China recently hosted a meeting of the Shanghai Cooperation Organisation (SCO) Heads of Government. This annual event centres on the trade and economic agenda of the organization, and approves the SCO’s yearly budget. In 2023, India will assume the role of Chairperson of the SCO and will play host to leaders of all SCO countries at a summit expected to take place in Delhi in mid-2023. The preceding SCO summit for 2022 was held in Samarkand, Uzbekistan.
Key Takeaways from the Meeting
During the meeting, the heads of delegations of the SCO member states discussed key global and regional development issues and identified priority steps to enhance trade, economic, cultural, and humanitarian cooperation within the SCO. According to India, its current trade with SCO Members totals only USD 141 billion, a figure with potential for significant growth.
The majority of India’s trade with SCO countries is with China, which surpassed USD 100 billion in 2022. Trade with Russia stands at less than USD 20 billion, while trade with Central Asian countries and Pakistan is at a much reduced USD 2 billion and USD 500 million, respectively.
India’s Stance on Connectivity and Climate Change
India emphasized the necessity for better connectivity in the SCO region that respects the sovereignty and territorial integrity of Member States and adheres to international law, using China’s BRI (Belt and Road Initiative) as an example. It underscored the need for a focus on the interests of Central Asian states to further unlock the economic potential of the region. It proposed the Chabahar port and the International North South Transport Corridor (INSTC) as possible facilitators for this.
India also highlighted its commitment to combatting climate change and shared its achievements in this area. It promoted the idea of increased trade via Iran’s Chabahar port and the INSTC, intending to boost bilateral trade with Central Asian countries. A joint communique was issued after the meeting where all countries, except India, reiterated their support for the BRI.
About the Shanghai Cooperation Organisation
The SCO is a permanent intergovernmental international organization created in 2001, with its charter being signed in 2002 and coming into effect in 2003. It is an Eurasian economic, political and military body that aims to maintain peace, security, and stability in the region. The nine-member economic and security bloc, seen as a counterbalance to the North Atlantic Treaty Organization (NATO), has emerged as one of the largest transregional international organizations.
Key Features of SCO
The official languages of the organization are Russian and Chinese. The organization’s main bodies include the SCO Secretariat in Beijing and the Executive Committee of the Regional Anti-Terrorist Structure (RATS) in Tashkent. The chairperson is rotated annually among Member States.
Before the SCO’s inception in 2001, Kazakhstan, China, Kyrgyzstan, Russia, and Tajikistan were members of the Shanghai Five, originating from a series of border demarcation and demilitarization talks held to ensure stability along borders. The Shanghai Five was renamed the SCO following Uzbekistan’s accession in 2001, with India and Pakistan becoming members in 2017. Iran is set to become a permanent member in 2023.
About the Belt & Road Initiative (BRI)
The BRI is an ambitious project announced in 2013 by China, focusing on connectivity and cooperation among multiple countries spread across the continents of Asia, Africa, and Europe. Spanning around 150 countries (according to China’s claims), the project involves building networks of roadways, railways, maritime ports, power grids, oil and gas pipelines, and related infrastructure projects. The initiative is divided into two parts: the land-based Silk Road Economic Belt connecting China with Central Asia, Eastern Europe, and Western Europe, and the sea-based 21st Century Maritime Silk Road linking China’s southern coast to the Mediterranean, Africa, South-East Asia, and Central Asia.
