Expanding the SCO: Fostering Cooperation and Connectivity

The recent 23rd Shanghai Cooperation Organization (SCO) summit, hosted virtually by India, discussed some key issues including regional security, economic connectivity, and trade. The meeting also welcomed Iran as a new member and began admitting Belarus. Belarus and Mongolia were invited as observer states, and Turkmenistan was invited as a guest of the chair.

The summit was attended by Indian Prime Minister Narendra Modi, Chinese President Xi Jinping, Russian President Vladimir Putin, Pakistani Prime Minister Shehbaz Sharif, and leaders from four Central Asian countries.

The theme of India’s SCO presidency was “SECURE,” which stands for security, economic development, connectivity, unity, respect for sovereignty and territorial integrity, and environmental protection.

New Delhi Declaration

The summit concluded with a joint communiqué, the New Delhi Declaration, and two separate joint statements on “cooperation on countering radicalization leading to separatism, extremism, terrorism” and “digital transformation,” respectively. The SCO Council of Heads of State approved the organization’s Economic Development Strategy for 2030. Leaders agreed to forge closer ties within the expanding Eurasian group but stressed that the group is not directed against any other states.

The joint declaration said that SCO members oppose bloc, ideological and confrontational approaches to address problems and security challenges. Without referencing NATO’s expansion and Western military assistance to Ukraine, leaders were critical of the negative impact of “unilateral and unlimited expansion of global missile defense systems by certain countries or groups of countries.”

It called for an inclusive government in Afghanistan featuring the participation of representatives of all ethnic, religious, and political groups in Afghan society. The SCO Council of Heads of State approved the Concept of Cooperation between the member states to decarbonize transport and promote digital transformation and innovative technologies to achieve greater efficiency and sustainability.

The addition of Iran inspired Prime Minister Modi to propose increasing the usage of Chabahar Port, located in southeastern Iran on the Gulf of Oman, for trade and other economic activities. India has pitched the International North-South Transport Corridor as a secure and efficient route for landlocked countries in Central Asia to access the Indian Ocean. Modi said that India would be delighted to share India’s AI-based language platform Bhashini with everyone to remove language barriers within the SCO.

President Xi warned against “external attempts to foment a new Cold War.” He highlighted the significance of upholding multilateralism and called on leaders to oppose protectionism, unilateral sanctions, and the overstretching of national security.

In his first international meeting since the Wagner incident, President Putin claimed that the sanctions imposed by U.S.-led Western countries are making Russia stronger. He pledged that Russia would stand up against Western pressure, sanctions, and “provocations.”

Delicate Global Landscape

India, which holds the presidency of the SCO and the G20 this year, is walking a diplomatic tightrope because relations between the West and Russia have become fraught due to the Ukraine conflict.

China will hold the third Belt and Road Forum for International Cooperation this year. “We should work together to broaden the Belt and Road as a ‘path of happiness’ benefiting the whole world,” Xi said.

Commenting on the China-Pakistan Economic Corridor, Sharif called it a flagship project of the Belt and Road Initiative (BRI) and predicted it would become a force multiplier not only for regional connectivity but also for regional stability, peace, and prosperity.

India also addressed the connectivity issue. “Strong connectivity is crucial for the progress of any region,” said Modi. “Better connectivity not only enhances mutual trade but also fosters mutual trust.” Ironically, India is the only member of the SCO not participating in the BRI, which rebuilt the ancient Silk Road to promote connectivity.

Putin pushed for switching to a system under which foreign trade could be settled in local currencies, a move to help get around usage of the U.S. dollar, especially in the aftermath of sanctions following the Ukraine conflict. “The Russian president spoke of rumble-yuan exchange,” said Indian Ministry of External Affairs spokesperson Arindam Bagchi. “We have also been supporting trading in national currencies.” India has refused to blame Russia for the conflict and has lifted bilateral trade largely by purchasing Russian oil at a record pace, irking the West.

Both Xi and Putin are expected to visit New Delhi in September when India hosts the G20 summit, and Biden and leaders of other G20 member nations are also likely to be present.

The SCO summit took place barely two weeks after Modi was hosted by U.S. President Joe Biden during a state visit, at which the two countries called themselves “among the closest partners in the world.”

China has repeatedly cautioned India not to fall into the American trap. India is well aware that China’s influence in shaping its relationship with the U.S. It is the only reason Washington feted Modi. India is just seeking to leverage its warming ties with the U.S. to its advantage. For India, camaraderie with China is precious. They are neighbors and both civilizational nations.

The author is a business writer at tech media KrASIA and former chief editor of the Indian daily Janmabhumi.