The two-day Shanghai Cooperation Organization (SCO) summit is set to take place in Islamabad on October 14th and 15th. This summit will see the participation of SCO’s 10 member countries: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus. Among these nations, two powerful and economically significant states, China and Russia, will be represented by their Prime Ministers, while India’s representation will be led by Foreign Minister S. Jaishankar, instead of Prime Minister Narendra Modi.
India itself is a significant global economic and military power. Additionally, the other member nations’ presidents and prime ministers will arrive in Pakistan before October 14th to attend this important conference. Apart from the 10 official members, two observer states Afghanistan and Mongolia will also be present, along with 14 dialogue partners.
As the SCO marks its presence in Pakistan, international affairs analysts are reflecting on what the organization has achieved since its inception in 1996. Without a doubt, the SCO stands as a commendable example of regional cooperation. Russia and China, in collaboration with the landlocked nations of East Asia and Eurasia, laid the foundation of this organization in Shanghai, giving it the name we know today. The organization’s primary objectives include diminishing U.S. economic dominance in the region and establishing a shared defense capability.
In its early days, the SCO began with five founding members: Russia, China, Kyrgyzstan, Kazakhstan, and Tajikistan. Uzbekistan formally joined in 2001. The SCO’s charter was ratified in 2002, and in June 2017, Pakistan and India were inducted as full members, bringing the total to eight. The recent addition of Iran and Belarus as members has transformed the SCO into the largest organization in terms of population after the United Nations.
The SCO’s influence continues to grow. With its support, member countries have sought to stabilize their financial systems through initiatives like the BRICS Bank. Should the SCO and BRICS Bank proceed with their objectives in earnest, they could help mitigate the economic influence of the United States and Europe in the region. The formation of the SCO and BRICS Bank has already posed a challenge to global financial institutions, the Western world, and, notably, U.S. supremacy. Together, the member countries represent 40% of the global population and account for 25% of the world’s GDP. The headquarters of the BRICS Bank is in Shanghai, China, with a regional office in South Africa.
The SCO also has two permanent institutions: its Secretariat, located in Beijing, and the Executive Committee based in Tashkent, Uzbekistan. The SCO provides a platform for resolving mutual disputes, with China, a reliable ally for Pakistan, already at the table. Notably, China has consistently supported Pakistan’s stance on the Kashmir conflict with India.
However, we must recognize that the SCO’s full success also hinges on improved relations between Pakistan and India. As long as mistrust persists between these two countries, and they fail to embrace coexistence and peace, it will be challenging to counter the U.S.’s aggressive economic and political ambitions in the region. Whether it’s the SCO or any other regional or international organization, the effectiveness of such organizations often comes into question in the context of the global landscape. A pertinent issue here is why Muslim countries have not managed to establish a unified economic alliance akin to the SCO.
While Arab countries are blessed with abundant oil and gold reserves, other Muslim countries are also endowed with significant mineral resources and natural wealth that attract the attention of developed nations. Pakistan, Malaysia, Indonesia, and Bangladesh possess a workforce and intellectual talent that only a few countries can rival. Yet, we remain dependent on Western nations. Not only that, but we have also failed to unify the Muslim world on major international issues.
If the leadership of the OIC countries desired, they could establish a “global bank” similar to BRICS, which could offer interest-free loans to economically weaker Muslim nations to enhance their economies. Such a bank, modeled after the World Bank, could potentially revolutionize the economies of the Muslim world. Unfortunately, however, the Muslim Ummah is neither united on the global stage nor does the future appear to hold much promise for such unity.
Historical Perspective on the Shanghai Cooperation Organization (SCO)
The SCO began its journey in 1996 when five countries China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan came together to address regional security issues and counter external threats. Initially formed to foster cooperation in military and defense matters, the organization gradually expanded its scope to cover economic and political collaboration. The formalization of the organization in 2002 with the adoption of its charter was a significant milestone, as it laid the foundation for a structured alliance dedicated to countering Western influence in Asia.
The 2017 inclusion of Pakistan and India as full members marked a strategic expansion of the SCO, reflecting the organization’s ambition to become a more comprehensive and influential regional body. The recent incorporation of Iran and Belarus is yet another sign of the SCO’s growth and its increasing role on the global stage. With a population exceeding three billion people, the SCO now represents an enormous demographic and economic bloc, with a collective GDP that rivals some of the world’s largest economies.
Role of BRICS and the Economic Impact of the SCO
The BRICS Bank, formally known as the New Development Bank, was established as part of the SCO’s broader strategy to counterbalance Western financial institutions such as the World Bank and the International Monetary Fund. Based in Shanghai, the BRICS Bank aims to provide funding for infrastructure and sustainable development projects within its member states and beyond. By offering an alternative to traditional financial institutions, the BRICS Bank seeks to reduce member countries’ dependence on Western-dominated financial systems and promote regional economic self-reliance.
If the SCO and the BRICS Bank continue to pursue their objectives effectively, they could reshape the economic landscape of Eurasia by reducing the influence of the United States and Europe. With its member countries accounting for a quarter of the world’s GDP, the SCO has the potential to become a major economic powerhouse, driving growth and development across the region.
SCO and Regional Security
One of the SCO’s primary objectives is to foster regional security and stability by promoting cooperation among its member states in countering terrorism, separatism, and extremism. The organization regularly conducts joint military exercises and intelligence-sharing initiatives to enhance its collective defense capabilities. This commitment to regional security is particularly significant given the diverse security challenges facing SCO members, including border disputes, ethnic conflicts, and the threat of international terrorism.
China’s support for Pakistan in its dispute with India over Kashmir is a notable example of the SCO’s potential role in regional conflict resolution. While the SCO has not taken an official stance on the Kashmir issue, China’s alignment with Pakistan underscores the organization’s ability to influence regional geopolitics. However, the SCO’s effectiveness in resolving such conflicts ultimately depends on the willingness of its member states to engage in constructive dialogue and prioritize peace over power politics.
Future of the SCO and the Muslim World
The SCO’s growth raises important questions about the potential for similar alliances among Muslim countries. Despite their vast natural resources and strategic advantages, Muslim nations have struggled to form a unified economic or political bloc. The Organization of Islamic Cooperation (OIC) has largely been ineffective in addressing the collective needs of the Muslim world, and the absence of a cohesive economic strategy has left many Muslim countries dependent on Western powers.
If the OIC were to establish a “global bank” similar to the BRICS Bank, it could provide interest-free loans to economically disadvantaged Muslim nations, fostering economic development and reducing dependence on Western financial institutions. Such a bank could serve as a powerful tool for promoting economic self-sufficiency and unity within the Muslim world. However, achieving this vision would require a level of cooperation and coordination that has so far eluded the OIC.
In conclusion, the SCO summit in Islamabad represents a significant opportunity for member countries to strengthen their economic, political, and security ties. As the organization continues to grow and expand its influence, it could play a crucial role in shaping the future of Eurasia and counterbalancing Western dominance. At the same time, the Muslim world must reflect on the lessons of the SCO and consider how greater unity and cooperation could enhance its own standing on the global stage. The path to a more prosperous and stable future lies in collective action and a shared commitment to progress.