As expected the Tianjin Summit of Shanghai
Cooperation Organization (SCO) concluded on 1 September 2025 adopted a cautious
declaration of its intent and expected progress. My take is that SCO is slowly
transforming into a geoeconomics gathering.
Originally “The Shanghai Five” was formed in
1996 with five countries namely China, Kazakhstan, Kyrgyzstan, Russia, and
Tajikistan. It was renamed as Shanghai Cooperation Organization (SCO) in 2001 after
adding Uzbekistan into its fold. In June 2017, SCO expanded to include India
and Pakistan. Iran joined in July 2023, so did Belarus in July 2024.
Besides, the main members the SCO has observer
States for nations such as Afghanistan & Mongolia, and Dialogue Partners including
Azerbaijan, Armenia, Cambodia, Nepal, Turkey and Sri Lanka. The latest summit
saw many non-SCO members attending chiefly amongst them were Indonesia, Malaysia
and Vietnam.
Here is my critique:
1. Though SCO members accounts for nominal GDP around
23% and PPP approximately 36% of the world's total, the figure is lopsided as the three giants China,
India and Russia (RIC) gobble almost 80% of GDP.
2. SCO’s share of global GDP has doubled, reaching
30%. Even though intra-regional trade has shown significant growth, amounting
to over $650 billion in 2024 it almost reflects the giant share relating to RIC.
3. The member countries of the Shanghai Cooperation
Organization have decided to create the SCO Development Bank. I cannot understand
why you need another development bank while BRICS Development Bank is still in its formative days.
4. Although the SCO countries expressed their
readiness to support the international community's efforts to ensure peace and
development in Afghanistan, a
mechanism for that was neither contemplated nor disclosed.
5. Interestingly Kazakh President Kassym
Tokayev broke the ice with his suggestion for the creation of a Shanghai
Cooperation Organization (SCO) Water Research Centre in Kazakhstan. He was a
pathfinder because he
wanted specific goals in geoeconomics to be outlined.
6. Presumably SCO has the Eurasian Mind-set with more
attention paid to Asia -Europe land link rather than Asia-Europe co-operation
in trade & development.
7. Notable absentee is Bangladesh. While far away Sri
Lanka is included as Dialogue partner Bangladesh was given a step motherly treatment, perhaps due to the tension
prevailing between India & Pakistan.
One good thing happening is the recognition that SCO cannot remain solely as geostrategy & geopolitics organization anymore. Geoeconomics drive the growth potential of Asia-Europe. True contiguous land mass is an eligibility to be counted as full member of SCO. Undoubtedly, Bangladesh deserves her place in SCO as full member.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
