INTRODUCTION

The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental

international organisation, the creation of which was announced on 15 June 2001
in Shanghai (China) by the Republic of Kazakhstan, the People's Republic of China,
the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, and the
Republic of Uzbekistan. It was preceded by the Shanghai 5 mechanism1.
The SCO also had four observer states (India, Iran, Mongolia, and Pakistan) which
became member states on June 9 2017 and dialogue partners (Belarus and Sri Lanka)..
It started as a pure security organization to advance traditional and non-traditional
security interests of the countries involved, although it served the broad interest in
creating a stable environment for economic development.
The SCO added explicit economic functions and a free trade agenda over time, which
helped to substantiate the cooperative relations among member countries, which in turn
serves their security interests. SCO is a comprehensive regional organization, similar
to the Association of Southeast Asian Nations (ASEAN), rather than a regional free
trades scheme. However, ASEAN and SCO are similar in the functioning, in agendas
and model of regional cooperation, which emphasizes regime security, flexibility and
collaborative spirit but they differ in the degree and the institutionalization. It was a
defensive organization reflecting the weaknesses of the member countries and the
severity of the domestic challenges to the governments at home. However, the SCO has
acquired greater institutional capacity over time and may now be emerging as the
principal organization for the Eurasian landmass. With its expanded agenda, the SCO
thus emerged as an important part of the Central Asian political and security
architecture.36 Over the years, the SCO has emerged as an important element of
China’s and Russia’s foreign policy towards Central Asian countries and a reflection of

1
The SCO prototype - the "Shanghai Five" mechanism, initially developed based on strengthening trust
and disarmament in border regions of China with Russia, Kazakhstan, Kyrgyzstan and Tajikistan. After
the end of Cold War, changes in international and regional situation has undergone were very big; peace
and development have become trend of the epoch. After that the question of strengthening good-
neighbourly relations of mutual trust, friendship and cooperation among five neighbouring countries -
China, Kazakhstan, Russia, Tajikistan and Kyrgyzstan has come on the agenda. In 1996 and 1997, heads
of five states, at their meetings in Shanghai and Moscow signed "Agreement on deepening military trust
in border regions" and "Agreement on reduction of military forces in border regions", which became an
important historical stage and resulted in launching the mechanism called "Shanghai Five".
the political, security and economic policies of the Central Asian countries to balance
their relations with two big neighbours – Russia and China.

WHAT DRIVES SCO.

The Shanghai Five, from which the SCO evolved, was formed in 1996 when China,
Kazakhstan, Kyrgyzstan, Russia, and Tajikistan signed the Treaty on Deepening
Military Trust in Border Regions, regional security agreement without reference to
economic cooperation. The 1996 treaty was built on an April 24, 1990 China-Soviet
agreement designed to reduce arms and build military trust along the border. One year
later, the five governments signed the Treaty on Reduction of Military Forces in Border
Regions in Moscow, which again did not mention economic cooperation or free trade.
When the SCO was formed in 2001, its first international treaty, the Shanghai
Convention on Combating Terrorism, Separatism and Extremism, focused on
increasing internal security and the subject of economic stability was mentioned only
once. SCO member states have divergent security concerns and preferences and their
Views have evolved over time.

Russia Concerns

Russia views central Asia strategically important by guarding it’s insecurity against the
intrusion of other great power in the central Asia and to increase the sphere of its
influence. Nevertheless, Russia did accept American military bases to be established in
the Central Asia post 9/11 and regarding the Taliban. Both China and Russia are the
co-leaders of the institution having strategic and economic value in the organisation.
Russia feared losing its influence to China on economic front and this was the reason
why initially Moscow was uninterested in SCO even though it help building the SCO
mechanism. It was only after the colour revolution Russia remain concerned towards
the SCO. During 2008-09 recession while China came out of the economic turmoil
Russia suffered, also after couple of year down the line China bagged some oil And gas
projects in the central Asia. In the same year, another major contention happened when
Central Asian countries and China did not support the idea of creating some new states,
which Russia supported. However, this tension is unlikely to escalate in the near future
as both China and Russia view United States as common concern and SCO as
beneficial.

China’s Ambition

China has been particularly active in promoting the SCO, pursuing several objectives.
The key Chinese motivation for supporting the SCO is to create a safe environment for
economic development. China has also been keen on energy security, and the SCO
serves Chinese interests in dealing with domestic ‘‘separatists’’ and with cross-border
crimes. In addition, closer economic ties with Central Asia mesh well with the Chinese
government’s strategy for developing the country’s western regions. Beijing also views
the SCO as an opportunity to demonstrate its new concept of security in practice. Some
Chinese analysts view the SCO as representing a new type of geopolitical organization
in a strategically important region. Although the Chinese typically portray the SCO as
nonthreatening to the United States or any other third parties, this group is viewed
positively as increasing Beijing’s strategic options and acting as a hedge against the US
and the West. It is no secret that Chinese hardliners view America’s presence in
Afghanistan and Central Asia as part of its encircling of China. As such it is not
surprising that China has not cooperated with the United States in Afghanistan and
Pakistan. Moreover, the Chinese view the SCO as a regional organization that will help
to create enough room for China to exercise influence in Central Asia without upsetting
Russia too much. This may explain why the Chinese pushed for institutionalization of
the SCO while Russians were less enthusiastic.2
The Chinese move into the Central Asian region through SCO and oil and gas pipeline
networks with Kazakhstan and Turkmenistan are not merely to spread its influence in
the Heartland but to dominate in whole of the Central Asian region and thus go beyond

2
Vinod K. Aggarwal, Kristi Govella, Linking Trade and Security Evolving Institutions and Strategies
in Asia, Europe, and the United States, 2013, Springer: New York Heidelberg Dordrecht London
it. It indicates that foreign policies of China, towards Central Asian region are driven
by Mackinder's theory3.4

INDIA & SCO

The journey over the last 12 years has been tortuous and full of pitfalls for India.
Initially India was not convinced that it should apply to become a member of the
SCO. This stand was opposite to the approach adopted by other countries who
became Observers along with India in 2005 viz. Pakistan and Iran. Both these
countries were extremely keen to join the grouping as quickly as possible and
put in their papers for membership in 2006 (Pakistan) and 2008 (Iran). India bid
its time and did not wish to appear to be in a tearing hurry to join the organisation.
It ultimately put in its formal application in September 2014, after all rules for
admitting new members had been finalised by the group earlier that year. Iran's
membership has so far not received the go-ahead because of the UN sanctions
against it. It is likely that with sanctions having been lifted last year, Iran will
also join the grouping in the near future. 5
India's pioneers never went to any SCO Summit in the limit of an Observer while
Pakistani and Iranian Presidents, including Musharraf, Zardari, Ahmadinejad and
Rouhani, went to a few summits in various capitals to squeeze home their position for
full participation of the association. The main summit went to by previous Prime
Minster Dr. Manmohan Singh while India was as yet an Observer was in Yekaterinburg,
Russia in 2009 when the host, Russia, in respect to India's position to not go to a summit
where it had no substantive part to play, composed the BRICS and SCO summits
together. This empowered the Indian administration to go to both the summits. The
same savoir faire was utilized by Russia in July 2015 when both the BRICS and SCO
summits were kept down to-back in Ufa and were attend by Prime Minister Modi.

3
The basic premise of the theory is as follows.
“Who rules East Europe commands the Heartland;
Who rules the heartland commands the World-island;
Who rules the World-island commands the World”
Mackinder, H. J., 1962, 261.
4
https://www.creighton.edu/fileadmin/user/CCAS/departments/PoliticalScience/MVJ/docs/The_Pivot_-
_Alcenat_and_Scott.pdf
5
Ashok Sajjanhar “India’s prospects in China -dominated SCO” June 5, 2017 at
http://www.orfonline.org/expert -speaks/india -prospects-china-dominated -sco/
Advantages

1. India being an energy deficient country with increasing demands for energy,
it is an assured market for the resource rich Central Asian countries and
Russia.6 SCO membership could help advance talks on the construction of
stalled pipelines like TAPI (and possibly IPI later) which is of considerable
importance to India’s natural gas needs. Another development related to
India’s energy requirements is the proposed Russian idea of an ‘Energy
Club’ for deepening interactions between producers (Russia, Kazakhstan,
Uzbekistan and Iran) and consumers (China, Tajikistan, Kyrgyzstan, India,
Pakistan and Mongolia) while shaping a common energy system in both the
regional and global contexts.7 Within this framework, India and Russia are
exploring a possible hydrocarbon pipeline route through North-West of
China.
2. For their part, Central Asian countries provides India with a market for its
IT, telecommunications, banking, finance and pharmaceutical industries.8
Thus, membership in SCO will help deepen economic times between India
and the Central Asian countries and eventually even result in a Free Trade
Agreement with the Eurasian Economic Union.
3. SCO also provides a stage to India for achieving some of its foreign policy
goals. Membership in SCO is likely to help India fulfil its aspiration of
playing an active role in its extended neighbourhood as well as checking the
ever-growing influence of China in Eurasia. SCO also provides a platform
for India to simultaneously engage with its traditional friend Russia as well
as its rivals, China and Pakistan. 9
4. Moreover, SCO membership would also enable India to hinder any attempt
of Pakistan to use the SCO forum for mobilising support for its anti-India
activities. 10 Further, it will help India engage the Central Asian Republics

6
Ashok Sajjanhar, “India and the Shanghai Cooperation Organization,” June 19, 2016, at
http://thediplomat.com/2016/06/india-and-the-shanghai-cooperation-organization/
7
“SCO Energy Club: structure ready for international interaction, not Shanghai Six’s elite club,”
at http://infoshos.ru/en/?idn=13913
8
S.K. Swain, “India and SCO: Challenges and Opportunities,” World Focus, 34 (12) December
2013, pp. 159-64
9
B. K. Sharma & R. K. Sharma, “India’s SCO Membership – Challenges and opportunities.” n. 4.
10
S.K. Swain, “India and SCO: Challenges and Opportunities.” n. 5.
 (CARs) on a regular basis every year, something which has proved rather
difficult in a bilateral format. Finally, as a member of an organisation whose
influence is growing steadily, India would be able to attain a robust position
in the world.
5. Pakistan, which too enjoys historical and cultural links to Central Asia,
would be able to deepen its own relationship with the CARs. This, combined
with the fact that CARs are also part of the Organisation of Islamic
Cooperation (OIC) which has backed Pakistan on the Kashmir issue, 11 could
lead Central Asian countries to be more sympathetic towards Pakistan’s
position. In this case, however, a regular dialogue with CARs through the
platform of SCO could hamper any such attempt by Pakistan. In addition,
India would be able to mobilise opinion against Pakistan’s use of cross
border terrorism.
6. India's quality in SCO would likewise guarantee that China does not manage
terms in Eurasia. This is additionally the worry of Russia that is in a
condition of a 'delicate rivalry' with China in Central Asia. This is one
reason why Russia constantly upheld India and Iran's entrance into SCO
though China acquired Pakistan to fortify its own hand. Also, India would
have the capacity to counterbalance China's Belt and Road Initiative, India
by assembling support for the for the International North South Transport
Corridor (INSTC).
7. The Eurasian powers are bound to play a major role in Afghanistan’s
security affairs. Russia, China and Pakistan have already started engaging
the Taliban, which is of concern to India. 12 It is important that India is not
left out of the evolving situation in that country and SCO membership could
help in this regard. India would also benefit from the Regional Anti-
Terrorist Structure (RATS) based in Tashkent, which would help gain vital
intelligence inputs on the movement of terror outfits, drug-trafficking, cyber

11
“Organisation of Islamic Cooperation backs Pak, asks India to cease atrocities in
Kashmir,”at http://indianexpress.com/article/world/world-news/organisation-of-islamic-
cooperation-backs-pak-asks-india-to-cease-atrocities-in-kashmir-3040409/
12
Parth Sarthi Suhag, “Russia's engagement with Taliban,” June 21, 2017,
at http://www.idsa.in/idsacomments/russias-engagement-with-the-taliban_pssuhag_210617
 security and Public information of the region. 13 Also, the annual joint
military exercise among members would help India gain valuable new
military operational insights. 14

Challenges

Indian involvement in the SCO is not as simple as it looks. Alongside India, Pakistan
was accepted as a full member at the Astana Summit and participated in the 16th
Meeting of Council of SCO Heads of Governments. In addition, China is the principal
driver of the SCO. The presence of Pakistan and the dominance of China in the SCO
limit India to a secondary role in the organization.

It is yet to be seen whether India’s membership in the SCO will comes at the expense
of China’s interest in Indian-led organization, such as the Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) or the South Asian
Association for Regional Cooperation (SAARC). China’s membership in these
organizations could dilute India’s position as well as its influence in the region.

In addition, the presence of Pakistan and China in the SCO limits India’s ability to push
on the issue of terrorism, as Pakistan itself has indulged in a major proxy war with India.
China has repeatedly shielded terrorists from Pakistan in the United Nations Security
Council with its veto power. It will also be interesting to view India’s response if
Pakistan tries to regionalize the Kashmir issue through the SCO.

CONCLUSION

The SCO enrolment offers different chances to Indian discretion. It gives a stage to
India to connect with Pakistan in a more extensive local setting. Our ties with Islamabad
are not going to be forever solidified as they are currently. Indeed, the SCO stage might
be a decent method to unfreeze them by pushing Pakistan to empower India's overland

13
Phunchok Stobdan, “SCO Membership Is a Stepping Stone, India’s Real Destination is Central
Asia,”June 6, 2017 at https://thewire.in/144241/what-india-can-expect-from-shanghai-
cooperation-organisation/
14
Sumit Kumar, 2016. “The Significance of the SCO's Full Membership for India,” July 12,
2016,at http://www.claws.in/1606/the-significance-of-the-scos-full-membership-for-india-sumit-
kumar.html
access to other SCO nations. Without a doubt, Pakistan can simply be relied on to slice
its nose to show disdain toward its face. In any case, some goading by different
individuals like China and Russia could assist and it is hard to trust that Pakistan will
keep up its barricade until the end of time. The SCO has generally embraced a
reasonable against Western stance. It is imperative for India to distinguish itself
unmistakably and maintain a strategic distance from such talk, which the SCO
advances. Indian's advantages from the SCO will be constrained because of the part of
China and Pakistan in the association. Positive results will rely upon how Indian tact
manages its adversaries. Then again, India-Russia political relations will have a
noteworthy part in advancing India's interests in the SCO, and India's heartfelt relations
with Central Asian nations will decide the destiny of India's interests.

India needs to yield the way that the CAR is China's effective reach and India's
engagement with the locale ought to continue with extreme alert. Along these lines
India's full enrolment and ensuing association in the SCO accompanies constrained
open doors and numerous difficulties.