Shanghai Cooperation Organization and Multilateralism

The 22nd annual summit of the Shanghai Cooperation Organization, the body of eight member states, namely Russia, China, Uzbekistan, Kyrgyzstan, Kazakhstan, India, Tajikistan, and Pakistan concluded on 16 September in Samarkand Uzbekistan. Member states of the SCO signed and released the Samarkand Declaration of the Council of Heads of State and numerous policy statements on tackling climate change, food security, and energy security. This important summit was the first to take place in person since the COVID-19 outbreak. Since its inception in 2001, the SCO has quickly become a force to reckon with in the multipolar world order. Iran, which has an observer status in the group, signed a memorandum of obligations to join the organization as a member state whereas formally, President Erdogan has also expressed his willingness to join the SCO. The membership of NATO member countries and Iran will not only open up a new door of diplomacy and multilateralism, but such an attempt will also play a critical role in settling disputes within the Asian region. 

Despite the fact SCO is not an anti-Western block, it has often been viewed as a Sino-Russia-dominated anti-Western block in Western capitals. Critiques in the West refer to SCO as “Rogue NATO” or “Dictator’s Club”. However, SCO member states advocate its non-block status, openness, and non-targeting of other countries. Manish Prabhat, India’s Ambassador to Uzbekistan said, “India is very clear that the SCO is not an organization which is against any other bloc of countries or any other country. The SCO is a venture for constructive cooperation and peace and stability in the world. There could be concerns of different countries on various kinds of issues, but the forum is there to talk about these issues.”

The record number of 15 world leaders attending the summit clearly supports this notion. India, which is a member of the US-led block Quad, is also a full member of SCO. This suggests that SCO does not oppose other countries for their engagement with the West even in security alliance formations. It is worth noting that Turkey, which has shown its willingness to join SCO in a recent summit, has been subjected to immense criticism just because it is a member of US-led NATO. Some appear to suggest that “Turkey’s role as a dialogue partner in the SCO was positive, anything beyond that could be counterproductive.”

The SCO member states in Samarkand Declaration concluded that the global challenges and threats are becoming complex and existing tensions create new conflicts. This is an accurate depiction of the current state of world affairs where various states are intertwined in myriad bilateral and multilateral conflicts. The world is witnessing an unprecedented rise in conflicts. The Russia-Ukraine conflict has entered its 7^th month and border clashes between Armenia and Azerbaijan as well as Tajikistan and Kyrgyzstan are escalating. While it is a testing time for the SCO in settling high-intensity conflicts involving its members and observer states, the platform also offers an opportunity for these states to sit and negotiate to avoid military conflicts. In this regard, China’s role will be crucial. The critical role of China as one of the founding members of the organization is enormous for multiple reasons. China is the leading actor in enabling economic cooperation and trade interdependency within the SCO. The SCO member states can learn from China’s remarkable economic model which has brought millions of Chinese out of poverty.

The highest-level participation from India, Pakistan, and China in SCO offers yet another important opportunity for regional countries to settle their dispute peacefully. Although there are chronic territorial conflicts that have divided the whole region and there are no immediate solutions to those issues but diplomatic engagements, using the SCO platform, can reduce animosity and trust deficit among these powers.

The Samarkand summit of SCO is unique in the sense that a new financial structure is taking shape which has emerged as a result of the increasing weaponization of the dollar by Western powers. In Samarkand’s declaration, SCO member states stressed the need for a greater share of national currencies. The declaration states that “Member States stressed the need to provide financial support for project activities to unlock the full investment potential of the Organization and, in this regard, to continue consultations on the establishment of the SCO Development Bank and the SCO Development Fund (Special Account). They noted the adoption by the interested SCO member states of the Road Map on Increasing the Share of National Currencies in Mutual Settlements and called for expansion of this practice.” Many SCO member states, including Russia, China, and also Iran are the victims of the US economic sanctions. From the joint declaration, it becomes evident that SCO in the future will focus on the use of member countries’ currencies in economic and trade relations by connecting national payment systems to their national currencies. Such a move will alter the global economic order towards a multipolar world order where the US economic supremacy will face new challenges.

Over the past 2 decades, the SCO has more than tripled in size – with the formal inclusion of new members and dialogue partners. The West’s attempt to paint the organization as a counter to NATO has also failed due to the overwhelming focus of SCO on the socio-economic cooperation among its member states. The fast-expanding SCO indicates the emergence of a new geopolitical center of power in the global system with an economic plan in the lead. Owing to its collegium spirit, as well as consensus-based decision-making policies coupled with diversity and practice of non-interferences, various countries are seeking to deepen their relations with SCO. At the moment, the Shanghai Cooperation Organization is emerging as a multilateral body that stands at the crossroads of history.

Yasir Hussain is a former research fellow at Stimson Center, Washington DC. He tweets @yasirhunzai1.