Shanghai Cooperation Organisation (SCO) Summit: A Challenge to Global Hegemony

Strategic Insights -

The SCO heads of state summit in Tianjin, China, has underscored the organisation's ambition to establish an alternative model of multilateral cooperation, challenging the US-led global order. The meeting has brought together leaders from over 20 countries and 10 international organisations, with key participants including Russia's President Vladimir Putin, Indian Prime Minister Narendra Modi, and Iran's President Masoud Pezeshkian. The summit's significance lies in its emphasis on solidarity and cooperation, as well as its focus on counterbalancing what Chinese officials describe as "hegemonism and power politics."

Key Takeaways:

  • The SCO has grown from a six-member security bloc in 2001 to a 26-country organisation covering 40% of the world's population and over a third of global GDP.
  • India, China, and Russia account for nearly $54 trillion in output, almost a third of global GDP, and exports worth $5.1 trillion, about one-fifth of international trade.
  • The SCO's agenda for this year includes climate resilience, biodiversity protection, digital connectivity, trade facilitation, and counterterrorism cooperation.
  • SCO members support an open, transparent, and inclusive multilateral system under the World Trade Organisation (WTO) framework.
  • The bloc aims to strengthen stable and diversified supply chains and resist unilateralism and protectionism.
  • The recent thaw in India-China relations, amid US pressure and tariffs, adds significance to India's presence at the summit.
  • The SCO summit will likely adopt a 10-year development strategy, including the establishment of an SCO Development Bank, local currency settlement systems, and enhanced energy cooperation.

Statistics:

  • The SCO spans 26 countries, with 10 full members, 2 observers, and 14 dialogue partners.
  • SCO member countries represent 40% of the world's population and more than one-third of global GDP.
  • India, China, and Russia account for nearly $54 trillion in output, almost a third of global GDP, and exports worth $5.1 trillion, about one-fifth of international trade.
  • The SCO has adopted 10 major economic agreements and more than 100 cooperation documents since 2001.
  • The SCO Development Bank proposal aims to provide financing for member countries' projects, reducing dependence on Western-dominated financial structures.

Sources:

  • China Daily
  • Global Times
  • The Hindu
  • Al Jazeera