SCO Secretary General Zhang Deguang:
“We do not want to be a club or a forum. The SCO is responsible organization with the capacity to take effective action and cope with new threats and challenges.”

INTRODUCTION:
The SCO, which began with limited security objectives, has the potential to develop into a broad-based framework of cooperation – the start of a new Asian powerhouse.
“The recently concluded fifth summit of the six-member Shanghai Cooperation Organisation (SCO) could not have come at a more opportune moment. It now appears that the SCO is emerging as a major player on the world stage, at the right time and under the right circumstances, and is seen to be moving beyond its original mandate of resolving border disputes and combating terrorism,” writes Tariq Fatemi in Dawn.
The Shanghai Cooperation Organization, as the Shanghai Six is formally termed, held its fifth summit on June 15. This will be more than a routine get together for its members, Russia, China, Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan. It reaffirms the success of these members in joining hands to form a regional grouping that has already begun to make an impact on global politics. Moreover, the SCO has begun to expand not just its activities but also its membership - Pakistan, Iran, India and Mongolia enjoy observer status while a contact group liaises with Afghanistan. This has brought more than half the world’s population under the SCO’s umbrella. Established in June 2001 as a “regional anti-terrorism entity”, the SCO has swiftly forged ahead and has moved from its political goals to playing a significant economic, cultural and commercial role.
The Shanghai Cooperation Organization (SCO) in its summit meeting held in Shanghai on June 15 reiterated its resolve to fight three evils: terrorism, separatism and extremism. An agreement on joint anti-terrorist operations including cutting off the infiltration channels of terrorists, separatists and exstremists for 2007-2009 period was also signed.
The Shanghai Cooperation Organization (SCO) is based on a new concept, which is condensed to the “Shanghai Spirit” of mutual trust, mutual benefit, equality, consultation, respect for cultural diversity and the desire for common development. The new concept also embodies a new security concept that is opposite of the Cold War mentality, featuring common security, non-alliance, non-confrontation and non-targeting a third country.
Under this model of state-to-state relations, all member countries should enjoy equality, mutual trust and mutual respect, and resolve problems through consultation. As a new model of regional cooperation, it upholds mutual benefits, common development and common prosperity, which is in contrast to the zero-sum game of the Cold War mentality.
The shanghai spirit is of particular importance to Central Asia, a heterogeneous region with a mixture of cultures and religions. The initiation of Shanghai spirit not only brings member countries together spiritually, but also helps to create a favourable environment. Building the SCO into a platform showcasing a new international relations concept is in line with China’s efforts to bull itself as a responsible power and conforms China’s initiative to establish a fair international new order.

HISTORICAL BACKGROUND:
On June 15, 2001, the Declaration on the Establishment of the Shanghai Cooperation Organization was signed, marking the formal launch of the regional organization. Its history can be traced back to April 26,1996 when Russia, China, Kazakhstan, Kyrgyzstan and Tajikistan formed the Shanghai Five, later renamed the Shanghai Forum. After Uzbekistan joined, the forum changed into today’s Shanghai.
Presently SCO have geographical area of 30mn sq km and population of 1.5bn.
Even before the establishment of the SCO, involved countries had started preparatory work for a permanent multilateral cooperative mechanism to cope with non-traditional security threats by signing series of documents, and had gained abundant experience in this regard. Besides military cooperation and maintaining regional security, they gradually launched cooperation in the economic realm.
During the past decade, Central Asian countries have created a sound environment of mutual trust, which is known as the “Shanghai spirit”. The atmosphere in regional political relations is positive, but should not be overstated.



SCO SUMMITS:
June 14-15, 2001: the first SCO summit is held in Shanghai, involving the presidents of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
June 7, 2002: the second SCO summit convenes in Russia (St. Petersburg). Three documents were signed by all the six presidents; the Charter of the SCO, an anti-terrorism agreement and the presidents’ declaration to chart the organization’s development goals and institutionalize cooperation.
May 29, 2003: the third summit was held in Moscow involving the six presidents of the member states. The declaration recognized the important role of the UNO in world affairs and asked for extensive cooperation around the world in the fight against terrorism, drug trafficking and other cross-border crimes.
August 6-12, 2003: the SCO members conduct a joint military exercise codenamed Coalition-2003, which was the first multilateral joint anti-terror military exercise that China had ever participated in.
January 15, 2004: the SCO officially launched the Secretariat as a standing executive organ in Beijing.
June 8-18, 2004: the fourth summit meeting was held Uzbekistan’s capital, Tashkent. SCO members formally launched the Regional Anti-terrorism Structure and pledged in a joint declaration to cooperate in fighting terrorism and new security threats and strengthening their economic and trade ties. Mongolia was accepted as an SCO observer.
July 5, 2005: the fifth summit was held in Astana, the capital of Kazakhstan. The leaders agreed to grant SCO observer status to Pakistan, India and Iran. At the Summit, the member countries signed agreements on fighting the three “evil forces” of terrorism, separatism and extremism and on mutual help in emergency relief in disasters.
June 15, 2007:

IMPORTANCE OF SCO & ITS ROLE:
• What has made the SCO so significant at a time when regional groupings are the norm and more or less every area has one. The SCO counts more than the others because it carries weight —two major powers are its members (Russia and China) and a third is an observer (India) — and it has begun to directly challenge the United States politically and economically. Thus, the SCO has an effective mechanism for fighting terrorism in Central Asia and this appears to have paid dividends in that some members such as Uzbekistan have been able to ward off the challenge from the extremists. With greater cooperation among the members it has been possible to fend off the terrorists while keeping an expansionist America at bay. In the last summit in 2005 the SCO demanded a deadline from the Americans for the withdrawal of their troops from the region. Although the US presence continues with the acquiescence of the smaller Central Asian states, the SCO can collectively project itself as a countervailing force to the United States. Joint military exercises are due next year in 2007, which will demonstrate the will of the Shanghai Six not to bend before the Americans politically or militarily.
• The issue of Great Game was evolving around oil exists in the world from past times. Russia has exit port through Caspian Sea that is not enough viable. USSR developed its states to provide raw material to USSR and its states are heavily dependent on USSR for their survival. When Puton became the president of USSR he had the strong desire to bring these countries back to the Russia’s influence and he cannot afford to let go this opportunity after the 9/11 attacks. Also it was the joint motive of China and Russia to check the advance USA through the platform of SCO.
• With the events of expansion of NATO in which it practically reached the borders of Russia, events of great game revolving around oil and pipeline politics and the unilateralist approach of USA, the SCO assumed a greater role to play today. Initially it wasn’t a military org. but with recent Chinese and Russian joint military exercises, it has taken a military flavor. When USA got military bases in Uzbekistan, the two countries Russia and China got alarmed and made a demand from the countries to abide by the objectives of the SCO. Also the pro-freedom movements in Russia are fully backed by the USA. So, Russia doesn’t want USA presence in the region.

IMPLICATIONS:
1. Russia is eyeing the trade and revenues of these natural resources. USA is also backing up the Azerbaijan pipeline and purposed the development of it. USA also wants Iran and Pakistan gas pipeline project but Russia and china do not favor this development.
2. Up till now SCO has not directly challenged USA but has the potential to become an Eastern NATO. Russia is a necessity of CA Republics where as China is necessary due to size of its economy. The other countries of the region now soon have to make a choice either to join SCO or NATO. But need to be done in terms of economic and military development in SCO before it can challenge USA.
3. USA on the other hand has its interests in the region and is not going to leave the field to China and Russia. The SCO’s basic strategy will continue to be consolidate by the year 2020 to achieve common space for mutually beneficial exploitation of natural resources, movement of capital, technology, goods and services. It is in the USA best interest to engage with SCO due to two factors:
I. Natural Resources
II. Their nuclear know how

ACHIEVEMENTS:
1. Pan Guang, director of the Center for SCO studies: “The SCO has been successful mainly in four areas: resolving the border issues left over from history, cracking down on cross-border vile forces detrimental to all nations, promoting the sound development of regional cooperation and safeguarding the stability and security of Central Asia.”
2. S. Lousianing; Russian Ministry of Foreign Affairs: “the main achievement of the SCO lies in the daring efforts of Beijing and Moscow to jointly defined the concept of the SCO. From 2000-2002, the SCO responded slowly to the challenges from Islamic extremism, the terrorist attacks on 9/11, and the US establishment of bases in CA.:
3. “It attracted an ever growing interest from the international community; Central Asian countries, Russia and China came to realize that they must coordinate with each other in an effort to resolve the most pressing regional issues; cooperation in the SCO expanded from collective security and a crackdown on the three “evil forces” of terrorism, separatism and extremism to such fields as the economy, culture and human resources; based on equality, mutual benefit and cooperation and aimed at consolidating regional peace, security and stability, the SCO provided a successful example for a new type of organization in Eurasia; the SCO promoted multipolarity in international relations.”
4. In 2002, the SCO established Regional Anti-terrorist Structures (RATS), with its headquarters in Tashkent. It started functioning in June 2004 with a mission to augment coordination between SCO member states to combat the three evil forces.

DRAWBACKS:
1. S. Lousianing: “A major drawback of the organization is that its observer status system has no definite goals, having an impression that naming observers is intended to “comfort” countries that hope to join the organization – India, Iran and Pakistan. The creation of the observer status system is a tactic. Sooner or later, the SCO will have to define its relationship with observer states strategically.”

OPPORTUNITIES & CHALLENGES:
1. The heightening political instability in CA countries has already exerted a negative influence on the future development of the SCO. Faced with the increasingly prominent domestic problems of its CA member states, the SCO has yet to come up with effective solutions.
2. The complex relations b/w CA countries are likely to hold back the SCO’s efforts to promote economic cooperation.
3. External forces have intensified their efforts to interrupt and restrain the development of the SCO with newly adjusted start.
4. Pan Guang: “The SCO has traveled a successful yet a bumpy path. Since the beginning of 2005, another series of dramatic changes have taken place in CA – new developments that have profound implications for the SCO and its members.”
5. S. Lousianing: “In the next five years, the SCO is expected to encounter old problems such as Islamic extremism, separatism and drug trafficking. However, these chronic problems will take more radical forms. Countries that share the Fergana Valley, namely Uzbekistan, Kyrgyzstan and Tajikistan, nay suffer from regional instability by extremism forces.”
6. “The SCO will have to face the following challenges in the next five years: energy shortages, anti-dumping and protectionism in international trade; instability in the world’s financial system and discriminatory currency convertibility policies; population, migration, poverty and unemployment; instability in the SCO’s neighbouring countries; terrorism, extremism and separatism and their sponsors; drug trafficking; the illegal trade of weapons of mass destruction and human trafficking; the export of ‘colour revolutions’ or counter-revolutions; disagreements among the SCO member countries; the ostensible rather than substantial implementation of the SCO’s revolutions.”



SECURITY & ECONOMIC COOPERATION:
Beijing Review:
“The security cooperation at the current stage should focus on fighting the “three evils” of terrorism, separatism and extremism, on emergency reactions to major disasters, and on such non-conventional security areas as drug trafficking and arms trafficking. Due to the economic backwardness of its member countries, economic development should be considered the essential mission of the SCO by all member countries. Strengthening economic cooperation should also be considered crucial in fending off foreign interference in stirring a ‘revolution’. In the field of economic cooperation, the areas of tapping oil and natural gas resources and expanding logistics channels should be prioritized.”

MEMBER PRIVILEGES:
Sidorov Oleg, Beijing Review:
“Each of the SCO members finds its own national interests served within the regional organization.”
1. Russia’s Interests:
I. The border defence among the CIS is loose, which is also one of the reasons for the establishment of SCO.
II. Abundant energy resources in CA are a strong impetus for Russia to maintain security and stability in the region.
III. Many Russian live in CA.
IV. CA is an important focal point in the crackdown on terrorism and religious extremism. The Chechnya problem has gone beyond Russia’s borders.
V. The region is also crucial to Russia’s fight against drug trafficking. Afghan peddlers send drugs to Russia via the CA countries and then sell them to Europe. Russia is determined to cut his channel.
VI. To counter and neutralize the US power and influence in the region vis-à-vis NATO as the US bases have established in K2 and Manas.
VII. The Russian intensions to get hegemony over the CA oil reservoirs.
2. China’s Interests:
I. It can further consolidate its position in the region and gradually increase its influence in CA. it can also better coordinate with Russia in international affairs and deepen cooperation with it under the framework of SCO.
II. China can get considerable support in its action against the Eastern Turkestan Islamic Movement (ETIM). The Chinese government is under pressure from foreign countries while dealing with Ulghars having terrorist links.
III.
3. Kazakhstan’s Interests:
I. To consolidate its geopolitical position. It has resolved its territorial disputes with neighbouring countries and is now in the process of defining its boundaries.
II. As a regional stability factor, the SCO can help it attract foreign investment. Economic integration can only be realized by eliminating instability. The SCO is not implying a military alliance; its members can quickly transform military cooperation into economic cooperation.
III. Cracking down on drug smuggling is an urgent task for all SCO members. Although CA countries have signed an international agreement on the CIS fighting against drug smuggling, cooperation under the SCO framework is more effective.
4. Uzbekistan’s Interests:
I. The SCO can help the country fight terrorism and religious extremism. It also needs SCO for the sharing of water resources.
II. The political situation in Afghanistan remains complicated and the SCO can help its military in the event of any spillover of the conflict into its own territory.
5. Kyrgyzstan’s Interests:
I. The SCO can help prevent illegal military forces from entering its territory. Evidence in the recent years showed that its military power couldn’t resist well-equipped and well-trained Wahhabism forces. This also explains why Kyrgyzstan was the first country in CA to open its airports to US.
II. Joining the SCO can help Kyrgyzstan establish closer economic ties with Russia and China.
6. Tajikistan’s Interests:
I. The SCO will help it undertake collective defence along the Tajikistan-Afghanistan border and maintain domestic stability.
II. The country needs cooperation in fighting drug crimes. Most drugs from Afghanistan go through the country.
III. Tajikistan also stands to benefit from close economic cooperation with other SCO states.

SCO AS AN ‘ORIENTAL NATO’:
SCO Secretary General:
“The SCO has occupied an important international position and is becoming an effective factor in maintaining world peace and promoting regional development. It does not target any third country or region, nor seek confrontation.”
CONCLUSION:
• Whatever its potential might be, the SCO has not yet fully evolved as an organization, nor its final membership set. For now it serves as a setting in which issue of bilateral and multilateral concern can be thoroughly debated and sometimes even resolved. As one country’s diplomat remarked:
“With the Chinese in the room, the Russian can’t resort to their usual tricks.”
• The SCO’s basic strategy will continue to be the consolidation by 2020 of a common space for a mutually beneficial exploitation of natural resources, and a much freer movement of capital, technology, goods and services. Led by the US, the West can profitably work within the paradigm of cooperation and competition. Washington needs to recognize the perils of exaggerated unilateralism that it has pursued in recent years.
• For Russia, the SCO offers an effective hedge against its further decline. For countries like Iran, Afghanistan and Pakistan, China’s undisputed influence in this organization provides an opportunity for greater equilibrium in their international relations.
• The legal basis for the SCO framework has bolstered economic cooperation among its members. All the six members are aiming for the free movement of goods, capital, services and technology under the SCO framework before 2020. Chinese Premier Wen Jiabao’s proposal of gradually establishing a free economic area under the SCO framework was widely supported by the leaders of other SCO members, and the six prime ministers signed a long-term common programme, until 2020, in Beijing in 2003. Against such a backdrop, it is necessary to improve the basic infrastructure for economic cooperation, especially the legal system, banks and the financial system.