Photo: AFP/Turkish Presidency/Murat Cetinmuhur
Nóra Anna Sándor
20/09/2024 06:00
Originally established in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, the Shanghai Cooperation Organisation (SCO) is now one of the largest regional organisations in the world. The SCO was established primarily to guarantee security in the region, fight terrorism, promote political cooperation and enhance economic cooperation. Its geopolitical influence is reflected in its observer status in the UN General Assembly since December 2004, just three years after its creation. The economic importance of the organisation is also notable: according to Chinese customs data, the Shanghai Cooperation Organisation's share of global trade has increased from 5.4 per cent in 2001 to 17.5 per cent in 2020. The global trade volume of the organisation's member countries rose from USD 667 billion in 2001 to USD 6.06 billion in 2020.
India and Pakistan joined the organisation in 2017, with Iran joining in 2023, and Belarus, which until then had observer status, joined at the summit in Astana on 4 July this year. The regional importance of the SCO is also reflected in the interest of many countries in Asia and the Middle East to cooperate with the formation: while Afghanistan and Mongolia have observer status, Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka, Turkey, Egypt, Qatar, Kuwait, Saudi Arabia, Nepal, Sri Lanka, Qatar, Saudi Arabia and the United Arab Emirates are partners of the SCO. Saudi Arabia has also announced its intention to join the organisation in 2023. The Shanghai Cooperation Organisation currently covers 32 per cent of the world's GDP and 42 per cent of the world's population. It is also worth noting that the BRICS now accounts for nearly half of the world's population and 36 per cent of its GDP following last year's expansion. China plays a leading role in both organisations and both act as a challenger and counterweight to the West, as well as the main advocate for the Global South, providing a platform to address issues such as climate change, strengthening regional trade, increasing the role of national currencies and defence policy.
In recent years, China has launched a number of initiatives focusing on reforming global governance, enhancing the role of the global South and strengthening its own role in international relations. An excellent example is the Global Security Initiative (GSI), which aims to resolve conflicts through peaceful dialogue rather than confrontation. China intends to implement the GSI through platforms such as the Shanghai Cooperation Organisation or the BRICS, thus increasing the global role and influence of these organisations.
The SCO's objectives of enhancing cooperation, ensuring peace and security, and developing a new, just international order, as well as its growing membership, all point to its potential as an alternative to the current world order, which is dominated mainly by Western countries.
The author is a senior international expert and ESG advisor at the Magyar Nemzeti Bank, the central bank of Hungary