Shanghai Cooperation Organisation (SCO)

Shanghai Cooperation Organisation (SCO): Members, Structure, Summit, and Significance

Relevant for UPSC Prelims GS Paper 2 (International Relations – Regional Groupings & Cooperation) and GS Paper 3 (Security, Economy, and Strategic Issues).

The Shanghai Cooperation Organisation (SCO) is one of the most influential intergovernmental regional organisations in the world, focusing on security, political stability, economic cooperation, and cultural exchange. Established in 2001 in Shanghai, China, the SCO evolved from the “Shanghai Five” grouping (1996), which consisted of China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan. It was created to foster regional cooperation, address common security threats such as terrorism, separatism, and extremism, and strengthen trust among neighbouring states.

Overview and Evolution of SCO

Officially founded on 15 June 2001, the SCO initially included six founding members—China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The organisation was formally characterised by the adoption of the SCO Charter in 2002, which came into effect in 2003 and serves as its constitutional document.

Over the years, the SCO expanded its membership to include India and Pakistan in 2017, Iran in 2023, and Belarus in 2024, transforming it into a powerful Eurasian partnership connecting East Asia, South Asia, Central Asia, and parts of the Middle East. This expansion has enabled the SCO to represent nearly 40% of the global population and around 25% of the global GDP, giving it substantial geopolitical and geo-economic weight.

The SCO’s guiding principle, known as the “Shanghai Spirit,” emphasises mutual trust, mutual benefit, equality, respect for cultural diversity, and the pursuit of common development. The Secretariat is headquartered in Beijing, China, while the Regional Anti-Terrorist Structure (RATS), which coordinates counterterrorism cooperation among member states, is based in Tashkent, Uzbekistan.

SCO Membership

The SCO comprises 10 permanent member states and 17 SCO Partners as of August 2025. Below is a list of its members:

Previously, the organisation differentiated between Observer States and Dialogue Partners. However, at the 2025 SCO Summit, these categories were merged into a single group called “SCO Partners,” which currently includes 17 countries, with Laos becoming the latest Partner in 2025.

Structure and Organs of SCO

• Council of Heads of State (CHS): The highest decision-making body, comprising heads of member states, meeting annually to set strategic priorities.
• Council of Heads of Government: The second-highest forum that approves economic cooperation and budgetary matters.
• Council of Foreign Ministers: Coordinates foreign policy across member states.
• Council of National Coordinators: Oversees day-to-day SCO activities and preparation for high-level meetings.
• Secretariat: Administrative arm based in Beijing, led by a Secretary-General appointed by member states.
• Regional Anti-Terrorist Structure (RATS): Coordinates security cooperation to combat terrorism, extremism, and separatism, headquartered in Tashkent.
• SCO Business Council: Promotes economic cooperation and investment among business communities of member states.
• SCO Interbank Consortium: Facilitates financial cooperation among major national development and commercial banks.

Objectives of the SCO

• Foster mutual confidence, cooperation, and good neighborly relations to ensure a stable and harmonious regional environment.
• Promote active collaboration across politics, economy, trade, science and technology, culture, education, energy, transport, tourism, and environmental protection.
• Safeguard regional peace and stability by coordinating joint efforts to combat terrorism, separatism, and extremism.
• Support a balanced, democratic, and equitable global order aligned with the interests of developing nations and multipolarity in international relations.

Strategic Significance of SCO

• Regional Security: The SCO plays a central role in counter-terrorism, extremism, and drug trafficking, addressing security challenges in Central and South Asia, especially after NATO’s drawdown in Afghanistan.
• Economic Integration and Connectivity: The SCO boosts trade, infrastructure projects, energy cooperation, and supply chain stability, linking resource-rich Central Asian states with large consumer markets like India and China.
• Geopolitical Influence: SCO provides a platform for multipolar regional governance, balancing influence against Western-led alliances like NATO.
• Diplomatic Dialogue: It serves as a rare forum for dialogue between countries with historical rivalries like India, Pakistan, and China—encouraging crisis management and conflict resolution.
• Global South Representation: SCO advances the voices and interests of Global South countries in shaping new global governance models.

India and SCO: Strategic Opportunities and Challenges

Importance for India:

• Enhances counterterrorism cooperation, particularly through the RATS.
• Provides a platform to pursue energy security links with hydrocarbon-rich Central Asia and Russia.
• Facilitates dialogue on connectivity projects, including alternative routes to Central Asia.
• Offers a multilateral forum to engage diplomatically with China and Pakistan.
• Strengthens India’s presence across Eurasia, vital to its broader foreign policy objectives.

Challenges:

• India remains cautious about China’s dominant role and its Belt and Road Initiative involving Pakistan-occupied Kashmir.
• Pakistan’s membership complicates India’s efforts against terror financing and safe havens on SCO platforms.
• Consensus-based decision-making often leads to diluted outcomes.
• India faces transit limitations to Central Asia due to Pakistan’s denial of access.
• Balancing regional multilateralism with strategic autonomy amid competing interests.

SCO Summit 2025: Highlights from Tianjin

The 25th SCO Summit held in Tianjin, China, from August 31 to September 1, 2025, marked a pivotal moment amid global geopolitical shifts.

Key Outcomes:

• Tianjin Declaration: Strong condemnation of terrorism with commitments to intensify joint counterterrorism activities, including response to specific incidents like attacks in Kashmir.
• Expansion of SCO Partners: Laos joined as the latest Partner, raising the total number to 27 countries.
• Development Strategy until 2035: Focus on reducing trade barriers, boosting investments, and enhancing regional value chains.
• SCO Development Bank: A proposal endorsed for infrastructure financing, with China’s financial support instrumental.
• Sustainable Energy: Roadmap agreed for energy security and green development until 2030.
• Institutional Strengthening: Four new specialised centres inaugurated addressing security, organised crime, information security, and drug trafficking.
• India’s Role: India’s vision “One Earth, One Family, One Future” was well received, emphasizing security, connectivity, and opportunity as the summit themes.

Conclusion

The Shanghai Cooperation Organisation has grown into a major power bloc spanning Eurasia, key to regional security, economic cooperation, and geopolitical balance. For UPSC aspirants, an in-depth understanding of SCO’s membership, structure, strategic significance, and India’s role is essential for the International Relations syllabus, especially in the context of evolving global multipolarity.