23.08.2025

Shanghai Cooperation Organization (SCO)

Context

The SCO summit will be held on 31 August–1 September 2025 in Tianjin, China, with key leaders including India’s PM Narendra Modi, Pakistan’s PM Shehbaz Sharif, Russia’s President Vladimir Putin, and China’s President Xi Jinping.

Origin and Evolution

• It began as the Shanghai Five in 1996 with China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.
   
• Uzbekistan joined in 2001, prompting the renaming to Shanghai Cooperation Organization (SCO).
   
• India and Pakistan became full members in 2017, while Iran joined in 2021, and Belarus in 2024.
   

Composition and Partners

• Full Members : China, India, Kazakhstan, Kyrgyzstan, Russia, Pakistan, Tajikistan, Iran, Uzbekistan, Belarus.
   
• Observers: Afghanistan, Belarus (prior to full membership), Mongolia.
   
• Dialogue Partners: Armenia, Azerbaijan, Cambodia, Sri Lanka, Turkey, Egypt, Nepal, Qatar, Saudi Arabia.
   

Objectives and Core Values

• SCO promotes political, economic, and security cooperation across member states.
   
• Key areas include trade, investment, energy, transportation, scientific-technical collaboration, education, culture, and environmental protection.
   
• The Shanghai Spirit guides the organization, emphasizing mutual trust, equality, respect for diversity, consultation, and common development.
   
• Main goals:
   
  • Strengthen relations among member states.
     
  • Ensure regional peace, security, and stability.
     
  • Promote a fair and equitable international political and economic order.
     

Organizational Structure

• Council of Heads of State: Highest decision-making body, sets strategic direction annually.
   
• Council of Heads of Government: Discusses multilateral cooperation at annual summits.
   
• Council of Ministers of Foreign Affairs: Coordinates foreign policy among members.
   
• Council of National Coordinators: Manages ongoing activities and prepares meetings for higher councils.
   
• Secretariat: Administrative arm based in Beijing, led by a Secretary-General.
   
• Regional Anti-Terrorist Structure (RATS): Headquartered in Tashkent, coordinates counter-terrorism, separatism, and extremism efforts.
   
• SCO Business Council & Interbank Consortium: Promote economic and financial cooperation among member states.
   

Areas of Cooperation and Significance

• Security: Focus on counter-terrorism, extremism, drug trafficking, and military cooperation.
   
• Economic Integration: Encourages trade, investment, and infrastructure development across member states.
   
• Regional Influence: Covers 40% of the global population, nearly 20% of world GDP, and 22% of global land area.
   
• Strategic Role: Acts as a platform for regional stability, connectivity, and cooperation across Asia.
   
• Comparison: Unlike Quad, SCO demonstrates stronger capacity for joint military exercises and coordinated security initiatives, such as the “Peace Mission” drills.
   

Importance for India

• Counter-terrorism: Enhances regional security cooperation against terrorism and extremism.
   
• Regional Stability: Provides a platform to promote stability in Central and South Asia.
   
• Connectivity & Infrastructure: Supports India’s initiatives for improved regional links.
   
• Economic Cooperation: Facilitates access to markets, technology, and investments.
   
• Diplomacy: Enables multilateral engagement, including advancing India’s Connect Central Asia policy.
   
• Tourism & Cultural Exchange: Promotes shared heritage awareness and regional collaboration.
   

Challenges for India

• Balancing relations with China and Russia while maintaining Quad commitments.
   
• Managing complex India–Pakistan ties within SCO frameworks.
   
• Ensuring economic gains from trade and connectivity initiatives.
   
• Maintaining strategic autonomy, particularly in matters like the Belt and Road Initiative.
   
• Low bilateral trade compared to other members, requiring policy focus.
   

Wayforward

• Use the rotating presidency to host summits and strengthen leadership visibility.
   
• Promote trade in national currencies to reduce dollar dependence.
   
• Prioritize diplomatic dialogue to resolve tensions within SCO.
   
• Collaborate on counter-terrorism, extremism, and organized crime measures.
   
• Leverage SCO for regional integration, infrastructure, and connectivity projects.

Context

The SCO fosters regional cooperation in security, trade, and connectivity. For India, it strengthens counter-terrorism efforts, economic ties, and diplomatic engagement, enhancing influence while balancing relations with China, Russia, and other member states.