Shanghai Cooperation Organization (SCO)

Definition and Introduction

The SCO or the Shanghai Pact is a Eurasian political, economic and military intergovernmental organization formed in
1996 with the name ‘Shanghai Five,’ and renamed in 2001 when the number of its members increased to 6. Emerging as a
forum for confidence building measures (CBMs) with an aim to demilitarize borders, it transformed into an organization
focusing on regional security issues and collaborating on them and expanding its agenda to economic cooperation in the
light of China’s OBOR and Russia’s Eurasian Economic Community (EurAsEC/EAEC). While some analysts see it as an
anti-US and an anti-NATO bulwark in Central Asia, critics say that internal weaknesses of its members and frictions
between them effectively preclude a strong unified SCO.

History of the Organization

 Break-Up of the Soviet Union and Regional Turmoil
USSR collapsed in 1991. Subsequently all the -stans went their separate ways and without an umbrella organization, the
superficially-buried ethnic/racial/tribal animosities re-surfaced. Tajikistan, Kyrgyzstan, Uzbekistan, and Kazakhstan are
all interspersed with each other, to various degrees, because those all came from nomadic tribes. This mess of
intermingling communities and their couple thousand years of ethnic animosities were kept in check when all of them
were part of the USSR. But 1991 onward, there was no conflict-resolution body anymore. In the two major conflicts that
broke out, the region had a truly Hobbesian state of nature – a war of all against all (Tajiks, Uzbeks, Armenians and
Russians were all fighting against each other and truckloads of mercenaries and terrorists were running around to
convolute the situation even further). Millions of people ended up becoming refugees in their own countries.
1. First Chechen War (1994-96)
2. Civil War in Tajikistan (1992-97)
 China’s Good Neighbour Policy: Border Talks
There was thus a need for China to resolve its border disputes with the new states (essentially in order to ensure that their
problems did not spill over) which used to be a part of the Soviet Union and in these deliberations, Russia was invited as
well as a good will gesture from China to show its willingness to advance its position along with that of Russia instead of
sidelining her. China’s acceptance of resolutions that were seen by Central Asian republics (CARs) as mutually beneficial
also earned it a good reputation among them. Finally two agreements were signed:
1. Treaty on Deepening Military Trust in Border Regions, 1996 in Shanghai
2. Treaty on Reduction of Military Forces in Border Regions, 1997 in Moscow
 Shanghai Five: A Formal Organization
In the backdrop of these informal negotiations and meetings, the 5 relevant states wanted to formalize and regularize their
efforts at cooperation and they did so by forming what came to be known as the Shanghai Five which focused on
developing further CBMs and investigating other areas of mutual interest with an emphasis on transnational security
challenges, especially terrorism which raised its ugly head in the late 1990s.
 Formation and Expansion
In 2001, Uzbekistan which had
attended the meeting of Shanghai
Five before, was allowed entry into
the organization and after the signing
of a declaration which allowed this
admission, another declaration was
signed – the Declaration on the
Establishment of the Shanghai
Cooperation Organization. As of
2016, there are 6 member countries, 6
observer states and 6 dialogue
partners. Pakistan and India, currently
observer states, signed Memorandums
of Accession in June 2016 and shall
become full members in 2017 before
the next meeting in Kazakhstan.
1. China 2. Russia 3. Kazakhstan
4. Kyrgyzstan 5. Tajikistan 6. Uzbekistan
SCO Charter
 Goals and Tasks (Article I)
1. Strengthen Friendship and Cooperation: to strengthen trust and friendship and to cooperate to maintain peace,
security and stability in the region.
2. Combat Crime: to combat jointly, terrorism, illicit trafficking of drugs and arms, prevention of illegal migration
etc.
3. Fields of Cooperation: to cooperate in politics, trade, economy, defense, law enforcement, environment, science,
education, culture, energy etc.
4. Growth and Development of the Region: to encourage the economic, social and cultural growth of the region in a
balanced way to improve the quality of life of the people.
5. Human Rights and Peaceful Settlements: to protect human rights and fundamental freedoms and to ensure
peaceful settlement of disputes.
6. External Relations: to maintain friendly relations with other states and international organizations.
 Principles (Article II)
1. Mutual respect for equality, sovereignty, political independence, territorial integrity and non-interference in
internal affairs.
2. No threat of the use of or the use of force and peaceful settlement of disputes between member states.
3. Gradual implementation of joint activities in the spheres of mutual interest.
4. Prevention of illegitimate acts being directed against SCO interests.
5. SCO not being directed against other states and international organizations.
 Areas of Cooperation (Article III)
Despite many areas of cooperation listed in the Charter, there are mainly three that stand out:
1. Security: this is the main reason for the formation of the organization since its security agenda was formed against
the backdrop of internal instability in China and Russia, 1992-97 civil war in Tajikistan, and a series of armed
incursions by anti-regime groups who took hold of territories in Tajikistan, Uzbekistan and Kyrgyzstan in 1999
and 2000:
1. The Three Evil Forces: this agenda was developed in 2001 with terrorism, extremism and separatism as
the three forces.
2. RATS: a Regional Anti-Terrorist Structure was established in 2004 in order to deal with the three evil
forces. Its HQ is based in Tashkent and it collects and gathers data on terrorist activities in the region
although it has been criticised on two fronts:
1. Vague definitions of terrorism, extremism and separatism.
2. Non-transparency in its activities.
3. Expansion of the Program: the agenda has been expanded to cover illicit drug trafficking, organized
crime, economic and social deprivation, monitoring of elections, and developing structures for collective
response to natural disasters. This reflects the organization’s flexibility according to the new definitions of
security which revolve around ‘Human Security.’
4. Joint Exercises: many of these have taken place with China and Russia dominating them but there is little
chance for a joint task force or a joint military unit – these exercises re likely to remain as CBMs for now.
5. Securitization of Information Space: SCO wants to ensure protection from invasion of those external
actors who use technology to spread information which can cause political, economic and social
instability and insecurity the likes of which were seen in Arab Spring, Georgia and Ukraine.
6. Afghanistan: this has been a continuous source of threat to the Central Asian region and this threat has
been heightened since the US announced its withdrawal. Afghanistan has been given observer status and
the SCO-Afghanistan Contact Group has become more active. China has directly become involved in
Afghanistan to the extent of meeting with the Taliban representatives in Beijing and setting up the QCCM
after the failure of QCG. There are further plans to deal with the production of opiates in Afghanistan.
2. Economy: although Russia initially avoided cooperation in this field, the recent economic crisis in Russia – a
result of West’s sanctions and oil price shock – has forced it to welcome such cooperation. There are multiple
projects planned and underway, most of them focusing on road and railway links crisscrossing throughout the
region:
1. OBOR and Eurasian Economic Union: these are two major initiatives that will link the region through
trade, finance and economy.
2. Loans amid Global Financial Crisis 2008: China offered SCO’s member states loans worth $10 billion.
 3. Energy: Putin proposed the formation of an energy club in SCO but it could not materialize. Central Asian
countries have large energy resources in oil and gas not to mention Russia’s gas and oil fields. If the
countries cooperate with each other, they can probably solve energy problems of the whole region. If Iran
gets membership as well, the scope for such cooperation will widen further.
4. Contentious Issue of Free Trade: China proposed a SCO-free trade area, an idea disliked by the smaller
economies and opposed by Russia as well which fears Chinese hegemony over Central Asian markets.
5. SCO Development Strategy 2025: this was approved in the 15th Summit held at Ufa in 2015 and outlines
priorities in all major areas of cooperation from creating conditions to boost collaboration in trade and
economy to ensuring regional stability and prompt responses to crises and conflicts. It also covers
subjects of transportation, communication, energy, education, IT etc.
3. Culture: many programs aim to construct a common cultural space, one of them being Chinese sponsored
scholarships for other SCO’s member states’ students to study in China.
 Bodies of the Organization (Articles IV – XI)
1. Council of Heads of State: this main decision making body is convened only at the annual summit and its task is
to define the direction of the organization for the forthcoming year.
2. Council of Heads of Government: this body adopts the budget, and studies and determines the principal matters of
cooperation in particular areas within the SCO framework. It meets once a year.
3. Council of Ministers of Foreign Affairs: this body prepares for the meeting of the Council of Heads of State,
implements the SCO decisions and holds consultations on international issues. Regular sessions take place one
month before the meeting of the Council of Heads of State.
4. Conference of Heads of Agencies: it studies and resolves questions regarding specific areas of cooperation and the
composition of the conference depends on the area under consideration (defense, economy, transportation etc)
5. Council of National Coordinators: it is the coordinator and management organ of the SCO’s routine activities and
it meets at least 3 times a year.
6. Secretariat: located in Beijing since 2004, it is the standing executive organ of the organization responsible for the
provision of organizational and technical support for SCO’s activities, for the study and implementation of SCO’s
documents and for assisting in the preparation of its budget. It comprises of the Secretary General and members
assigned by the member states on a permanent basis to the SCO Secretariat.
7. Regional Anti-Terrorism Structure (RATS): it was established in 2004 with its HQ at Tashkent, the capital of
Uzbekistan, in order to combat what the SCO calls ‘Three Evil Forces’ i.e. terrorism, extremism and separatism.

An Analysis of the Organization

 Strengths and Opportunities
1. Balance of Power: the organization offers a good counter-weight to US and NATO and with the addition of further
members in 2017 (Pakistan and India) and the possible admission of Iran, it can be expected to increase in its
strength but only if challenged posed by such expansion can be dealt with in a proper fashion.
2. Potential for Economic and Social Cooperation: given the growth – a declining growth is growth nevertheless – of
Chinese economy, initiatives to link the region internally and externally (OBOR and EurAsEC), and the vast
energy resources possessed by Russia and Central Asian states, the potential for such cooperation is huge.
3. Restoring Stability to the Region: one of the main aims of SCO is to maintain and promote regional stability in
political and strategic terms, and it has done so to some extent although it can do more in combating the three evil
forces.
4. Balance within the Organization: given the presence of two heavy weights, it is not possible for any single
country to completely dominate the organization. With the addition of two militarily strong and strategically
important states in 2017, this balance is likely to increase.
 Weaknesses and Challenges
1. Afghanistan: none of the member states of SCO have so far played an essential, let alone a lead role in the war
torn country even though it neighbours SCO members and poses a direct threat to the region as a whole. What
role if any, SCO can play after the US-withdrawal is yet to be seen. However, the SCO has been active since
2009, holding meetings and discussion with the US and NATO with respect to Afghanistan. Moreover, the Ufa
Declaration signed in 2015 also shows the in-depth discussions and concerns of SCO with regards to increasing
presence of IS in the war torn country and securitization of Afghanistan’s borders.
2. Terrorism, Extremism and Separatism: other the formation of RATS, no joint step has been taken to actually
combat these menaces. Collecting data and analysing it not enough when it comes to these three evils and action
 must be taken on the ground on two fronts – combating those who have been radicalized and preventing the
radicalization of those who have not yet been radicalized but can easily be manipulated and controlled.
3. Internal Weaknesses of Member States: Central Asian states suffer from internal economic and political weakness
and therefore are not able to contribute as much to the organization as they have the potential to:
1. Strongman Leaders: Kazakhstan and Uzbekistan both have strong Presidents with weak supporting
political structures which is a recipe for disaster once the Presidents pass away.
2. Unstable Kyrgyzstan: the country has seen two revolutions – the Tulip Revolution aka First Kyrgyz
Revolution of 2005 and the Second Kyrgyz Revolution of 2010 – both of which toppled Presidents of the
country who were seen as corrupt and authoritarian by the revolutionaries.
3. Corruption: this is rampant throughout the region and although Turkmenistan is not a member state of the
SCO, its example highlights the region’s dynamics with respect to this evil. The President of this country
which can be seen as a pro-West Feudal North Korea, is as of 2016, having a giant public statue of
himself being made using 24 carat gold, and he has even named the public holidays after his and his
family members’ names.
4. Tajikistan’s Afghan Problem: Tajikistan has over the top of all of this, the misfortune of sharing a border
with Afghanistan which means hard-core Islamists on heroine running around.
4. Frictions between Member States: the SCO claims to represent a new model of inclusive regional cooperation
capable of encompassing all its members, sometimes referred to as the ‘Shanghai Spirit,’ but tensions between its
members have questioned its capacity in addressing such tensions, not to mention the tensions that exist between
its current members and its yet-to-be members:
1. China-Russia Dynamics: both have different agendas in the SCO. Where both want to counter increasing
US presence in the region, Russia wants SCO to become more of an anti-NATO club modeled along
military and strategic lines while China wants to focus on economic and trade linkages. Russia then
naturally perceives China as trying to bring under its influence, through such economic interdependence
(which will obviously be ‘tilted’ in the favour of China), the Central Asian satellite states of what was
once the Soviet Union. Russia has even blocked China’s efforts to set up a World Bank alternative inter-
SCO Development Bank as China would become its chief financier. But many say that Russia’s own
faltering economy due to its isolation and exclusion from G-8 especially after Crimea’s annexation and
due to the oil price shock, it is likely that Russia will welcome any Chinese investment despite the
uncertainty of Chinese economy (slowing/declining growth). Finally, they also have differences over
whether or not to admit Iran into the organization. Russia favours the anti-US Iran for its militarily
inclined anti-NATO vision for the SCO while China opposes its admission probably on the grounds of not
wanting Russia and Iran to have a monopoly over energy within the region or on the grounds that
allowing Iran into the organization simply does not serve the purpose for which the organization was
originally made – security and stability along the borders of the states that China and Russia neighbour –
perhaps the -stans are seen by China and Russia exactly as North Africa is seen by Europe, and no
country really wants to have a pre-WWI Balkans scenario in its backyard.
2. Concerns of Central Asian States: their main purpose was to benefit from Chinese economic growth and
ensure political stability. Energy cooperation depends largely on them due to the large energy resources
they possess but their priority is domestic development and energy needs and other than a few Central
Asia-China gas pipelines, energy projects have not been planned or executed yet.
3. China-India Dynamics: their rivalries, historic, military, strategic and economic, not to mention their
differences in the foreign policies with respect to the US, will definitely pose a challenge to the smooth
working of the organization.
4. Pakistan-India Dynamics: SAARC has already become a dysfunctional intergovernmental organization
due to the incapability of these two states to look past their unresolved political and territorial disputes,
and cooperate on the economic front. Whether the presence of two big giants (Russia and China) can
bridle their militarism and ultra-national jingoistic rhetoric or will their dynamics hamper the working of
SCO as well is yet to be seen.