SHANGHAI COOPERATION ORGANISATION
1. Context
Prime Minister Narendra Modi is hosting the virtual summit of the Shanghai Cooperation Organisation (SCO) on 4th July 2023, which is likely to see the participation of Russian President Vladimir Putin, Chinese President Xi Jinping, and Pakistan Prime Minister Shehbaz Sharif.
The meeting comes at a crucial time, with India’s ties with neighbours Pakistan and China tense and war raging in Europe.
2. About Shanghai Cooperation Organisation
- The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, international security and defence organisation.
- It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, and 40% of the world's population. Its combined GDP is around 20% of global GDP.
- The SCO was founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
2.1. Structure
The SCO has several bodies that oversee its activities, including
- The Council of Heads of State, which is the supreme decision-making body of the SCO.
- The Council of Heads of Government, which is responsible for overseeing the implementation of the decisions of the Council of Heads of State.
- The Council of Foreign Ministers, which is responsible for coordinating the foreign policies of the SCO member states.
- The Regional Anti-Terrorist Structure (RATS), which is responsible for combating terrorism, separatism and extremism in the SCO region and
- The SCO Secretariat, which is responsible for the day-to-day running of the organization.
2.2. Members
- The SCO has eight full members China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.
- It also has six observer states Afghanistan, Belarus, Iran, Mongolia, Nepal and Sri Lanka.
- And six dialogue partners Armenia, Azerbaijan, Cambodia, Egypt, Qatar and Saudi Arabia.
2.3. Goals
- Political and security cooperation, including the fight against terrorism, separatism and extremism
- Economic cooperation, including trade, investment, energy and transportation
- Cultural and humanitarian cooperation and
- Coordination of positions on major international issues.
3. Criticism
- The SCO has been criticized by some for being a tool of Chinese and Russian imperialism.
- However, the organization has also been praised for its role in promoting stability and security in Central Asia.
4. What is the Role of SCO in Global Multilateralism?
- Expanding Geopolitical Influence
- The Shanghai Cooperation Organisation (SCO) has evolved far beyond its original Central Asian focus and today accounts for nearly 23% of the global GDP and around 42% of the world’s population.
- Its expanding membership and partnerships — including countries like North Atlantic Treaty Organization member Turkey participating as a dialogue partner — reflect its growing capacity to counterbalance traditional Western-led alliances.
- The SCO also offers an important platform for countries of the Global South to express their interests outside conventional global power structures.
- Security and Counter-Terrorism
- The SCO attempts to fill regional security gaps, particularly after the reduced role of North Atlantic Treaty Organization in Afghanistan, through mechanisms such as the Afghanistan Contact Group (ACG).
- Its Regional Anti-Terrorist Structure (RATS), headquartered in Tashkent, promotes coordination among member states to combat terrorism, separatism, and extremist activities.
- Connectivity and Economic Cooperation
- The SCO plays a major role in improving connectivity across Central Asia by supporting infrastructure and trade initiatives such as the International North-South Transport Corridor (INSTC) and Chabahar Port, which help strengthen regional commerce and mutual confidence.
- Institutions like the SCO Business Council and the Interbank Consortium also encourage collaborative economic and investment projects among member nations.
- Civilisational and Developmental Collaboration
- India’s contributions within the SCO — including initiatives related to start-ups, traditional medicine, Buddhist heritage, and digital inclusion — demonstrate the organisation’s potential to promote cultural exchanges and people-centric cooperation beyond state-level diplomacy.
- Through such efforts, the SCO is gradually emerging as a platform supporting inclusive growth and the developmental aspirations of the Global South.
- Push for Reform in Global Governance
- SCO member countries consistently advocate reforms in institutions such as the United Nations to make global governance more representative and inclusive.
- By emphasizing sovereign equality and a multipolar international system, the organisation seeks to promote a fairer and more democratic world order.
5. What are the Challenges Undermining SCO’s Effectiveness?
- Limited Security Effectiveness
- Although RATS conducts joint exercises and discussions, its practical success against real terrorist threats remains limited.
- The participation of countries like Pakistan, which are often accused of links with terrorism, further weakens the credibility of the organisation’s counter-terrorism agenda.
- Imbalanced Power Relations
- Several Central Asian countries perceive the SCO as being heavily influenced by China and Russia rather than functioning on the basis of equal partnership.
- As a result, the “Shanghai Spirit” — centered on mutual respect and equality — is frequently viewed as more symbolic than genuinely practiced.
- Poor Economic Integration
- Many SCO agreements, including transport and trade-related arrangements, have witnessed weak implementation.
- Intraregional trade within Central Asia still remains at very low levels, significantly below the trade integration achieved by Association of Southeast Asian Nations.
- Economic growth in the region is largely driven by domestic and bilateral efforts rather than SCO-led initiatives.
- Comparisons with SAARC
- Unlike Association of Southeast Asian Nations, which has managed to maintain institutional effectiveness despite internal disagreements, the SCO is increasingly compared to South Asian Association for Regional Cooperation — active in meetings and declarations but limited in concrete outcomes.
- Weak Institutional Framework
- Despite repeated discussions, the SCO has not succeeded in creating robust mechanisms for cooperation in areas such as energy, finance, development, and free trade.
- Its formal bodies, including banking and business platforms, largely operate as networking forums rather than effective institutions capable of implementing binding decisions
6. The Way Forward
- The SCO has been expanding its membership in recent years, and it may continue to do so in the future.
- The organization is seen by some as a potential rival to the North Atlantic Treaty Organization (NATO), and its growing influence is being watched closely by the United States and its allies.
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For Prelims: SCO, NATO, India, Central Asia, United States, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, terrorism,
For Mains:
1. Examine the potential challenges and opportunities for India as a full member of the SCO, highlighting its implications for India's political, economic, and security interests. (250 Words)
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Previous Year Questions
1. Shanghai Cooperation Organisation (SCO) Heads of State Summit was held on 10th November, 2020 in the video conference format. The Summit was hosted by: (OPSC OAS 2021)
A. Russia B. India C. Kazakhstan D. Uzbekistan
Answer: A
2. The Summit of the Shanghai Cooperation Organisation (SCO) was hosted by which country from 15-16 September 2022? (Rajasthan CET 2023)
A. Kazakhstan B. Tajikistan C. Uzbekistan D. India
Answer: C
3. The area known as 'Golan Heights' sometimes appears in the news in the context of the events related to (UPSC 2015)
A. Central Asia B. Middle East C. South-East Asia D. Central Africa
Answer: B
4. Siachen Glacier is situated to the (UPSC 2020)
A. East of Aksai Chin B. East of Leh C. North of Gilgit D. North of Nubra Valley
Answer: D
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Source: SCO
