Context

• The Indian Foreign Minister attended the two-day Shanghai Cooperation Organisation (SCO) summit in Islamabad.

Shanghai Cooperation Organisation (SCO)

• The Shanghai Cooperation Organisation (SCO) began as the Shanghai Five (S5) group, comprising China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
• These countries signed the Shanghai Declaration in 1996.
• In 2001, Uzbekistan joined the group and it was renamed the Shanghai Cooperation Organisation (SCO).

Objectives:

• Security cooperation: To promote cooperation among member countries to tackle challenges such as cross-border crime, terrorism, and separatism.
• Economic cooperation: To promote cooperation in the fields of trade, investment, and energy.
• Cultural exchange: To promote cultural exchange among member countries.

Member countries of SCO (8):

1. China
2. India
3. Kazakhstan
4. Kyrgyzstan
5. Pakistan
6. Russia
7. Tajikistan
8. Uzbekistan

Importance:

• Geopolitical significance: SCO is a major political organization in the Eurasian region.
• Economic significance: SCO is the largest geographical entity in the world and has enormous economic potential.
• Security significance: SCO plays an important role in maintaining regional security and stability.

Structure:

• Summits: It is the supreme decision-making body of the SCO.
• Council of Heads of State: It leads the organisation in between summits.
• Council of Heads of Government: It considers issues related to economic cooperation.
• Reserve Fund: It manages the financial resources of the organisation.
• Secretariat: The permanent secretariat of the organisation is located in Beijing.

India and SCO:

India has strengthened its Central Asia policy by becoming a full member of the SCO in 2017. Some of the major benefits of SCO for India are:

• Connectivity: India can enhance its connectivity with Central Asia and Russia through SCO.
• Trade and Investment: SCO provides a huge market for India and opens up new investment opportunities.
• Security: SCO helps India to deal with challenges like terrorism and separatism.