By Manisha Ghosh
The ‘Shanghai Pact’ or ‘Shanghai Cooperation Organization’ (SCO) was established in 2001 in Shanghai, China, initially with five members- China, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Russia with a notion of promoting political, economic, and security cooperation. Later, the organization was further flourished when India and Pakistan joined the group in 2017.
In its 18 years of continuation, its membership and bureaucracy have manifolded, adding four observers (Belarus, Iran, Afghanistan and Mongolia), and some dialogue partners (Cambodia, Azerbaijan, Nepal, Turkey, Armenia, and Sri Lanka).
Due to its burgeoning centrality in Asia-Pacific, the SCO is broadly regarded as the “alliance of the East.” While the SCO is extending hands for enhanced economic cooperation, military exercises, fighting for counter-terrorism, regional peace and stability; however, there lies significant competition among the member nations in the SCO, for e.g. India and China, China and Russia etc. and those are related to various prospects and capacities.
Fundamentals of SCO
There are four major pillars of SCO that are maintained by the Heads of State Council (HSC) which is the supreme decision-making body in the SCO. Heads of individual states meet once a year and espouse resolution and strategy on all imperative matters of the organization. Those four major pillars are:
Security Cooperation: Under this pillar, the SCO primarily deals with growing security concerns within the member countries. The body jointly makes actions plans to confront the menace of terrorism, separatism and extremism. For example, at its 2004 summit in Tashkent, SCO formed the Regional Anti-Terrorist Structure (RATS). It has been reported in 2017 that SCO has thwarted 600 terror plots and extradited 500 terrorists through RATS. Similarly, in 2006, the SCO unveiled its plans to fight cross-border drug crimes under the counter-terrorism rubric. Furthermore, the organization formed separate cells to fight against internal crime, drug trafficking, cyber warfare etc.
Military Cooperation: The SCO has also extended its activities of increased military cooperation, intelligence sharing, and counterterrorism. Members often indulge in joint military exercises- more than 4,000 soldiers took part at the joint military exercises in 2007 (known as “Peace Mission 2007”) Every year, since 2004, SCO organizes these ‘Peace Mission’s and members conduct and participate joint planning and operational maneuvers and also serves as a platform for larger military announcements by members.
Economic Cooperation: The SCO members have bonded with a ‘Framework Agreement’ to enhance economic cooperation since 2003 that mainly focuses on free trade among the members, joint energy (oil and gas mainly) and water management projects, pursuing conscientious currency and financial strategies, control over the wealth flow, food and energy security etc. For further facilitation SCO has also formed its own Inter-bank SCO Council and proposals of establishing independent banking systems, building a bazaar of local currency as a substitute of US Dollars etc. are in consideration.
In the last decade, Russia sought to take part in altering the global financial structure to ensure stability and prosperity; however, the current decade is being predominated by China with its overwhelming and aspiring multi-billion dollar global projects, like the BRI. Under the SCO, the globe is witnessing emergence qualitatively multi-polar geo-political situation, with uprising new centers of economic development and political authority.
Cultural Cooperation: Though in small scale, SCO members have also commenced cultural cooperation in 2002 when all the culture ministers accompanied the Head of states met for the first time. Since then, cultural exchanges have started occurring more frequently, for e.g.- in 2005 Astana Summit, an SCO Arts Festival and Exhibition was organized. Day by day, more flavors are being added in the cultural exchange events that are eventually enriching the SCO summits with multi-dimensional flagships.
Competitive Platforms
While the SCO has touted for developing mutual trust and cultivate multidimensional cooperation, it also has become a platform that portrays shifting power dynamics in the Eurasian subcontinent.
Apparently, although Beijing-Moscow ties appear to be rosy, with frequent exchanges between Chinese President Xi Jinping and Russian President Vladimir Putin; however, despite their cordial flaunt, the bilateral relationship practically is more nuanced than the orchestrated tenderness.
The main reason of that is the shifting of power axis from Moscow to Beijing, since the precipitous disintegration of Soviet Union. During the last few decades, the Chinese economy has ballooned, dominating the world economy with a massive 15% share; on the contrary, Russia’s GDP has just crossed 2 percent. Moreover, China has superseded everyone to be the new No.1 trade partner for Russia, whilst Russia has slipped down beyond 10 in China.
China’s meteoric rise in economy on one hand has made it a vivid power to pursuit raising its own voice worldwide, whilst on the other; it has backed local groupings such as the SCO and the Asian Infrastructure Investment Bank. Conversely, after the drastic collapse of the Soviet era, Russia slithered at international hierarchy with its economy ebbing and flowing.
Thus, the two contrasting growth of China and Russia has become more a stumbling block, rather than a deep seated cooperation. It’s expected that Russia might be reticent against China’s blatant headship, especially within the SCO.
Joining the list of competition is the bilateral relationship of India with both China and Pakistan. India have a long history of ups and downs in bilateral relationship along with its two largest neighbors most of its chapters are being sour indeed. India has fought some bitter wars with both China and Pakistan and still having border disputes with both of them. In one hand, India blames Pakistan to be the heaven of freely moving terrorism, on the other; New Delhi is always suspicious about Chinese aggression around Indian subcontinent.
It has rejected to join the ambitious project of China- the BRI, citing that it passes through the Pakistan occupied Kashmir, a disputed land between India and Pakistan. It has also condemned burgeoning Chinese aggression in different other platforms like the UN. Beijing also has vetoed against India’s urge to blacklist Massood Azhaar in the International Terrorist list of UN. Further, recent competition of growing to be No.1 in GDP has paved another competitive path between Beijing and New Delhi.
In a nutshell, the SOC has not only restricted to be a cooperation platform, rather with the growing socio-political complexities and changing global dynamics of power and economy, the platform has also imposed tremendous pressure to be competitive, especially countries like China, India and Russia, the same is also true for all balanced economies, like Kazakhstan, Uzbekistan Kyrgyzstan and Pakistan.
(The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of World Geostrategic Insights).