Context

• Recently, India successfully hosted the 23rd Meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO).
• Though the world witnessed another “SCO moment,” challenges from Indian perspective remain and the organisation can get better. 

About the Shanghai Cooperation Organisation (SCO)

• SCO is a permanent intergovernmental political, economic, international security and defence organisation, created in June 2001 (HQ – Beijing, China).
• The founding members of SCO - Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan - had come together (as the Shanghai Five) to work on regional security, reduction of border troops, and terrorism in the post-Soviet era in 1996.
• In 2001, the Shanghai Five inducted Uzbekistan into the group and named it the SCO outlining its principles in a charter that promoted what was called the Shanghai spirit of cooperation.
• India and Pakistan became full members at the Heads of State Council meet in Astana in 2017.
• Iran is inducted as the newest member (9^th) of the SCO in 2023 under the chairmanship of India.
• It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, 40% of the world population.
• As of 2021, its combined GDP was around 20% of global GDP.

Highlights of the Recently Held SCO Summit

• Leaders of the SCO member-states signed the New Delhi Declaration, and issued the statements on countering radicalisation and exploring cooperation in digital transformation.
• The summit granted Iran full SCO membership, signed the memorandum of obligations of Belarus to join the SCO as a member-state, and adopted the SCO’s economic development strategy for the period until 2030.
• India refused to join other members on paragraphs relating to China’s Belt and Road Initiative (BRI) in the joint statement, and stayed out of a joint statement on SCO Economic Development Strategy 2030, indicating a lack of consensus in the grouping.
• The Indian PM also took sharp aim at Pakistan for cross-border terrorism, and at China for connectivity projects that do not respect sovereign boundaries.
• SCO members also agreed to explore the use of “national currencies” for payments within the grouping, which would circumvent international dollar-based payments. 

The Role of SCO in a Changing World and Geo Politics

• Over the years, the SCO has been committed to becoming a community with a shared future for mankind, firmly supporting each other in upholding their core interests, and synergising their national development strategies and regional cooperation initiatives.
• Member-states have carried forward the spirit of good neighbourliness and friendship, and built partnerships featuring dialogue instead of confrontation, and cooperation instead of alliance.
• The SCO has been a guardian of and contributor to regional peace, stability, and prosperity.
• These achievements manifest the common aspirations of all countries so that there is peace, development and win-win cooperation.
• The SCO’s leading and exemplary role can help strengthen unity and cooperation, seize development opportunities, and address risks and challenges.

The Significance of SCO for India

• India’s security, geopolitical, strategic, and economic interests are closely intertwined with developments in the region.
• The Central Asian region is richly endowed with natural resources and vital minerals and SCO provides a platform for India’s efforts to connect with Central Asia.
• The Regional Anti-Terrorism Structure (RATS) of SCO specifically deals with issues relating to security and defence.
• SCO is a platform which can play an important role in Afghanistan and stable Afghanistan is in India’s interest.

Challenges faced by India as a SCO Member

• SCO as a platform is seen by the West as an organization to forward Chinese interests.
• Growing convergence with China and Russia will be another challenge for India.
• Differences between India and Pakistan might hamper the functioning of the SCO.
• All members of SCO have supported One Belt One Road (OBOR) except India. It might lead to isolation of India on this platform.
• It would be difficult for India to overcome the burden of geography and make tangible gains in terms of trans-regional connectivity.
• Biggest challenge of India is State-sponsored terrorism and to sensitise the influential members of SCO on Pakistan’s state-sponsored terrorism.

Suggestions to Make SCO a Better Organisation

• Need to Strengthen Strategic Communication: The SCO member-states should strengthen strategic communication, deepen practical cooperation, and support each other’s development and rejuvenation.
• Enhance Solidarity and Mutual Trust for Common Security
  • Emerging developments like a new cold war and bloc confrontation must be addressed with high vigilance and firm rejection.
  • SCO member-states need to upgrade security cooperation, and crackdown in a decisive manner on terrorism, separatism and extremism, and transnational organised crimes.
• Enhanced Cooperation in Digital, Space and Technology: The SCO member states should pursue cooperation in digital, biological, and outer space security, and facilitate political settlement when it comes to international and regional hot-spot issues.
• Embrace Win-win Cooperation
  • Protectionism, unilateral sanctions, and decoupling undermine people’s well-being all over the world.
  • It is imperative for the SCO to generate stronger momentum for collaboration in trade, investment, technology, climate actions, infrastructure, and people-to-people engagement.
  • To contribute to high-quality and resilient economic growth of the region, there need to be collective efforts.
  • This will help in scaling up local currency settlement between members, expand cooperation on sovereign digital currency, and promote the establishment of an SCO development bank.
• Advocate Multilateralism
  • Multilateralism is imperative to shape the common destiny.
  • The SCO needs more engagements with its observer states, dialogue partners and other regional and international organisations such as the UN, to uphold the UN-centered international system and the international order based on international law.
• China Should Work on its Commitments
  • China has made several commitments with respect to the Global Security Initiative, Global Development Initiative and Global Civilization Initiative, to contribute to world peace, security, and prosperity.
  • But China’s Debt trap model is not hidden anymore. Moreover, China continues its military aggression on LAC and in South China Sea.
  • To pursue common, comprehensive, cooperative, and sustainable security China must respect each country’s independent choice of the path to development and social system, and abide by the purpose and principles of the UN Charter. 
  • China must deescalate on every front where it is engaged in border skirmishes.
  • The reasonable security interests of all countries deserve consideration and China must uphold this principle.

Conclusion

• The SCO’s success story is part of the broader global partnership of emerging economies and developing countries.
• However, challenges remain and only after overcoming these challenges the SCO will lead by example in safeguarding the development rights and legitimate interests of the developing world.