SHANGHAI COOPERATION ORGANIZATION (SCO)

SCO is a major Eurasian political, economic, and security alliance that promotes regional stability, counterterrorism, and economic cooperation and is the world's largest and most populous regional organization.

SCO was founded by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan in 2001. India and Pakistan joined in 2017, Iran in 2023, and Belarus in 2024, with others as observers or dialogue partners.  Its main goals were to strengthen regional security and combat the 3 evils - terrorism, extremism, and separatism

As one of the world's largest regional organizations by geographic area and population, it serves as a platform for its members to coordinate policies on issues like security, trade, and infrastructure, and to champion a more multipolar world order. Its growing influence is driven by member states' shared interests in a more stable region and a desire for an alternative to Western-dominated international forums. 

Regional security and stability

• Counterterrorism: The SCO was initially formed to coordinate the fight against terrorism, separatism, and extremism in Central Asia.

• Border management: The organization has helped its founding members resolve border disputes, fostering greater confidence along their shared frontiers.

• Regional stability: It plays a role in maintaining overall stability in the Eurasian region through security cooperation and a shared vision for common security, while upholding the principles of non-aggression and non-interference. 

The economic importance of the SCO lies in its significant role as a platform for trade, energy cooperation, and investment, with member states accounting for approximately 20% of global GDP. The SCO facilitates economic development through initiatives like the SCO Interbank Consortium, which provides funding for regional infrastructure and trade projects. Its growing membership has increased its control over global energy reserves, and it serves as a key player in shaping a multipolar world by fostering economic ties and as an alternative to Western-led economic forums,

Key aspects of SCO:

·         Massive economic scale: As of 2025, the 10 member states of SCO represent about 23% of global GDP [$24.6 trillion] and the combined population of the 10 SCO member states is approximately 3.43 billion people, which accounts for about 42% of the world's population.

SCO holds significant global energy reserves, with its members controlling about 20% of global oil reserves and 44% of natural gas.

·         Increased trade and investment: The SCO region has seen a significant increase in intra-regional trade and has become a destination for substantial foreign direct investment, despite its vast population.

·         Energy cooperation: The SCO is a major platform for energy-related cooperation. Since Iran's accession, the organization has control over a substantial portion of the world's oil and natural gas reserves.

·         Funding for development: The SCO Interbank Consortium was established to finance projects that promote trade and economic cooperation among member states, focusing on infrastructure, industry, and export-oriented sectors.

·         Platform for economic influence: For powerful members like China, the SCO serves as a way to increase economic influence in Central Asia by providing investment and loans for development.

·         Regional connectivity: The organization is a vital part of the Greater Eurasia concept, connecting countries across a vast geographical area to promote economic development and prosperity.  The SCO is closely linked and aligned with the Belt and Road Initiative [BRI]

·         Multipolar world order: The organization is also seen as a key part of a broader push by SCO member states to promote a multipolar world order and provide an alternative to Western influence in global governance.

·         Diplomatic platform: SCO also provides a platform for member states to discuss pressing international issues, coordinate strategies, and build partnerships. 

MEMBER STATES

China

India

Iran

Pakistan

OBSERVER STATES

• Afghanistan

• Mongolia 

DIALOGUE PARTNERS

• Armenia

• Azerbaijan

• Bahrain

• Bangladesh

• Cambodia

• Egypt

• Kuwait

• Laos

• Maldives

• Myanmar

• Nepal

• Qatar

• Saudi Arabia

• Sri Lanka

• United Arab Emirates

• Türkiye