Why in the news?

  • SCO Summit 2025 held in China.

Shanghai Cooperation Organization (SCO)

  • What is it?
    • SCO is a permanent intergovernmental international organization.
    • It’s a Eurasian political, economic and military organization aiming to maintain peace, security and stability in the region.
  • Formation: It was created in 2001.
  • Headquarters: Beijing, China
  • History:
    • Prior to the creation of SCO in 2001, Kazakhstan, China, Kyrgyzstan, Russia and Tajikistan were members of the Shanghai Five.
    • Following the accession of Uzbekistan to the organization in 2001, the Shanghai Five was renamed the SCO.
    • India and Pakistan became members in 2017.
  • Significance of SCO for India:
    • Regional Security Cooperation:
      • Collaboration on counterterrorism, separatism, and extremism.
      • Enhances India’s role in stabilizing Afghanistan post-Taliban.
    • Strategic Balance:
      • Helps India balance China’s growing influence in Central Asia.
      • Strengthens India’s ties with Russia and Central Asian countries.
    • Economic Cooperation:
      • Facilitates trade and connectivity with Central Asia and Europe.
      • Improves energy security through cooperation with energy-rich SCO nations.
    • Diplomatic Platform:
      • Multilateral forum to engage with China and Pakistan on neutral ground.
      • Fosters diplomatic dialogue to manage bilateral tensions.
    • Cultural and Civilizational Ties:
      • Promotes cultural cooperation, enhancing India’s soft power in Central Asia.
      • Revives historical connections through people-to-people exchanges.
    • Global Geopolitical Role:
      • Strengthens India’s position in promoting a multipolar world order.
      • Expand strategic partnerships beyond Indo-Pacific alliances.
    • Non-Traditional Security Cooperation:
      • Addresses climate change, water security, and health challenges in the region.
    • Regional Connectivity:

      • Aligns with India’s connectivity projects like Chabahar Port and the North-South Transport Corridor (INSTC).
  • Challenges Faced by SCO:
    • Diverging Strategic Interests:
      • India-China Rivalry: Ongoing border tensions and strategic competition between India and China create friction.
      • Russia-China Dominance: Russia and China’s dominance in the organization can limit the influence of other member states, including India.
    • Bilateral Tensions Among Members:

      • India-Pakistan Conflicts: Historical and ongoing disputes between India and Pakistan can hinder effective cooperation within the SCO.
      • Regional Rivalries: Differing priorities of Central Asian countries could lead to conflicts over resource control and influence.
    •  Lack of Economic Integration:
      • Limited Trade Cooperation: SCO lacks a strong economic framework like the EU or ASEAN, limiting its potential as a trade bloc.
      • Sanctions on Russia: Western sanctions on Russia can indirectly affect SCO’s economic potential.
    • Differing Approaches to Terrorism:
      • Varied Counterterrorism Agendas: Countries have different definitions of terrorism, leading to a lack of unified action. For instance, Pakistan’s approach to terrorism differs from India’s concerns about cross-border terrorism.
    • Logistical and Connectivity Issues:
      • Poor Regional Connectivity: Infrastructure challenges and lack of proper transport corridors make it difficult to enhance trade and connectivity among SCO members.
    • China’s Belt and Road Initiative (BRI):
      • India’s Opposition to BRI: India opposes China’s BRI, particularly the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-occupied Kashmir. This creates division within SCO, which endorses the BRI.
    • Non-Alignment on Global Issues:
      • Different Foreign Policy Agendas: SCO members have different stances on global issues like the US, NATO, and regional conflicts, making it hard to form a unified front.
    • Institutional Weaknesses:
      • Limited Scope: SCO has focused more on security and political cooperation, but its institutional capacity for deepening economic or cultural ties remains limited.
      • Slow Decision-Making: Consensus-based decision-making often delays effective policy implementation.
    • Afghan Instability:
      • Unstable Neighbor: The situation in Afghanistan poses a challenge, particularly regarding terrorism and drug trafficking, which directly impact SCO’s goals for regional security.