Targets & challenges of Shanghai Cooperation Organization

By Dr Mehmood Ul Hassan Khan

The 23rd Meeting of the Council of Heads of State of the Shanghai Cooperation Organization will be held on July 4 in India via video. According to the Chinese foreign ministry spokeswoman Hua Chunying President Xi Jinping will attend it via videoconference in Beijing.

The SCO member states are facing numerous socio-economic, geopolitical and geostrategic challenges in shape of unending Russia-Ukraine conflict, Russia-US geopolitical proxies, NATO’s Eastern expansion, US-China decoupling/de-risking, US-Iran stalemated nuclear deal, US increasingly military presence in the Asia Pacific region, US Federal Reserve unwise interest rates hike and constant and continued inflationary trends spreading economic problems.

Moreover, the US chronic obsession of bloc formation mentality, imposition of unilateral socio-economic and political sanctions and last but not least persisted false and fake propaganda against China and developing countries are disturbing world peace and stability and somehow there has not been any befitting response from the SCO platform against the US hegemony and imperial designs has now provoked speculations that the SCO might end up becoming an organization without substantial influence which is not true.

According to many published reports of the IMF and WB the combined GDP of SCO members reached about $25 trillion, accounting for nearly 25 percent of global GDP, which is over 13 times larger than that of the time of its establishment in 2001. In 2021, China's trade with other SCO members reached $343.1 billion, up 40 percent year-on-year. Thus economically the SCO is getting momentum.

Moreover, the SCO covers 25 percent of the world's land area i.e. 34 million square kilometers. The eight member states of the SCO China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India and Pakistan are home to 41 percent of the world's population and contribute 25 percent to the world's GDP. Now Iran has also been officially included in the SCO so its geographic, socio-economic and geopolitical composition, utility, scope and strategic importance has been further enhanced which should be used for achieving a just economic world order for all. So geopolitically it is expanding and compounding.

Furthermore, the emerging triangle of SCO-BRI-CPEC would be an ideal combination to bring desired goals of trade, transport and logistics cooperation among the SCO states in the days to come. Therefore, geo-strategically it is further relevant.

According to the Chinese Custom data, the global trade value of SCO member states increased from just $667 billion to $6.06 trillion in 2020. Its share of global trade enhanced from 5.4 percent in 2001 to 17.5 percent in 2020 which has great significance. Thus it is socio-economically vibrant and harmonious.

Furthermore, it stipulates that the SCO member states hold one-tenth of the world's oil reserves, a quarter of natural gas reserves and 40 percent of coal reserves. In 2020, the SCO countries accounted for 39 percent of the world's cereals production, and 31 percent of meat production. It has a considerable share of global food exports, taking up nearly half of world rice exports and 22 percent of wheat exports. Therefore it is very important for global food & energy security.

It was established in 2001 and successfully combated threats of extremism, terrorism and separatism, drug trafficking and other transnational crimes and also tackled other non-state security challenges in the region. The SCO’s Regional Anti-Terrorist Structure, multi-level mechanisms, joint anti-terrorism exercises, and deepening cooperation in law enforcement and security, it has helped improve regional security.

Moreover, the SCO coined the Shanghai Spirit stressing economic equality and political consultation, opposing hegemonism and Cold War mentality, promoting multilateral cooperation, and pursuing a new cooperation model of seeking partners without building alliances. It has helped extend the SCO's influence far beyond the region, across the world. Thus its influence is not fading.

It seems that emerging international geopolitics and wild chase of trans-regional geo-strategic proxies have somehow affected the SCO’s functionality, scope and utility. In this regard, conflicting interests of the member states have further complicated the problem. In particular, the US' efforts to project India as a loyal partner/strategic ally has further strengthened its "Indo-Pacific" strategy, whose aim is to contain China and weaken Russia, are not conducive to the SCO making coordinated, cohesive decisions.

Moreover, the deteriorating law & order situation in Afghanistan, demands immediate attention but has mostly been ignored due to the Ukraine crisis, and border disputes between member states.

Unfortunate US-led media war to tarnish China, Russia and Iran has created massive strategic mess making it difficult for the SCO to further deepen cooperation among its member states. The US has also allegedly incited color revolutions in some SCO member states especially in the Central Asian countries destabilizing the socioeconomic and political systems in those countries, which has affected decision-making within the SCO.

In summary, the SCO should establish and maintain the stability of regional industry and supply chains, deepen cooperation in the digital economy, promote innovation and e-commerce, encourage member states to conduct trade in their currencies, increase people-to-people exchanges, and expand multilateral cooperation.

It should also extend its cooperation in improving greater regional connectivity, ensuring food & energy security, better protect the environment and ecology, facilitate green development and alleviate poverty among all the member countries of the SCO.

Further national currencies swapping, banking & financial integration, infrastructure connectivity, including pipelines, highways and railways, which is also in line with the development goals of the BRI should be further integrated and coordinated in SCO.

There are numerous “X Factors” for further strengthening of the SCO i.e. China, BRI, New Currency, e-commerce, digitalization of economies, Artificial Intelligence and joint security policy to combat terrorism in the days to come.