Daily News Analysis

Shanghai Cooperation Organisation (SCO) 2025 Summit

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The 2025 SCO Heads of State Summit was held in Tianjin, China, marking a significant moment for the organization’s expanding role on the global stage.

Key Highlights:

  1. Terrorism:

    • The SCO strongly condemned all acts of terrorism, including the Pahalgam incident in India and other attacks in Pakistan.

    • A unified call was made for countries to stop cross-border terrorism.

  2. Global Order & Trade:

    • The declaration rejected U.S. tariffs and sanctions, with President Xi Jinping criticizing "Cold War thinking".

    • A Global Governance Initiative was proposed to create a more inclusive and fair world order.

  3. Membership Expansion:

    • Laos joined the SCO as a new partner.

    • The observer and dialogue partner categories were merged, increasing the SCO's strength to 27 countries, with 10 full members and 17 partners.

  4. Economic Commitments:

    • Plans were announced for the establishment of an SCO Development Bank.

    • China committed a ¥2 billion grant in 2025 and pledged ¥10 billion in loans over the next three years to support development initiatives within the SCO.

  5. Geopolitical Issues:

    • Gaza War: The SCO condemned civilian deaths and opposed Israel–U.S. strikes on Iran.

    • Afghanistan: The SCO called for the formation of an inclusive government in Afghanistan.

    • Belt and Road Initiative (BRI): All members, except India, expressed support for the initiative, highlighting India’s reluctance to endorse the BRI.

  6. China’s Push for SCO Expansion:

    • The BeiDou satellite system (China's GPS alternative) was made available to all SCO members.

    • China pledged $1.4 billion in loans over three years to SCO members.

    • The SCO Development Bank was proposed to fund infrastructure and development projects.

  7. SCO+ Format:

    • China also chaired the SCO+ Summit, which expanded the organization’s reach by including member states, observers, dialogue partners, and international organizations.

    • This indicates the SCO’s growing influence in global governance.

  8. UN Reform:

    • The SCO called for reforms to the United Nations, focusing on expanding the representation of developing countries in key governing bodies.

About Shanghai Cooperation Organisation (SCO)

The Shanghai Cooperation Organisation (SCO) is a regional intergovernmental body founded on 15 June 2001 in Shanghai, China. Initially created by Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, the organization evolved from the earlier framework known as the Shanghai Five.

SCO Charter and Evolution

  • SCO Charter: In 2002, member states adopted the SCO Charter during a meeting in St. Petersburg, Russia. The Charter became effective on 19 September 2003 and serves as the constitutional framework of the SCO.

  • Evolution: Over time, the SCO has expanded significantly:

    • In 2017, India and Pakistan became full members.

    • Iran joined in 2023, followed by Belarus in 2024, further enhancing the SCO’s geopolitical significance across East Asia, South Asia, Central Asia, and parts of the Middle East.

Principles and Structure

  • Shanghai Spirit: The SCO emphasizes the "Shanghai Spirit", which promotes mutual trust, mutual benefit, equality, respect for cultural diversity, and the pursuit of common development.

  • Official Language: The official working languages of the SCO Secretariat are Russian and Chinese.

  • Headquarters: The permanent secretariat is located in Beijing, China. The Executive Committee of the Regional Anti-Terrorist Structure (RATS), focused on security cooperation, is located in Tashkent, Uzbekistan.

Objectives of the SCO

The SCO's objectives are broad and cover several areas of cooperation:

  1. Regional Trust and Friendship:

    • Foster mutual confidence and good-neighborly relations among all member states for a stable and harmonious regional environment.

  2. Comprehensive Cooperation:

    • Encourage collaboration across various fields including politics, trade, economy, science, technology, culture, education, energy, transport, tourism, and environmental protection.

  3. Peace and Stability:

    • Work collectively to safeguard regional peace and enhance security mechanisms to maintain long-term stability within Eurasia.

  4. Fair Global Order:

    • Advocate for a more democratic and balanced international political and economic system that reflects the interests of developing nations and promotes multipolarity.

SCO Members and Partners

As of August 2025, the SCO includes:

  • 10 Permanent Members: These include the founding members and later additions like India, Pakistan, Iran, and Belarus.

  • 17 SCO Partners: The SCO now includes countries under the new merged category of “SCO Partners”. For example, Laos became a new partner in 2025. The category includes nations previously in the observer and dialogue partner categories.

SCO Organizational Structure

The SCO's organizational framework is designed to allow for long-term functioning and strategic decision-making:

  1. Council of Heads of State:

    • The highest decision-making body of the SCO, comprising the heads of state of all member countries.

    • It sets the strategic direction of the organization and meets annually.

  2. Council of Heads of Government:

    • The second-highest body that focuses on multilateral cooperation in various sectors.

    • It holds annual summits to discuss economic, trade, and security issues.

  3. Council of Ministers of Foreign Affairs:

    • Comprises the foreign ministers of all member countries.

    • Responsible for coordinating the SCO's foreign policy.

  4. Council of National Coordinators:

    • Coordinates and manages the current activities of the SCO.

    • It ensures that preparations for the major meetings are in place.

  5. Secretariat:

    • The administrative arm of the SCO.

    • Based in Beijing, the Secretary-General heads the Secretariat and coordinates the implementation of decisions made by the SCO bodies.

  6. Regional Anti-Terrorist Structure (RATS):

    • Responsible for coordinating efforts to combat terrorism, separatism, and extremism.

    • The headquarters is located in Tashkent, Uzbekistan.

  7. SCO Business Council:

    • A platform for business representatives from member countries.

    • Promotes economic cooperation and business investments among SCO members.

  8. SCO Interbank Consortium:

    • A network of banks that supports financial cooperation and promotes sustainable development and economic integration.

Significance of the SCO:

The SCO has evolved into a global platform with significant geopolitical, economic, and strategic importance.

  1. Expanding Global Influence:

    • The SCO now represents 23% of global GDP and 42% of the world's population, holding potential to reshape multilateralism and global governance.

  2. Alternative to Western Institutions:

    • The SCO offers a non-Western model of cooperation, providing countries a platform outside of Western-led structures.

    • The interest of Turkey (a NATO member) in full membership underscores the growing importance of the SCO.

  3. Regional Stability and Security:

    • The SCO has played a crucial role in Afghanistan post-NATO withdrawal, maintaining regional stability through its Afghanistan Contact Group (ACG).

  4. Energy Cooperation:

    • With key energy producers like Russia, Kazakhstan, and Iran, and consumers like China and India, the SCO fosters energy security and promotes joint energy projects.

  5. Cultural and People-to-People Ties:

    • The SCO promotes educational exchanges, cultural diplomacy, and youth cooperation, enhancing regional identity and soft power.

  6. Voice for the Global South:

    • By challenging unilateralism and sanctions, the SCO advocates reforms in global institutions and positions itself as a representative of emerging economies.

  7. Counter-Terrorism Cooperation:

    • Through its Regional Anti-Terrorist Structure (RATS), the SCO coordinates intelligence sharing and counter-terrorism measures.

  8. Strategic Balance in Global Politics:

    • For China, the SCO is a vehicle to project leadership and represent the Global South.

    • For Russia, it serves as a forum to counter Western narratives and promote a multipolar world.

  9. Boosting Connectivity in Eurasia:

    • The SCO supports infrastructure projects like the INSTC and Chabahar Port, promoting economic integration in Eurasia.

Challenges Faced by the SCO:

  1. Shifting from Asia-Centric Focus:

    • The inclusion of members like Belarus has increased the SCO’s global visibility but risked fragmenting its focus from Central Asia.

    • Overexpansion may lead to the formation of smaller sub-groupings that might dilute the SCO’s effectiveness.

  2. Tool for Chinese Geopolitical Narratives:

    • China often leverages the SCO to advance its geopolitical narratives, including pushing the BRI, which can overshadow the interests of other members.

  3. Diverse and Conflicting Interests:

    • The SCO is challenged by stark differences among its members. For example, India consistently calls out Pakistan for terrorism, while China diplomatically shields Islamabad, leading to deadlocks on security cooperation.

  4. External Perceptions:

    • Western powers perceive the SCO as an anti-West bloc, limiting its engagement with broader international organizations and reducing its scope for collaboration on global issues.

Relevance of the SCO for India:

India’s involvement in the SCO is strategically significant:

  1. Countering Terrorism:

    • The SCO provides India a platform to highlight concerns about cross-border terrorism, particularly related to Pakistan.

  2. Access to Central Asia:

    • The SCO strengthens India’s connectivity with Central Asian countries, which is vital for trade, energy, and infrastructure initiatives like INSTC and Chabahar Port.

  3. Balancing China and Russia:

    • The SCO allows India to engage with both China and Russia, maintaining strategic autonomy and balancing China’s influence in Eurasia.

  4. Strategic Presence in Eurasia:

    • As an SCO member, India ensures its involvement in regional decision-making on issues like Afghanistan, security, and economic cooperation.

  5. Shaping the Regional Agenda:

    • India can influence the SCO agenda, promoting sustainable development, digital innovation, and inclusive connectivity instead of just focusing on Chinese-driven projects like the BRI.

Way Forward

  1. Balanced Expansion:

    • The SCO should limit enlargement to maintain its Central Asia-centric focus, ensuring new members add strategic value.

  2. Strengthen Institutional Capacity:

    • The SCO needs to develop better mechanisms for implementation and monitoring of initiatives to ensure that its declarations lead to tangible outcomes.

  3. Respect for Diverse Interests:

    • The organization should focus on issue-based cooperation (e.g., terrorism, energy, connectivity) where consensus is achievable, rather than trying to force uniformity across all domains.

  4. Promote Inclusive Connectivity:

    • SCO members should push for projects like INSTC and Chabahar Port that provide alternatives to the BRI, reducing dependency on any one country and respecting all members' sensitivities.

The SCO's 2025 Summit underscores its growing importance in global governance and its evolving role as a counterbalance to Western-led international structures. However, it also faces challenges in aligning the diverse interests of its expanding membership


 

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