the quality of lawmaking activities of the agency.

Dear Compatriots!
Today we have outlined the key areas of the coming reforms. We have to reboot all areas of the state and society.
We are carrying out political modernisation in accordance with the fundamental formula "a strong President - an influential Parliament - an accountable Government”. Reforms in this direction will continue.
We will strengthen nationwide harmony, the partnership of government and society, following the concept of the "listening state”.
We should not focus on dividing lines, but rather consolidate for the sake of achieving ambitious goals. This is the deeper meaning of the idea of a New and Fair Kazakhstan.
We face the particularly important task of preserving the sovereignty and territorial integrity of the country.
To further strengthen statehood, we need cohesion. There is no other way.
The unity of the people has always been our most important value, which is even more important today.
Our people have always put peace and stability above all else.
At this difficult time, we must become even stronger in our unity. 
That is why it is important to stop sowing mutual distrust and creating discord in society.
 
Dear Members of Parliament,
Dear compatriots!
I want to share with you some thoughts that have a direct bearing on the future of our state.
In today’s geopolitical environment, we need to consistently strengthen our statehood, firmly pursue the course of reform and renewal.
In our actions, we must be extremely pragmatic and proceed from the long-term interests of the country. 
It is extremely important to maintain the momentum of reforms, to solve all political issues without putting them off indefinitely. 
To do this, we need to rationally build the upcoming electoral cycles.
As you know, the next presidential election is due in 2024 and the parliamentary election in 2025.
I believe it is necessary to begin a comprehensive reset of key state institutions in accordance with the new strategy. 
This will allow us to intensify our joint work for the well-being of every citizen and the prosperity of the entire country.
The political tradition of the authorities keeping their plans secret from society must become a thing of the past. 
That is why today I intend to publicly present a schedule for future election campaigns.
I propose holding a snap presidential election this autumn.
For the successful implementation of radical and comprehensive reforms aimed at building a Fair Kazakhstan, a new mandate of trust of the people is required.
For me, the interests of the state are paramount. That is why I am ready to go for an early presidential election, even though I am shortening my own term of office.
In addition, after much reflection, I have come to the conclusion that there is a need to review the number and length of presidential terms.
I propose that the President’s mandate be limited to one term of 7 years without the right to be re-elected. What is the basis of this initiative?
On the one hand, 7 years is a sufficient period to implement any ambitious program.
On the other hand, limiting the presidential mandate to one term will ensure the maximum focus of the head of state on the strategic tasks of national development.
Life does not stand still, the dynamics of global processes and social development within the country are accelerating every day. 
The constitutional amendment I propose would significantly reduce the risks of monopolisation of power. This is why I propose the introduction of a one-term presidency.
We must establish civilized principles for the formation and functioning of government.
The new presidential system will strengthen the political stability and sustainability of Kazakhstan’s model of social structure.
After the elections, I will submit the initiative limiting the President’s powers to one term to Parliament. If it is adopted, a new political era will begin in Kazakhstan.
Within the framework of political modernisation in our country, the development of parliamentarism is central.
The updated Constitution sets a whole new standard for a political system with fair and open rules of the game.
The registration procedures for political parties have already been greatly simplified.
New mechanisms for forming parliament and maslikhats based on party lists and single-member districts will be introduced.
In general, all the institutional changes envisioned by the constitutional reform should be legally completed by the end of the year.
They will lead to an increase in the number of political parties, strengthen political competition, and contribute to the emergence of a new wave of people’s deputies.
Elected according to the old patterns, the representative bodies of power should be naturally renewed, passing through an extraordinary electoral cycle.
Therefore, I propose holding elections to the Mazhilis and Maslikhats of all levels in the first half of next year.
We will get a new composition of deputies representing the interests of broad groups of citizens. I am confident that this will improve the efficiency of the maslikhats and the Parliament.
In the future, the government will be able to include representatives not only of the political forces that received the majority of votes, but also of other parliamentary parties. This will allow the executive branch to make more balanced decisions that meet the needs of society as a whole.
Thus, the presidential election will be held this year, the election of deputies to the Mazhilis and Maslikhats will be held next year, and then the government will be formed.
As a result, by mid-2023 there will be a reset and renewal of all major political institutions: the President, the Parliament, and the Government.
We are building a Fair Kazakhstan with open competition and equal opportunities for everyone.
It is fundamentally important to conduct large-scale political change with transparency, honesty, and mutual trust.
The public announcement of the timing and sequence of the new electoral cycle is consistent with the principles of openness in decision-making.
All these steps consistently flesh out our basic formula of "a strong President - an influential Parliament - an accountable Government.”
The future of Kazakhstan is born today - in our words and deeds, intentions and actions.
Every day we make a choice between the old and the new, stagnation and development. I urge all my fellow citizens to rally around our national interest.
We will be a strong and successful nation when each one of us is united in every way and committed to the principles of justice.
The construction of a Fair Kazakhstan is just beginning. There is a thorny path ahead. This course is immutable and will be continued in all circumstances of internal and external nature.
There will be no place for idleness and sabotage, we will not deviate from the intended path!
Together we will build a Fair Kazakhstan!

The bright future of our sacred homeland is in our hands!

 NEW KAZAKHSTAN: THE PATH OF RENEWAL AND MODERNISATION

March 16, 2022

Dear compatriots!

Dear friends!

Today’s Address has a special significance. Its content and scope go beyond one year.

We have set ourselves ambitious goals.

Together we have begun the construction of a New Kazakhstan.

Last year, our country reached an important milestone, the 30th anniversary of its independence. This is a short period by historical standards.

Under the leadership of the First President, Nursultan Nazarbayev, we have come a long way, we have made significant achievements, but we can lose everything if we do not maintain unity. The upheavals at the beginning of the year have clearly confirmed this.

The events of January shook the society. Our people faced an unprecedented challenge, with the country’s integrity under threat. During these days, we have deeply realized the lasting value of independence and how important peace, stability, and harmony are.

Thanks to our unity, we have defended our state. We have taken timely measures and have decisively repelled the terrorists.

I have never concealed anything from the citizens. I spoke openly about all the problems during the pandemic. During the days of "Tragic January” I made several speeches to the nation, giving details of the situation.

Every decision I made was based on the country’s interests. And this approach was inviolable for me.

Unfortunately, during the January events many of our compatriots died because of the criminal actions of radicals and terrorists. Once again, I express my deepest condolences to their families and loved ones. We will do everything in our power to ensure that such a tragedy will never happen again.

It is our duty to bring to justice all the bandits and terrorists involved in these bloody crimes. We must learn important lessons from the January events.

We must no longer allow the peace and tranquility in our country to be disrupted and its security to be endangered.

Frankly speaking, there are all kinds of rumours and speculations in society, which mislead people and create a false picture of events. It is therefore essential to publish reliable information and give an objective assessment. We must do everything so that people understand the reasons for what happened.

Just yesterday, special hearings were held in Parliament, at which law enforcement agencies presented a full report on the results of the investigation. We have never had such a broad discussion.

Deputies and journalists received open answers to questions worrying the society. This shows that the authorities are primarily interested in a fair assessment of the January events. And I fully share this approach. We must tell the truth – this is my principled stand.

Investigations by the Interdepartmental Investigative Task Force are still ongoing. I am instructing the law enforcement agencies to publish the results of their work on an ongoing basis.

During the events of "Tragic January” and the subsequent state of emergency, about 2,000 people were detained for various offences. At that time, I instructed the Prosecutor General’s Office to determine the degree of their guilt and, if there were no aggravating circumstances, to mitigate the punishment of detainees. As a result, many citizens were released.

At the same time, those who have committed serious crimes will be fully accountable to the law. To do otherwise, to submit to the shouters, provocateurs and populists would be to betray the memory of the innocent victims.

Criminal proceedings have been launched against several hundred people. We have acknowledged the facts when law enforcement officers used prohibited methods of interrogation and even torture on detainees. These barbaric manifestations of the Middle Ages run counter to the principles of any progressive society. They are unacceptable to us as well.

As soon as the first cases were reported, I gave instructions to investigate them thoroughly.

In addition, the Human Rights Ombudsperson was actively involved almost from the beginning. A group of human rights defenders and members of the National Council of Public Trust freely visited the detention centres, examined the detention conditions of those who participated in the January events and assessed their complaints.

The Ombudsperson and independent public commissions led by respected lawyers worked closely with the prosecutor’s office, openly expressing and defending their positions.

This work demonstrated the transparency and democracy of the investigative process and made it possible to treat each appeal and each complaint individually. As a result, the risk of wrongful convictions has been significantly reduced.

In my opinion, this practice of open cooperation between civil society and authorised bodies should be firmly entrenched in our country. I would like to take this opportunity to thank public activists and lawyers for their active position and professionalism.

Provisional results of the investigation are already in. It is clear that the conspirators were trying to seize power. The question arises, what prompted them to take such a step? The answer is obvious.

In recent years, Kazakhstan has embarked on a path of radical modernisation and transformation. Far-reaching transformations have begun in various spheres. Some influential persons did not like this. They hoped to continue their years-long illegal activity. Moreover, they were eager to gain power.

The conspirators formed an underground group of professional mercenaries, armed bandits and traitors from among the officials. Internal and external enemies of our state joined together to seize power. They directed peaceful protests in a destructive direction and used the people for their criminal purposes.

Terrorists attacked government buildings, strategic infrastructure and businesses. They shot at peaceful citizens in order to blame the authorities. Foreign radical forces tried to exploit this situation. They wanted to turn Kazakhstan into a conflict zone, to tear apart our country, to destroy peaceful life and overthrow the President. It was an unprecedented challenge to our statehood.

Their criminal scheme failed, however.

I said openly at the time: no matter what happens, I will always be with my people.

It is not for nothing that the people say, "Ishten shykkan zhau zhaman” ("There is no worse enemy than a traitor”). Among those who tried to pull off a coup, there were well-known people who held high posts. They are state traitors.

Among the traitors there are leaders of military and special services, who have prevented the security forces from taking lawful actions, misinformed the leadership about the situation in the cities, took control of the government and other communication channels.

In a word, they used every possible way to destabilize the country. As a result, we had to ask for help from the Collective Security Treaty Organization.

We took that step in accordance with all domestic and international norms. Peacekeeping forces did not fire a single shot in our country, they only protected strategic facilities. All of this was clearly stipulated.

Two weeks later, once the situation returned to normal, the peacekeeping contingent completely withdrew from Kazakhstan. The CSTO is a collective organisation, of which our country is also a member.

We must not depreciate the important role of the peacekeeping mission, but in the end, we defeated the bandits with our own forces.

In this regard, I would like to separately address the following issue. The betrayal of the conspirators must not tarnish the reputation of the law enforcement agencies.

Our compatriots and our brothers are part of those agencies. They have proven that they stand by the people and are ready to fight for their motherland to the end. They have remained faithful to their oath, selflessly protecting the state. I pay tribute to the law enforcers who bravely withstood the threat at the critical moment.

At the same time, many of our citizens have voluntarily formed self-defense groups, thereby participating in protecting public order. I thank all who showed courage, unity and solidarity at the crucial moment.

During these days, our nation has demonstrated its unity and willingness to overcome any challenges. Through patriotism, we have preserved our sacred Independence.

The January events were the biggest test for our statehood. We were standing on the edge of a precipice. With one wrong step, we could have lost our state.

The investigation into the conspiracy by the security forces and their accomplices continues at an intense pace, and is classified.

There is a lot of work ahead with witnesses, expert examinations and the study of various information.

One thing I can say is that there was a large-scale, detailed operation aimed at overthrowing the top leadership and discrediting it in the eyes of the people and the foreign public.

To achieve this goal, the conspirators did not hesitate to use professionally trained militants, whose task was to spread chaos in Almaty, our largest city, to instill fear into people and make them believe in the fatal outcome of events and to destabilize the situation in the country.

Therefore, I assure you that all those responsible for these tragic events will be punished, no matter what positions they occupy in society.

During those days, there was no choice but to take tough and drastic measures. At the most decisive moment, I did everything in my power for the country. It is my duty as the President and as a citizen.

Distinguished members of Parliament!

My dear fellow citizens!

My main priority as President has always been and will be the implementation of the reforms needed by the people.

I am absolutely confident that a steady progress of the country and large-scale social and economic reforms are impossible without political modernisation.

In two and a half years we have achieved substantial results in this direction.

In the framework of the four political reform packages that I have put forward, a number of important initiatives aimed at further democratisation of the country have been implemented.

The extent of the positive changes can be judged by the fact that more than ten laws have been passed in the political sphere alone.

Take, for example, the new democratic law on peaceful assembly.

It allowed activists, including opposition-minded social activists, to freely hold rallies and freely express their opinions.

This initiative has strengthened the roots of a new political culture and increased mutual responsibility and trust in society.

Yet certain groups of provocative activists believe it is possible and even necessary to violate this law, which is democratic in nature.

I declare there will be no further concessions. This law, as well as others, must be strictly enforced.

Our law-abiding citizens have already paid too high a price for this kind of free-will and irresponsibility.

The law is the same for all, both for those in power and the public.

Political transformation has shown the willingness of citizens to make decisions at all levels, from local government to national issues.

The political transformation is aimed at forming fair and just "rules of the game”, eradicating favouritism and monopolies in all spheres of life.

But this logic and dynamics of events does not suit everyone.

Those who were used to relying on behind-the-scenes schemes are panicking about losing their privileges and their sources of income.

They decided that they should act without delay to undermine the foundations of our statehood. You could say they went against their own people.

After the "Tragic January”, many believed that there would be a rollback – the authorities would start to "tighten the screws”, reduce the pace of modernisation.

But we will not deviate from the planned path, but, on the contrary, accelerate systemic changes in all spheres of life.

I have been carefully considering the initiatives proposed today even before the January events.

Frankly, some experts and government officials have advised me to take my time and postpone these plans until better times. They say, why change the system if it can be used in the current situation to your advantage.

Others quite rightly feared rampant street democracy, predicting various negative scenarios like Gorbachev’s perestroika, especially since the geopolitical situation has become extremely complicated.

But I am firmly convinced that our country still needs fundamental reforms. Otherwise there could be stagnation.

We have seen its devastating consequences in recent Soviet history. In fact, the January events to some extent were also the result of domestic stagnation.

Over the past two months, I have outlined a range of priority tasks in the socio-economic sphere, ensuring national and public security.

Today, I would like to present a program of comprehensive modernization of the country’s political system. It is based on a long-standing public demand for radical changes.

It takes into account the recommendations of deputies of the Parliament, the Constitutional Council, the Central Election Commission, the Supreme Court, and reputable experts.

Fruitful discussions were held with members of the National Council of Public Trust on this topic.

When developing the document, specific proposals of researchers and public figures, political parties and non-governmental organizations were carefully considered.

In general, the proposed reforms reflect a wide range of views that exist in our society. They act as a logical continuation of the transformations that have already begun and solve two urgent tasks.

Firstly, they promote consistent democratization, and secondly, they ensure the stability and manageability of the state.

This is especially important against the background of fundamental social shifts taking place within the country, as well as growing geopolitical tensions.

The current international situation in many ways resembles the most acute phases of the Cold War.

But the current situation in terms of its intensity, tough sanctions stand-off and unpredictable consequences for the whole world can without exaggeration be described as unprecedented. In any case, this was not the case before.

Therefore, it is vitally important for us not to deviate from our goals, to maintain national unity and solidarity.

*  *  *

I have repeatedly said that no one needs reforms for the sake of reforms. We do not implement them for the fun of the public, for the sake of some ephemeral goals, and beautiful but obviously unattainable indicators.

The practice of declaring success on paper when this is not the case in reality is a thing of the past. The people do not need abstract ideas and promises, but tangible changes for the better.

We must speak openly about existing problems and work together to find the best ways to solve them.

It is important to ensure fair and open competition, and to permanently eliminate all artificial monopolies both in the economy and in politics.

The growth of people’s well-being is possible only in conditions of genuine competition. The management system focused on the over-concentration of powers has already lost its effectiveness. It is not able to consolidate civil society with its diverse views and beliefs.

Therefore, we need well-considered steps to restructure the political model of Kazakhstan’s development.

First of all, we are talking about the final transition from a super-presidential form of government to a presidential republic with a strong Parliament.

Such a system will ensure an optimal balance of power institutions and contribute to the country’s sustainable development.

We are faced with the task of strengthening the role of Parliament, which will be an important factor in the successful implementation of the "listening state” concept.

We have a clear vision of the future and the contours of a New Kazakhstan – an effective state with a strong civil society.

We must implement the key formula of our state-building – "A strong President – an influential Parliament – an accountable Government”.

To this end, I propose a number of initiatives that, I am sure, will make this strategic vision a reality.

First. On the powers of the President

As I have already said, Kazakhstan has developed a super-presidential model of government.

At the initial stage of the country’s development, it was justified. But we are not standing still – society is changing, the country is changing. And our political system must constantly adapt to new realities.

Today, literally everything is focused on the President, and this is fundamentally wrong. We need to gradually move away from this practice.

For me, the long-term interests of the state are more important than any additional levers of power and situational influence. Therefore, at the January congress of the Amanat party, I announced my intention to leave the post of its chairman this year.

Merging party structures with the state apparatus is highly undesirable. Monopoly in politics inevitably leads to various social diseases and degradation of the state.

Political dominance needs to be put up with a reliable barrier. I propose to legislate the President’s obligation to terminate his membership in the party for the period of his term of office.

This provision will increase political competition and ensure equal conditions for the development of all parties. In doing so, we will save the country’s future leaders from the temptation to take over the main political institutions.

Based on the same logic, it is necessary to introduce into our legislation a provision on mandatory withdrawal from the party of the chairpersons and members of the Central Election Commission, the Accounts Committee and the Constitutional Council.

At the same time, we see that the over-concentration of powers in the centre is also projected at the regional level. Therefore, it is necessary to prohibit by law akims and their deputies from holding positions in party branches.

Such decisions will make it possible to form a multipolar party system.

Today, it has become obvious to the whole society that it was the monopolisation of political and economic activity that played perhaps the most important role in the January events.

But an important lesson of the "Tragic January” is that the concentration of power in the hands of the highest official in the state unnecessarily increases the influence of those close to him, as well as of financial and oligarchic groups. And they perceive the state as a personal fiefdom.

Nepotism, in whatever country, inevitably leads to negative personnel selection and becomes a fertile ground for corruption to flourish.

The Head of State should act as an unshakable guarantor of equal opportunities for all citizens.

Therefore, a legislative ban on holding positions of political civil servants and managers in the quasi-public sector will be introduced for the close family of the President. I think it would not be superfluous to fix this provision in the Constitution.

The overconcentration of the President’s power is also expressed in an excessive number of his powers.

The Head of State has the right to cancel or suspend actions of the akims of regions and cities of republican significance.

This rule helps to root out the excessive practice of "micro-management” and reduces the independence of local executive bodies.

Moreover, right now the President has the right to remove district and even rural akims from office.

Such legislative provisions should be abolished.

The rejection of excessive presidential powers will be an important factor that will ensure the irreversibility of political modernisation in the country.

The proposed initiatives will fundamentally change the "rules of the game” and form a solid foundation for further democratisation of our society.

Second. Reformatting the representative branch of government

By consistently reducing the powers of the President, we will significantly strengthen the role of the Parliament and thereby increase the institutional stability of the state.

The country needs a strong representative government, in which responsible deputies with a mandate of people’s confidence will play an active role in state-building.

First of all, in my opinion, it is necessary to review the process of formation and a number of functions of the Senate.

Currently, the upper house consists of 49 deputies (two elected senators from each region) and 15 senators appointed by the President.

This design made it possible to take due account of regional specifics and allowed the Head of State to directly influence the legislative process.

For its time, it was quite progressive and effective. But today we need to move forward.

The presidential quota in the Senate should be considered not as a means of control, but as a mechanism for taking into account the votes and opinions of social groups that are poorly represented in Parliament.

Therefore, I have decided to reduce the presidential quota in the Senate from 15 to 10 deputies.

Moreover, five of them will be recommended by the Assembly of the People of Kazakhstan (APK), and not elected by it, as is currently the case.

The Lower House of Parliament should reflect the entire electoral landscape of the country without giving anyone artificial preferences.

Thus, we will abolish the APK quota in the Mazhilis, which, in my opinion, is correct both from a political and legal point of view.

This quota is transferred to the Senate and reduced from 9 to 5 deputies. Accordingly, the total number of deputy seats in the Mazhilis will decrease. As they say, better less, but better.

This initiative will provide mandates and additional votes for various ethnic groups in the upper house.

In general, I consider the existence of the Senate as the upper house of Parliament to be natural and justified.

There are quite a few states in the world with a unitary structure and a smaller population than in Kazakhstan, but, nevertheless, they have bicameral parliaments, particularly in Europe.

Another thing is that our Senate should become a chamber that really represents the interests of the country’s regions. And this will require a reform of its powers.

According to the Constitution, the Senate has the right to adopt or not adopt bills approved by the Mazhilis. In other words, the Mazhilis does not actually have the opportunity to overcome the objections of the upper house.

In order to create a more balanced parliamentary system, it is necessary to review this practice.

I consider it expedient to introduce a norm that presupposes the right of the Senate only to approve or reject laws that have already been adopted by the Mazhilis.

Consequently, it is the Mazhilis that has the right to adopt laws.

The powers of the Senate, in turn, should be supplemented with the right to approve candidates for the posts of Chairpersons of the Constitutional Council and the Supreme Judicial Council.

This initiative will significantly strengthen the checks and balances in the political system. And it will significantly simplify the legislative procedure.

Along with this, the functionality of the Mazhilis will also be expanded.

Many large-scale projects and programs are being developed in our country, but their implementation is often far from ideal for various reasons.

It is necessary to strengthen parliamentary control over the quality of execution of the national budget. To do this, I propose to transform the Accounts Committee into the Supreme Audit Chamber, whose chairman should report twice a year to the deputies of the lower house. This will further enhance the status of the Mazhilis.

To increase citizens’ confidence in the representative government, special attention should be paid to the maslikhats (local governing bodies).

Strong maslikhats contribute to solving current problems and improving the quality of life in the regions (oblasts).

I believe that to strengthen their independence, the post of a chairperson of the maslikhat should be introduced.

In addition, in order to systematically strengthen the influence of maslikhats, I consider it necessary to change the current procedure for appointing regional mayors.

Currently, deputies of maslikhats agree or do not agree on the only candidate proposed by the Head of State.

It is necessary to make appropriate amendments to the legislation regulating the right of the President to submit on an alternative basis at least two candidates for the posts of akims of regions and cities of republican significance.

Thus, the President will appoint akims of regions and cities of national significance, taking into account the results of consideration in maslikhats.

Essentially, we are talking about indirect elections of regional leaders.

At the same time, the Head of State retains the right to dismiss the heads of regions without consulting the maslikhats.

All the presented initiatives on reformatting the representative branch of government are aimed at creating a New Kazakhstan with a strong parliamentary culture and influential people’s deputies.

THIRD. Improvement of the electoral system

The key goal of the country’s political modernization is to increase the role of citizens in governing the state, including through electoral processes.

Fifteen years ago, as part of the constitutional reform, we switched to the proportional model of elections to the lower house of Parliament. Then, in 2018, the proportional principle was introduced in the elections of deputies to maslikhats (i.e. local councils). These steps have given a serious impetus to the development of our party system.

However, along with this positive trend, the negative consequences of such decisions began to appear.

We must recognize that non-partisan citizens were actually deprived of the opportunity to be elected not only to the Mazhilis (i.e. lower house of Parliament), but also to the local representative bodies.

As a result, electoral processes have lost their former appeal to citizens, and political alienation has increased. People simply stopped believing that their vote matters and is able to change life in the country for the better. By and large, many voters today do not know what the members of Parliament look like.

Taking into account these negative factors, I propose to switch to a more harmonious – mixed electoral system, which fully takes into account the rights of all citizens.

A proportional-majoritarian model would better reflect the interests of voters at both the national and regional levels.

The members of Parliament corps of the Mazhilis will be formed according to the following scheme – 70% on a proportional basis and 30% on a majoritarian basis. In addition, a mixed model will be introduced in the elections of maslikhats of regions and cities of national significance. 

The return to this electoral system version is a very serious step. It is a logical continuation of the earlier decision to lower the threshold for parties to enter the Mazhilis and maslikhats.

Now, in fact, each region will get an opportunity to elect at least one representative to the lower chamber of Parliament. The new model will form a wider palette of views in the Mazhilis and make it more inclusive.

At the same time, in districts and cities, where close interaction between members of representative bodies and citizens is required, I propose a complete transition to the majoritarian system. This would create a more competitive political environment at the local level and open up additional opportunities for the emergence of new authoritative politicians.

The connection between members of representative bodies and voters will also strengthen the transition to the imperative mandate. This is an additional lever of influence on people’s representatives, because there will be a possibility to recall them in case of improper fulfillment of their electoral promises.

Such an approach would greatly reinforce democratic traditions and foster a new political culture based on mutual responsibility and trust.

The combination of proportional and majoritarian systems will preserve the role of political parties as one of the key institutions of civil society. It will create conditions for a fairer electoral process and effective governance.

I am confident that the introduction of a mixed electoral model will increase the electoral activity of citizens and their involvement in the comprehensive modernisation of the country.

FOURTH. Expanding opportunities for the development of the party system

The course to build the New Kazakhstan comes from the need to ensure fair and free political competition.

To do this, we must create the most favourable environment possible for the institutional and organisational development of political parties.

Party registration procedures will be greatly simplified.

The registration threshold should be reduced fourfold, from 20,000 to 5,000 people.

The minimum required number of people at regional branches will be reduced threefold, from 600 to 200 individuals.

The minimum number of citizens’ initiative group to create a party will be reduced by almost a third, from 1,000 to 700 people.

In turn, the timing of the founding congress and the period of formation of branches will increase.

Liberalisation in this matter will greatly enhance the process of development of the political space in the country.

New parties will emerge, capable of articulating and effectively addressing the urgent problems of their electorate.

FIFTH. Modernisation of the electoral process

International experience shows that the system of organisation of elections is in constant change, the search for optimal solutions for fair and transparent elections is on-going.

In addition to information and technological factors, the coronavirus pandemic has significantly influenced this process in recent years.

In many countries, alternative forms of voting are expanding, including electronic, early voting, remote voting, and multi-day voting.

Therefore, it is necessary to study the world’s best practices and, if necessary, gradually introduce them.

In the era of rapid development of communication technologies, the activity of candidates and parties in social networks is of great importance. But the current legislation does not regulate campaigning on social networks. In spite of this, during election campaigns it was conducted in one way or another.

In order to eliminate this omission, I propose to legally allow campaigning on social networks, fixing the relevant regulations and rules.

It is also necessary to legally formalise the activity of observers. This institution is an indispensable element of transparent elections.

The history of democracy is, first of all, the history of improving electoral procedures and control over their observance.

I believe observers should have clearly spelled out rights and a clearly defined area of responsibility.

Territorial election commissions also play an important role in the organisation and conduct of elections. With the introduction of direct elections of rural akims (mayors) last year, the electoral process throughout the country became, in fact, permanent.

The principles of operation of territorial election commissions should be reviewed, transferring them to a professional basis.

In order to eliminate the likelihood of double voting, as well as voting at any polling station, it is necessary to consider the feasibility of forming a single electronic voter database.

And in order to prevent individuals from influencing the course of the election, it is necessary to set limits on donations to election funds.

According to the Constitution and international law, any elections in Kazakhstan are strictly our internal affair. But this norm does not exclude potential attempts to influence their results from abroad.

Given these factors and the general increase in various hybrid threats in the world, including the use of electoral technologies, effective measures should be taken at the legislative level to prevent any possibility of foreign interference in our country's elections.

First and foremost, it concerns ensuring maximum financial transparency for all participants in election campaigns, be they candidates, observers or the media.

SIXTH. Strengthening human rights institutions

The Constitution has supreme legal force and is the basis of the country’s entire legal system. But it is not uncommon that it is difficult to give an unambiguous answer as to whether certain legislative acts or decisions comply with its provisions.

In Kazakhstan, the Constitutional Council interprets various legal norms. However, citizens are deprived of the opportunity to appeal directly to it for clarification.

At the same time, in most countries of the world there is such an institution as the Constitutional Court, where everyone can send the appropriate requests. At the dawn of Independence, this body existed in Kazakhstan as well.

Experts agree that its activities are more effective in ensuring compliance with the provisions of the Basic Law.

Given these circumstances, I propose to establish a Constitutional Court. The Prosecutor General and the Human Rights Ombudsperson should also be granted the right to appeal to the Constitutional Court.

I am confident these initiatives will be an important step in building a fair and lawful state, institutionally strengthening the system of checks and balances and protecting the constitutional rights of citizens.

As you know, I pay special attention to the protection of fundamental rights of citizens.

In 2020, our country acceded to the Second Optional Protocol to the International Covenant on Civil and Political Rights, which provides for the abolition of the death penalty. And last year I signed a decree on further measures in the field of human rights, aimed at the long-term and comprehensive development of this sphere. A number of other progressive initiatives were implemented with the participation of the National Council of Public Trust.

However, the human rights issues require constant improvement.

I believe that in order to finally establish the decision to abolish the death penalty, the Constitution must be amended accordingly.

It is important to introduce a systematic approach to the investigation of crimes involving torture.

To date, there is no specific body responsible for this area. This practice is fraught with certain risks.

Therefore, I propose to assign these functions to the Prosecutor General’s Office.

This approach will ensure the objectivity and impartiality of the investigation and will ensure punishment for failures in the sphere of law enforcement.

In addition, systemic measures should be taken to reduce the level of violence in society.

In this respect, an important role is played by effective counteraction to offenses in the sphere of family and domestic relations.

Today, there are increasing number of appeals from citizens and public activists regarding the need to toughen penalties for violence against women and children.

Previously, I gave instructions to determine the expediency of criminalising such offenses.

I instruct the Prosecutor General’s Office to conduct a comprehensive study of this issue and solve this problem.

In general, in order to increase the rule of law and systematically strengthen human rights activities, I think it is advisable to adopt separate constitutional laws on the prosecutor’s office and on the Human Rights Ombudsperson.

The rule of law cannot be guaranteed without truly independent, open and professional courts at all levels.

The state is doing a lot of work in this direction.

A new recruitment system is being implemented, and the transparency of judicial processes and procedures is being consistently improved.

The key role in this matter is played by the Supreme Judicial Council, which ensures the constitutional powers of the President to form courts and guarantees the independence and immunity of judges.

It is fundamentally important that its activities are fully transparent and open to public monitoring.

This can be achieved through the practice of online broadcasts of competitive procedures of the Supreme Judicial Council and the publication of detailed, reasoned explanations of their results.

Jury trials allow for greater civil participation in the administration of justice.

In Kazakhstan, jurors can render a verdict only for especially grave crimes. I think we should go further and expand the categories of cases subject to a jury trial.

This novelty will contribute to the democratisation of the judicial system and increase public confidence in it.

The state will pay special attention to the creation of an open information space and in-demand and strong media.

As an effective channel of communication between the authorities and the people, the media can and should raise pressing issues. But this should be done with great civic responsibility, not working on orders from outside, contributing to the polarisation of our society, and not for shady fees, participating in a hidden struggle of political clans.

Journalists should sincerely care about their country and its citizens. It is not for nothing that the media are called the "fourth estate” which is why you should exercise your influence on the minds and hearts of the people with great care. This is my special appeal to our journalists.

I am convinced that there can be no further democratic transformation without an independent and responsible media.

It is therefore necessary to revise the law on media to take into account the interests of the state, the demands of society, and the trends in the development of the media sphere.

Another important factor in the country’s sustainable and comprehensive progress is the activity of non-governmental organisations.

The non-governmental sector invariably raises important social issues and promotes their comprehensive resolution.

The challenges facing Kazakhstan today require intensified interaction between the state and non-governmental organisations and a systematic reset of civil society institutions.

We need wider and deeper involvement of NGOs and activists in the preparation and implementation of reforms. To achieve this, it is first and foremost necessary to ensure open discussions of all national projects and strategic documents.

In this matter, any kind of imitation, the creation of the appearance of dialogue is inadmissible.

We need to awaken civic activity in the country and launch a process of conscious and constructive partnership between the state and society.

It is for this reason that we are developing public councils under the central and local executive government bodies, as well as in the quasi-public sector.

I have repeatedly criticised their work, but overall, they have a great institutional potential that needs to be fully realised.

This year, at my initiative, it is planned to drastically renew their structure, as well as their work plans.

The popular proverb says, "A fur coat sewn together won’t be short.”

Our ancestors always discussed and made consequential decisions collectively. The great gatherings in Ulytau, Ordabasy and Kultobe are clear evidence of this.

We must revive this democratic tradition of the Great Steppe, which has laid the foundations of nationwide unity.

Therefore, I propose to create the National Kurultai (Congress) instead of the National Council of Public Trust, which has successfully fulfilled its tasks.

The new institution will continue the work of the National Council at the national level.

The Kurultai should form a unified institutional model for public dialogue. It will strengthen the interaction between the authorities and the people.

The activity of all the acting public councils will be systematised.

The National Kurultai will include representatives from all regions. In addition, it will include several members of Parliament, members of the Assembly of the People of Kazakhstan, Civil Alliance, public councils and organisations, distinguished public figures, representatives of business, industry and agriculture, as well as other citizens.

In this way, we will have a body where a wide range of diverse opinions and views will be represented. Members of the Kurultai will meet on a regular basis to discuss important issues and problems.

EIGHTH. Improvement of the administrative-territorial structure of the country.

Changing the system of elections and the procedure for forming the Parliament, it is necessary to take into account the administrative-territorial system.

In the first years of independence, several regions were united in the country. There were political and economic reasons for that.

Today, Kazakhstan is entering a new stage of development. The socio-economic and demographic situation is already quite different; we are facing other problems and tasks.

Our country’s progress depends directly on the prosperity of the regions. I emphasised this issue in the 2019 Address. The principle "strong regions – strong country” remains unchanged.

In this regard, it is very important that the administrative-territorial structure of the country is optimal.

Earlier, Shymkent was given the status of a city of national significance, and the South Kazakhstan region was renamed Turkistan, with the city of Turkistan as its administrative centre. These were the right decisions, supported by the people.

In my article "Independence above All” I wrote that this experience would continue, after which many proposals began to come from citizens.

On my instructions. all of them have been thoroughly studied. Taking into consideration the suggestions received, I would like to propose a number of new initiatives.

First and foremost, I propose to form the Abai region with the city of Semey as its centre.

I know the people of the region have been raising this issue for a long time. There are a lot of unsolved problems there now, for example, outdated infrastructure. The condition of Semey, once the centre of the Alash movement, is not good either.

We must restore historical justice and revive this sacred land which gave our nation many great sons of our people.

The Ulytau region must be formed on the territory of the former Zhezkazgan region. The city of Zhezkazgan will once again become the regional centre.

The creation of a separate region has not only economic, but also spiritual and cultural significance.

The Ulytau region, which is located at the heart of Kazakhstan’s great spaces, holds a special place in our history. It has been the site of great gatherings which have taken momentous decisions for the people.

Located in the heart of Saryarka, Ulytau has enormous tourism potential. Its production and logistics capabilities need to be fully realised. Essentially, we are opening the way for the development of the Ulytau region.

There are also many questions regarding the Almaty agglomeration.

Residents of the region mainly live in the suburbs of Almaty. At the same time, it is not easy to solve problems of Uzynagash or Talgar, for example, from Taldykorgan. In addition, people have to travel long distances to get to the centre of the region.

Given these and other circumstances, I propose to divide this region into Zhetysu and Almaty regions. The centre of the Almaty region will be Kapshagai, and the centre of the Zhetysu region will be Taldykorgan.

I believe that these steps will give a strong impetus to the development of the region.

Overall, the issue of the formation of new regions concerns many people. It is no secret that in due course the regions that lost their regional status saw their population decrease and their quality of life deteriorate. The time has come to remedy the situation.

Administrative-territorial changes will optimise public administration, simplify commuting to and from the regional centre, and better regulate internal migration.

The proposed names of the new regions – Abai, Ulytau, and Zhetysu – have a special meaning.

We will continue to strengthen our national identity by returning the original geographical names and reviving the memory of our great figures.

For instance, Kapshagai town is closely connected with Dinmukhamed Kunayev, an outstanding personality in the history of our people. And if the public proposes naming the town after him, I will support such a position.

I am saying all this on the basis of suggestions and opinions of citizens. If local residents support these initiatives, they should already be put into place in the near future.

I instruct the Government to carefully study the issues of administrative-territorial structure and propose ways to implement these initiatives. This is not a simple matter; we must think through all the details.

The above-mentioned proposals also provide an opportunity to take measures to optimise civil servants in the offices of governors of regions and major cities in terms of their reduction depending on the population size in the regions.

In any case, governors should not have more than three deputies, in exceptional cases – four.

This Administration of the President must keep this issue under control.

NINTH. Decentralisation of local self-government

Successful political modernisation and the development of civil society are impossible without further deepening the process of decentralising power. We will continue to transfer real powers from the centre to the regions.

Above all, it is necessary to effectively separate the functions of the state and local self-government institutions.

It should be understood that a strong system of local self-government is the foundation for the direct participation of citizens in improving the quality of life in their home locality.

There is no doubt that the people of Kazakhstan have long been ready to take responsibility for their cities, districts and villages. We should not underestimate people and be afraid to hand over to them the powers they are capable of assuming.

As part of political modernisation, maslikhats should become a key link in local governance.

Today they have a hybrid nature, being at the same time an institution of local government and local self-government. Therefore, it is necessary to clearly outline the powers of the maslikhats.

It is necessary to radically revise the system of regional financing.

Currently, rural districts are completely dependent on the higher akims (governors or mayors) and receive support from leftovers.

Taking into account the introduction of the election of mayors, it is worth introducing a mechanism of direct financing of local governments in accordance with international best practices.

There is also a need to significantly expand their ownership base. With substantial resources, they will be able to exert real influence and responsibility. Otherwise, it is just an imitation, not self-government.

All the necessary preparatory work on this issue must be completed by the middle of this year.

Another important step will be to ease the procurement procedures for local governments, eliminating bureaucracy and formalism.

I instruct the Government together with the Administration of the President to work in detail on mechanisms for implementing the above-mentioned instructions and to take them into account when drafting the law "On Local Self-Government”.

In addition, we must consider the issue of ratification of the European Charter of Local Self-Government, which is the basic international instrument in this area.

All these measures will promote the emergence of truly credible and responsible local leaders capable of mobilising their communities to effectively address the problems that concern people.

The real strengthening of the system of local self-government will open new opportunities for the development of regions, the reduction of dependency, and the deep rooting of democratic transformations in the country.

TENTH. On priority anti-crisis measures

Kazakhstan has faced unprecedented financial and economic difficulties in our modern history associated with a sharp aggravation of the geopolitical situation.

Tough sanctions confrontation is already leading to serious costs not only for individual countries, but also for the entire global economy.

The situation is changing rapidly, literally every hour. Uncertainty and turbulence in world markets are growing, production and trade chains are collapsing.

But there is still no reason to panic. Our country has all the necessary reserves and tools to overcome a large-scale crisis.

The government is obliged to urgently implement a comprehensive package of priority anti-crisis measures.

First of all, it is necessary to ensure the stability of the national currency. This is a key factor in our economic security.

Recent events in the world have put powerful pressure on the tenge. This is well known to you. Instability in the foreign exchange market is associated with panic, the withdrawal of capital, "gray” cross-border cash flows.

Therefore, in the financial sector, it is necessary to reduce the increased speculative demand that has arisen, among other things, due to the activity of outside buyers.

The day before yesterday, I signed a special Decree that imposes restrictions on the export of foreign currency.

Large institutional players should purchase foreign currency only as part of the fulfilment of their contractual obligations, ensuring its supply.

The issue of increasing sales of export foreign exchange earnings by companies with state participation should be worked out. I expect private subsoil users will also ensure the sale of their foreign exchange earnings.

As part of the fulfilment of their contractual obligations, second-tier banks must control and monitor the purchase of foreign currency by their clients.

It is necessary to establish a strict control over the observance of this requirement by banks.

Speculation in the markets should in no case cause an unjustified "burning” of our reserves.

The Government, the National Bank, the Agency for the Development and Regulation of the Financial Market need to take decisive measures in this direction. In general, extraordinary solutions are needed.

In the current extremely unstable international situation, ensuring the food security of the country is of great importance.

Events in Ukraine have led to a sharp jump in food prices. It is likely that they will soon break all absolute records.

Against this background, the quality of the sowing campaign comes to the fore. However, many farmers, as far as I know, are not yet ready to plant.

The government and akimats need to take this work under special control. It is necessary to provide farmers with the necessary volume of fuel and lubricants at affordable prices.

You should double-check the readiness of agricultural machinery, stocks of seeds and fertilisers.

We must not forget that low rainfall in several regions can negatively affect crop yields and lead to a shortage of fodder.

In general, it is necessary, together with the farming community, to reconsider approaches to state support for the agro-industrial complex.

In order to prevent shortages and an uncontrolled rise in food prices, it is necessary to work out the issue of purchasing agricultural products for state stabilisation funds at forward prices.

In a rapidly changing environment, the state apparatus must quickly respond to the situation, act extremely harmoniously.

Slow decision-making style, bureaucratic formalism is unacceptable here.

Now we need to fully mobilise. Decisions must be made quickly, based on the real needs of business and citizens, within a maximum of three days, and preferably within a day.

The Operational Headquarters created under the Government should simultaneously work as a Situation Centre, which analyses information in real time, as well as develops specific emergency measures.

At the system level, it is necessary to eradicate excessive bureaucratisation, which seriously hinders the development of the country. Its scale is so great that many state structures see it as the essence of their existence.

In the near future, I will sign a decree on the de-bureaucratisation of the activities of the state apparatus. It will become the starting point for a radical review of internal procedures in state bodies, optimisation of rule-making and budgetary processes.

In addition, it is necessary to urgently start developing a new package of structural reforms in the economy and public administration, taking into account the strategy of political modernization.

The foundation of the New Kazakhstan should be based on a harmonious combination of political and economic reforms.

This will ensure the continuous progress of our country and the improvement of the living standards of citizens.

Dear compatriots!

The initiatives I have presented today are ambitious. They will significantly change the political system and the administrative-territorial structure of the country.

To implement them, it will be necessary to amend more than 30 articles of the Constitution. In addition, more than 20 laws will need to be adopted by the end of the year.

Legislative work is a complex and lengthy process, which must be approached very responsibly.

We must take into account all internal and external challenges.

During the years of independence, we have worthily passed through all the difficulties and achieved great success.

The beginning of the cardinal transformation of the country coincided with the crisis that broke out in the world.

It is obvious that the current international situation has an impact on Kazakhstan.

However, no matter how difficult the times, we will firmly stick to our course.

Having learned the lessons of the past, we are moving towards the future with confidence.

On this path, we, first of all, need unity, common sense and patience, wisdom and endurance.

We must carefully weigh every decision, take every case seriously.

A nation with a high patriotic spirit will achieve all its goals.

Our mission is to build a New Kazakhstan.

What does it mean?

A New Kazakhstan is an image of the future of our sovereign country.

People that do not believe in the future will not be able to build a strong state. There are many examples of this from history.

We are firm in our intentions and confident in the bright future of Kazakhstan.

We will ensure that the constitutional rights of every citizen are respected.

We will form a new political culture based on mutual respect and trust between the state and society.

Important decisions will be made openly, with the participation of citizens, because the state will listen to the voice of everyone.

We will always highly appreciate conscientious work, progressive knowledge and advanced experience.

I want to see a New Kazakhstan as such a country.

To achieve our goals, the renewal of the state apparatus or personnel changes are not enough. Everyone must start the change with themselves. We need to reset the system of individual and social values.

This is a difficult process that takes years. Awareness of high responsibility, trust and attention to each other, love for our country will help us in this matter.

We need to understand that no one from outside will do anything for us. Everything is in our hands.

Let’s build the New Kazakhstan together.

I am sure, relying on the support of the people, in unity and harmony we will achieve our goals.

* * *

Today, a devastating geopolitical storm has broke out on the planet.

Therefore, we need to firmly adhere to the strategic course aimed at protecting the sovereignty and territorial integrity of the state, ensuring the fundamental interests of our people. This is the most important task.

We must preserve our main asset – Independence, strengthen the foundations of national identity, focus on the transformation of the country. This is our sacred duty to future generations.

Now it is not the time to erect political barricades, organise rallies on every occasion, insist on dubious decisions, put forward peremptory demands, lash out at police officers doing their duty. All this discredits our people in the eyes of the world community. The events of "Tragic January” have already caused serious damage to the reputation of our country – this must be admitted.

Chaotic political reforms can lead to a weakening of the state, with grave consequences for its sovereignty and integrity.

There are many examples of this in ancient and recent world history, when individual countries lost a huge part of their territory, fell into the abyss of chaos and anarchy.

The course towards building a New Kazakhstan is aimed at changing the paradigm of the country’s development. We think over every step and firmly follow the intended path.

In New Kazakhstan, we must invariably follow the principle of "different views, but one nation.”

A high culture of dialogue and compromise will become one of the main factors in strengthening civil solidarity in our country.

We will resolutely oppose ignorance and archaism, radicalism and dependency, the cult of consumption and corruption.

We need to overcome mutual alienation and restore faith in society in the reality of change.

We will bet on the energy, talent and diligence of people.

We will create the most favourable conditions for the self-realisation of each citizen.

Only in this way can we multiply the creative potential of our people.

Only in this way will we create our own era of reformation, creating a new reality in all spheres of life.

I am sure that together we will overcome any challenges and make our Kazakhstan even stronger.

* * *

I want our citizens to have a happy life not tomorrow, but today.

For us – our independence is above all.

In this very unstable world, no one needs our Kazakhstan but us.

There is nothing more important for me than the well-being of the country. First and foremost, I am concerned about what the future of our people will be like.

Regardless of how different people evaluate my work, my most important duty is to protect our statehood.

And I am ready to take on this full responsibility.

My sacred duty is to be faithful to the precepts of my ancestors.

New Kazakhstan is a testament of the present generation to the future.

Let’s build the New Kazakhstan together!

May our sacred Motherland prosper!

 UNITY OF THE PEOPLE AND SYSTEMIC REFORMS ARE A SOLID FOUNDATION FOR THE NATION'S PROSPERITY

Dear compatriots!

Distinguished Members of Parliament and Members of the Government!

This year we are marking the 30th anniversary of our Independence - this is our most cherished treasure.

Thanks to the forward-looking policy of the First President, Kazakhstan has had notable success and became known all over the world.

In unity and harmony, we were able to build a new state: this is our greatest accomplishment.

We have strengthened the spirit of the nation by laying a solid foundation for development. We have become an influential member of the global community. Thanks to the stability in our society, we have embarked on the path of sustainable progress.

Together we are building a strong state. Sovereignty is not just an empty slogan and a loud word. It is important for us that every citizen should feel the fruits of independence - a peaceful life, social harmony, increased well-being of the people, and the confidence of young people in their future.

All our endeavours are aimed at this. Thanks to the unity and constructive labour of the people of Kazakhstan, we have successfully overcome all difficulties and trials.

Our country is on the verge of the fourth decade of independence. It is already clear that this period will not be easy. Therefore, we must be ready for any challenges and threats, to continuously improve and always move forward.

My current State of the Nation Address is dedicated to the following issues.

І. ECONOMIC DEVELOPMENT IN THE POST-PANDEMIC PERIOD

Kazakhstan’s economy, the largest in Central Asia, is currently experiencing the effects of the pandemic. Nevertheless, despite the difficulties, we are consistently implementing our policies.

We adopted the National Development Plan 2025 and switched to a new system of state planning to determine the medium-term economic policy and systematise state initiatives. National projects will be approved.

The strategic goal is to ensure our leading role in Central Asia and strengthen our position in the global economy.

A new instrument - the Strategic Investment Agreement has been introduced to further attract direct investment.

Concrete actions have been taken to optimise the quasi-public sector. The merger of the Baiterek and KazAgro holdings has been completed. Portfolio companies have been cut by half, and their staff number by one and a half times. As a result, a new powerful development institution has been created.

The state provided large-scale and operational support to citizens and businesses during the pandemic.

The programme Economy of Simple Things has proven its effectiveness. As part of its implementation, more than 3,500 projects were launched, 70,000 jobs were created, goods and services were produced for 3.5 trillion tenge (over USD 8.2 billion).

Thanks to the Business Road Map programme, 66,000 projects received state support. This helped to create and maintain over 150,000 jobs.

The initiative for the early use of pension savings had a serious economic, but above all social effect. This measure has helped over a million of our fellow citizens to improve their housing conditions or reduce the mortgage burden.

Overall, there is a positive trend in the economic development of our country. Nevertheless, we must be frank that the situation is still difficult.

Therefore, I have decided to extend the term of the Economy of Simple Things and Business Roadmap programmes until 2022. The total amount of funds allocated for their financing will be at least one trillion tenge (over USD 2.3 billion).

Largely due to the low public debt and the presence of significant reserves, Kazakhstan is relatively successful in overcoming the consequences of the pandemic. This is our substantial competitive advantage, and it is important not to lose it.

However, recently there has been a tendency to increase the budget deficit and transfers from the National Fund to cover expenditure obligations. To follow such an "easy” path will not be possible all the time. The stock of financial stability is far from unlimited. Obviously, measures are needed to increase budget revenues. But first and foremost, we need control over the volume and efficiency of government spending.

To recover the assets of the National Fund, the implementation of fiscal rules should be accelerated. The corresponding legislative amendments should be adopted by the end of this year.

Overall, the country needs a set of rules for managing public finances: public debt, budget policy, the National Fund. I ask the Government and the National Bank to prepare a Concept for Public Finance Management by the end of the year.

Along with this, it is necessary to continue work on diversifying the economy, expanding the range of goods produced and the geography of exports.

At the end of 2020, for the first time in 10 years of industrialization, the contribution of the manufacturing industry to the development of the economy exceeded the share of the mining industry. The medium-term goal is to increase manufacturing exports by 1.5 times by 2025, to $24 billion, and labour productivity by 30%.

The law on industrial policy that is being drafted should focus on the challenges facing the manufacturing sector. One of them is the problem of access to raw materials. It is necessary to introduce a simple rule - the price of raw materials for the domestic industry must be affordable, and the volume must be sufficient. By the end of the year, the Government must find the best solution to this important task.

At the same time, it should be kept in mind that the resource potential of our country is not fully disclosed, the geological knowledge remains at a low level.

Investors’ access to quality geological information needs to be increased. To achieve this, an effective National Geological Service should be created on the basis of disparate subordinate organizations. This organization should not become a monopolist that decides to whom and how to give access to the subsoil. Its role is to provide comprehensive service support to investors.

The subsoil use industry needs a new impetus, especially in terms of geological exploration and integrated subsoil study. The reforms initiated under the Plan of the Nation should be brought to practical completion - an open digital database of geological information should be created, and investors should have access to it.

Mineral resources are a national treasure. Decisions on access to them through behind-the-scenes discussions in the quiet of offices should be outlawed. The relevant authorities will provide control on this issue.

The excessive presence of the state in the economy seriously hinders its growth and competitiveness, leads to corruption and illegal lobbying. State-owned enterprises still dominate many sectors and enjoy monopoly privileges.

We have started to solve these problems. As such, the Concept of Public Administration provides for measures to reduce the quasi-public sector, increase its efficiency, transparency, and accountability. The Supreme Council for Reforms has approved a new privatization plan. Now strict control is needed.

But there are other questions as well. In particular, why do individual national companies and state-owned enterprises operate at a loss, while their top leadership are not responsible for this? The Government has to solve this problem.

We also faced uncontrolled inflation growth. The National Bank and the Government turned out to be powerless in the face of inflation, referring to global trends. Excuses like these highlight the vulnerability of the national economy. Another question arises: what then is the role of our professional economists?

The main task of the National Bank and the Government is to return inflation to the 4-6% corridor.

As a result of the implementation of anti-crisis measures with a total volume of 6.3 trillion tenge (over USD 14.7 billion), an excess money supply appeared in the economy. But there are niches to which these funds do not flow. Second-tier banks do not invest in small projects, especially in rural areas.

Therefore, it is necessary to use the potential of microfinance organizations. They work in the field, they know the clients, their business, and their opportunities. The National Bank and the Financial Regulatory Agency should prepare a package of decisions on this issue.

Work to reduce the level of stressed assets is of great importance.

We decided that the state should not help bankers. In addition, frozen assets need to be returned to economic circulation, but exclusively on a market basis. This requires a legal framework. The Government, together with the Agency for Financial Regulation, should submit the legislation to Parliament by the end of the year.

Now regarding the non-monetary components of inflation. The main one is food prices.

Much has been said about the enormous agrarian potential of Kazakhstan. But in the field of the agro-industrial complex, a lot of problems have accumulated.

First of all, it is ineffective pricing and distribution of food products. Earlier I talked about the importance of creating a network of wholesale distribution centres. This task is underway.

It is important to provide access to them for small agricultural producers, including, possibly, personal subsidiary plots. Monopolization of this market is unacceptable.

It is also necessary to ensure uniform control over prices along the chain from producer to consumer. Several departments are now responsible for this work. After the next jump in prices, instead of a thoughtful analysis and taking effective measures, they begin to "point fingers at each other”. It’s time to put things in order in this regard. It is necessary to delimit areas of responsibility, define one body as the main one, and prescribe clear regulations for the interaction of other departments. The Government must make a decision on this issue within a month.

Secondly, unfavourable weather conditions exposed serious problems in livestock. We took prompt measures to stabilise the food supply situation. However, systemic action is still needed in this area.

It is necessary to expand the area of ​​cultivation of fodder crops and strengthen control over the observance of crop rotation, to make wider use of the possibilities of space monitoring and remote sensing of lands. It is also important to improve the efficiency of pasture use.

Today, farmers do not have access to grazing areas as they belong to persons with well-known surnames, who have built impregnable fortresses around their possessions. Governors cannot solve this problem for various reasons, including personal dependence.

The Government, together with authorised bodies, needs to take decisive measures to remedy the situation. Particular attention should be paid to providing the private farmsteads of villagers with pasture lands. Their legal status and support tools must be prescribed in a separate Law "On Personal Subsidiary Farms”. The Government needs to develop legislation as soon as possible.

The sphere of veterinary medicine also requires improvement, which needs a clear delineation of functions and powers between the center and the regions. The health and productivity of livestock depends on the effective work of veterinarians in the field. And this, in turn, directly affects the well-being of rural residents.

Expansion of exports of a significant part of agricultural products is impossible without a modern veterinary service. Therefore, consistent work is required in this area: digitalization of processes, automation of data collection and transmission, personnel training and salary increases. By the end of the year, the Government must take concrete measures to reform the veterinary system.

Thirdly, there is inconsistency in our agricultural policy. Politics also changes with the change of ministers. In such conditions, it is difficult for farmers to plan work for the future. It is necessary to work out a single general position. In accordance with it, it is necessary to revise and stabilise the mechanisms of subsidies.

Over the past five years alone, more than 2 trillion tenge (USD 4.7 billion) has been allocated for subsidies. Unfortunately, more than half of the criminal cases in the agro-industrial complex are related to the theft of subsidies. This situation is unacceptable.

It is necessary to strengthen the regulatory framework, introduce a system of effective planning and monitoring. The procedure for issuing subsidies should be clear and transparent. Subsidies should be fully available to small and medium-sized farms.

It is necessary to study in detail the instruments for stimulating the technological re-equipment of agriculture. About 90% of the technologies used in the agro-industrial complex are completely outdated and in need of modernization.

The agricultural subsidy policy needs to be brought in line with the industrial policy of the state. I ask the Government and the Baiterek Holding to prepare a package of proposals on these issues.

In general, the main task of the agro-industrial complex is to fully provide the country with basic food products.

This year I signed a law that finally put an end to the sale and lease of agricultural land to foreigners and companies with foreign participation.

The Land Code has been amended to encourage domestic investors to invest in the development of rural areas. These changes make it possible to involve agricultural land in a full-fledged economic turnover.

I am sure that all these decisions will have a beneficial effect on our agro-industrial sector, which will become one of the key points of growth of the national economy.

Next issue. In the modern world, one of the main factors of competitiveness is extensive digitization.

The transfer of modern digital technologies, the introduction of elements of Industry 4.0 are extremely important for Kazakhstan. We must actively work with our strategic partners abroad.

At the same time, it is important to nurture and strengthen the domestic IT sector. The country needs young, educated, motivated personnel. In line with the National Digitization Project, it is necessary to train at least 100,000 highly qualified IT specialists.

The export of services and goods of the digital industry should reach at least $500 million by 2025.

These and other challenges will require a complete digital reboot of the public sector. Here, the main and long-standing problem is the lack of effective integration of information systems of state bodies. This issue requires a radical, speedy solution.

First, a fundamentally new architecture of "digital government” has to be built. All IT initiatives of the public sector will be based exclusively on the new platform of the Kazakh state technical supervision. It will eliminate duplication, ineffective costs, and bureaucracy, 100% of public services will be available to citizens from smartphones.

Secondly, we are launching a Digital Transformation Centre, where all business processes of government agencies will be revised and converted into a digital format.

Thirdly, it is necessary to create a platform for interaction between national companies and the IT community. The digital needs and demands of the quasi-public sector should be met as much as possible by the efforts of domestic companies.

Fourth, it is necessary to gradually expand and update data transmission lines, linking them with international corridors. Modern data centres should be built that can serve neighbouring countries.

We must realise our enormous information and telecommunications potential. In the new digital age, it will have geopolitical significance. Kazakhstan should become a central digital hub in a broad part of the Eurasian region.

To solve this issue, it is necessary, of course, to strengthen the personnel plan. I ask the Prime Minister to give me his suggestions.

The situation in Afghanistan and the general growth of global tensions has put before us the task of rebooting the military-industrial sector and the Military Doctrine.

Strengthening our defence capability and increasing the responsiveness to threats should also become priorities of national importance. We must prepare for external shocks and worst-case scenarios. Modelling of risks coming from the outside has become highly relevant. It is necessary to conduct stress tests, work out scenarios, on the basis of which the action plans of the state apparatus will be developed and adjusted.

II. IMPROVING THE EFFICIENCY OF THE HEALTHCARE SYSTEM

Our proverb says, "Health is our main wealth”.

The coronavirus has become a serious challenge for the health care system. The pandemic that has gripped the world is not receding. Every day, thousands of our fellow citizens fall ill, many die.

Since the early days of the pandemic, we have taken immediate action to control the spread of the infection.

Kazakhstan is one of the few countries that has released its own vaccine against the virus. We have no doubts about the efficacy and safety of our QazVac vaccine, in which other countries are already showing interest.

We have a sufficient supply of vaccines; Kazakhs have the opportunity to choose while many nations do not have this privilege.

Mass vaccination continues in the country, but its opponents are still present in society. They not only refuse to be vaccinated, but also urge the population not to do so. Succumbing to their influence, many have become disoriented.

All these people should understand that they are responsible not only for themselves, but also for the lives of others. Therefore, people should not follow the lead of individuals campaigning against vaccination.

Humanity has experienced more than one epidemic. We must not forget that many dangerous diseases were stopped only after the advent of vaccines.

In the near future, new strains of coronavirus may appear in the world, experts predict other pandemics. We cannot simply wait out these processes. We have to learn to live and thrive in such conditions.

Therefore, it is now important to purchase booster vaccines, to speed up the purchase of vaccines registered by the World Health Organization.

It is also necessary to prepare the entire health care system for the transition to regular vaccinations.

A National Biosafety Forecasting System of the country should be established. This measure is provided for in the relevant legislation. I ask Parliament to ensure its adoption by the end of the session.

Many laboratories for sanitary and epidemiological expertise do not meet international standards. As part of the "Healthy Nation” national project, it should be envisaged to equip at least 12 laboratories with high-tech equipment. This will increase the level of compliance of our laboratories with international standards up to 90%.

The situation with diseases not related to coronavirus should not be allowed to worsen. In a pandemic, routine screenings and surgeries are postponed. Many children do not receive routine vaccinations. Of course, this state of affairs is unacceptable.

The medical field needs substantial funding. We are talking about infrastructure, personnel, drug supply.

The pharmaceutical industry requires special attention. The fight against the virus has shown that the industry has become an important factor in competitiveness and security. Therefore, it will be necessary to create a Centre for laboratory and technical testing of medical devices, accredited in accordance with all international standards.

Cooperation with global pharmaceutical corporations should be intensified. It is important to attract investors, to ensure the transfer of technologies and the latest developments. It is necessary to expand the volume and range of off-take contracts with domestic producers. The share of medicines and medical devices of domestic production must be increased from the existing 17 to 50% by 2025.

The key to health is the culture of exercise. I reiterate, it is necessary to create all conditions for mass and children's sports. Governors of the regions should ensure the phased construction of the sports infrastructure.

Overall, in connection with the results of the Tokyo Olympics, there is a need to consider the state of affairs in sports at a separate meeting.

III. QUALITY EDUCATION

Since January of this year, the salary of teachers has increased by 25%. Over the next three years, we will additionally allocate 1.2 trillion tenge (over USD 2.8 billion) for these purposes. The measures taken are bearing fruit - the average score of applicants to pedagogical specialties has grown sharply.

We will continue our policy of supporting teachers. At the same time, in the context of global changes, it is highly likely that the knowledge acquired will become outdated before the graduate enters the labour market. Therefore, the relevant ministry faces the urgent task of adapting curricula to new realities.

The results of distance learning during a pandemic indicate the insufficient efficiency of national communication networks. This led to the emergence of a large number of students who do not possess basic, elementary knowledge. Another problem has arisen, one might say, trouble: children drop out of school because they do not see the need for it.

The Government is instructed to seriously address this issue, in particular to improve the quality of information systems for remote learning formats. Our education must be accessible and inclusive.

But there are some positive news as well. This year, several Kazakh schoolchildren became winners of international Olympiads.

Such talented children need to be fully supported. We will provide them with grants for admission to universities on a non-competition basis and pay one-time cash bonuses. Teachers who taught these children should also be encouraged morally and financially.

It is fundamentally important to support children from socially vulnerable families within the framework of "universal education”. Material support measures should be supplemented with an educational project Digital Teacher.

The education system needs motivated and qualified teachers. I believe that retraining of teachers is required every three years, and not every five years, as it is now. After all, they should be the carriers of new knowledge, real enlighteners. At the same time, cases should not be allowed when teachers take courses at their own expense.

The shortage of places in schools remains an acute problem of the secondary education system and the deficit is 225,000 places. If urgent measures are not taken, then by 2025 it could reach one million places. Earlier, I gave instructions on the construction of at least 800 schools by the end of 2025. Today I set the task to bring this figure to 1,000 schools.

In addition to construction at the expense of the budget, it is necessary to involve the private sector in solving this acute problem.

A phased transition to per capita financing and full-fledged rural schools should begin.

Early vocational guidance for children is of particular importance. The younger generation should be conscious of the choice of a future profession. The Government, together with the Atameken National Chamber, needs to tackle this important task.

We will continue to implement the Free Technical and Vocational Education project.

Today, 237,000 people from among the NEET (Not in Employment, Education, or Training) youth remain unreached. Every year 50,000 applicants enter on a paid basis, 85% of them are classified as low-income. This situation needs to be corrected. It is necessary to ensure 100 percent coverage of free TVE (Technical and vocational education) for in-demand specialties.

Another opportunity for obtaining a profession should be the army. It is necessary to work out the issue of the development by conscripts of job specialties necessary in the real sector of the economy.

The task of the relevant ministry is to ensure the improvement of the quality of higher education. Universities are obliged to be responsible for the proper training of personnel.

The most important priority is the development of science. To solve the accumulated problems in this area, it is necessary to amend the legislation by the end of the year.

First of all, it is necessary to ensure a stable and decent salary for leading scientists, including it in the basic funding of science. At a meeting of the National Council of Public Trust, I instructed to introduce direct funding for research institutes involved in fundamental science. The relevant ministry should develop clear and transparent rules for the selection and funding of such scientific organizations.

Furthermore. A serious barrier to the development of basic science is that grants are limited to three years. In such a short planning horizon, it is difficult to achieve any meaningful results. Consideration should be given to increasing the period of grant funding for science to five years.

The problem of the objectivity of the decisions of the National Scientific Councils is still on the agenda. I believe that a need has arisen to introduce the institution of appeal.

Ultimately, Kazakh education and science are faced with a large-scale, urgent task - not just to keep up with new trends, but to be one step ahead, to generate trends.

IV. IMPROVEMENT OF REGIONAL POLICIES

The main principle of the "listening state" is that the state apparatus should work in the interests of citizens. This primarily concerns local authorities.

It is the governors’ offices that are called upon to interact with citizens and promptly solve their problems. However, this often does not happen. Central management occasionally has to correct decisions made in the regions or even make decisions for them.

Governors of different levels are not always capable of strong independent decisions; they look to the Centre. This is largely due to the fact that the current level of accountability of governors to citizens is insufficient. The assessment of their activities practically does not depend on the opinion of the residents of the regions themselves. Therefore, it is necessary to optimise the mechanism for evaluating the work of governors at all levels.

Independent opinion polls should be an important approach. They give an objective picture of the real attitude of the population to the quality of the work of the authorities. Citizens’ voices are heard directly through polls, not through formal reports. The Presidential Administration should prepare a package of proposals on this issue.

In regional policy, primary attention should be focused on reducing imbalances in socio-economic development. It is necessary to correctly combine the tasks specific to each region with national priorities.

As part of the National Development Plan, 25 specific tasks were identified to improve the quality of life of citizens. These are the main directions of our work. Therefore, the Government and governors will have to update the Regional Development Plans in accordance with the approved national goals.

Of course, one of the main tools for reducing imbalances is the prioritization of budget expenditures. The allocation of funds from the state budget should not depend on the "pushy power” of governors, any personal preferences, and other subjective factors.

To "reboot” the budgeting processes, it is necessary to use the per capita financing mechanism more widely; it is necessary to introduce an objective method of allocating budget limits.

It is necessary to simplify budget processes, radically reduce bureaucracy in this matter, and expand the use of digital tools for planning and budget execution. It is necessary to introduce a block budget with increased responsibility of administrators of budget programmes. The Government needs to develop a package of amendments to budget legislation and by-laws.

An extremely acute problem is the systematic overestimation of the cost of projects. This applies to both small facilities, such as kindergartens and schools, and large infrastructure projects. The current regulatory framework and practice should be radically revised as soon as possible. The Government, the Accounts Committee is instructed to submit proposals by December 1.

The next question is to increase the financial independence of the regions.

Since 2020, the corporate income tax from SMEs has been transferred to local budgets. During this period, despite the decline in economic activity, revenues to local budgets were 25% higher than the plan. This indicates the increased interest of governors in the development of local business, an increase in investment and the tax base.

The trend in this direction must continue. I ask the Government to prepare a package of relevant proposals by the end of the year.

Kazakhstan is in line with a steady trend towards urbanization. Millions of cities should become the backbone of the global competitiveness of Kazakhstan, and regional centres – points of growth for the regions. Therefore, it will be necessary to develop a Law on the Development of Agglomerations and new standards for integrated urban development.

Adherence to the "people and infrastructure” principle is essential. The focus should be on the development of promising villages. The main goal is to ensure their compliance with the System of Regional Standards. These approaches should be enshrined in the Territorial Development Plan.

27 monotowns now account for about 40% of industrial production. They are home to 1.4 million of our fellow citizens. We need substantiated decisions regarding the further functioning of monotowns. In the near future we will discuss this issue at a separate meeting.

Development of local self-government is an important priority. In the cities of central subordination and regional centres, a public participation budget has been successfully introduced. Dozens of improvement projects have been implemented in accordance with the real needs of citizens. This has been a successful experience. Now it is necessary to increase by 10 times the share of residents’ participation in the budget for improvement and housing and communal services.

To strengthen the internal connectivity of the country, it is necessary to complete all the initiated projects on transport infrastructure. As part of the state programme Nurly Zhol, a single transport network is being formed connecting the centre with the regions. Strategically important infrastructure and social projects have been implemented. The task of the governors and the Government is to launch similar Infrastructure Development Programmes for each region.

On the ground, there are long-standing issues of infrastructure modernization.

The Government, together with the Samruk-Kazyna Fund, should start implementing the following large-scale projects: the construction of a combined cycle plant at the site of Almaty Combined Heat and Power plant-2, the modernization of Combined Heat and Power plant-3 and the expansion of Combined Heat and Power plant-1, commissioning of 1000 MW of new generating capacities in the southern region, and the reconstruction of cable networks in Almaty and the Almaty region. The total investment in these projects will amount to more than one trillion tenge (over USD 2.3 billion).

Together with strategic investors in various regions of the country, we will commission about 2,400 MW of renewable energy capacities.

Much attention should be paid to environmental problems in the country, especially air quality.

In the medium term, the 10 most polluted cities need to be supplied with gas and to switch to alternative energy sources.

To improve the situation with gas supply to the western regions, implementation of three projects totalling 700 billion tenge (USD 1.6 billion) will begin this year. They include the construction of a gas processing plant at Kashagan, the construction of a looping line for the Makat-North Caucasus gas pipeline, and the modernization of the Beineu-Zhanaozen gas pipeline.

Now we come to the next important question. In the next ten years, the United Nations predicts a global water shortage. By 2030, the world's water shortage could reach 40%. Therefore, we need to improve water conservation through the latest technology and digitalization. This is a strategic task - there is no other way to prevent water shortages. The government needs to prepare specific solutions that will stimulate the introduction of water-saving technologies and effectively regulate water consumption.

To preserve the ecosystems of water bodies and the careful use of resources, we will begin the reconstruction of 120 canals. 9 new reservoirs will be built in Akmola, Almaty, West Kazakhstan, Zhambyl, Kyzylorda, Turkestan regions. We have all the necessary resources to implement this large-scale project.

To provide drinking water to the districts of the Atyrau and Mangistau regions, the Astrakhan-Mangyshlak main water pipeline will be modernised, and a new desalination plant will be built in the Kenderli village.

In general, the problem of access to drinking water has not been resolved, despite the fact that colossal funds have been allocated for this purpose for decades. Therefore, I set a task as part of the National Regional Development Project to provide 100% of cities and villages with clean drinking water within five years. This is a priority task for the Government.

There is one more question that I would like to touch upon separately. The world is moving towards greening industry and economy. Today these are no longer just words, but concrete decisions in the form of taxes, duties, and technical regulation measures. We cannot stand aside, as all this affects us directly through export, investment, and technology transfer. This is, without any exaggeration, the issue of sustainable development of Kazakhstan.

Therefore, I have set the goal of achieving carbon neutrality by 2060. It is necessary to work in this direction very pragmatically. The population and economy of our huge country are growing, and energy is needed for quality growth.

With the gradual decline of the coal era, in addition to renewables, we will have to think about sources of reliable basic energy generation. By 2030, there will be a shortage of electricity in Kazakhstan.

Global experience suggests the most optimal solution - a peaceful atom. The question is not an easy one, therefore it is necessary to approach its solution as rationally as possible, without speculation and emotions. During the year, the Government and Samruk-Kazyna should explore the possibility of developing safe and environmentally friendly nuclear energy in Kazakhstan.

This issue must also be considered from the point of view of the development of engineering, the formation of a new generation of qualified nuclear engineers.

A promising area is also the production of "green" hydrogen and hydrogen energy in general. The government is instructed to prepare proposals on this issue as well.

V. FORMATION OF AN EFFECTIVE ECOSYSTEM IN THE LABOUR MARKET

The pandemic has brought about a significant transformation of the labour market, first and foremost the rapid development of the remote work format.

A new trend is gaining momentum amid the emergence of many new professions, automation, and digitalization of most processes. In such realities, personal competitiveness can only be ensured by repeated retraining and mastering of new professions. Therefore, a law "On professional qualifications” is needed. It should regulate the issues of recognition of qualifications, stimulate employees to improve their competencies.

Total digitalization has led to new forms of employment based on online platforms. Striking examples of this are taxi drivers, couriers, and others. This area needs government assistance in terms of social and health insurance, pensions, and taxation.

Migration processes also have a great influence on our labour market. Kazakhstan is the second country in the Commonwealth of Independent States in terms of the number of received labour migrants. We need the right solutions to problems in this area. The government will have to develop a new Migration Policy Concept. It should also reflect the mechanisms for protecting the rights of our citizens working abroad.

New approaches are also required to the issues of internal labour mobility. The Government will have to reformat the current mechanism for allocating benefits to citizens moving from the south to the north of the country. In particular, benefits can be provided not only through governors’ offices, but also by reimbursing the costs of employers who independently hire workers from the southern regions.

It is necessary to actively help internal migrants who want to be engaged in independent business. It is also necessary to consider the possibility of providing them with land plots not only for the construction of houses, but also for agricultural activities, to provide wider access to government support measures.

I would like to touch upon on one more issue separately. Kazakhstan is a social state. Comprehensive assistance to citizens in difficult situations is one of our priorities. Unfortunately, paternalistic sentiments and social dependency are strengthening in society.

There are many citizens in the country who deliberately exploit state social programmes. This situation creates wrong attitudes in the public mind. As in any civilised country, they must answer before the law and society. At the same time, those who need real help remain outside the perimeter of support measures. Of course, the possibilities of our country are great, but they are not limitless.

The desire to receive unreasonable social benefits discourages a person from earning through their labour. This inappropriate lifestyle has already begun to negatively affect the value system of young people. Therefore, we need fundamental changes in the consciousness of citizens, society, and legislation. In the upcoming Social Code, all these issues need to be given close attention.

VI. POLITICAL MODERNIZATIONAND PROTECTION OF HUMAN RIGHTS

Phased political modernization is one of the main tasks of the strategic course of our state.

Over the past two years, we have managed to carry out a number of substantial transformations in this area. A new law has been adopted, which enshrined the principle of notifying of the plan to hold a rally; the threshold for political parties to enter the Mazhilis has been reduced to 5% of votes received; and the option "against all” has been added to ballots.

These and other steps were widely supported by the society. They strengthen our vector for sustainable democratic development, qualitatively change the political system, and promote wider involvement of citizens in government.

But there is no room for complacency. Our goal is to further improve the efficiency of the state, transparency, and competitiveness of the political process. Therefore, political reforms will continue.

For the consistent strengthening of statehood, we will carry out all the transformations gradually, taking into account our specifics. This is the only true way to build a strong, just, and progressive state. Our citizens fully share this approach.

The most important step was the introduction of direct election of rural mayors. This is a fundamental moment of the political reform proposed by me in last year's Address. This decision directly affects the interests of the villagers, that is, more than 40% of Kazakhs. We are on the right track. And already in 2024, citizens will have the opportunity to elect district mayors in a pilot mode.

An important factor in the further modernization of local self-government is the development of civic culture.

The Presidential Administration will need to develop an effective mechanism to support civil initiatives in rural areas. It is necessary to adapt the system of grant financing to the requests of rural NGOs, to introduce a simplified procedure for their receipt. This will give a good impetus for social activity in the countryside.

The introduction of a 30 percent quota for women and youth in the electoral lists encouraged the parties to work more actively, to rejuvenate their ranks, and to look for new faces. At the same time, the quota was not properly reflected in the final composition of the members of parliament. Therefore, in order to obtain a full-fledged effect, it is necessary to legislate the norm on the mandatory consideration of this quota when distributing mandates of members of parliament.

We are building an inclusive society. So far, in our country, people with special needs are poorly represented in social and political life. I propose to expand the list of quota categories of citizens. In addition to women and youth, a quota for people with special needs will be established.

As you know, I always highlight the field of human rights protection as a separate issue. Over the past two years, we have made significant progress in this direction.

In January of this year, I signed the Law on the Ratification of the Second Optional Protocol to the International Covenant on Civil and Political Rights, aimed at abolishing the death penalty. Now we have to harmonise the norms of the Criminal Code with the provisions of the Second Optional Protocol. I hope the corresponding law will be adopted by the end of the year.

At the beginning of the summer, in accordance with my decree, the Government approved the Comprehensive Plan for the Protection of Human Rights. This important document lays down a long-term institutional framework for further improvement of the human rights protection system in Kazakhstan.

After the adoption of the Comprehensive Plan, active work began on ensuring gender equality. In this regard, it is necessary to ensure maximum support for the economic and political positions of women in society. The Presidential Administration is responsible for this work.

Changes should also be made to the Concept of Family and Gender Policy.

Substantial changes are taking place in the law enforcement system. Administrative justice has been functioning since July 1, 2021. This institute is established a new type of a relationship between the state apparatus and citizens. Modern formats are being introduced to courts; redundant court procedures are being reduced. At the legislative level, the interpretation of all contradictions and ambiguities of the legislation is provided in favour of citizens and business.

With the introduction of the three-tier model, the protection of participants in criminal proceedings has increased. Since the beginning of this year, the unjustified involvement of more than 2,000 citizens in the law enforcement system has been prevented.

The efficiency of prosecutorial supervision has increased - 98% of baseless decisions were cancelled within three days. It is necessary to gradually expand the competence of prosecutors in the preparation of indictments. This will increase their responsibility and strengthen mechanisms for the legal assessment of the results of the investigation.

The internal affairs bodies are freed from a number of non-core functions. The status of district inspectors has been increased, and they are endowed with additional powers in the field of crime prevention.

In a number of regions, a police service model has been launched in a pilot mode. The next step is scaling it up. The success of this work largely depends on the involvement of local authorities, which must understand the essence of the reforms and provide assistance to the police.

At the same time, the practical issues of combating crime must not be overlooked. Just indignation of citizens is causing an increase in fraud. The Prosecutor General’s Office will have to develop a set of measures to combat fraud and financial pyramids.

The prevention and suppression of sexual crimes against children, especially those left without parental care, should be under special control.

The spread of drugs, including synthetic drugs, poses a terrible threat to the well-being of future generations. Law enforcement agencies are instructed to create a powerful barrier against the spread of this infection among our citizens, especially among young people.

An effective fight against corruption should be continued. By the end of the year, the specialised agency needs to submit for approval a strategic document that defines the programme of our actions for the medium term. At the same time, special attention should be paid to the eradication of "everyday corruption”.

While defending the rights of citizens, we must not forget about the rights of human rights defenders, including lawyers. It is necessary to ensure the safety of their activities, to suppress illegal actions that impede their work.

All of the above measures are an integral part of our strategic course aimed at improving the political system and protecting human rights. 

VII. CONSOLIDATION AS A MAIN FACTOR FOR FURTHER PROGRESS

Kazakhstan is entering a completely new era, bringing fundamental changes in all spheres of life. In the context of global instability and a multitude of new challenges, we need to strengthen our values ​​and form a clear image of the future.

Our main principle "unity in diversity” is unshakable. Therefore, the harmonious development of interethnic relations has always been and will be one of the main directions of the state policy of Kazakhstan. And this is not just rhetoric, this approach is supported by the absolute majority of Kazakhs. For our citizens, consent, tolerance is life itself, a living reality, conditioned by the linkages of cultures and languages.

We, according to the Constitution, are a single nation, and this is our unconditional strength. While supporting pluralism of opinions, we will at the same time strictly suppress any forms of radicalism, we will not allow encroachment on our state sovereignty and territorial integrity.

We must protect the unity and harmony in society as the apple of our eye. It is essential that all citizens realise the importance of harmonious interethnic and interfaith relations.

We have always been immune to disunity. And we will not tolerate any discrimination on the basis of language, nationality, or race, insulting and humiliating people, we will prosecute this according to the law. Such irresponsible steps, contrary to the Constitution, run counter to the interests of our country.

The development of the Kazakh language is one of the key priorities of state policy. We have achieved substantial results in this.

The Kazakh language is becoming the language of education and science, culture, and office work. It is consistently expanding the scope of its application. This is a natural phenomenon. Therefore, there is no reason to talk about the disadvantaged position of the Kazakh language.

In accordance with our Constitution, the state language is Kazakh. The Russian language has the status of an official language. Its use, according to our legislation, cannot be hindered.

Every citizen who connects his future with our country should make every effort to learn the state language. This is one of the manifestations of true patriotism.

The fact that our youth speaks different languages, including Russian, is an advantage for us.

The border between Kazakhstan and Russia is the longest in the world, and Russian is one of the six official languages ​​of the United Nations. Therefore, this issue must be approached from the point of view of common sense.

We need to develop a culture of civilised dialogue and mutual respect. A large role in this is assigned to the Assembly of the People of Kazakhstan. Each of us should feel responsible for our Homeland, for all our citizens.

Effective use of the country's historical heritage and cultural potential is a crucial element in consolidating society and strengthening national identity. In this regard, Kazakhstan has ample opportunities, also for positioning itself advantageously in the international arena.

At the same time, our policy on this issue should be revised. Right now, for some reason, the state most often finances projects only of certain figures who are keen to absorb budgets.

Young and talented sculptors, painters, theatre actors, musicians, writers who master new genre formats and constantly experiment, while surviving at the expense of patrons of the arts, remain "underground”. Yet Kazakh culture is gaining global traction thanks to them.

Therefore, by the end of the year, the Government, together with experts, need to present a plan of practical measures aimed at promoting a new culture and its talented representatives.

We should consider establishing a Creative Industry Support Fund.

The intelligentsia at all times played a special role in our country. They have always led our nation forward, guided the youth, fought against ignorance, and was engaged in enlightenment. These qualities are at the heart of our national code, and we must not lose it.

This is the age of the Internet. A huge flow of negative information poisons the consciousness of the modern generation. False meanings and short-lived values ​​are becoming widespread. This is a very dangerous trend.

At such moments, the active position of the intelligentsia is especially important. Its credibility is determined not by awards, but by real deeds.

The main task is to instil universal human values ​​in young people. In our society, it is necessary to cultivate such qualities as patriotism, passion for knowledge, hard work, solidarity, and responsibility.

Therefore, I urge our intellectuals and creative people not to stay away from solving problems that affect the future of the country.

It is important for us to develop traditions of dialogue and civic participation, to cultivate progressive values that are deeply ​rooted in our internal solidarity and unity.

Only together can we strengthen our unique country identity. As the First President of Kazakhstan Nursultan Nazarbayev has repeatedly emphasized, interethnic and interfaith harmony is our invaluable asset.

For the sake of the future of our state, we are obliged to preserve and strengthen internal stability and national unity.

Dear compatriots!

These are the key priorities of our immediate agenda.

The main wealth of Kazakhstan is its people.

Ensuring the well-being of the people is a key goal of my work as President.

Therefore, today I would like to voice a number of additional initiatives aimed primarily at improving the welfare of Kazakh citizens.

FIRST INITIATIVE

I believe that there is a need to revise the minimum wage level. On the one hand, it is the most important macro indicator, on the other, it is an indicator clear to everyone.

The minimum wage has not increased since 2018. The global coronavirus crisis has increased the pressure on the incomes of the population. In addition, in terms of the minimum wage, Kazakhstan is inferior to a number of CIS countries. Therefore, I have decided to increase from January 1, 2022, the minimum wage from the current 42,500 tenge (USD 100) to 60,000 tenge (USD 140).

This measure will directly affect more than one million people, and indirectly – all the workers. It will reduce the "shadow” salary fund, the size of which today reaches 30% or maybe 40% of the declared.

An increase in the minimum wage will have a positive economic effect in the form of an increase in domestic consumption. This, according to experts, will lead to an increase in GDP by 1.5%.

At the same time, it is necessary to move away from the inappropriate use of the minimum wage as an indicator in tax, social and other spheres.

I ask the Government and the Parliament to ensure that the necessary amendments to the legislation are made by the end of this year with entry into force next January.

SECOND INITIATIVE

More than 6.5 million people in Kazakhstan are hired workers. You know this well. The main source of income for them is wages.

At the same time, over the past ten years, the growth of the wage fund has lagged behind the growth of profit for business owners by almost 60%. In this regard, the Government will develop "soft” measures to stimulate businesses to increase the wages of their employees.

Benefits through regulated procurement, as well as preferential access to government support, will be provided for employers who raise wages of employees.

THIRD INITIATIVE                                                      

The burden on the wage fund needs to be made clear and simple. Micro and small businesses are particularly affected by this. I propose to introduce a single payment from the wage fund with a reduction of the total burden from 34 percent to 25 percent. This will stimulate businesses to bring thousands of employees out of the shadows, who can become full-fledged participants in the pension, social and health insurance systems.

Inconsistencies should not be allowed on this issue. Appropriate payment systems need to be prepared to avoid disruptions and business costs. The system should be operational starting January 1, 2023.

FOURTH INITIATIVE

Since 2020, the salaries of more than 600,000 public sector workers including teachers, doctors and social workers have been increased.

However, this measure did not affect other public sector workers, including employees of cultural institutions, archivists, librarians, technical workers, gamekeepers, drivers of vehicles in public companies, and others.

Therefore, from 2022 to 2025, the state will annually increase the salaries of these categories of public sector workers by 20% on average. This initiative will directly affect 600,000 of our citizens.

FIFTH INITIATIVE

The housing issue will always be one of the most important for people.

Programmes such as "Baspana Hit” and "7-20-25” will end soon. At the same time, market mortgage rates are still high and are far from affordable for all Kazakhs. In this regard, a comprehensive housing programme will be developed. Its administrator will be the Otbasy Bank, which is being transformed into a national development institution. The bank is faced with the task of ensuring the accounting and distribution of housing among citizens on the basis of the "one window” principle.

I have already noted the positive effect of the initiative for the early use of pension savings. It also pushed people to demand payment from employers transparently. To maintain this trend, I consider it necessary to allow a transfer of a part of pension savings above the sufficiency threshold to an account with Otbasy Bank for the subsequent purchase of housing. This will also stimulate the habit of accumulating funds and managing them wisely.

Dear members of parliament!

During the first session, the Parliament of the VII convocation adopted 63 laws.

As a result of the well-coordinated work of both Chambers, a legislative foundation was created for the implementation of the systemic transformations and reforms carried out in the country.

The regular session of the Parliament has started today. We have many important tasks before us. All legislations must undergo a high-quality and detailed study. You should always be persistent in upholding the interests of the people.

Each decision must be made, taking into account not only the needs of society, but also the capabilities of the state.

I wish you success in this responsible work!

Dear compatriots!

Our course is unshakable, the goal is clear.

We know what needs to be done to achieve it. We consistently transform our plans into reality, and we will complete all endeavours. We are ready for any challenges and difficulties.

As the Head of State, I will do my best for the good of the people.

Today, in order to solve the tasks that we are facing, it is necessary to consolidate the state and the entire society. Otherwise, tomorrow it might be too late.

Anyone who doubts the course of the Head of State, does not cope with the work, perhaps wants to somehow sit out, or evades the implementation of the President’s instructions - it seems to me that they should leave their posts.

We are now entering a decisive stage in our development. The state apparatus is obliged to function as a single mechanism. Only in this case will we ensure the achievement of the set goals.

The cohesion of the nation is the main factor in the success of our country. When we are one, we are invincible.

It is not for nothing that the people say: "Where there is agreement, there is happiness.”

Our strength lies in unity! Together we will work for the good of our country!

May our sacred Homeland be eternal!

KAZAKHSTAN IN A NEW REALITY: TIME FOR ACTION

The work of the next session of Parliament begins at a challenging time.

Our country continues to confront the pandemic that threatens the entire global community.

We have joined all our efforts to protect the life and health of our citizens.

At this critical time, our friendly people have rallied together as one.

The fight against coronavirus was conducted thanks to the essential features of our people. It showed the importance of mutual assistance, compassion and readiness to jointly confront an unprecedented disaster.

I express my sincere gratitude to doctors, law enforcement officials, military personnel, volunteers, entrepreneurs, conscientious citizens and all concerned for the steadfastness and responsibility they have demonstrated. You have been a vivid example of resilience and great commitment. I consider this a manifestation of genuine patriotism.

In such difficult conditions, our main task is to maintain social and economic stability, employment and income for the population.

Two packages of emergency anti-crisis measures have been adopted. More than 4.5 million Kazakhs, who temporarily lost their income, have received assistance in the amount of 42,500 tenge ($1.1billion). More than 450 billion tenge ($1.1 billion) have been allocated for these purposes. In neighbouring states and even in other developed countries this kind of assistance has not been provided.

Over a million people have received food and household packages.

On the initiative of the Leader of the Nation, the Chairman of the Nur Otan party, more than 550,000 families were covered by the one-off financial support from the Birgemiz Fund.

The pandemic has become a stress test for all states. They are undergoing many difficulties in combatting the virus. One moment the situation stabilises, and the next moment new outbreaks appear.

The government has learned from its mistakes, and managed to reorganise, literally on the run.

The main thing is that we did not hide anything from our citizens, we speak openly about our losses. We tell the truth no matter how bitter these losses may be. This distinguishes Kazakhstan from some other states.

The improvement in the epidemiological situation, however, is no reason for complacency. The fight goes on. According to the forecast of the World Health Organisation, it will take at least two years to defeat the pandemic.

The coming months will be devoted to increased mobilisation. We must be ready for this.

We must act not when a problem appears, but take measures in advance, and work thoughtfully.

All decisions must be based on evidence-based forecasting.

The Government is introducing targeted restrictions and an adaptive quarantine mechanism. A Comprehensive Programme to fight the pandemic will be developed.

All the State’s obligations in the social sphere and in terms of supporting the economy will be fulfilled. For these purposes, 1 trillion tenge ($2.4 billion) has been allocated from the National Fund.

Indexation of social payments will continue. By 2023, it is planned to allocate over 1 trillion ($2.4 billion) tenge to this end.

There is no doubt that we will overcome the current difficulties. But we must not forget about the long-term development of our state in the new geopolitical circumstances around us.

Today, the world has plunged into the deepest recession in a century. The restoration of the global economy, according to experts, will take at least 5 years.

Meanwhile, the competitiveness of future leading states emerges in these times of crises and fundamental change. Kazakhstan must find its decent place in the new world.

Thanks to the far-sighted policy of our First President – Leader of the Nation, Nursultan Nazarbayev, a solid foundation has been created for economic development, and the country has earned its name on the world stage.

In the context of a new global order being forged, it is essential we give substantial impetus to reforms, the quintessence of which is the Plan of the Nation and the Five Institutional Reforms.

It is our duty to ensure a decent life for our citizens, protect their rights, strengthen the rule of law, and reinforce the fight against corruption.

So, what is our plan of action?

A NEW MODEL OF GOVERNMENT

Reforms in this area should be carried out systematically.

Let us start by changing the approach to public administration, human resources policy, the decision-making system and the responsibility for their implementation.

In the context of a pandemic and crisis, the current public administration system is operating at full speed. Solving operational tasks takes time and resources. But in no case should you lose sight of the distant horizon. I have therefore decided to create an Agency for Strategic Planning and Reform, which will report directly to the President.

Such a body did exist in the past and indeed successfully carried out the tasks it was assigned. Now it will once again become the central link in the entire system of state planning. The reforms developed by the Agency must be specific, realistic and, most importantly, mandatory for all government agencies.

A Senior Presidential Council for Reform is being established, the decisions of which will become obligatory. In the interests of greater integrity in assessing the rapidly changing situation, the Statistics Committee is being transferred to the Agency.

It has so evolved that in the system of state planning, the state apparatus acts as the main planner, executor and evaluator. This is not right.

The state planning system should ensure the mobilisation of all human resources and involve the private sector and society as full partners at all stages: planning, execution, evaluation.

We must stop drawing up state programmes with a large number of indicators. It is time to move on to a new format, one of concise national projects, understandable to all citizens. In terms of goal-setting, the result should hold primacy over the process.

Carrying out such radical reform will require revision of the activities of the entire state apparatus. Synergy in the planning and implementation of reforms takes on particular significance here.

It will require a rebooting of the entire system of the civil service. The pandemic and the transfer of most government officials to working remotely showed that the state apparatus can and should be reduced.

I instruct that there should be an acceleration in the timing of the reduction of the state apparatus and quasi-public sector empolyees. This year they should be cut by 10%, and next year by another 15%. Thus, we will solve the problem of reducing officials by 25% in 2021. Depending on the results and taking into account digitalisation, we will then decide on further reduction necessity.

The funds thus saved will increase the salaries of the remaining employees. Low-paid public service is too expensive for society. Misunderstanding of this issue leads to negative selection, loss of competencies, initiative and, most importantly, to corruption. Therefore, from July 1, 2021, a factor-point scale should be introduced. This will lead to increased responsibility and motivation of civil servants.

We are in dire need of new personnel - professionals with fresh views and initiatives. The civil service cannot be allowed to turn into an exclusive caste.

At the same time, it is important to ensure continuity and institutional memory without letting professional and ethical demands fall. Here I would like to touch upon the question of the institution of executive secretaries.

With the introduction of this institution, it was assumed that their unchanging nature would release ministers from administrative and personnel work and ensure the stability of the apparatus. In fact, however, this did not happen. Moreover, there are frequent cases of lack of mutual understanding between ministers and executive secretaries. As a result, the common cause suffers.

Only one person should bear an overall responsibility - a minister appointed by the President. It follows therefore that the institution of executive secretaries should be abolished, their responsibilities being assigned to the heads of staff in the various the ministries.

To implement the above proposals, I am instructing the adoption of a package of amendments to civil service legislation by the end of the year.

Law-making issues should also be reviewed.

During the quarantine, the sluggishness of the legal system gave rise to a "bottleneck" effect. I had to introduce a state of emergency and adopt the so-called "Emergency Decree". But such measures cannot be a systemic response to crisis situations.

The main problem lies in the excessive legislative regulation of the executive branch. We make demands of ministers and governors, but their powers are limited by detailed legal and regulatory norms. This slows down the work not only of the state apparatus, but also overburdens Parliament. Its Chambers are forced to work on detailed rules, which should become the competence of executive bodies.

In a rapidly changing world, slow decision-making becomes a threat to national security. Therefore, within the framework of the Concept of Legal Policy, in changing the legislation, a balance should be ensured between the various levels of legal regulation. We must not hesitate in doing this.

Improving the corporate governance of quasi-state companies is another important problem to be addressed.

There are dozens of national companies and tens of thousands of state-owned enterprises operating in the country. At the same time, large quasi-state organisations are joint stock companies, the purpose of which is to ensure profit. But if part of the state functions is transferred to them, then their activities should be of a purely service, auxiliary, nature for citizens and the economy.

In many joint stock companies a conceptual confusion has occurred. Corporate governance can become an additional bureaucratic procedure.

The reform of the entire quasi-public sector must be continued. Some decisions will be announced today, the rest will be submitted to me in the form of Government proposals.

ECONOMIC DEVELOPMENT IN THE NEW REALITY

The long oil super-cycle appears to be over. We should be prepared for a completely new world market environment.

The creation of a truly diversified, technological economy is not just a necessity for us, but a scenario where there is no other alternative.

At the same time, the economy must work to improve the well-being of the people. We must find a positive answer to the growing public demand for a fairer distribution of benefits arising from the growth of national income and for effective social "lifts".

The new economic course of our country should therefore be based on seven basic principles:

1. Equitable distribution of benefits and responsibilities.

2. The leading role of private enterprise.

3. Fair competition, opening markets for a new generation of entrepreneurs.

4. Increased productivity, complexity and technological efficiency of the economy.

5. Development of human capital, investment in a new type of education.

6. A "Green" economy, environmental protection.

7. Adoption of well-grounded decisions by the state and responsibility to society for them.

In doing so, we must base ourselves on our competitive advantages and real capabilities.

* * *

The most important task facing Kazakhstan is the full deployment of its industrial potential.

Despite successes in this area, we have not yet managed to realise the full potential of the domestic market; about two-thirds of processed goods are imported from abroad.

To ensure the strategic self-sufficiency of the national economy, we must urgently start the development of new procession stages in ferrous and non-ferrous metallurgy, petrochemicals, automotive industry and mechanical engineering, the production of construction materials, food products and other sectors.

The development of a qualitatively new national industry requires a modernised legal framework.

Regulatory and support issues for industry are contained in many disparate pieces of legislation. However, they fail to define cross-cutting goals: there is no link between policies and measures.

There are many laws that govern specific sectors or industries. For example, the Law "On Electricity" or the Law "On Transport".

By the end of the year, a unified Law "On Industrial Policy" should be developed, which will define the basic principles, goals and objectives of the manufacturing industry.

To support industry we also need to improve measures with concrete content. We do not have enough consistency, there is no holistic approach. Because of this, we are dispersing resources on too many projects.

We will continue of course to maintain broad "horizontal” measures in support the industry. At the same time, the Government will have to identify strategically important production facilities, key export priorities, and significantly expand the toolkit of support measures.

For strategic projects, a package provision of grants in kind, concessional financing, partial guarantees and export support mechanisms should be envisaged. Some of the capital expenditure of investors can be recovered by offsetting these against tax liabilities.

It is important to ensure guaranteed procurement from the state, quasi-state sectors and subsoil users.

The main novelty will be the stability of legislative conditions for the entire duration of the project.

It goes without saying that these measures are not exhaustive. The specific level of support will depend on the volume of capital investment and the priority of the project.

In order to fix the agreements between the state and investors, a new instrument will be introduced - a strategic investment agreement.

This initiative should be implemented by the end of the year through elaborating a draft law on economic recovery. The pool of projects that will be included in strategic agreements will be drawn up by the Government by April 2021.

The issue of full access of processing enterprises to domestic raw materials at affordable prices requires a systemic solution.

I instruct the Government to develop regulatory mechanisms by the end of the year to ensure full supply of Kazakh manufacturing industries with raw materials.

Regulated purchasing has a direct effect on industrial development. Their volume is about 15 trillion tenge ($35.7 billion), or a fifth of GDP. The task of the Government and governors is to maximise this potential.

On my instructions, a new law was adopted that improved the procurement system of government agencies. However, procurement by national companies is still non-transparent and inaccessible to ordinary entrepreneurs.

I am instructing that a unified law covering all purchases of the quasi-public sector be developed by the end of the year. All regulated procurement should be carried out as transparent as possible and exclusively through the Single Procurement Window.

Any improvement in legislation will be useless unless there is an appropriate law enforcement practice.

It is not uncommon for cheap and low-quality imported goods to be passed off as domestic produce, which go on to win procurement bids. The register of domestic manufacturers and industrial certificates has not yet become a real barrier for counterfeit manufacturers.

By the end of the year, the Government, together with the Atameken National Chamber, shall submit specific proposals to increase the domestic content.

Our common task in the sector is to increase production in the manufacturing industry by at least 1.5 times over the next five years.

However, significant progress in industrialisation cannot be achieved through industrial policy measures alone. It is imperative that monetary, fiscal and other key policies should not isolated from the needs of the real sector. I will discuss this further.

* * *

A competitive economy cannot be created without a developed agriculture.

In this area, such key problems as limited access to land, lack of available long-term financing and a shortage of professional personnel still remain unresolved.

Measures are urgently needed to develop warehouse and transport infrastructure, in order to avoid being limited by the increasing production of raw materials.

In our country, we can establish 7 large ecosystems for the production and processing of meat, fruits, vegetables, sugar, cereals, oilseeds, dairy products. The fishing industry deserves close attention.

Large projects have a key role to play as the centerpiece of value creation.

Within the framework of vertical cooperation, we should also make effective use of the potential of personal subsidiary plots.

A private household can provide an opportunity for millions of villagers to receive income. We need to involve them in the creation of regional food hubs.

We need to be mindful of potential and horizontal cooperation. Without it, there will be no breakthrough in the development of the agro-industrial complex.

Scattered personal subsidiary plots are at present on the brink of survival. There can be no talk of high productivity, product quality, or regularity of commodity deliveries. Hence our low-level competitiveness and the dominance of imports.

With cooperation, all rights to land and assets are retained and at the same time the efforts of many farms in the purchase of raw materials and  production and sale of products can be consolidated.

It is no secret that hard rural labour is extremely underavalued, and retailers derive the main profit.

Therefore, within the framework of subsidies and tax remissions programmes, a package of measures should be prepared to stimulate cooperation in the countryside.

Another important question relates to the fact that at the end of next year, the moratorium on certain norms of the Land Code on the Use of Agricultural Lands will come to an end.

Our land will not be sold to foreigners. But the Government has to develop other ways of involving agricultural land as a real driving force of economic growth. Investment in the agricultural sector is critical.

The systemic problems in the agro-industrial complex are lack of professional personnel, as well as the low level of development of agricultural science. Here decisive measures are needed from the executive branch.

Technologically outdated irrigation systems remain a serious barrier. Water loss reaches 40%. For water-scarce Kazakhstan, such indicators are unacceptable.

We need to ensure legal regulation in this area, as well as develop economic incentives for the introduction of modern technologies and innovations.

The current state programme for the development of the agro-industrial complex will be completed next year. I instruct the Government, together with business, to start developing a new National Project for the Development of the Agro-Industrial Complex over a five-year period.

Our main tasks are:

- self-sufficiency in socially significant food products;

- stable increase in the income of millions of rural residents;

- increase in labour productivity by a factor of 2.5;

- doubling the export of agricultural produce.

* * *

The development of the transport and logistics industry remains an urgent issue.

The implementation of the first stage of the "Nurly Zhol” programme has been successful, enabling the capital of the country to connect up with the regions according to the "sunray” principle. A new infrastructure framework for the transport system has been formed, the country's integration into global transport corridors has been ensured and the historical status of Kazakhstan as a connecting link between Asia and Europe has been restored.

However, competition in this area is very high. Alternative projects have appeared in the Central Asian region that could reduce the transit potential of Kazakhstan.

The second stage of "Nurly Zhol" should therefore be aimed at consolidating the leading role of the transport and transit sector of our country.

Kazakhstan's competitiveness should grow due to breakthrough infrastructure projects, attracting new countries and companies, upgrading the level of service and the speed of transit routes.

The task is to reconstruct and load road services with over 24,000 kilometres of roads by 2025, that is, all roads in the country.

* * *

* * *

Small and medium-sized businesses are going through difficult times. In fact, they are bearing the brunt of the pandemic.

To overcome the negative economic consequences, tax breaks were provided to more than 700,000 entrepreneurs, payments have been deferred and an opportunity has been given to refinance loans on favourable terms. However, the situation remains difficult.

As an additional aid to small and medium-sized businesses, I am instructing to provide state subsidies for interest rates of up to 6% per annum on all existing loans to SMEs in the affected sectors of the economy. The subsidy will cover a period of 12 months, starting from the moment of the announcement of the state of emergency, that is, from March 16 of this year.

The National Bank is implementing a special working capital replenishment programme for SMEs in the most affected sectors. Previously it was assumed that it would terminate its operation this year.

In the current crisis conditions, I instruct that this programme be extended until the end of 2021, and that its coverage be expanded. For these purposes, an additional 200 billion tenge ($476 million) should be provided, bringing the total volume of the programme to 800 billion ($1.9 billion) tenge.

I also instruct the suspension until the end of the year of charging rent from SMEs for real estate objects owned by government agencies and the quasi-public sector.

In the current conditions, maintaining employment and the population’s income is an absolute priority. It is therefore important over this period to reduce the burden on the wages fund for SMEs in the most affected industries. For this category of business, I instruct that deductions from wages to extra-budgetary funds be suspended for the period until the end of the year.

The next question is business climate. This area needs reform, since the regulatory system remains cumbersome, even punitive.

The basic principles of regulatory policy need to be changed. State regulation can only be justified by protecting the health of citizens and the environment.

Both on a legislative level and in practice, the predominance of essence over form should be fixed: common sense and content should prevail over strict legal norms. The three-year moratorium on inspections provides a good opportunity to introduce such regulation from scratch.

We should start with the most corrupt spheres: architectural and construction activities, sanitary and epidemiological supervision, veterinary medicine, certification and others. I am instructing that a new regulatory framework for small and medium-sized businesses be developed within the next year.

I repeat: any unlawful interference of state structures in entrepreneurial activity, obstruction of the work of businessmen, should be perceived as the gravest crime against the state. In the event of illegal pressure on them by officials, businesses should not hesitate to contact the prosecutor's offices.

Supporting entrepreneurship also means paying special attention to medium-sized businesses, which contain the key components of market success. Such companies should be focused not only on the domestic but also on foreign markets. Their export support should be strengthened.

I instruct the Government to launch an export acceleration programme aimed at medium-sized non-resource enterprises in order to provide targeted support from the concept stage right through to implementation.

The main result of work on the development of SMEs should be an increase by 2025 of its share in GDP to 35%, and the number of employees - to 4 million people.

* * *

Reconfiguring cross-cutting government policies will be a critical factor in the success of our work.

A new approach to monetary policy needs to be taken.

We are faced with a crisis of confidence in the tenge on the part of national and international investors. The low level of economic diversification and high volatility of the exchange rate restrict the inflow of foreign investment, especially in non-resource sectors.

Problems of regulating the foreign exchange market and capital movements also play a negative role. A significant part of export earnings does not even reach the domestic foreign-exchange market, it remains abroad. The Government and the National Bank should motivate exporters to sell foreign-exchange earnings.

The stimulating role of monetary policy needs to be strengthened as well. Today, it is largely constrained by fears of an overflow of funds to the foreign-exchange market. Banks are in no hurry to lend to the real economy, since they have a good opportunity of earning money on the foreign-exchange market and on the instruments of the National Bank.

I am instructing that measures be taken to reorient this liquidity towards lending to businesses and thus putting a stop to currency speculation. The powers and functionality of the Financial Markets Regulatory Agency and the National Bank are sufficient to solve this problem. I expect a significant improvement in the situation by the end of the year.

The imbalance between lending to the consumer segment and business also remains a negative factor in the financial sector. Reckless, sometimes irresponsible, lending to consumers, which is fraught with serious social consequences, should be regulated. Lack of financial literacy on the part of citizens should not be a reason for imposing credit products on them.

This year, on my instruction, the legislative and regulatory framework was changed and the requirements for assessing borrowers’ solvency were significantly tightened. Microfinance organisations, pawnshops and other financial institutions that previously issued consumer loans without control came under state regulation. But risks remain. Especially during the crisis and falling incomes.

The Financial Regulatory Agency and the National Bank need to take additional regulatory measures in terms of increasing the responsibility of credit institutions, as well as differentiating and lowering marginal interest rates on loans.

We must in addition increase confidence in monetary policy. It has therefore been decided to create a Monetary Policy Committee within the structure of the National Bank. It will also include independent members.

Since we are talking about the importance of a fair redistribution of national income, then a uniform tax policy should be developed, one which is understandable to all citizens of the country.

Today, about 40 different taxes and fees are levied, administration is complicated and it has moreover a pronounced compulsory character.

I instruct the Government, together with the National Chamber of Atameken, with the involvement of the deputy corps, to revise the Tax Code and by-laws. The goal is to radically simplify the fulfilment of tax obligations and minimise the number of taxes and payments.

We should also think about the differentiation of tax rates as an additional lever for diversifying the economy and replenishing the budget.

In the SME sector, I consider it possible to empower entrepreneurs working in the sectors most affected by the pandemic to pay retail sales tax.

International taxation rules require special attention. They should do maximum to stimulate the influx of foreign investment and the reinvestment of profits in Kazakhstan.

At the same time, reliable control over transfer pricing and capital withdrawal from the country is needed. According to expert estimates, about a third of the country's GDP is in the shadow economy - a huge potential for increasing budget revenues.

Digitalisation of the tax and customs spheres will seriously contribute to combatting the "shadow economy” in all its manifestations. Moreover, corruption is fuelled by the shadow economy.

Therefore, I instruct the Economic Investigation Service of the Ministry of Finance to largely reorient its activities to fighting the shadow economy.

We have to work out a new budgetary policy that is lean and responsible. Only priority areas and projects should be financed. The period of monetary excesses has sunk into oblivion. It is necessary to develop a set of key budget coefficients and rules.

To give a complete picture, it is necessary to introduce the so-called "extended budget", in which, in addition to the state budget, extra-budgetary funds should be taken into account.

The new budget planning system should support national priorities and become a subordinate part of the national planning system.

Government agencies should be given budgetary independence. This will enable swift resolution of problems and move away from collective irresponsibility and red tape.

Demand, however, should also be tightened. To this end, I am instructing that the functionality of the Accounts Committee be strengthened. In order to avoid conflicts of interest, a separate procedure for its financing should be envisaged through the specialised committees of Parliament, and not through the Republican Budget Commission under the Government.

Competition policy is becoming increasingly important. It is necessary to seriously diversify the competitive field, create truly equal opportunities for every entrepreneur and stop monopolising markets.

It is no secret that many market niches are densely "concreted" by far from market methods. Entrepreneurs cannot enter the market, and if they do manage to enter, they are forced to obey private monopolists.

Anti-competitive situations persist everywhere: the market for coal, electricity, oil products, communications, pharmaceuticals, airport services, housing and communal services and logistics. The list goes on.

At regional level, the administrative resource is often the main component of commercial success.

It is essential that we deal with the so-called "monopoly players" - public and private. It is important to accept clear rules: in what cases and in what form they are created, where the profit is spent. Strong public monitoring is needed.

We need to put things in order with exchange trading, and, first of all, in the field of oil products, electricity and coal. Imitation of transparency on the part of large players is unacceptable.

A strong and independent body for the protection and development of competition is therefore required. I am instructing the creation of an Agency for the Protection and Development of Competition which will report directly to the President.

Denationalisation of the economy plays an important role in the development of equal competition.

The central government agencies, governors’ offices and holdings still own about 7,000 non-social facilities.

But the notion that the state is not the best business executive is already an axiom.

The Government needs to adopt a new privatisation plan. The state should cover only social aspects, as well as aspects related to ensuring the security and functioning of the state.

In the quasi-public sector, work should continue to reduce administrative and management personnel, unproductive costs and redundant subsidiaries.

I would also like to touch upon the role of the Baiterek and KazAgro holdings. They have made a significant contribution to the industrialisation and development of the agro-industrial complex and have in addition streamlined the activities of previously scattered financial institutions.

Now, however, we find ourselves in a different reality that requires a change in institutional structure. I consider it expedient to unite these two organisations and create a single development institution with essentially increased financial capabilities.

At the same time, the number of portfolio companies should be reduced by half, and the number of staff should also be reduced by 50%.

It is also necessary to be more active in our approach to the promotion of the economic interests of our state in the international arena, to defend national interests in a pragmatic and professional manner.

We need to maximise for the good of the country the use of extensive opportunities associated with Kazakhstan's participation in the Eurasian Economic Union, as well as in the "Belt and Road" project.

Work on attracting investments and promoting the export of Kazakh goods and services in the newly changing world is fast becoming a priority for the Government.

It is also necessary to effectively use the potential of the Astana International Financial Centre. This platform should become a key tool for attracting direct and portfolio investments.

* * *

Concluding this topic, I want to say that people will not be blessed by the abstract growth of GDP; they need permanent jobs, good roads, hospitals and schools and quality food.

Economic reforms are justified and supported only when they increase the income of a country’s citizens and ensure higher standards of living. We must always keep this in mind.

BALANCED DEVELOPMENT OF THE TERRITORY

It is essential that we substantially restructure our approaches to the country's territorial and spatial development.

Our regions differ in economic and industrial specialisation, living standards, and the quality of public services. Territorial development should therefore be conducted, mindful of the competitive advantages of different regions.

The industrial potential of the south and southeast of the country should be more actively developed. It is here that half of the state's labour resources are concentrated and high-quality jobs are critically important for the development of these regions.

In addition to traditional support for the agricultural sector, substantial attention should be paid to the thorough processing of agricultural products, the development of the food and textile industries, the production of building materials and other industrial sectors.

Industrialisation is important not only for solving social issues and raising the level of income; it also forms a new mentality in citizens, adapting them to the modern world. And this is one of the basic factors determining the nation's competitiveness.

A new vision of the development of regions where major metallurgical enterprises operate is required. These are, first and foremost, the East Kazakhstan, Karagandy and Pavlodar regions. These regions could become centres of high-tech, science-intensive industries and technical services.

The western regions of Kazakhstan should become the centre of attraction for investments in the construction of petrochemical complexes, the creation of new production cycles of high added value. The fact that we still do not have petro-chemistry and high-value gas processing is, "does not fit into any door" (is senseless), as the saying goes.

It is especially important to give "a second lease of life" to our single-industry towns. Here, great responsibility is assigned to city-forming enterprises. This task will not be achieved without their active participation.

Almost 30 million people live in the border regions of Kazakhstan and Russia, where there are several million-plus cities. Close interaction with Russian authorities and organisations to promote Kazakh goods and attract investment is a very important factor in the development of Kazakh border regions.

The problem of fully realising the potential of villages remains strategically important. The implementation of the "The Village is the Cradle of the Country" programme, aimed at solving the most acute problems in the countryside, will continue.

A new approach to regional development will help manage the process of urbanisation, thus ensuring the phasing of "migration waves" and avoidance of over-population and social tension in large cities.

THE SOCIAL WELL-BEING OF CITIZENS IS A TOP PRIORITY

The social well-being of citizens is inextricably linked, first of all, with the housing issue.

In market conditions, the affordability of housing for citizens is based on the availability of income and the ability to resolve this problem independently. As part of my instructions, the issue of the population being able to use a part of their pension savings was devised. This is especially relevant now.

Already in 2021, 700,000 Unified Accumulative Pension Fund contributors will be able to use part of their savings for the purchase of housing, medical treatment or for transferring it to the management of financial companies. I instruct the Government, together with the National Bank, to adopt all the necessary regulations and carry out preparatory work by the end of this year.

This reform will also become an effective tool for "whitewashing” labour relations, creating incentives for participation in the pension system.

Effective social support will be provided to citizens with insufficient income to resolve housing issues independently. 

This year the programme "5-10-25" came into operation. 390 billion tenge ($928 million) was allocated. The implementation of this programme must be constantly monitored by the Government.

The housing problems of those on the waiting list need to be resolved more quickly. Currently local governments are building rental housing for them on their own budget. Due to budgetary and procurement procedures, this is a lengthy process. The time has come to make changes to this scheme.

Funds should be directed not only to construction, but also to subsidising rent. In the first year, the coverage of this measure will increase 10-fold, more than 100,000 families will receive specific assistance. I have instructed Otbasy Bank to streamline this work, which is being created on the basis of Zhilstroysberbank. The bank's management bears personal responsibility in this matter.

In terms of the construction of individual housing, the Nurly Zher programme is being implemented at a slow pace. This is mainly due to the low rates of development of territories, since, according to the legislation, land can be provided only if there is water and electricity supply.

A house is not only housing; it can become an economic aid for low-income citizens, especially for large families. The Government and local governing bodies are obliged to accelerate the provision of communications for plots for social private houses, including through public-private partnerships.

I ask members of Parliament to take the solution of this important problem "under their wing". Is it the case that we cannot provide affordable housing for rural workers, force employers to build rented accommodation by subsidising costs and thus ultimately improve the quality of life of our many fellow citizens?!

* * *

The family and the demographic situation is a matter of serious concern.

Unfortunately, every sixth family in Kazakhstan cannot have children. Opinion polls show that about 20% of Kazakhs consider this a substantial reason for divorce.

The UN forecasts for the growth of the population of Kazakhstan in comparison with our neighbours in Central Asia are disappointing. I instruct the Government to launch a special "Longing for a Baby” programme starting 2021. We need to increase the number of quotas for IVF programmes to 7,000, that is, seven-fold.

Special attention should be paid to issues relative to the safety and protection of children's rights.

We have significantly increased criminal liability for sexual abuses against minors. But the problem remains acute.

Such criminals deserve more severe punishment, without the right to pardon and early release. They should be kept in maximum security facilities.

Each such case should be under the special control of the Office of the Prosecutor. Inaction or negligence on the part of social or law enforcement agencies will be severely punished.

Overall, we need a new paradigm of social policy.

The social security sphere is regulated by 17 laws and dozens of bylaws. This has led to the complexity and fragmentation of regulation. The result is a blurring of the responsibility of the state and a lack of understanding by citizens of their own rights. I instruct the Government to start developing a Social Code for the country.

Measures should be taken to digitalise welfare payments. To this end, there is a need to introduce a digital citizen’s "social wallet", as well as create an appropriate distribution system.

Our society will have to change its perception regarding the value of labour, and teach the young generation to value work, not to separate it into the prestigious and non-prestigious. 

Unfortunately, young people want to get rich quick, hence their passion for lotteries and betting. Inappropriate anecdotes about immigrant workers and a derogatory attitude towards their work have become popular in everyday life.

During these troubling months, we saw first-hand the enduring value of work. A huge effort has been made by junior medical personnel, utility and service workers. This is a real feat of labour. The people who carried it out will not be left without the attention of the State.