What is Shanghai Cooperation Organisation (SCO)? Recent developments, members, global impact and relevance, importance of SCO for India

Shanghai Cooperation Organization (SCO)

• The Shanghai Cooperation Organization (SCO) is an international organization that works to promote political, economic, and security cooperation.
• Its primary purpose is to maintain regional stability and enhance multidimensional cooperation among member countries.

25th Council of Heads of State of the SCO Summit 2025

• The 25th Council of Heads of State of the Shanghai Cooperation Organization (SCO) was held on 30–31 August 2025 in Tianjin, China.
• Indian Prime Minister Narendra Modi participated in this summit.
• It was considered the largest and most ambitious SCO summit to date because it included:
  • Participation of more than 20 world leaders.
  • Heads of 10 international organizations attended.
  • Recently, U.S. President Trump imposed tariffs on India, China, and other countries.
  • This highlighted the rapid rise of a Global South platform, separate from the West.
• China hosted this summit, with President Xi Jinping presiding over it.
• The theme of the summit was: “Preserving the Shanghai Spirit: The Dynamism of the SCO.”
• China also declared 2025 as the “SCO Year of Sustainable Development.”
• Alongside BRICS, the Shanghai Cooperation Organization (SCO) is emerging as an important platform in Asian politics.
  

Origin and History of SCO

• Beginning (1996):
  •  SCO was initially formed as the "Shanghai Five," which included China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.
  • This group mainly focused on resolving border disputes and implementing confidence-building measures.
• Establishment (2001):
  • In 2001, Uzbekistan joined, and the "Shanghai Five" was renamed the Shanghai Cooperation Organization (SCO).
  • The SCO Charter was implemented in 2002.
• Expansion (2017):
  • India and Pakistan became members, expanding the scope of the SCO.
• Recent Developments (2023):
  • Iran joined the organization.
  • Belarus was added as the 10th and newest member.

Key Features and Objectives

• Member Countries:

• 10 member countries: China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran, and Belarus.
• Headquarters: Beijing, China
• Main Objectives:
  1. Maintain regional peace and security.
  2. Combat terrorism, extremism, and separatism.
  3. Promote economic cooperation and energy partnerships.
  4. Encourage cultural and scientific exchanges.

SCO Structure

• Council of Heads of State:
  • The supreme body of the SCO, responsible for determining the organization’s strategy and policies.
• Council of Heads of Government:
  • Approves the organization’s budget and economic activities.
• Council of Foreign Ministers:
  • Considers the regular activities of the organization and international issues.
• Regional Anti-Terrorist Structure (RATS):
  • Coordinates actions against terrorism, separatism, and extremism.
  • Established in June 2002 in St. Petersburg during a meeting of the SCO Heads of State Council as a permanent body.
  • Since its inception, RATS has become a pillar of coordination to combat separatism, terrorism, and extremism at both regional and global levels.
  • Under RATS, member states coordinate with each other and with other global organizations to gather information to combat terrorism.
  • RATS also maintains a database of terrorists and terrorist organizations in its member countries.

Joint Anti-Terrorist Exercise (JATE)

• The Joint Anti-Terrorist Exercise (JATE) is an annual counter-terrorism exercise conducted within the framework of SCO RATS.
• The exercise aims to exchange expertise and best practices, and to establish coordination among the counter-terrorism forces of SCO member states.
• Its objective is to enhance the operational capabilities of member states’ counter-terrorism forces and build synergy to collectively address other security threats.
• The exercise provides participating member states with a platform to improve their operational skills and share experiences in the fight against terrorism.

Shanghai Cooperation Organization Interbank Consortium (SCO IBC)

• SCO IBC is a multilateral financial organization established by the member countries of the Shanghai Cooperation Organization (SCO).
• Establishment: It was set up on 26 October 2005 by the Council of Heads of Government of SCO member states to provide funds and banking services for investment projects sponsored by the governments of SCO member states.
• Meetings: The SCO IBC Council holds at least one ad-hoc meeting per year based on the consensus of all members.
• Priority areas of cooperation within SCO IBC include:
  1. Providing funds for projects focused on infrastructure, basic industries, high-tech industries, export-oriented sectors, and social projects.
  2. Issuing loans based on approved international banking practices.
  3. Providing export financing to promote trade and economic cooperation between SCO member states and other areas of common interest.

Global Impact and Relevance of SCO

• Scope of SCO:
  • Covers 40% of the global population, 30% of global GDP, and 60% of the Eurasian region.
• Geopolitical and strategic significance:
  • Plays a crucial role in maintaining the geopolitical balance in Asia.
  • Attempts to balance U.S. influence in the region.

Significance of SCO for India

Economic Cooperation:

• Facilitates India’s access to energy resources (such as uranium and gas) in Central Asia.
• Promotes trade routes and connectivity.
• Recently, the Trump administration imposed tariffs of up to 50% on India, creating tension in India-U.S. relations.
• SCO and BRICS platforms, along with India’s dialogue with China and Russia, indicate India is playing a balancing power role.
• This allows India to benefit from multi-dimensional trade partnerships and reduce dependence on the U.S.

Security:

• Through the RATS platform of SCO, India can collaborate against terrorism and extremism.

Connectivity:

• Provides India with opportunities to strengthen strategic partnerships with Central Asian countries.

Culture and Diplomacy:

• Enables India to revive its cultural and historical ties in the region.

Challenges and Limitations

Internal Conflicts:

• Tensions between India and Pakistan hinder the progress of the organization.
• India-China border disputes also pose challenges.

Divergent Priorities:

• Member states have different security, economic, and political priorities.

Pressure from the U.S. and Western Countries:

• Several SCO members face U.S. sanctions or geopolitical pressures, which can affect organizational cooperation.