Shanghai Cooperation Organisation (SCO)
What is SCO?
SCO is a permanent intergovernmental international organisation.
It’s a Eurasian political, economic and military organisation aiming to maintain peace, security and
stability in the region.
It was created in 2001.
The SCO Charter was signed in 2002, and entered into force in 2003.
It is a statutory document which outlines the organisation's goals and principles, as well as its
structure and core activities.
The SCO's official languages are Russian and Chinese.
Genesis
Prior to the creation of SCO in 2001, Kazakhstan, China, Kyrgyzstan, Russia and Tajikistan were
members of the Shanghai Five.
Shanghai Five (1996) emerged from a series of border demarcation and demilitarization talks
which the four former Soviet republics held with China to ensure stability along the borders.
Following the accession of Uzbekistan to the organisation in 2001, the Shanghai Five was renamed
the SCO.
India and Pakistan became members in 2017.
Membership
1. Kazakhstan
2. China
3. Kyrgyzstan
4. Russia
5. Tajikistan
6. Uzbekistan
7. India
8. Pakistan
Observer states
Afghanistan
Belarus
Iran
Mongolia
Dialogue Partner
Azerbaijan
Armenia
Cambodia
Nepal
Turkey
Sri Lanka
Objectives
Strengthening mutual trust and neighbourliness among the member states.
Promoting effective cooperation in -politics, trade & economy, research & technology and culture.
Enhancing ties in education, energy, transport, tourism, environmental protection, etc.
Maintain and ensure peace, security and stability in the region.
Establishment of a democratic, fair and rational new international political & economic order.
Guiding Principle – Based on Shanghai Spirit
Internal policy based on the principles of mutual trust, mutual benefit, equality, mutual
consultations, respect for cultural diversity, and a desire for common development.
External policy in accordance with the principles of non-alignment, non-targeting any third country,
and openness.
Structure of the Shanghai Cooperation Organisation
Heads of State Council – The supreme SCO body which decides its internal functioning and its
interaction with other States & international organisations, and considers international issues.
Heads of Government Council – Approves the budget, considers and decides upon issues
related economic spheres of interaction within SCO.
Council of Ministers of Foreign Affairs – Considers issues related to day-to-day activities.
Regional Anti-Terrorist Structure (RATS) – Established to combat terrorism, separatism and
extremism.
SCO Secretariat – Based in Beijing to provide informational, analytical & organisational support.
Operations
Initially, the SCO focused on mutual intraregional efforts to curb terrorism, separatism and
extremism in Central Asia.
In 2006, SCO’s agenda widened to include combatting international drug trafficking as a source of
financing global.
In 2008, SCO actively participated in bringing back stability in Afghanistan.
At the same time, the SCO took up a variety of economic activities:
In 2003, SCO member states signed a 20-year Programme of Multilateral Trade and
Economic Cooperation for the establishment of a free trade zone within the territory under
the SCO member states.
Strengths of SCO
The SCO covers 40%of the global population, nearly 20% of the global GDP and 22% of the world’s
land mass.
The SCO has a strategically important role in Asia due to its geographical significance - this
enables it to control the Central Asia and limit the American influence in region.
SCO is seen as counterweight to the North Atlantic Treaty Organisation.
Challenges for SCO
The SCO security challenges includes combating terrorism, extremism and separatism;; drug and
weapons trafficking, illegal immigration, etc.
Despite being geographically close, the rich diversity in member’s history, backgrounds, language,
national interests and form of government, wealth and culture makes the SCO decision making
challenging.
Importance for India
India’s membership of SCO can help in achieving regional integration, promote connectivity and
stability across borders.
Security
India through RATS can improve its counterterrorism abilities by working toward intelligence
sharing, law enforcement and developing best practices and technologies.
Through the SCO, India can also work on anti-drug trafficking and small arms proliferation.
Cooperation on common challenges of terrorism and radicalisation.
Energy
India being an energy deficient country with increasing demands for energy, SCO provides it with
an opportunity to meet its energy requirements through regional diplomacy.
Talks on the construction of stalled pipelines like the TAPI (Turkmenistan-Afghanistan-
Pakistan-India) pipeline; IPI (Iran-Pakistan-India) pipeline can get a much needed push
through the SCO.
Trade
SCO provides direct access to Central Asia – overcoming the main hindrance in flourishing of trade
between India and Central Asia.
SCO acts as an alternative route to Central Asia.
Economic Ties - Central Asian countries provids India with a market for its IT, telecommunications,
banking, finance and pharmaceutical industries.
Geopolitical
Central Asia is a part of India's Extended Neighbourhood – SCO provides India an opportunity to
pursue the “Connect Central Asian Policy”.
Helps India fulfil its aspiration of playing an active role in its extended neighbourhood as well as
checking the ever growing influence of China in Eurasia.
Platform for India to simultaneously engage with its traditional friend Russia as well as its rivals,
China and Pakistan.
Challenges of SCO Membership for India
Pakistan’s inclusion in SCO poses potential difficulties for India.
India’s ability to assert itself would be limited and it may have to play second fiddle since China
and Russia are co-founders of SCO and its dominant powers.
India may also have to either dilute its growing partnership with the West or engage in a delicate
balancing act - as SCO has traditionally adopted an anti-Western posture.
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