Translation Similarities.ipynb

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   "source": [
    "from sklearn.feature_extraction.text import TfidfVectorizer"
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   "source": [
    "vect = TfidfVectorizer(min_df=1)"
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   "source": [
    "tfidf = vect.fit_transform([\"Dear people of Kazakhstan! On the eve of a new era, I am addressing the Message to the people of Kazakhstan.\", \n",
    "                             \"Dear fellow people of Kazakhstan! As we approach the new era, I am addressing the people of Kazakhstan.\",\n",
    "                             \"Dear People of Kazakhstan! I am addressing the people of Kazakhstan as we approach the new era.\"])"
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       "array([[ 1.        ,  0.7143453 ,  0.75273432],\n",
       "       [ 0.7143453 ,  1.        ,  0.94900057],\n",
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    "(tfidf * tfidf.T).A"
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    "google = \"Dear people of Kazakhstan! On the eve of a new era, I am addressing the Message to the people of Kazakhstan. The country has passed its 25-year development stage with honor. We are proud of our country. In celebration of the 25th anniversary of Independence, we noted the achievements and successes of Kazakhstan. They are well known and highly appreciated by the world community. Since early 2017, Kazakhstan has become a non-permanent member of the UN Security Council. This year in Astana the international exhibition EXPO-2017 will be held. We are the first among the countries of the CIS and Central Asia to hold such a significant event of a global scale. In Almaty, sports competitions started in the Universiade-2017, in which more than 2,000 athletes and members of delegations from 57 countries take part. All this is the result of the right political path and high authority of Kazakhstan in the international arena. Kazakhstan should become one of the 30 developed countries of the world by 2050. We are confidently moving towards this goal. In the conditions of increasing competition and lack of stability in the world, the urgency of the Strategy-2050, proposed by me to the people in 2012, is growing. We were able to foresee the forthcoming difficulties in time. Thanks to the economic policy of Nurly Jol and the Plan of the Nation 100 concrete steps, we are worthy of going through the initial stage of a complex global transformation. Only in 2014-2016 to support the economy we additionally allocated 1.7 trillion tenge. All this provided an opportunity for economic growth and business support, creating over 200,000 new jobs. As a result, in 2016 the growth of the domestic gross output was ensured by 1%. This is especially important in the current difficult conditions. The situation in the world is changing dynamically. This is a new global reality, and we must accept it. Dear compatriots! Only those people who manage to get ahead of the future and resolutely meet the challenges, and not stand and wait, will be winners. In the world the next, already the Fourth industrial revolution has begun. The widespread digitalization of the economy will lead to the disappearance of entire industries and the creation of fundamentally new ones. The great changes taking place before our eyes are both a historic challenge and a chance for the nation. Today I set the task of ensuring the implementation of the Third Modernization of Kazakhstan. It is necessary to create a new model of economic growth, which will ensure the global competitiveness of the country. Currently, many countries are trying to solve the same problem. I am confident that the recipes for the transition to a new growth model will be different everywhere. We should proceed from our strengths and not lose the potential that we created together in 25 years of our Independence. We all remember the First Modernization of Kazakhstan. We remember how they began their journey a quarter of a century ago on the ruins of the USSR. Then our generation from the foundation created a new state that was not on the world map. There was a transition from a planned economy to a market economy. For me it is fundamentally important that together we kept the country from shocks, civil war and economic disruption. Kazakhstan emerged from that period with minimal losses and the largest acquisitions. The second modernization began with the adoption of Strategy-2030 and the creation of a new capital of Astana. Its results are undeniable. The country escaped from the zone of economic backwardness and entered the list of 50 competitive economies of the world. Two successful upgrades have given us invaluable experience. Now we must bravely step forward and begin the Third Modernization. This modernization is not a plan to combat current global challenges, but a reliable bridge to the future, towards the goals of Strategy-2050. It will be conducted on the basis of the Plan of the Nation 100 concrete steps. I see its five main priorities. They are designed to ensure the growth rate of the economy above the world average and steady progress in the number of 30 advanced countries.   The first priority is the accelerated technological modernization of the economy. We must cultivate new industries that are created using digital technologies. This is an important complex task. It is necessary to develop such promising industries as 3D-printing, online trading, mobile banking, digital services, including healthcare and education, and others. These industries have already changed the structure of the economies of developed countries and have given new quality to traditional industries. In this regard, I instruct the Government to develop and adopt a separate program Digital Kazakhstan. We need to adapt our legislation to new realities. It is also important to ensure the development of communications, ubiquitous access to fiber-optic infrastructure. The development of the digital industry will provide an impetus to all other industries. Therefore, the government should keep the issue of developing the IT sector under special control. An important condition for the formation of new industries is the support of innovations and their rapid introduction into production. I instruct the Government to create an international technopark of IT startups on the basis of one of the EXPO-2017 facilities. It should become a platform for Attract entrepreneurs and investors from around the world. This requires an appropriate infrastructure and favorable conditions, including tax benefits, simplified visa and labor regimes. We also need to develop our scientific and innovative potential on the basis of universities, Nazarbayev University and PIT Alatau. The second complex problem. In parallel with the creation of new industries, we should give impetus to the development of traditional basic industries. This industry, agribusiness, transport and logistics, construction sector and others. First. It is important to significantly increase labor productivity. The main factor here should be the widespread introduction of elements of the Fourth Industrial Revolution. This automation, robotization, artificial intelligence, the exchange of large data and others. I instruct the Government, together with business, to develop a set of measures for the technological re-equipment of basic industries until 2025. The second. It is necessary to continue industrialization with an emphasis on the development of competitive export industries in priority sectors. The Government is already facing the task of increasing the non-oil export by half by 2025. In order to intensify the work in this direction, it is necessary to concentrate the instruments of export development and promotion in one department. Support for exporters should be provided on the principle of one window, including in the regions. I entrust the creation of an Export Policy Council under the Government. It should include representatives of the business community. Until September 1 of this year, the Government together with the akims and business should develop a unified export strategy. Kazakhstan needs to retain leadership in attracting foreign investment. The International Financial Center Astana should play an important role in attracting financial resources to the country's economy. We should be integrated into global chains of production and marketing of goods and services. This should be done primarily through the involvement of multinational companies. It is necessary to effectively implement a joint investment program with China to establish production facilities in Kazakhstan. Agreements with the Chinese side have been achieved. Objects are marked. We need to work specifically. It will be modern production with the creation of about 20,000 new jobs for Kazakhstanis. To date, the implementation of six projects, and two projects have already been launched. One of them is a plant for the large-assembly assembly of hybrid and all-electric JAC cars. I entrust to work out the issue of further development of the production of electric vehicles with export orientation, providing for the creation of the necessary infrastructure. In general, Kazakhstan should have its own investment strategy. The government needs to prepare it before September 1 this year. It is necessary to ensure the protection and promotion of national economic interests in the framework of international cooperation. This concerns, first of all, the work within the EAEC, the SCO, the interface with the Economic belt of the Silk Road. For this purpose, the work of economic diplomacy should be restructured and intensified. Third. The country's mining, metallurgical and oil and gas complexes must remain strategic in order to sustain economic growth. In conditions of slowing global demand, it is necessary to enter new markets and expand the geography of supply. Much attention should be paid to expanding the mineral and raw materials base. An active geological exploration is necessary. The further development of these sectors must be rigidly linked with the deepening of complex processing of raw materials. I instruct the end of the year to ensure the adoption of a new Code on Subsoil and the introduction of the necessary amendments to tax legislation. Fourth. The agrarian sector should become the new driver of the economy. The agro-industrial complex of Kazakhstan has a promising future. In many respects, we can be one of the world's largest producers of agricultural exports. Especially for the production of organic food. The brand made in Kazakhstan should become the standard of such products. At the same time, we must become the so-called bread basket for the production of grain throughout the Eurasian continent. We need to ensure the transition from raw materials production to the production of quality, processed products. Only then can we compete in international markets. In this regard, the Government and akims are instructed to: First, it is necessary to revise the principles of subsidies and gradually switch to product insurance; Secondly, within 5 years it is necessary to create all conditions for uniting more than 500,000 households and small farmers into cooperatives; Thirdly, it is necessary to raise the level of processing products, create an effective system of storage, transportation and sale of goods; Fourth, it is necessary to increase the level of labor productivity and reduce production costs; Fifthly, we must increase the efficiency of land use. Within 5 years, it is necessary to increase the area of ​​irrigated land by 40%, thereby increasing to 2 million hectares; Sixthly, it is necessary to increase the volume of investments in agricultural research that will be in demand in production. I instruct you to ensure an increase in the export of food products by 40% by 2021 through the diversification of agricultural production. These tasks should be implemented within the framework of the new state program for the development of the agro-industrial complex. Fifth. The development of a new Eurasian logistics infrastructure is one of the important priorities. Already invested significant investment. Now it is necessary to receive from them an economic return. I instruct the Government to ensure, by 2020, an increase in the annual volume of transit traffic: - 7 times for goods transported by containers - up to 2 million containers; - 4 times for passenger transportation by air transport - up to 1.6 million transit passengers. It is necessary to increase revenues from transit traffic by 5.5 times - up to $ 4 billion per year. In 2015, I initiated the infrastructure development program Nurly Jol. Over the past two years, the program has fully justified itself. In the current year, 4,400 kilometers of highways of national importance will be covered by construction and reconstruction works. Of these, until the end of the year will be introduced at least 600 kilometers with a phased introduction of pay. For full disclosure of the transport and transit potential of the country, coordination with neighboring countries is needed. It is necessary to ensure freedom of transit of goods, creation and modernization of transport corridors. Particular attention should be given to managing transport infrastructure, improving the level of service and eliminating administrative barriers. In connection with the increase in traffic volumes along the Trans-Caspian Corridor, it is necessary to start implementing the second phase of the construction of the Kuryk port - a road crossing. The sixth. The processes of urbanization necessitate the development of the construction sector. It should become a full-fledged driver of the domestic economy. It is important not to forget that by investing in the construction of roads, houses and other infrastructure, we determine the physical and technological appearance of our cities for many years to come. Therefore, it is important to ensure the transfer of the latest technologies both in construction and in the production of construction materials. For this, we now have good opportunities. On my behalf this year, the realization of the housing program Nurly Gere begins. It is aimed at solving the most important task - to provide housing to 1.5 million families in the next 15 years. The program includes integrated measures to develop the housing market. This is cheaper for developers of bank loans by providing State subsidies through JSC Damu. Subsidizing of mortgage loans for the population issued by banks through the JSC Kazakhstan Mortgage Company will be made. The construction of credit housing will be continued by the akimats for the investors of Zhilstroysberbank. This will be re-used previously allocated funds for the revolver principle. For socially vulnerable layers of the population, akimats will continue to develop rental housing without the right to buy out. For a mass housing construction akims should allocate appropriate land plots. We will strive to ensure that the construction of individual houses in cities is carried out in a single architectural style. For this, the state will help with the necessary infrastructure. The government together with akims should take measures to develop the transport communication of large cities with the nearest settlements. The third complex task is the modernization of the labor market. With the introduction of new technologies in traditional industries, labor resources will be released. At the same time, the creation and development of new industries should become an additional source of employment and growth of real incomes of citizens. I instruct the Government and akims to create conditions for a controlled flow of workers to other spheres. Our large enterprises need to develop together with akimats appropriate road maps. They need to provide for joint investment in the retraining of retired workers and their further employment. It is necessary to provide support for the processes of labor mobility from labor-surplus regions, and also from villages to cities. The government should reform employment centers and create a single online platform for all vacant jobs and all localities.  The second priority is the cardinal improvement and expansion of the business environment. One of our strategic goals is to ensure by 2050 the contribution of small and medium-sized businesses in the country's GDP of at least 50%. Ambitious, but achievable goal. To solve it at this stage, the following is necessary. First. On my instructions, the Government has since this year launched the Program for Productive Employment and the Development of Mass Entrepreneurship. Now, citizens of Kazakhstan in the countryside or in the city can get a micro loan of up to KZT 16 million for their business. It is important to expand the geography of microcredit, actively use tools of guarantee and service support for entrepreneurs. These measures need to accompany the organization of business training and financial literacy. We need to further develop tools to support mass entrepreneurship. Each region of Kazakhstan should offer a set of measures for the development of mass, including family entrepreneurship. The number of new jobs created, as before, is one of the key criteria for assessing the effectiveness of the Government and akims. The second. The government together with the National Chamber of Entrepreneurs Atameken must take measures to reduce all types of costs for business. Especially it concerns the cost of services in energy, transport and logistics, as well as in housing and communal services. The processes of rendering public services should be maximally optimized. It is necessary to shorten the time and the list of documents, exclude duplicate procedures. At the same time, it is necessary to translate their rendering completely into an electronic format, without the obligatory physical presence. In addition, the existing regulatory burden on business is incompatible with the task of creating a new growth model. Before the Government and akims I set the task of developing systemic measures to deregulate the business by July 1 of this year. It is necessary to introduce the best standards and practices of developed countries. It is especially important to carry out this work at the regional level. Akims together with the Government need to develop detailed plans to improve the conditions for doing business in the regions on the basis of the World Bank rating. It is necessary to introduce a rating of regions and cities in the country for ease of doing business. For the best, we will establish a special award. We will hand it out once a year, on the Day of Industrialization. Third. A new impetus to economic growth should be given by the reduction of the state's share in the economy to 15% in GDP, to the level of the OECD countries. Earlier, a list of 800 enterprises for privatization until 2020 was determined. The work here is under way. I instruct the Government to expedite and complete the privatization of enterprises from this list by the end of 2018. We must also speed up the preparation and output of our largest companies for an IPO. The introduction of the Yellow Pages principles allowed reducing the types of activity for the state in the economy by 47% (from 652 to 346). The next step is to transfer to the private sector until 2020 or liquidate all enterprises and organizations of state property that do not meet these principles. And this is several thousand enterprises. Practice, when we created legal entities for each program or instruction, should be terminated. It is necessary to ensure transparency and effectiveness of privatization. We also need to review the role of state holdings. I instruct the Government to ensure a qualitative transformation of the holding Samruk-Kazyna. It is necessary to conduct a complete audit and optimization of both managerial and production business processes. As a result, it should become highly efficient, compact and professional. Quality Management and corporate governance need to be tightened to the international level. It is necessary to clearly define what to leave behind the state, in what important sectors and with what degree of participation. The state needs to leave natural monopolies and implement strategically important projects, including those involving TNCs. These projects should have a multiplier effect. The Baiterek and KazAgro holdings should also be reorganized. They should be operators for the implementation of state development programs. At the same time, their functions need to be optimized. All that can be done by the private sector must be transferred to the business. They should also engage in funding from non-state sources for the implementation of programs. Fourth. The large potential for the development of entrepreneurship is provided by the expansion of public-private partnership. It's about transferring a number of government services to business. We already have good results on their involvement in preschool education. If in the previous 3 years the state built 189 kindergartens for 40,000 places, then the private sector opened more than 1,300 for 100,000 places. Most private gardens are open in South Kazakhstan (397), Almaty (221), Kyzylorda (181) regions. For me, the example of PPP in this sector is fundamentally important. It shows how the state and business jointly solve one of the most important national tasks - to fully cover children of 3-6 years of preschool education by 2020. The development of PPP depends on the specific and professional work of the akims. To attract private capital, it is necessary to use all possible types and forms of PPP: trust management of state property, service contracts and others. At the same time, it is necessary to simplify and speed up all the coordination procedures as much as possible, especially with regard to small projects. PPP should be the main mechanism for the development of infrastructure, including social infrastructure. For the modernization of housing and communal services it is necessary to transfer them to management or a concession with possible further privatization. The government will have enough time to stand still. We need to step up in this direction. Fifth. It is important not to allow price and tariff collusion. I instruct the Government, together with the Atameken Scientific and Production Enterprise, to audit all legislation in order to identify rules that hinder competition. The third priority is macroeconomic stability. The key task here is to restore the stimulating role of monetary policy and attract private capital to finance the economy. First. Today, the National Bank faces an important task to develop an inflation targeting regime. It is necessary to achieve a gradual reduction in the level of inflation to 3-4% in the medium term. The second. We need a reset of the country's financial sector. I instruct the National Bank to work out a set of measures to improve the banking sector. It is necessary to speed up the work on clearing the balance sheets of banks from bad loans and, if necessary, ensure their capitalization by shareholders. The National Bank needs to be given more rights for operational control over the state of banks. He must move from a formalized approach to risk-oriented to take action against banks, without waiting for a formal breach on their part. It is also necessary to strengthen the responsibility of audit companies, ensure transparency of shareholders and, in general, improve corporate governance. All this must be fixed at the legislative level. In order to solve the problems of shortage of money in the economy and high interest rates on loans, I instruct the National Bank and the Government to take a set of measures to ensure affordable medium- and long-term funding in tenge. The National Bank should be responsible not only for inflation, but also together with the Government for economic growth. Third. Further development of the stock market. Privatization should give impetus to its development. It is necessary to place shares of Samruk-Kazyna fund companies on it, as I mentioned above. We need to further expand the opportunities for the population to invest their savings primarily in various types of securities. At the end of 2016, we completed the legalization campaign. Over 140 thousand citizens of our country took part in it. In total, 5.7 trillion tenge was legalized, out of them in the form of money - 4.1 trillion tenge. The task of the Government is that these funds work for the economy, including through participation in privatization. At the same time, it is also necessary to work out the issues of subsidizing bond issues of private Kazakhstani enterprises. I instruct the Government, together with the National Bank, to take measures aimed at activating the domestic stock market. Another key task is to bring fiscal policy to new economic realities. First. It is necessary to radically improve the efficiency of budget expenditures. In 2017, we fully provided the necessary government development programs. It is necessary to check the effectiveness of the use of funds by ministries and departments. It is necessary to start with the ministries of labor and social protection of the population, health, education and science, which account for more than 40% of the republican budget. As a result, report to me. It is necessary to redistribute funds from inefficient programs to programs that ensure the implementation of the tasks of the Third Modernization. In addition, you need Simplify the budgetary procedures for more rapid and effective delivery of funds to the real economy. We need to continue the policy of fiscal decentralization. In previous years, a large number of functions and powers were transferred from the central to the local level. Now they need to be backed up with sufficient financial independence. At the same time, it is important not to allow concentration of expenditure powers at the regional level. You should transfer them further to the district and rural levels. The akims should solve issues of regional and local significance, and the Government should concentrate on state-wide issues. The second. It is necessary to be more rational about using the resources of the National Fund. The size of the guaranteed transfer from the National Fund should be phased down to 2 trillion tenge by 2020. The tax policy should be aimed at stimulating the exit of business from the shadow and expanding the tax base in the non-primary sector. It is important to optimize the existing tax incentives. It is necessary to review the special tax regimes in a new light on the threshold of universal declarations. The mechanisms of tax administration require improvement. First of all, this concerns the levying of value-added tax. Third. The government needs to build a system for monitoring and controlling external and internal borrowings of the quasi-public sector and to establish order here. The fourth priority is to improve the quality of human capital. First. First of all, the role of the education system must change. Our task is to make education the central link of a new model of economic growth. Curricula should be aimed at developing the abilities of critical thinking and the skills of self-searching information. Along with this, great attention should be paid to the formation of IT knowledge, financial literacy and the upbringing of the patriotism of young people. It is necessary to reduce the gap in the quality of education between urban and rural schools. I instruct the Government to submit relevant proposals. On the issue of phased transition to trilingual education. The Kazakh language will retain its dominant position. Much attention will be paid to its further development. At the same time, today the English language is the language of new technologies, new industries, a new economy. Currently, 90% of the information is created in the world in English. Every two years its volume is doubled. Without mastering English, Kazakhstan will not achieve national progress. Starting in 2019, training in some subjects in 10-11 grades will take place in English. It is necessary to carefully consider this issue and make a reasonable decision on it. The level of schools and teachers in cities and villages varies significantly. The problem of the shortage of qualified teachers is also urgent. Therefore, considering all these aspects, it is necessary to introduce the English language in stages. I instruct you to submit the relevant proposals. From this year, on my initiative, the project Free Vocational Education for All begins. First of all, free education should cover unemployed and self-employed youth, as well as people of working age who do not have professional education. We need to give impetus to the development of the system of vocational education for training specialists in new industries within the framework of the designated economy. To this end, it is necessary to update professional standards in accordance with the requirements of the labor market and advanced world experience in training at work. Along with this, special attention will be paid to the quality of the higher education system. It is necessary to strengthen control and requirements with respect to the staff of higher education institutions, their level of material and technical support and educational programs. The second. Along with the education system, the health care system must also change. From July 1 of this year, the system of compulsory social health insurance, based on the joint responsibility of the state, employers and citizens, will be introduced. The effectiveness of this system is proved by world practice. Participants in the medical insurance system will be provided with a wide range of medical services. Participation in it of socially vulnerable layers of the population will be supported by the state. The government needs to ensure the necessary informatization of health care. To develop competition, private medical organizations should be provided with equal conditions in the OSMS system. I instruct the Government and akims to conduct a wide-scale awareness-raising work. It is also necessary to legislatively introduce price regulation for all medicines. Third. In the sphere of social security. On my instructions, from July 1, 2017, pensions for 2.1 million pensioners will be raised to 20% of the level of 2016. In addition, from July 1, 2018, the appointment of a basic pension will be carried out according to a new methodology. Its size will depend on the length of participation in the pension system. All these measures in 2018 will provide an increase of 1.8 times the new size of the basic pension in comparison with 2017. Annually, about 400 thousand children are born in the country, which is almost double the level of 1999. Such a good trend should continue to be maintained. On my instructions, from July 1, 2017, the amount of a one-time birth grant will be increased by 20%. It is also necessary to revise the living wage. It should correspond to real consumer spending of Kazakhstan people. This will allow starting January 1, 2018 to increase for 3 million people the amount of basic pensions, benefits for the disabled, families that have lost their bread-winners, targeted assistance and benefits for educating disabled children. Since January 1, 2018, it is necessary to raise the threshold of targeted social assistance from 40 to 50% of the subsistence level and to introduce its new format. At the same time, all those who can work should receive support only if they participate in the employment program. The fifth priority is institutional transformation, security and the fight against corruption. First. In the framework of the Third modernization, the Government needs to ensure work on the implementation of the best practices and recommendations of the OECD. The second. We carry out reforms aimed at protecting private property, the rule of law and ensuring the equality of all before the law. This work must be continued. I instruct the Government, together with the Atameken and the civil society, to audit all legislation in order to strengthen the protection of property rights. It is also necessary to humanize the administrative and criminal legislation. Administrative fines must be fair and proportionate to the committed offense. It is necessary to carry out further work to reduce sanctions for violations in the business sphere. It is necessary to decriminalize economic structures with a low degree of public danger. It is necessary to increase the credibility of the judicial system. It is important to exclude any undue influence on the activities of judges. Third. The state of security becomes the yardstick of a strong and capable state. In modern conditions, mankind has faced the growth of terrorism. The key issues here are the fight against the financing of destructive forces and relations with foreign terrorist organizations. It is necessary to work to prevent the propaganda of religious extremism, including on the Internet and social networks. It is necessary to form Society zero tolerance for any actions related to radical manifestations, especially in the sphere of religious relations. In the places of deprivation of liberty, purposeful work of theological rehabilitation services with convicted persons should be organized. It is necessary to take additional steps for the spiritual and moral upbringing of the younger generation. It is necessary to actively involve non-governmental sector and religious associations in this activity. All these measures should be taken into account in the State Program on Counteracting Religious Extremism and Terrorism for the period 2017-2020, developed on my behalf. The fight against cybercrime is becoming increasingly important. I instruct the Government and the National Security Committee to take measures to create the CyberSpace of Kazakhstan system. Fourth. We have taken significant steps to reduce the level of corruption in the country. At the same time, the main focus is on combating the consequences of corruption. It is necessary to strengthen efforts to identify and eliminate the causes and prerequisites for corruption. One of the key issues is improving the scope of procurement. I instruct the Government to introduce a single system of public procurement on the principle of centralized service. In the quasi-public sector, the sphere of natural monopolies and subsoil use, it is also necessary to radically revise the procurement approach. Much of the fight against corruption will depend on the active participation of the whole society. With the development of social networks and other media resources, general rejection should become a powerful tool in countering corruption. Dear people of Kazakhstan! Through this Message, I wanted to convey to every citizen my vision of the directions of development in the new reality. I instruct the Government to develop a Strategic Development Plan until 2025 on the Third Modernization of the country, entitled National Technological Initiative of Kazakhstan. We have no choice but to adequately accept the challenge of the times and solve the tasks of further modernization of the country. I believe that our great people will take full advantage of the unique historical chance. Dear friends! Kazakhstan is a young multinational, confident in its future, dynamically developing state! We have passed the 25-year path of becoming. In the next 25 years, we are expecting even higher levels. Having collected a unique rich experience in the creation of the state, we entered a new stage. I am sure that no matter what difficulties we face, we will overcome them. Our main force is unity. We will turn Kazakhstan into an even more prosperous country for our descendants!\""
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    "paid = \"Dear fellow people of Kazakhstan! As we approach the new era, I am addressing the people of Kazakhstan. The country has completed its 25-year development stage with honor. We are proud of our country. As part of the festivities on occasion of the 25th anniversary of Independence, we have highlighted Kazakhstan’s progress and achievements. They are well known and highly appreciated by the world community. Since the beginning of 2017, Kazakhstan has become a non-permanent member of the UN Security Council. EXPO-2017 international exhibition will be held in Astana this year. We are the first among the CIS countries and Central Asia to hold such an important global event. Sports events have started in Almaty within the Universiade-2017 with the participation of more than 2,000 athletes and delegates from 57 countries. All of the above is the result of a correct political path and high authority of Kazakhstan in the international arena. Kazakhstan is to join the world’s top 30 developed countries by 2050. We march confidently towards this goal. The relevance of the Strategy-2050 proposed by me to the people in 2012 is increasing in the context of the growing competition and the lack of stability in the world. We have managed to foresee the forthcoming hardships in advance. Thanks to the Nurly Zhol Economic Policy and the 100 Specific Steps Nation’s Plan we are going through the initial stage of a complex global transformation with dignity. Over the period of 2014-2016 alone, additional KZT 1.7 trillion has been allocated to support the economy. All of the above measures enabled economic growth and business support, as well as created more than 200 thousand new jobs. As a result, we have ensured 1% growth of the gross domestic product in 2016. This is particularly important under the current difficult circumstances. The global situation is changing rapidly. This is a new global reality, and we have to accept it. Dear compatriots! Only those nations that manage to get ahead of the future and decisively meet the challenges, without standing and waiting, will be the winners. The Fourth Industrial Revolution has started in the world. Universal economic digitalization will lead to the disappearance of entire industries and creation of fundamentally new ones. The great changes that we are witnessing are both a historical challenge and an opportunity for the nation. Today I am setting an objective of ensuring the implementation of Kazakhstan’s third modernization. It is necessary to create a new model of economic growth that will provide the country's global competitiveness. Currently, many countries are trying to solve the same problem. I am sure that recipes of transition to the new growth model will be different in various places. We should proceed from our strengths and should not lose our opportunities that we have created together over 25 years of our Independence. All of us remember the 1st Modernization of Kazakhstan. We have a memory of starting our way a quarter century ago on the ruins of the Soviet Union. Back then, our generation created a new state that had not been on the world map before. We have made a transition from a planned economy to the market-based one. It is crucial for me that we have in concert managed to hold the country from the turmoil of internal conflicts and economic collapse. Kazakhstan came out of that period with minimal losses and the largest acquisitions. The 2nd Modernization began with the adopting of the Strategy-2030 and creating a new capital city of Astana. The results are undeniable. The country broke away from the economic lag zone and joined the world’s 50 most competitive economies. Two successful modernization processes have given us an invaluable experience. Now we need to step boldly forward and start the 3rd Modernization. This Modernization is not a plan of combatting the current global challenges, but a reliable bridge to the future, towards accomplishing the objectives set in the Strategy-2050. It will be implemented based on the 100 Specific Steps Nation’s Plan. I see its five key priorities. They are designed to ensure economic growth above the world average, as well as steady progress towards accession the top 30 countries.  The First Priority is the accelerated technological modernization of the economy. We should foster new industries created with the use of digital technologies. This is a far-reaching crosscutting objective. It is critical to foster such promising industries as 3D printing, online commerce, mobile banking, digital services, including health and education services, and others. These sectors have changed the economic structure of the developed countries and have given a new dimension to the legacy industries. In this regard, I charge the Government to prepare and adopt a separate Digital Kazakhstan program. It is necessary to adapt our legislation to the new realities. It is also important to ensure development of communications and provide universal access to the fiber-optic infrastructure. The digital industry development will give impetus to the other sectors. Therefore, the Government should vigorously follow up on IT development. An important condition of developing the new industries is to support innovation and ensure fast-track manufacturing application. I entrust the Government with establishing an international TechnoPark for IT startups based on one of the EXPO-2017 facilities. It is to become a platform for promoting entrepreneurs and investors from around the world to Kazakhstan. This requires appropriate infrastructure and the enabling environment, including tax remissions, simplified visa and labor regimes. We also need to build our research and innovative capacity based on our universities, Nazarbayev University, and Alatau Innovation Park. The 2nd crosscutting objective. In parallel with creating new industries, we should give impetus to the development of key conventional industries. These are the manufacturing industry, agriculture, transport and logistics, construction and other sectors. First, it is important to significantly boost productivity. The widespread implementation of the elements of the 4th Industrial Revolution should be the key factor. These are the automation, robotic application, artificial intelligence, big data exchange and others. I entrust the Government, together with the business sector, with the developing of a package of measures on technological re-equipment of the key industries until 2025. Second, there is a need for further industrialization with an emphasis on the development of competitive export industries in the priority sectors. The Government is already handling the task of doubling the non-oil exports by 2025. The stepping-up of work in this area requires concentration of the export development and promotion tools within one department. Exporters need to provide support for the single window principle, including in the regions. I entrust the Government with the creating of its Export Policy Council. It should include business community representatives. By September 1 of this year, the Government, together with local governors (akims) and businesses, needs to develop the concerted export strategy. Kazakhstan needs to keep its leading position in the promotion of foreign investment. Astana International Financial Center should play an important role in the promotion of financial resources into the national economy. It is critical to fit into the global chains of production and distribution of goods and services. This should be done primarily by attracting multinational companies. It is necessary to implement effectively a joint investment program with China to establish production facilities in Kazakhstan. We have come to terms with our Chinese counterparts. The facilities have been identified already. Now we need to do specific work. These will be modern production facilities creating around 20 thousand new jobs for Kazakhstan. So far, we have started the implementation of six projects, and two more projects have already been launched. One of them is a semi-knocked down assembly plant for JAC hybrid and electric vehicles. I request to study further development of export-oriented electric vehicle manufacturing with a provision for the establishment of the required infrastructure. In general, Kazakhstan should have its own investment strategy. The Government should come up with it by September 1 of this year. We need to ensure protection and promotion of the national economic interests within the framework of international cooperation. First off, this includes activities within the EAEC, SCO, as well as interfacing with the Economic Belt of the Silk Road. This requires realigning and strengthening the economic diplomacy efforts. Third, the country’s mining and metals, and oil and gas sectors shall retain their strategic importance for the sustainability of economic growth. In the context of global demand slowdown, it is critical to enter new markets and expand the sales geography. We should place great emphasis on expansion of the mineral resources base. Intensive geological exploration is necessary. Further development of these industries should be strictly linked to the deepening of integrated processing of raw materials. I entrust the Government with ensuring the adoption of a new Code on Mineral Resources and making necessary amendments to the tax laws by the end of this year.  Fourth, the agricultural sector should become a new driver of the economy. Kazakhstan’s agricultural sector has a promising future. In many respects, we can be one of the world's largest manufacturers of agricultural exports, particularly in the organic food production area. Made in Kazakhstan brand should become the benchmark for such products. At the same time, we have to become a so-called bread basket for grain production for the entire Eurasian continent. We need to ensure the shift from primary production to the production of high-quality and processed products. Only then will we be able to compete in the international markets. In this regard, the Government and akims are instructed to do the following: First, the principles of allocating subsidies need to be reviewed, and we shall move gradually to the product liability insurance; Second, all conditions necessary for the integration of more than 500 thousand households and small farms into cooperatives shall be created in five years; Third, the level of product processing shall be increased, and an efficient system for storage, transportation and distribution of goods shall be created; Fourth, the productivity level shall be improved, and the production costs shall be reduced; Fifth, we must improve land use efficiency. Within five years, the irrigated land area shall increase 40% to reach 2 million hectares; Sixth, we should boost the investment in agricultural research that will be in demand in the industry. I instruct to ensure that the exports of food products increases 40% by 2021 through the diversification of agricultural products. These tasks should be accomplished within the framework of a new state program for the agricultural sector development. Fifth, the new Eurasian logistics infrastructure development is an important priority. Substantial investment has already been made. Now we need to receive economic returns on that investment. I instruct the Government to ensure an increase in the annual transit volume by 2020: – 7 times for goods carried in containers – up to 2 million containers; – 4 times for air passenger transit – up to 1.6 million transit passengers. It is necessary to increase the earnings from transit traffic by 5.5 times – up to USD 4 billion a year. In 2015, I initiated the Nurly Zhol Infrastructure Development Program. The program has paid off completely over the past two years. This year, 4,400 kilometers of roads of national importance will be covered by construction and reconstruction. At least 600 kilometers of those roads will be commissioned by the end of the year along with the phased implementation of the toll principle. Coordination with the neighboring countries is crucial for unlocking the country’s transport and transit potential. It is necessary to ensure the freedom of goods transit, creation and modernization of transport corridors. Particular attention should be paid to the transport infrastructure management, service level improvement, as well as elimination of administrative barriers. Given the increasing traffic volume along the Trans-Caspian corridor, it is necessary to proceed with the second phase of the Kuryk port construction focused on the car passageway. Sixth, the urbanization processes necessitate the construction sector development. It should become a fully-fledged driver of the national economy. It is important to keep in mind that, by investing in the construction of roads, buildings and other infrastructure, we define the physical and technological shape of our cities for years to come. It is therefore important to ensure transfer of the latest technologies both to the construction and the manufacturing of construction materials. At present, we have good opportunities to accomplish that. Under my instructions, the implementation of the Nurly Zher Housing Program will start this year. It is focused on accomplishing a crucial goal of providing the housing for 1.5 million households in the 15 years to come. The program includes comprehensive measures of the housing market development. These are the cheapening of bank loans for constructors through the provision of grants through Damu JSC. Mortgage loans issued by banks to the population will be subsidized through the Kazakhstan Mortgage Company JSC. Akimats will continue the construction of credit housing for ZhilstroySberBank depositors. For this purpose, the previously allocated funds will be re-used based on the revolving principle. For the vulnerable social groups, akimats will continue developing the rental housing scheme without an option to buy. Akims will have to allocate appropriate land plots for the mass housing construction. We will strive to ensure that individual houses in the cities are built in line with the same architectural style. The government will assist with the provision of necessary infrastructure. The Government, in cooperation with akims, will take measures to promote transport connectivity between large cities and the nearest communities. The 3rd crosscutting objective is the modernization of the labor market. New technology penetration in the legacy industries will release labor resources. At the same time, creation and development of new industries should become an additional source of employment and real income growth. I instruct the Government and akims to create conditions for the controlled transition of workers into other sectors. Our large-scale enterprises should, jointly with akimats, develop appropriate road maps. They need to provide co-investment in the retraining and further employment of downsized workers. The processes of labor mobility from labor-surplus regions, as well as from rural to urban areas, need to be supported. The Government should reform employment centers and create a single online platform for all vacancies and all settlements.  The Second Priority is the fundamental business environment improvement and expansion. One of our strategic goals is to ensure that the contribution of small and medium-sized businesses in GDP is at least 50% by 2050. It is an ambitious, yet achievable goal. At this stage, the following measures need to be done. First, under my instructions, the Government has launched a program of effective employment and mass enterprise development starting this year. Now, citizens of Kazakhstan, either in rural or urban areas, may obtain up to KZT 16 million in microloans for their businesses. It is important to broaden the micro-lending geography and use intensively such tools as guarantees and service support for entrepreneurs. These measures should be accompanied by the organization of business and financial literacy trainings. It is necessary to keep on improving the mass enterprise support tools. Each region of Kazakhstan has to come up with a package of measures to develop mass enterprise, including family businesses. As before, the number of the newly created jobs is one of the key criteria for assessing the performance of the Government and akims. Second, the Government, in cooperation with the Atameken National Chamber of Entrepreneurs, shall be required to take measures on across-the-board reduction of all kinds of costs for businesses. This is particularly important for the cost of services in the energy, transport and logistics, as well as for the utilities. Public service procedures should be optimized as much as possible. It is necessary to reduce the service delivery time and the list of documents, as well as eliminate the duplicating procedures. In addition, it is necessary to convert all of them into the electronic format, without any need for physical presence. In addition, the existing regulatory burden on business is incompatible with the task of creating a new growth model. I am entrusting the Government and akims with the formulation of the action framework for business deregulation by July 1, this year. It is necessary to implement the best standards and practices of the developed countries. It is especially important to carry out this work at a regional level. Akims and the Government shall develop detailed plans to improve the conditions for doing business across the regions based on the World Bank’s Doing Business rating. The rating of regions and cities based on the ease of doing business needs to be introduced. We will institute a special award for the top-ranking cities and regions. It shall be awarded once a year, on the Industrialization Day. Third, reduction in the share of the government in the economy to 15% of GDP (the levels of the OECD countries) should give a new impetus to the economic growth. Nearly 800 enterprises have been selected for the privatization until 2020. The work is in progress in this area. I entrust the Government with the speeding up and completing the privatization of companies from this list until the end of 2018. There is also a need for accelerating the preparation and initial public offering of our largest companies. Introduction of THE Yellow Pages principles has helped reducing the number of economic activities available for the state by 47% (from 652 to 346). The next stage is the necessary privatization or elimination of all state-owned enterprises and organizations that do not conform to these principles by 2020. These are several thousand enterprises. The practice of creating legal entities for each program or task has to be discontinued. It is critical to ensure transparency and efficiency of the privatization. There is also a need for reconsidering the role of state holdings. I request that the Government ensures effective transformation of the Samruk-Kazyna holding. It is necessary to ensure thorough audit and optimization of both managerial and production business processes. As a result, it shall become highly efficient, compact and professional. The quality of management and corporate governance needs to be improved up to the international level. It is necessary to clearly define the assets that need to be retained by the state, identify relevant sectors of importance, and assess degree of involvement. The state shall retain natural monopolies and strategic projects, including those implemented with the involvement of transnational corporations. These projects should give a multiplier effect. Baiterek and KazAgro holdings have to be restructured. They must be the operators for the implementation of government development programs. At the same time, it is necessary to optimize their functions. All of the functions that can be implemented by businesses must be transferred to the private sector. They should also deal with the involvement of funding from non-state sources for the implementation of programs. Fourth, expansion of the public-private partnership provides a strong potential for the promotion of enterprise. This refers to the transfer of a number of government services to the private sector. We already have good results of their involvement in preschool education. Over the previous three years the state has built 189 kindergartens with 40 thousand beds, the private sector has opened more than 1,300 kindergartens for 100 thousand children. The largest numbers of private kindergartens have been opened in South Kazakhstan (397), Almaty (221), and Kyzylorda (181) regions. The PPP example in this sector is of fundamental importance to me. It shows the concerted efforts of the government and businesses to solve one of the most important national problems together: to reach the complete coverage of the 3-6-years-old children with pre-school education by 2020. The PPP development depends on the particular and professional performance of akims. All possible PPP kinds and forms need to be used for the promotion of private funds: trust management of state property, service contracts and others. In doing this, it is necessary to simplify and speed up all of the clearance procedures, particularly in respect of smaller projects. The PPP should become the primary infrastructure development mechanism, including the social aspect. In order to modernize the housing and utility assets, they need to be transferred in trust or as a concession with a possibility of further privatization. The government should stop running in place. We need to become active in this respect. Fifth, it is important to prevent price and tariff-fixing arrangements. I entrust the Government, in cooperation with Atameken, with the audit of the entire body of laws for the identification of regulations that hinder competition.  The Third Priority is the macroeconomic stability. The key objective is the restoration of the facilitating role of the monetary policy, as well as involvement of the private capital in the financing of the economy. First, the National Bank has an important task of developing the inflation targeting regime. It is necessary to achieve phased reduction of inflation to 3-4% in the medium term. Second, the financial sector’s reset is necessary. I entrust the National Bank with the formulation of a set of measures for the banking sector recovery. It is necessary to step up activities for the clearing banks’ balance sheets from sub-prime loans and, if needed, make provision for their follow-on capitalization by shareholders. The National Bank needs to be entitled more to the operational control over the condition of banks. It must move from a formalized approach to a risk-based one to take actions towards banks without waiting for technical infringement on their part. It is also necessary to strengthen the responsibility of audit companies, to ensure transparency of shareholders, and generally improve corporate governance. All of that should be reflected in the body of laws. In order to address the problems of money stringency in the economy and high interest rates on loans, the National Bank and the Government are assigned to take measures for ensuring availability of the medium- and long-term funding in the national currency. The National Bank shall be responsible not only for inflation, but also, together with the Government, for the economic growth. Third, further development of the stock market. The privatization should give impetus to its development. As I have said before, it is necessary to IPO stock of the Samruk-Kazyna Fund. It is necessary to further increase opportunities for the population to invest their savings primarily into various types of securities. At the end of 2016, we completed the legalization process. More than 140 thousand citizens of our country have been covered. A total of KZT 5.7 trillion have been legalized, including KZT 4.1 trillion in cash. The task of the Government is to make sure that these funds work for the economy, including through its participation in the privatization. At the same time, there is also a need for thorough elaboration of the issues of subsidizing private bond issues by Kazakh enterprises. I entrust the Government, together with the National Bank, with taking measures aimed at enhancing the domestic stock market. Another key challenge is to bring the fiscal policy in line with the new economic realities. First, it is necessary to improve dramatically the efficiency of the budget spending. In 2017, we have fully supported our national programs with the necessary resources. We need to check efficiency of the use of these funds by Ministries and departments. We need to start with the Ministries of Labor and Social Protection, Health, Education and Science as they account for more than 40% of the national budget. The outcomes are to be reported to me. It is critical to reallocate funds from inefficient programs to the programs that ensure accomplishment of the 3rd Modernization objectives. In addition, the existing budgetary procedures must be simplified in order to facilitate and improve efficiency of bringing the funds to the real economy. We need to continue the fiscal decentralization policy. In previous years, a large number of functions and powers have been delegated from the central to the local level. Now they need to be supported through the provision of sufficient financial autonomy. At the same time, it is important to avoid concentration of the spending authority at a regional level. It is necessary to pass them on to the district and village levels. Akims must deal with the tasks of regional and local importance, and the Government has to focus on the issues of national importance. Second, it is essential to improve efficiency of the use of resources from the National Fund. By 2020, the size of the guaranteed transfer from the National Fund must be gradually reduced to KZT 2 trillion. The tax policy should focus on encouraging businesses to come out of the shadow  economy and expanding the tax base in the non-primary sector. There is a need for the optimization of the existing tax incentives. At the forefront of the universal declaration, we need to get a new angle on special tax regimes. The tax administration arrangements need to be improved. First of all, it concerns the value added tax. Third, the Government needs to build a monitoring and control system for the external and internal loans in the quasi-public sector, and bring it to order.  The 4th Priority is the improvement of the quality of human capital. First, the role of the education system needs to be changed. Our task is to make education central to a new model of economic growth. Training programs should focus on the development of critical thinking abilities and skills of independent search for information. At the same time, we need to focus more on the generation of IT-knowledge, financial literacy and fostering patriotism in the youth. We have to reduce the gap in quality of education between urban and rural schools. I request that the Government submits relevant proposals. On the matter of gradual transition to trilingual education. The Kazakh language will retain its dominant position. Much attention shall be paid to its further development. Today, however, English is the language of new technologies, new industries, and new economy. Currently, 90% of the world information is in English. Its volume doubles every two years. Kazakhstan cannot achieve national progress without mastery of the English language. Starting from 2019, some subjects for the tenth- and eleventh-graders will be taught in English. It is necessary to carefully consider this issue and take reasonable solution. The levels of schools and teachers in urban and rural areas differ significantly. The problem of shortage of competent teachers is also relevant. Therefore, in view of all of these aspects, it is necessary to introduce English language instruction gradually. I request that relevant proposals to be submitted. On my initiative, implementation of the Free Vocational Education for All Project starts this year. First of all, free education should cover the unemployed and self-employed young people, as well as working-age people without professional education. It is necessary to give impetus to the development of the vocational education system to train specialists for new production facilities in this economy. For this purpose, professional standards’ need to be updated in accordance with the labor market requirements and best international experience of in-service training. At the same time, special attention shall be paid to the quality of the higher education system. It is necessary to enhance the monitoring and toughen the requirements for the staff of higher education institutions, their level of business logistics, and educational programs. Second, the health care system must change along with the educational system. Starting from July 1, this year, a system of compulsory social health insurance will start to be implemented, based on the joint and several liability of the state, employers and citizens. This system’s effectiveness has been proven by the world’s practice. Participants of the health insurance system will be provided with a wide range of medical services. The government will support participation of socially vulnerable groups in it. The Government needs to provide for the necessary IT penetration in the public health sector. Equal conditions should be provided in the mandatory social health insurance (MSHI) system for the promotion of competition among private healthcare providers. I entrust the Government and akims with the conducting of broad awareness-raising activities. It is also necessary to introduce, statutorily, the state regulation of prices on all medicaments. Third, measures in the social security area. Under my instruction, pensions for 2.1 million pensioners will be increased 20% as compared to 2016, effective from July 1, 2017. In addition, base pension will be awarded in accordance with a new methodology starting from July 1, 2018. Its size will depend on the length of participation in the pension system. In 2018, all of these measures will provide for a 1.8-fold increase in the new base pension size, as compared to 2017. Approximately 400 thousand children are born in the country a year, which is almost two times as high as back in 1999. This good trend needs to be maintained. Upon my instructions, the lump sum birth benefit will increase 20% from July 1, 2017. The minimum national living wage needs to be reviewed. It has to match the actual consumer spending of the population of Kazakhstan. Starting from January 1, 2018, this will allow increasing, for 3 million of our citizens, the size of the base pension benefits for people with disabilities, families without supporters, as well as the size of targeted assistance and benefits for disabled children. Starting from January 1, 2018, we have to raise the threshold for the targeted social assistance from 40 to 50% of the minimum national living wage, as well as implement new format of the targeted social assistance. At the same time, all those who can work should be supported only on a condition of participation in the employment program.  The Firth Priority is the institutional transformation, security and anticorruption. First, within the framework of the 3rd Modernization, the Government needs to ensure work on implementing the best practices and the OECD recommendations. Second, we are carrying out reforms aimed at private property protection, rule of law, as well as equality of all before the law. This work needs to be continued. I instruct the Government, together with the Atameken National Chamber of Entrepreneurs and the civil society, to review the entire body of laws for the strengthening of the property rights protection. The administrative and criminal laws also need to be humanized. Administrative fines should be fair and proportionate to the offense committed. It is necessary to keep on working to reduce penalties for business offenses. It is necessary to decriminalize economic components in crimes with low menace to the society. It is necessary to achieve greater confidence in the judicial system. It is important to avoid any undue influence on the work of judges. Third, security situation becomes a measure of a strong and capable state. In the modern conditions, the humankind faces growth of terrorism. The key issue is the fight against the financing of negative forces and the links with foreign terrorist organizations. It is critical to prevent religious extremism propaganda, including on the Internet and in social networks. It is necessary to form in the society zero tolerance for any action related to radical manifestations, especially in the areas related to religions. Prisons should arrange for the purposeful work of theological rehabilitation services with convicted individuals. It is necessary to take additional steps towards spiritual and moral education of the younger generation. The non-governmental sector and religious associations should be actively involved in these efforts. All of these measures must be taken into account in the State Program for the combating of religious extremism and terrorism for 2017-2020, which is now prepared under my instructions. The fight against cybercrime emerges full-blown. I instruct the Government and the National Security Committee to take actions to create a system of Cyber Shield of Kazakhstan. Fourth, we have made significant steps to reduce the level of corruption in our country. At the same time, the main emphasis is on combating the implications of corruption. It is necessary to intensify efforts to identify and eliminate the causes and prerequisites of corruption. One of the key issues is the improvement of the procurement sector. I instruct the Government to introduce the unified public procurement system based on the centralized service principle. We also need to revise fundamentally the existing approaches to procurement in the quasi-public sector, the sector of natural monopolies, and subsoil sector. The success of our anticorruption will depend, to a great extent, on active involvement of the entire society. With the development of social networks and other media resources, unanimous resentment must become a powerful tool in combating corruption.  Dear fellow people of Kazakhstan! By this Address I would like to convey my view of the development trends in the new realities to every citizen. I instruct the Government to develop Strategic Development Plan until 2025 for the country’s 3rd Modernization titled Kazakhstan’s National Technology Initiative. We have no other choice but to accept the challenge of the time with dignity and accomplish the country’s further modernization objectives. I believe that our great nation will fully take this unique historical opportunity.  Dear friends! Kazakhstan is a young multiethnic country that is confident in its future and dynamically developing! We have passed the 25-year-long development path. Even greater achievements are awaiting us in the next 25 years. By accumulating this unique wealth of experience in establishing a new state, we have entered a new stage. I am confident that no matter what difficulties are ahead of us, we will overcome all of them. Our main strength is unity. We will turn Kazakhstan into an even more prosperous country for our descendants!\""
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    "official = \"Dear People of Kazakhstan! I am addressing the people of Kazakhstan as we approach the new era. The country has honorably passed its 25-year development phase. We are proud of our country. As part of the festivities on the 25th anniversary of Independence we have highlighted Kazakhstan’s achievements and progress. They are well known and appreciated by the world community. Kazakhstan has become a non-permanent member of the UN Security Council since the beginning of 2017. EXPO-2017 international exhibition will be held in Astana this year. We are the first among the CIS countries and Central Asia to hold such an important global event. Sports events within the Universiade-2017 have started in Almaty, with the participation of over 2,000 athletes and delegates from 57 countries. All that is the result of a correct political path and Kazakhstan’s high authority in the international arena. Kazakhstan shall join the world’s top 30 developed countries by 2050. We will surely go for this purpose. In conditions of growing competition and the lack of stability in the world relevance of my proposed Strategy-2050 to the people in 2012 is increasing. We have been able to timely anticipate the forthcoming hard time. Due to Nurly Zhol Economic Policy and 100 Specific Steps Nation’s Plan we are worthily going through the initial stage of a complex global transformation. Additional KZT 1.7 trillion have been allocated to support the economy only during 2014-2016. That provided an opportunity for economic growth and business support, and creation of more than 200 thousand new jobs. The result ensured the gross domestic product growth by 1% in 2016. That is particularly important under the current difficult conditions. The world situation is changing rapidly. That is a new global reality, and we have to accept it.  Dear Compatriots! Only those nations, which manage to get ahead of the future and decisively meet the challenges, without standing and waiting, are the winners. The next and fourth industrial revolution starts in the world. Universal economic digitalization will lead to disappearance of entire industries and creation of fundamentally new ones. Great changes before our eyes are both a historic challenge and opportunity for the nation. Today I pose a challenge of carrying out the implementation of Kazakhstan’s third modernization. It is necessary to create a new model of economic growth that will provide the country's global competitiveness. Currently, many countries are trying to solve the same problem. I am sure that the transition recipes to the new growth model are not equal. We should have regard to our strong points and not to lose our opportunities that we have together created over 25 years of our Independence. We all remember the 1st modernization of Kazakhstan. We have a memory of starting our way a quarter century ago on the ruins of the Soviet Union. Then from the foundation our generation created a new state, which was not on the world map. There was a transition from a planned to a market economy. It is crucial for me that together we have then managed to hold the country from the turmoil of internal conflicts and economic collapse. Kazakhstan came out of that period with minimal losses and the largest acquisitions. The 2nd modernization began with adopting  the Strategy-2030 and creating a new capital city Astana. The results are undeniable. The country broke away from the economic crisis zone and joined the world’s 50 most competitive economies. Two successful modernization processes have given us invaluable experience. Now we need to boldly step forward and start the 3rd upgrade. This upgrade is not as plan of combatting the current global challenges, but a reliable bridge to the future, to fulfil the Strategy-2050 objectives. It will be held based on the 100 Specific Steps Nation’s Plan. I see its five key priorities. They are designed to ensure the economic growth above the world average, and steady advance to the 30 leading countries. The 1st Priority is the accelerated technological modernization of the economy. We should cultivate new industries, which are created involving the use of digital technologies. That is a far reaching complex task. It’s critical to cultivate such sunrise industries as 3D printing, online commerce, mobile banking, digital services, including health and education sectors, and others. These sectors have changed the economic structure of the developed countries and have given a new quality to senile industries. In this regard, I charge the Government to work out and adopt a separate program called Digital Kazakhstan. It is necessary to fit our legislation to the new realities. It is also important to make provision for development of communications and ubiquitous access to a fiber-optic infrastructure. The digital industry development will provide impetus to all other sectors. Therefore, the issue of IT-sphere development should be kept under special control of the Cabinet. Factor of great significance in forming new industries is to support innovation and fast introduction into production. I entrust the Government with establishing the IT-startup International TechnoPark on the basis of one of EXPO-2017 facilities. It has to become a platform for attracting entrepreneurs and investors from around the world. That requires appropriate infrastructure and the enabling environment, including tax breaks, simplified visa and labor regimes. We also need to develop the research and innovative potential of universities based on Nazarbayev University and Alatau Innovation Park. The 2nd complex task. In parallel with creating new industries, we should give impetus to the development of traditional basic industries. They are industry, agriculture, transport and logistics, construction and other sectors. Firstly, it is important to boost productivity. The main factor here should be the widespread introduction of elements of the 4th industrial revolution. They are automation, robotics, artificial intelligence, exchange of big data and others. I entrust the Government, together with business, with working out a package of measures on technological re-equipment of basic industries until 2025. Secondly, there is a need to continue industrialization with emphasis on the development of competitive export industries in priority sectors. I entrust the Government with the task of increasing non-oil exports in half by 2025. To activate the work in this direction is necessary to concentrate the tools of development and promotion of exports in the same department. Exporters need to provide support for the principle of single window, including in the regions. I entrust the Government with creating a Council for Export Policy. It should include the business community representatives. Prior to September 1 this year, the Government together with the akims and businesses need to develop a unified export strategy. Kazakhstan should keep the leading position in attracting foreign investment. Astana International Financial Center should play an important role in attracting financial resources in the country’s economy. It is critical to fit into global chains of production and distribution of goods and services. This should be done primarily by attracting multinational companies. It is necessary to effectively implement a joint investment program with China to establish production facilities in Kazakhstan. The agreements have been inked with the Chinese side. The facilities have been identified. We need to work specifically. That will be modern production with creation of about 20 thousand new jobs for Kazakhstan. For the present the actualization of six projects has started and two projects have already been launched. One of them is a plant for large-assembly of JAC hybrid and all-electric vehicles. I instruct to study the issue of further development of electric vehicle production with export orientation, making provision for the necessary infrastructure. In general, Kazakhstan should have its own investment strategy. The government should prepare it before September 1 of the current year. Protection and promotion of national economic interests in the framework of international cooperation shall be provided. This includes, before everything else, the activities within the EAEC, SCO, interfacing with the Economic Belt of the Silk Road. Economic diplomacy work shall be rebuilt and strengthened. Thirdly, the country’s mining and oil and metallurgical complex shall retain its strategic importance for the economic growth sustainability. In the context of global demand slowdown it is critical to enter new markets and expand the geography of supplies. Much attention shall be given to expanding the mineral resource base. Active exploration is necessary to be held. Further development of these industries should be strictly linked to the deepening of raw materials complex processing. I entrust the Government with ensuring the adoption of a new Code on Mineral Resources and making the necessary amendments to the tax legislation by the end of the year. Fourthly, the agricultural sector shall become the new driver of the economy. Kazakhstan’s agriculture has a promising future. Upon many items, we can be one of the world's largest manufacturers of agricultural exports, especially for organic food production. ‘Made in Kazakhstan’ brand shall become the standard of such products. At the same time we have to be a so-called bread basket for grain production for the entire Eurasian continent. A shift from primary production to the production of high-quality and processed products shall be provided. Only then will we be able to compete in international markets. In this regard, the Government and the governors are instructed the following: Firstly, the principles of allocation of subsidies and gradual move to production insurance shall be reconsidered; Secondly, during the 5 years all conditions for combining more than 500 thousand households and small farms into cooperatives shall be created; Thirdly, the level of product processing shall be increased, and the effective storage, transportation and distribution of goods shall be created; Fourthly, the level of productivity shall be increased and production costs shall be reduced; Fifthly, we must improve the efficiency of land use. Within 5 years, the area of ​​irrigated land shall grow by 40%, thereby raising it to 2 million hectares; Sixthly, investment in agricultural research shall boost, to be in demand in a business environment. I instruct to make provision for the export of food products increase by 40% by 2021 through the agricultural production diversification. These tasks should be fulfilled within the framework of the new agriculture development state program.  Fifthly, the new Eurasian logistics infrastructure development is an important priority. Substantial investment has already been made. Now economic returns are necessary. I instruct the Government in 2020 to provide an increase in the annual volume of transit: - 7 times for goods, carried in containers - up to 2 million containers; - 4 times for passenger transport by air - up to 1.6 million passengers in transit. It is necessary to increase earnings from transit traffic by 5.5 times - up to $ 4 billion a year. In 2015, I initiated Nurly Zhol infrastructure development program. Over the past two years, the program has fully justified itself. During the current year 4,400 kilometers of roads of national importance will be covered by construction and reconstruction. Among them, no less than 600 kilometers with the staged at a fee implementation will be put in before the end of the year. Coordination with neighboring countries is critical to unlock the country’s transport and transit potential. It is necessary to ensure the goods transit freedom, creation and modernization of transport corridors. Particular attention should be paid to the transport infrastructure management, service level increase and elimination of administrative barriers. Due to the increasing traffic volume along the Trans-Caspian corridor it is necessary to proceed with the second phase of Kuryk port construction, a car way. Sixthly, urbanization processes necessitate the construction sector development. It shall become a full driver of the domestic economy. Remember that investing in construction of roads, buildings and other infrastructure we define the physical and technological shape of our cities for years to come. It is therefore important to ensure the transfer of the latest technologies both to the construction and manufacture of building materials. At present we have good opportunities to accomplish that By my instructions, Nurly Zher Housing Program realization begins since the current year. It addresses a critical goal - housing provision for 1.5 million households in the coming 15 years. The program includes comprehensive measures of housing market development. It is cheaper bank loans for constructors by providing grants through Damu JSC.  Subsidizing mortgage loans, issued by banks, for the population will take place through Kazakhstan Mortgage Company JSC. Construction of credit housing for ZhilstroySberBank depositors by Akimats will continue. Previously allocated funds by a revolving principle will be reused for that purpose. For vulnerable social groups the Akimats will continue developing rental housing without the right of redemption. For mass housing the akims should allocate appropriate land plots. We will strive to ensure that the construction of individual houses in the cities is carried out in a single architectural style. With this aim in view the government will assist with the necessary infrastructure. The Government together with the akims shall take measures for developing transport links with the nearest large city settlements. The 3rd complex task is the labor market modernization. Human resources will become available with technology implementation in senile industries. However, creation and development of new industries should become an additional source of employment and real income growth. I instruct the Government and governors to create the conditions for a controlled flow of workers into other sectors. Our sizeable enterprises should, jointly with akimats, develop appropriate road maps. They need to provide co-investment in retraining downsized workers and their further employment. We need to support the labor mobility processes from labor-surplus regions, and from rural to urban areas as well. The Government should reform the employment centers and create a single online platform for all vacancies and all settlements. The 2nd Priority is massive improvement and the business environment expansion. One of our strategic goals is ensuring the contribution of small and medium-sized businesses in GDP of at least 50% by 2050. It is an ambitious but achievable goal. To achieve it at that stage the following is needed. Firstly, by my instructions, since this year the Government has launched a program of effective employment and business activity growth. Now the citizens of Kazakhstan in rural regions and towns can get a microloan of up to KZT 16 million for business operations. It is meaningful to broaden the geography of micro-lending, actively using tools to guarantee and service support of entrepreneurs. These measures should be accompanied by organization of business training and financial literacy. It is necessary to further improve support tools for business activity. Each region of Kazakhstan has to offer complex measures to develop mass entrepreneurship, including family businesses. The number of created new jobs, as before, is one of the key criteria for assessing the effectiveness of the Government and akims’ activities. Secondly, the Government and Atameken National Chamber of Entrepreneurs shall  take measures on front end reduction of all kinds of costs for businesses. That especially refers to cost of services in the energy, transport and logistics, and utilities as well. Public services procedures should be optimized as much as possible. It is necessary to reduce the time and a list of documents and eliminate duplicate procedures. Thus it is necessary to change them over fully to electronic format, without physical presence. In addition, the existing regulatory burden on business is incompatible with the task of creating a new model of growth. I challenge the Government and akims to elaborate the action framework on business deregulation by July 1 of this year. It is necessary to implement the best standards and practices of developed countries. It is especially important to carry out this work at the regional level. Akims and the Government shall develop detailed plans to improve the conditions for doing business in the regions based on the World Bank ranking. Rating of regions and cities on the ease of doing business is critical to be introduced. We will institute a special award for the best. It shall be awarded once a year, on Industrialization Day. Thirdly, a reduction in the share of the state in the economy to 15% of GDP, up to OECD levels should give a new impetus to economic growth. Previously there was a list of about 800 enterprises for privatization until 2020. The work is in progress. The Government is assigned to speed up and complete the privatization of companies in this list until the end of 2018. There is also need of accelerating the preparation and output of our largest companies on the IPO. Introduction of Yellow Pages has reduced the types of activities for the state in the economy by 47% (from 652 to 346). The next stage is transfer to the private sector or elimination of all state-owned enterprises and organizations, which do not conform to these principles until 2020. And these are several thousand enterprises. The practice, when we created legal entities under each program or task, is meant to finish. It is critical to ensure privatization’s transparency and efficiency. There is also need of reconsidering the role of state holdings. The Government is tasked to provide a qualitative transformation of Samruk-Kazyna holding. It is necessary to conduct a thorough audit and optimization of both managerial and production business processes. As a result, it shall become a highly efficient, compact and professional. Management and corporate governance needs to get improved to the international level. It is necessary to clearly define what to leave for the state, in which important sectors and with what degree of participation. Natural monopolies and implementation of strategic projects, including with the participation of TNCs, shall be for the state to be left. These projects should give a multiplier effect. Baiterek and KazAgro are to be exposed to organizational change without fail. They must be operators on the implementation of government development programs. At the same time it is necessary to optimize their functions. All that can be done by the private sector is necessary to transfer to the business. They should also deal with the involvement of funding from non-state sources for program implementation. Fourthly, public-private partnership outspread is a strong potential for promotion of entrepreneurship. This refers to transfer of a number of government services to business. We already have good results on their involvement in preschool education. If during previous 3 years the state has built 189 kindergartens with 40 thousand places, the private sector has opened more than 1 300 per 100 thousand people. South Kazakhstan (397), Almaty (221), Kyzylorda (181) regions have opened more of private kindergartens. For me the PPP example in this sector is of fundamental importance. It shows how government and business together solve one of the most important national problems – to completely cover 3-6 year old children with pre-school education by 2020. The PPP growth depends on the akims’ specific and professional activities. All possible kinds and forms of PPP are critical to be used for utilization of private funds: trust management of state property, service contracts and otherы. Thus it is necessary to simplify and speed up all the negotiation procedure, particularly in relation to smaller projects. PPP is set to become a primary mechanism for infrastructure development, including the social one. To modernize housing and utility infrastructure it is critical to transfer it in trust or to PPP with feasible pending privatization. The government shall stop going rounds in circles. We need to become active in that process. Fifthly, it is important to prevent price and tariff fixing. The Government is assigned, together with Atameken, to carry out audit of all legislation to identify regulations that hinder competition. The 3rd priority is macroeconomic stability. The key objective here is restoration of the monetary policy incentive role and  involvement of private capital in financing the economy. Firstly, at present the National Bank has an important task for inflation targeting regime development. It is necessary to achieve the phased reduction of inflation to 3-4% in the medium term. Secondly, the financial sector’s reset is necessary. The National Bank is assigned to work out a set of measures for the banking sector enhancement. It is necessary to step up activities for clearing the banks' balance sheets from the sub-prime loans and, if needed, to make provision for their follow-on capitalization by the shareholders. The National Bank needs to be given more rights for the state banks’ operational control. It must move from a formalized approach to a risk-based in order to take measures of influencing the banks, without waiting for technical infringement on their part. It is also necessary to strengthen the responsibility of audit companies, to ensure transparency and shareholders and, as a whole, to improve corporate governance. All that should be fixed in terms of legislation. With a focus on handling a problem of money stringency in the economy and high interest rates on loans the National Bank and the Government are assigned to take measures for ensuring availability of medium- and long-term funding in KZT. The National Bank shall be responsible not only for inflation but also for economic growth together with the Government. Thirdly, the stock market’s further development. Privatization should give impetus to its development. It is necessary to float Samruk-Kazyna Fund, as I have said before. Further increasing the opportunities for people to invest their savings primarily in various types of securities is critical. At the end of 2016 we completed the legalization process. More than 140 thousand citizens of our country have taken part in it. In total KZT 5.7 trillion have been legalized, including KZT 4.1 trillion in cash. The task of the Government is that these funds work in the economy, through participation in privatization as well. At the same time there is also a need to consider issues of subsidizing private bond issues of Kazakhstani enterprises. The Government, together with the National Bank, is assigned to take measures aimed at enhancing the domestic stock market. Another key challenge lies in bringing the fiscal policy to the new economic realities. Firstly, it is necessary to radically improve the efficiency of budget spending. We fully provided the national programs with the necessary resources in 2017. The ministries and departments shall check the use of funds’ effectiveness. The Ministries of Labour and Social Welfare, Health, Education and Science should be the first, as they account for over 40% of the national budget. The reports are to be presented upon the results. It is critical to reallocate funds from ineffective programs on the program, making provision for accomplishing the tasks of the 3rd Modernization. Besides, the budgetary procedures shall be simplified for faster and more effective bringing of the funds to the real economy. Fiscal decentralization policy is critical to be carried on. In previous years a large number of functions and powers have been delivered from the central to the local level. Now they need to back up sufficient financial autonomy. At the same time it is important to avoid concentration of spending authority at the regional level. It is necessary to pass them on to the district and village levels. Akims must decide the issues of regional and local importance, and the Government is to focus on the national issues. Secondly, it is essential to more efficiently deal with the National Fund. The size of the guaranteed transfer from the National Fund must be gradually reduced to KZT 2 trillion by 2020. Tax policy should focus on stimulating business exit from the shadow and the tax base expansion in the non-primary sector. Optimization of the existing tax incentives is critical. New special tax regimes shall be taken into consideration in a new angle on the eve of the universal declaration. Tax administration arrangements remain wanting. First of all, it concerns VAT. Thirdly, the government needs to build monitoring and control system for the external and internal loans of the quasi-public sector and bring it to order.   The 4th Priority is improvement of human capital in quality. Firstly, the role of the education system shall change. Our task lies in making education central to a new model of economic growth. Training programs should focus on the development of critical thinking abilities and skills of independent search for information. At the same time, IT-knowledge formation, financial literacy and education of youth patriotism shall be focused on. Reducing the gap in quality of education between urban and rural schools is critical. The Government is assigned to submit relevant proposals. Gradual transition to trilingual education. The Kazakh language retains its dominant position. Much attention shall be paid to its further development. Today, however, English is the language of new technologies, new industries and new economy. Currently, 90% of the world information is in English. Every two years its volume doubles. Kazakhstan cannot reach national progress without mastery of the English language. Since 2019 teaching in some subjects for the tenth- and eleventh-graders will be conducted in English. It is necessary to carefully consider this issue and take reasonable solution on it. Schools and teachers’ level in urban and rural areas differ greatly. Problem of competent teachers’ shortage is relevant. Therefore, considering all these aspects, introduction of the English language should be in a phased approach. Relevant proposals are to be submitted. Free Vocational Education for All Project implementation starts on my initiative since the current year. Free education, first of all, should cover unemployed and self-employed young people and people of working age who do not have professional education. It is necessary to give impetus to the development of vocational education system for training human resources for new productions within the marked economy. In pursuing these aims the professional standards’ upgrade in accordance with labor market requirements and best international experience of in-service training is essential. At the same time special attention shall be paid to the higher education system quality. It is necessary to enhance monitoring and requirements for the staff of higher education institutions, their level of business logistics and educational programs.   Secondly, the health care system must change along with the educational system. From July 1 this year, a system of compulsory social health insurance starts to be implemented based on joint and several liabilities of the state, employers and citizens. This system’s effectiveness has been proven by the world’s practice. Participants in the health insurance system will be given a wide range of medical services. Participation of socially vulnerable groups in it will be supported by the government. The government needs to provide the health service informational support. Promotion of competition among private health institutions should be provided equal conditions within the CSHI (compulsory social health insurance) system. The Government and governors are assigned to conduct broad awareness-raising activities. It is also necessary to introduce medication price management legislation. Thirdly, the social security. Under my instructions, pensions for 2.1 million retirees will be increased by 20% compared to 2016 to July 1, 2017. In addition, the basic pension appointment will be based on the new methodology from July 1, 2018. Its size will depend on the length of participation in the pension system. All of these measures in 2018 will provide an increase of 1.8 times of the new basic pension size as compared to 2017. About 400 thousand children are annually born in the country, which is higher than the 1999 level by almost two times. This good trend should be backed up. Upon my instructions, the size of a lump sum birth benefit will increase by 20% from 1 July 2017. The living minimum wage shall be reviewed. It is supposed to accord with the actual consumer spending of Kazakhstan’s population. This will allow increasing for 3 million people the size of the basic pension benefits for people with disabilities and families without supporters, targeted assistance and benefits for disabled children to January 1, 2018. Starting January 1, 2018 the threshold has to raise for providing targeted social assistance from 40 to 50% of the subsistence minimum and implement its new format. At the same time all those who can work should be supported only on the condition of participation in the employment program. The 5th Priority is the institutional transformation, security and anticorruption efforts. Firstly, as part of the 3rd Modernization the Government needs to ensure the work on implementing the best practices and the OECD recommendations. Secondly, we carry out reforms aimed at protecting private property, the rule of law and equality before the law. The activity needs to be continued. The Government, together with Atameken NCE (National Chamber of Entrepreneurs)  and civil society, are assigned to conduct an audit of all legislation to strengthen protection of property rights. The administrative and criminal law also needs to be humanized. Administrative fines should be fair and proportionate to the offense committed. It is necessary to carry out further work to reduce the penalties for offenses in the sphere of business. It is necessary to decriminalize economic compositions with a low degree of public danger. It is necessary to achieve greater confidence in the judicial system. It is important to avoid any undue influence on the work of judges. Thirdly, the security status becomes the measure of a strong and capable state. In modern conditions the humanity is faced with terrorism growth. The key here is the fight against financing the destructive forces and links with foreign terrorist organizations. It is critical to prevent religious extremism propaganda, including on the Internet and social networks. It is necessary to form a society of zero tolerance for any action related to radical manifestations, especially in the sphere of religious relations. The prisons should carry out organized purposeful activity of theological rehabilitation services to convicted persons. It is necessary to take additional steps to spiritual and moral education of the younger generation. Non-governmental sector and religious associations should be actively connected to that sort of activity. All these measures have to be taken into account in the worked out, on my behalf, State Program on combating religious extremism and terrorism for 2017-2020. Fight against cybercrime becomes more urgent. The Government and the National Security Committee are assigned to take action to create a Cyber Shield of Kazakhstan system. Fourthly, we have made significant steps to reduce the level of corruption in the country. At the same time, the main focus is on combating the effects of corruption. It is necessary to intensify efforts to identify and eliminate the causes of corruption and assumptions. One key issue is the procurement sector improvement. I instruct the Government to introduce a unified public procurement system on the principle of centralized services. The approaches for conducting procurement in the quasi-public sector, natural monopolies and subsoil sector also need to turn them around. Much in anticorruption efforts shall depend on the whole society’s active participation. With the social networks and other media resources growth the unified non-admission should be a powerful tool in combating corruption. Dear People of Kazakhstan! By this Address I would like to convey to every citizen my view of development trends in the new reality. I instruct the Government to develop a strategic plan for development until 2025 for the country’s 3rd modernization titled Kazakhstan’s National Technology Initiative. We have no other choice but meet the challenge gracefully and solve the problem for the country’s further modernization. I believe our great nation fully takes advantage of the unique historical chance. Dear Friends! Kazakhstan is a new multi-ethnic, confident in its future, and dynamically developing country! We have passed the 25-year-old path of development. In the next 25 years we expect even higher frontiers. By accumulating a unique wealth of experience when creating a state, we have entered a new stage. I am sure that no matter what difficulties are ahead of us, we will overcome them. Our main strength is unity. We will turn Kazakhstan into a more prosperous country for our descendants!\""
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