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Shanghai Cooperation Organization (SCO) – A Path for Eurasia for Global Dominance

 Hubert Szustak

Post-Graduate Program Student in Geopolitics and Geostrategy

At the University of Business and Entrepreneurship (Wyzszej Szkoly Biznesu)in Ostrowiec Swietokrzyski in Republic of Poland

Specialization: Eurasia in geopolitics and geostrategy

 

Professor Vakhtang Maisaia

Deputy Director, International Studies Center of IBSU

Honorable Professor in Security Studies, the University of Business

and Entrepreneurship (Wyzszej Szkoly Biznesu)

in Ostrowiec Swietokrzyski in Republic of Poland

 

 

 

Eurasia is an area where major of the most important historical events took place. Starting with the birth of ancient civilizations such as Egyptian, Greek, Roman, Mesopotamian and Chinese through the great empires built often on the base of those civilizations and the great wars between them. That was a place of birth for the greatest religions like Judaism, Christianity and Islam. Eurasia is also a place where crusades started and where the great colonial empires were born. This is also the place where the greatest wars in human history took place as a result of tensions between the countries trying to fulfill their ambitions. Especially First and Second World Wars were a manifestation of those aspirations. Despite the fact that most of these events took place in Europe there were also some things that happened in central and East Asia. These include, inter alia, the conquests of Dagis Khan, colonization of India but also the first, second and third opium wars and as a result of that - collapse of the Chinese power. The last mentioned example was very important because it started the century of humiliation perceived by Chinese as the worst period in their history when they had to submit to the European powers.

After the Second World War, the era of the Soviet Union’s domination in Asia followed. At that time China struggled with the civil war between Nationalists and Communists. The latter won the war and the mainland China official became People’s Republic of China. In the beginning of 50’s China was strongly supported by Soviet Union, but over time the relationships became worse as these countries perceived the role of communism differently and they began competing for influence in Asia . Collapse of the Soviet Union started the division of the country into many smaller ones, but still strongly dependent on Russia. As a result new countries emerged in Central Asia - Kazakhstan, Kyrgyzstan Tajikistan, Turkmenistan and Uzbekistan. Economies of the post-soviet countries were ineffective and not competitive so they had to go through the transformation. Countries laying in Europe had a better perspectives because of  closeness to the Western Countries and above all possibility to join European Union. Unfortunately for the states in the Central Asia there weren’t many opportunities to boost the economic growth. As a result some of the Asian countries in this area decided to sign several different pacts that were aimed at, inter alia, reducing the costs of transport and trade. One of these was Shanghai Five group established on 26 April 1996 by China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. This pact was created to reduce tensions at the borders between the member countries as there were many unsolved territorial conflicts between them.

By 2001 China resolved most of the border disputes with Shanghai Five members under Russia’s surveillance[1]. As the time passed, it became noticeable that China needed something more. In 2001, during one of the summits Uzbekistan was joined to the organization and the heads of the member countries signed the Declaration of Shanghai Cooperation Organization in order to expand the cooperation range. Over time, the role of observer state also arose. This role was created for other countries willing to join the SCO. One of the first observer states were India, Iran and Pakistan that are already a full members of the union. Currently SCO includes eight member states and these are China, India, Kazakhstan, Kyrgyzstan, Russia, Pakistan, Tajikistan and Uzbekistan. There are also four observer states such as Afghanistan, Belarus, Iran and Mongolia. There are also countries called „Dialogue Partners” and these include Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka and Turkey. In 2021 SCO decided to start accession process of Iran and also to join another dialogue partners such as Saudia Arabia, Egypt and Qatar.[2]

The philosophy standing behind SCO is so-called „Shanghai spirit”. According to which the most important things are harmony, respect for other cultures, working via consensus, noninterference in others internal affairs and nonalignment. SCO’s main areas of focus were fighting against terrorism, separatism and extremism. These three phenomenas are called „three evils” and it emphasises the usage of violance or intimidation against people or governments in order to change behaviour, borders or regimes[3]. Over time, also economic integration became an important part of the union.

 

Military Cooperation

Over first ten years of SCO existence security activities lead the main role. The main reason for that was media coverage (particularly by China‟s official news outlets, and clips posted on YouTube). Besides that, powerful participants were involved in the military exercises. Russia and China are perceived as a countries possessing one of the most powerful arsenals in the world, and they stand in opposition to NATO. Security exercises started in 2002. Some of these exercises have been named „Anti-terror” and some of them „Peace Mission”. Usually the latter were larger and involved more countries. Main target of the exercises was to fight against simulated „three evils” behaviour. In general, they were focused on killing or capturing hostage takers and rescuing hostages, storming buildings and surrounding villages, or forcing down hijacked airliners.[4]

 

The main benefit of such exercises is the experience that the member countries gained in working together in different, extreme situations. This includes also joint planning, command and control, logistics and maneuvers. Since 2002 these military operations take place regularly in different countries with different attendants. The last one was organized in 2021 in Russia.

It is worth to mention that the first large-scale China-Russia war games, called Peace Mission-2005, reportedly included up to 10,000 personnel. Those were performed in both countries for example on the Yellow Sea coast. These exercises took a specific form because it was also some kind of force projection and indirect threat against Taiwan as both of these countries trained such maneuvers as  amphibious landings, long-range bombers flights, and submarine involvement.[5] This exmaple shows that the SCO is something more than the anti-terrorism pact.

 

Economic Cooperation

The second important part of the Shanghai Cooperation Organization is the economic aspect.  In 2001 Central Asia coutnries were in a bad economic situation and all of them needed some additional boost to develop faster. The SCO gave them such chance.  encompassed over 120 projects, including energy and transportation cooperation. The union created its own Business Council in 2006 based in Moscow. Key function of this institution is to facilitate cooperation in :

l  trade,

l  credit,

l  financial,

l  scientific,

l  engineering,

l  transport,

l  telecommunications,

l  agricultural

l  and other spheres.

Its role is also to implement projects in different sectors of the economy in members‟ territory, and to assist in finding funding for and making recommendations towards improving economic cooperation between SCO countries.[6]

 

One sign of the SCO‟s effectiveness in the economic field is that the member countries can easily deepen economic ties between them. Another sign is its the SCO’s behaviour during crisis. When the global crisis arose in 2008, the first meeting of SCO finance ministers and heads of central banks held in Kazakhstan in December. China is a country that supports others by lending money to member states, but it also earns a lot of money that way. At that time Chinese officials indicated that the loan would focus on large transportation and energy projects as well as smaller business projects that would go through the Business Council and the Interbank Association.[7]

Along with a creation of the Shanghai Five, the first signs of the Chinese desire to build the belt and road initiative that was based on the historical trade routes. The main idea standing behind this inititative is to strengthen economic ties between the selected countries and to find new markets and ways of transport for chinese business. In the beginning it was only a plan to start building it someday, but as the time passed China desired it more and more. One of the results of this desire was transformation of Shanghai Five into the SCO. Moreover, China officially announced its plan for introducing Belt and Road initiative in 2013 in Kazakhstan during the official visit in this country. In order to rebuild these trade routes and to make them effective it is necessary for the countries included in the vision to expand the economic cooperation among them.  Creation of Eurasian Economic Union was supposed to be a step in this direction. Standardized tarrifs and lowered customs allowed a better integration within the EAEU, but this institution had more political than economic influence[8]. Hence, China decided to use SCO as a mean to implement its plan. In general, Belt and Road Initiative strengthens China’s position  vis-à-vis Russia in their competition for supremacy in Asia, but as it does not have enough power to stop China it tries to compromise. The result of such behaviour was that in 2015 Russia agreed the SCO to become the main platform of negotiation on connecting the Belt and Road with the EAEU. It is worth to mention that China’s trade increased on average by 93 times from 2001 to 2011. Finally, China became a main trade partner for the most of the Central Asia countries by 2018. The figure below shows the value of trade between China and other SCO partners from this region.

Figure 1. China’s Trade with the SCO Partners.
Source: Own study based on - Tsz Yan N. Y., „RUSSIA AND CHINA’S QUIET RIVALRY IN CENTRAL ASIA”, 2020, Foreign Policy Research Institute

 

In 2014, the SCO finalized the Agreement on Facilitation of International Road Transport.

It was a great upgrade to the existing Soviet railway system. It has drastically increased the efficiency of long-haul trucks with an integrated transport management system. Before that agreement, truck driver could wait even up to three day at each border that they wanted to cross. When the agreement came into force in 2017, specially trained working groups started training people in Central Asia countries to improve the logistics. They provided training courses on export and import procedures and formed stable transport communications ties, both of which maximize transit potential and integrate Central Asian logistics into the global economy. [9] The result of these improvements is best illustrated by an example: During a test run in October 2017, a group of long-haul trucks from Kashgar, China, reached Tashkent, Uzbekistan, via Irkeshtam, Kyrgyzstan, in just two days, down from the usual 10 days.

            From the above description of the activities of SCO, its role in the context of global domination emerges. Asian countries created an opportunity for them to develop. Even though they didn’t have easy access to western markets they managed to create their own, effective economic system. It is also worth to mention that these states could probably be in a better situation, but the authoritarian political system and corruption do not allow them to show their real potential. Besides that joint military exercises (even if they are officially called anti-terrorist exercises) also create an increasingly stronger position of members of the agreement.

The SCO as a kind of counterpart of the European Union in Asia has become a crucial agreement in the context of finishing the Belt and Road initiative - probably the most important part of the agreement. China as a pretender to break US hegemony needs different ways to trade with the countries in Eurasia without being dependent on sea routes that could be easily blocked by USA and its allies. Improved trading routes will allow China to expand its sphere of influence. For most of the countries included in the project (especially those in Central Asia) it is also a great opportunity to develop even though they will probably become partially dependent on China.

This analysis therefore allows the conclusion that with further development of the SCO and without any outside intervention China and associated countries would be on the best way to global domination. However, in the current situation where two of most important countries in the pact are getting more and more unstable it is hard to predict what the future will bring and the whole situation will be resolved in the next few years.



[1] Tsz Yan N. Y., „RUSSIA AND CHINA’S QUIET RIVALRY IN CENTRAL ASIA”, 2020, Foreign Policy Research Institute

[2] United Nations, https://dppa.un.org/en/shanghai-cooperation-organization [access: 19.05.2022]

[3] Boland J., „Ten Years of the Shanghai Cooperation Organization: A Lost Decade? A partner for the U.S.?”, 2011, Brookings

[4] Boland J., „Ten Years of the Shanghai Cooperation Organization: A Lost Decade? A partner for the U.S.?”, 2011, Brookings

[5]  Boland J., „Ten Years of the Shanghai Cooperation Organization: A Lost Decade? A partner for the U.S.?”, 2011, Brookings

[6] Boland J., „Ten Years of the Shanghai Cooperation Organization: A Lost Decade? A partner for the U.S.?”, 2011, Brookings

[7] Boland J., „Ten Years of the Shanghai Cooperation Organization: A Lost Decade? A partner for the U.S.?”, 2011, Brookings

[8] Tsz Yan N. Y., „RUSSIA AND CHINA’S QUIET RIVALRY IN CENTRAL ASIA”, 2020, Foreign Policy Research Institute

[9] Tsz Yan N. Y., „RUSSIA AND CHINA’S QUIET RIVALRY IN CENTRAL ASIA”, 2020, Foreign Policy Research Institute

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