Shanghai Cooperation Organization Introduction
- The Shanghai Cooperation Organization (SCO) plays a pivotal role in regional security, political, and economic dynamics across Eurasia.
- PM Narendra Modi recently addressed the plenary session of the Shanghai Cooperation Organisation Summit and spoke on terrorism as well as other key issues.
Key Documents Signed at the 2025 SCO Summit in Tianjin
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- At the 25th Meeting of the Council of Heads of State of the SCO in Tianjin, leaders finalized 20 important agreements that set the future agenda of the organisation.
- Strategic Declarations and Resolutions:
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- The Tianjin Declaration was adopted as the central political outcome of the summit.
- A Development Strategy for 2026–2035 was approved, setting long-term priorities and guiding the SCO’s growth over the next decade.
- A Cooperation Programme (2026–2030) was launched to counter extremist ideologies within the SCO region.
- A Roadmap for SCO Energy Cooperation until 2030 was agreed upon.
- The SCO was granted observer status within the Commonwealth of Independent States (CIS).
- Cholpon Ata (Kyrgyz Republic) was declared the SCO tourist and cultural capital for 2025–2026.
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- Institutional Strengthening: Four new SCO centers were inaugurated, focusing on:
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- Countering security threats and challenges.
- Combating transnational organized crime.
- Enhancing information security and cybersecurity.
- Strengthening anti-drug cooperation.
- A decision was taken to establish an SCO Development Bank, designed to promote infrastructure development, economic progress, and social cooperation among member states.
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- Expanded Cooperation Platforms: The summit introduced new SCO platforms in key areas such as:
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- Energy cooperation and sustainable growth.
- Green industry and climate-resilient practices.
- Digital economy and cybersecurity.
- Artificial intelligence, technology innovation, and higher education.
- Vocational and technical education for workforce development.
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- Structural Reforms and Expansion:
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- A structural reform was announced, merging observer states and dialogue partners into a single category of SCO partners.
- Laos was granted SCO partner status, expanding the organisation into a 27-nation grouping (10 members and 17 partners).
What is the SCO?
- The Shanghai Cooperation Organization, or SCO, is a comprehensive regional organization founded on June 15, 2001, in Shanghai, China.
- Initially focused on addressing security concerns and border disputes in Central Asia, the organization has since expanded its scope to include cooperation in political, economic, and defense matters, fostering collaboration among member states to address both regional and global challenges.
Historical Context and Evolution of SCO
- The origins of the SCO can be traced back to 1996 when the “Shanghai Five” was established, comprising China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.
- This group was initially formed to tackle post-Soviet border disputes and regional security concerns. The transformation from the Shanghai Five to the SCO took place in 2001 when Uzbekistan joined the organization, expanding its influence and reach.
Current Membership and Expansion
As of now, the SCO has 10 member countries:
- China
- Russia
- Kazakhstan
- Kyrgyzstan
- Tajikistan
- Uzbekistan
- India (joined in 2017)
- Pakistan (joined in 2017)
- Iran (joined in 2023)
- Belarus (joined in 2024)
Significance of the Shanghai Cooperation Organization (SCO) for Global Geopolitics and India
- Geopolitical and Strategic Influence of the SCO
- Wide Geographic Reach and Diverse Membership: The SCO is the world’s largest regional organization by geographic scope and population, covering approximately 80% of the Eurasian landmass and accounting for about 40% of the global population. Its members are diverse, ranging from nuclear powers such as Russia, China, India, and Pakistan, to resource-rich Central Asian states. This diversity, including different political systems, economies, and cultures, makes the SCO a unique and powerful platform for geopolitical dialogue and engagement.
- Strategic Powerhouses Within the Organization: The inclusion of nuclear-capable and economically significant countries, including Russia and China, enhances the SCO’s geopolitical weight. India’s strategic position within the organization further elevates its role as a key player in shaping the security and economic architecture of the region.
- Economic and Connectivity Potential of the SCO
- Collective Economic Strength: The SCO member states contribute to around 30% of global GDP, with major economies like India joining in recent years. With members like China, India, and Russia driving much of the economic growth, the SCO has the potential to boost economic collaboration, trade, and investment across the vast Eurasian expanse.
- Energy Resources and Global Influence: SCO members control a significant portion of the world’s energy resources. Specifically, the group commands approximately 20% of global oil reserves and 44% of natural gas reserves, making it a critical energy bloc. The SCO Energy Club works towards promoting collaboration between energy producers and consumers, which is vital for regional energy security. The organization plays an important role in shaping global energy markets and supply chains.
- Infrastructure and Connectivity Projects: A key focus of the SCO is enhancing connectivity across Eurasia. It aligns closely with China’s Belt and Road Initiative (BRI), facilitating critical infrastructure development. Projects like the Central Asia–China Gas Pipeline and others enhance trade networks and transportation routes, significantly boosting regional economic integration.
- Security and Counter-Terrorism Role
- Combating Extremism and Terrorism: One of the primary objectives of the SCO is combating terrorism, separatism, and extremism. The establishment of the Regional Anti-Terrorist Structure (RATS) in Tashkent enables intelligence sharing and coordinated action among member states. The SCO’s counter-terrorism efforts are a cornerstone of regional security, with its focus on preventing extremism from destabilizing Central Asia and the broader region.
- Regional Security Framework: The SCO plays an instrumental role in ensuring peace and stability across Eurasia, particularly in Central Asia, a region of strategic importance. While the organization does not directly intervene in conflicts, it provides a vital platform for members to collaborate on regional security challenges, including those posed by the instability in Afghanistan and other areas.
- Platform for Dialogue and De-escalation
- Fostering Political and Security Dialogue: The SCO serves as a critical platform for high-level political and security discussions. It allows member countries, including those with bilateral tensions (like India-China and India-Pakistan), to engage in dialogue. This helps in easing tensions, building trust, and fostering a better understanding of each other’s concerns, leading to a more stable regional environment.
- Consensus-Based Decision Making: The SCO follows a consensus-based decision-making process, which ensures that all member states, including India, have a say in important regional matters. While this system may sometimes slow down decision-making, it guarantees that all perspectives are considered, making it a more inclusive and collaborative organization.
- India’s Balancing Act: SCO and Quad
- Balancing Global Alliances: India’s participation in both the SCO and the Quadrilateral Security Dialogue (Quad) represents a careful balancing act in its foreign policy. While the Quad, comprising the US, Japan, Australia, and India, is often seen as a counterweight to China’s influence, India’s involvement in the SCO demonstrates its ability to maintain strategic autonomy. India’s membership in both organizations reflects its commitment to being a part of both pro-Western and non-Western alliances, ensuring it has influence across different geopolitical frameworks.
Limitations of the Shanghai Cooperation Organization (SCO)
- Internal Conflicts and Bilateral Tensions:
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- India-China Border Disputes: One of the major challenges within the SCO is the ongoing border dispute and geopolitical tensions between India and China. The Ladakh standoff and military clashes along the Line of Actual Control (LAC) have often spilled over into SCO discussions, affecting cooperation between two of the organization’s largest and most influential members. These bilateral tensions make it difficult for India and China to fully engage on broader regional issues within the SCO framework.
- India-Pakistan Animosity: The deep-rooted historical animosity between India and Pakistan, particularly issues related to Kashmir and cross-border terrorism, adds another layer of complexity to SCO discussions. India’s concerns about terrorism emanating from Pakistan often go unaddressed, and Pakistan may seek to downplay or deflect these issues during SCO meetings. This makes it difficult to forge consensus, especially in areas where India and Pakistan have competing interests.
- Central Asian Border Disputes: Central Asia, which forms a critical part of the SCO, is not free from internal conflicts. Border disputes between member states like Kyrgyzstan and Tajikistan also affect regional stability. These conflicts divert attention from broader cooperative objectives and create challenges in building a unified front.
- Lack of Effective Conflict Resolution Mechanism: The SCO lacks a formal and effective conflict resolution mechanism. As a result, bilateral tensions, whether between India and China, or other members, often remain unresolved within the organization, stalling collective action and strategic alignment on key issues.
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- Dominance of China and Russia:
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- Power Imbalance: The SCO faces a significant power imbalance, with China and Russia holding dominant roles in shaping the organization’s direction. While this ensures that both nations exert significant influence on decisions, it also raises concerns among other member states regarding disproportionate control. This is particularly evident in the organization’s language choices, where Russian and Chinese are the official languages, potentially sidelining other member states.
- China’s Growing Economic Influence: China’s expanding economic power and its Belt and Road Initiative (BRI) often drive the SCO’s economic agenda, sometimes overshadowing the interests of smaller members. Many members express concerns over China’s economic dominance and the implications of its policies on regional and global trade dynamics.
- Absence of a Free Trade Area: Despite discussions over the years, the SCO still lacks a comprehensive free trade agreement (FTA) among its members. This hampers the organization’s potential for deep economic integration, especially when compared to other regional organizations like ASEAN and the EU, which have established more robust economic linkages. The absence of an FTA restricts the flow of goods, services, and investments, preventing the SCO from maximizing its economic potential.
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- “Anti-Western” Perception: The SCO is often seen by Western countries as a counter to the US-led global order, with its emphasis on regional security, economic cooperation, and alignment with Russia and China. This perception as an “anti-Western” bloc limits the organization’s ability to engage with Western countries on global issues, potentially reducing its effectiveness in promoting international diplomacy. Furthermore, the perception of the SCO as a challenge to NATO and Western values might influence the organization’s ability to establish partnerships beyond its region.
- Belt and Road Initiative (BRI) Concerns: China’s Belt and Road Initiative (BRI), particularly the China-Pakistan Economic Corridor (CPEC), has raised significant concerns, especially for India. The CPEC passes through Pakistan-Occupied Kashmir (PoK), a region that India considers part of its territory. While other SCO members endorse the BRI, India’s opposition to the initiative isolates it within the organization and limits its participation in some economic connectivity projects under the SCO framework. India’s stance on the BRI highlights the friction within the organization when it comes to dealing with competing national interests.
- Limited Mandate of the SCO: While the SCO has evolved to address a variety of issues, its primary focus remains on security, specifically the “three evils” of terrorism, separatism, and extremism. This narrow mandate sometimes overshadows other crucial areas, such as economic cooperation and cultural exchange, which could bring broader benefits to the region. The limited scope of the SCO’s activities restricts its ability to engage in comprehensive regional development initiatives, hindering its potential for more significant economic or social collaboration.
- Dominance of China and Russia:
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- Power Imbalance: The SCO faces a significant power imbalance, with China and Russia holding dominant roles in shaping the organization’s direction. While this ensures that both nations exert significant influence on decisions, it also raises concerns among other member states regarding disproportionate control. This is particularly evident in the organization’s language choices, where Russian and Chinese are the official languages, potentially sidelining other member states.
- China’s Growing Economic Influence: China’s expanding economic power and its Belt and Road Initiative (BRI) often drive the SCO’s economic agenda, sometimes overshadowing the interests of smaller members. Many members express concerns over China’s economic dominance and the implications of its policies on regional and global trade dynamics.
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- Absence of a Free Trade Area: Despite discussions over the years, the SCO still lacks a comprehensive free trade agreement (FTA) among its members. This hampers the organization’s potential for deep economic integration, especially when compared to other regional organizations like ASEAN and the EU, which have established more robust economic linkages. The absence of an FTA restricts the flow of goods, services, and investments, preventing the SCO from maximizing its economic potential.
- “Anti-Western” Perception: The SCO is often seen by Western countries as a counter to the US-led global order, with its emphasis on regional security, economic cooperation, and alignment with Russia and China. This perception as an “anti-Western” bloc limits the organization’s ability to engage with Western countries on global issues, potentially reducing its effectiveness in promoting international diplomacy. Furthermore, the perception of the SCO as a challenge to NATO and Western values might influence the organization’s ability to establish partnerships beyond its region.
- Belt and Road Initiative (BRI) Concerns: China’s Belt and Road Initiative (BRI), particularly the China-Pakistan Economic Corridor (CPEC), has raised significant concerns, especially for India. The CPEC passes through Pakistan-Occupied Kashmir (PoK), a region that India considers part of its territory. While other SCO members endorse the BRI, India’s opposition to the initiative isolates it within the organization and limits its participation in some economic connectivity projects under the SCO framework. India’s stance on the BRI highlights the friction within the organization when it comes to dealing with competing national interests.
- Limited Mandate of the SCO: While the SCO has evolved to address a variety of issues, its primary focus remains on security, specifically the “three evils” of terrorism, separatism, and extremism. This narrow mandate sometimes overshadows other crucial areas, such as economic cooperation and cultural exchange, which could bring broader benefits to the region. The limited scope of the SCO’s activities restricts its ability to engage in comprehensive regional development initiatives, hindering its potential for more significant economic or social collaboration.
Way Forward
- Strengthening Trust and Dialogue: While the SCO provides a multilateral forum for addressing regional concerns, its most immediate value often lies in its ability to facilitate bilateral dialogue between member states.
- High-Level Bilateral Engagements: The SCO should encourage informal discussions on the sidelines of its meetings, providing opportunities for member states like India and China, or India and Pakistan, to address specific bilateral grievances and ease tensions. These informal platforms can serve as crucial channels for de-escalation and confidence-building measures.
- Diplomatic Engagement: India, with its neutral diplomatic stance, should actively use SCO meetings to foster dialogue, aiming to build stronger trust and mutual understanding between member nations.
- Zero Tolerance, No Double Standards: The SCO must unequivocally condemn all forms of terrorism, irrespective of the political or ideological motives behind it. There can be no distinctions between “good” and “bad” terrorists. A unified, consistent stance is essential for building credibility and promoting peace.
- Actionable Intelligence Sharing: The SCO must optimize the Regional Anti-Terrorist Structure (RATS), enhancing its role in intelligence sharing, joint exercises, and capacity building. By creating a more effective RATS, the SCO can significantly improve counter-terrorism cooperation among its member states. Reducing political maneuvering and ensuring transparency will be key to its success.
- Identify Key Sectors for Cooperation: The SCO should focus on sectors where member countries have complementary strengths, such as energy (especially renewable energy), agriculture (for food security), pharmaceuticals, and digital technologies. These sectors offer opportunities for mutual growth and stability.
- Leverage Existing Corridors: Existing transport corridors like the International North-South Transport Corridor (INSTC) should be fully utilized and expanded. Connecting regional transport networks will help streamline trade, enhance energy cooperation, and boost economic integration.
- Promote Digital Connectivity: The SCO should prioritize digital infrastructure development, focusing on cross-border e-commerce, digital payment systems, and collaboration in digital technologies. India’s Unified Payments Interface (UPI) success, for instance, could be shared as a model for digital public infrastructure across the SCO region.
- Counter-Narcotics: The illicit drug trade continues to fund terrorism and organized crime in the region. The SCO must enhance cooperation through RATS to combat drug trafficking, disrupt trafficking networks, and minimize the impact of these illegal activities.
- Cybersecurity: The growing threat of cyber-attacks poses risks to national security and economic stability. The SCO should launch joint initiatives on cybersecurity, sharing best practices, and providing capacity-building measures to help member states protect their critical infrastructure from cyber threats.
- Disaster Management: Given the region’s vulnerability to natural disasters, the SCO must create platforms for cooperation in disaster response and humanitarian assistance. India’s expertise in disaster management, such as its work on flood management and relief coordination, could be shared to benefit the broader SCO community.
- Climate Change Cooperation: The SCO should also strengthen cooperation on climate change adaptation and mitigation strategies. Shared challenges such as water scarcity, desertification, and extreme weather events should motivate joint action, with India playing a leadership role in promoting sustainable practices and green technologies.