Igniting the Reconnection to ‘Shanghai Spirit’ at Central Asia for India’s the SCO Summit Energy Security

Vol.13 | May - June 2018

SCO in the New Era

国内零售价：10 元 / India ₹ 100 www.chinaindiadialogue.com 可栽 绕已 种 地塞 达 树木寒来 球 罕沙 赤 坝按半个多世纪， 暑 地 道 机 往， 变林海，荒牢记使命 械 林 三 场 原成 代人 的森林覆盖率 绿洲。 耕耘 。 80%

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1 米株 距 排开， 艰苦创业 12 圈 。

绿色发展

Saihanba is a cold alpine area in northern Hebei Province bordering the Inner Mongolia Autonomous Region. It was once a barren land but is now home to 75,000 hectares of forest, thanks to the labor of generations of forestry workers in the past 55 years. Every year the forest purifies 137 million cubic meters of water and absorbs 747,000 tons of carbon dioxide. The forest produces 12 billion yuan (around US$1.8 billion) of ecological value annually, according to the Chinese Academy of Forestry. 可绕地球赤道栽种树木按已达塞罕坝机械林场的森林覆盖率寒来暑往，沙地变林海，荒原成绿洲。半个多世纪，三代人耕耘。牢记使命 CONTENTS CHINA-INDIA DIALOGUE Administrative Agency: 主管： China International 中国外文出版发行事业局 80% CHINDIA NEWS / p.02 Publishing Group （中国国际出版集团） Publisher: 主办、出版： China Pictorial 人民画报社 ， OPENING SCO: A New Global Solution Address: 地址： 33 Chegongzhuang Xilu, Haidian, 北京市海淀区

1 ESSAY 米株距排开， 艰苦创业 to International Relations Beijing 100048, China 车公庄西路33号 12 04 Igniting the ‘Shanghai Spirit’ 圈。 at the SCO Summit / p.10 President: Yu Tao 社长：于涛 Editorial Board: 编委会： Yu Tao, Li Xia, 于 涛 、李 霞 、 He Peng, Wang Lei, Bao Linfu, 贺 鹏 、王 磊 、鲍 林 富 、 COMMENT India’s Expectations for the SCO / p.14 Yu Jia, Yan Ying 于 佳 、闫颖 Editor-in-Chief: Li Xia 总编辑：李霞

Editorial Directors: 编辑部主任： 绿色发展 Wen Zhihong, Qiao Zhenqi 温 志 宏 、乔 振 祺 English Editor: 英文定稿： Xu Mingqiang 徐明强 Editorial Consultants: 语言顾问： STRATEGY Scott Huntsman 苏格 Editors and Translators: 编辑、翻译： SCO: A TIGHTER COMMUNITY Gong Haiying, Hu Zhoumeng, 龚海莹、胡周萌、 18 Liu Haile, Li Zhuoxi, 刘 海 乐 、李 卓 希 、 Li Yiqi, Mithila Phadke, 李 艺 琦 、弥 萨 罗 、 Wang Shuya, Xu Shuyuan, 王 舒 雅 、许 舒 园 、 Yin Xing, Zhang Xue, 殷 星 、张 雪 、 Zhao Yue, Zhou Xin 赵 月 、周 昕 Editor-Visuals & Photographs: 视觉编辑： Li Zhuoxi 李卓希 Designed by: Alinea Productions 设计：Alinea Productions Web Maintenance and Graphic 网络运维与图表 Design Specialist: 设计专员： Andrey Maleev 安德烈 Remittance to: Publishing and 邮购收款人： Distribution Department, 人民画报社 China Pictorial 出版发行部 Telephone 电话: +86-10-68413849, +86-10-68412166 Postal Code 邮编: 100048

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Overseas Distribution: China International Book Trading Corporation (Guoji Shudian), 35 Chegongzhuang Xilu, P.O. Box 399, Beijing 100048, China In China, subscriptions are available at any post office. Subscription and distribution agency in Hong Kong, Macao, and Taiwan: New Opportunities and Challenges for the SCO / p.24 Hong Kong Peace Book Company, Ltd. 17/F., Paramount Building, 12 Ka Yip Street, Wider Avenues for India-China Cooperation / p.30 Chai Wan, Hong Kong

China standard periodical number: ISSN 2096-2592 CN10-1433/D India’s Energy Security / p.48 TREND Advertising Business License: J.H.G.S. Advertising Business Registration No.20170199 SCO Security Cooperation: A Win-Win in Central Asia / p.52 Pricing: Greater Challenges / p.34 ¥10 / India ₹ 100 What Does the SCO Mean for DATA Pakistan and India? / p.38 17 Years of Cooperation: Can the SCO Bring India and SCO’s Profound Journey / p.56 Pakistan Closer? / p.41

YOUNG VOICES VOL.13 | MAY - JUNE 2018 CASE STUDY Multilateral Mechanisms: Chabahar: India’s Gateway to Boon or Bane? / p.60 Eurasia / p.44 Visit China-India Dialogue on the Internet: www.chinaindiadialogue.com DISCUSSION BOOKS Follow us on: Reconnection to Central Asia for Indian Civilization / p.64

Consultants of the China-India Dialogue Advisory Board

Alka Acharya Professor and director of the Institute Nanjing University Foreign Ministry on Afghan Affairs and former of Chinese Studies, Delhi Ma Jiali Deputy Director of the Center for Chinese ambassador to India Hu Shisheng Director of the Institute of South and International Strategic Studies of China Reform Forum Tarun Vijay Former member of Parliament and Southeast Asian and Oceanian Studies under China Ma Weigong Consultant of the National Institute president of Parliamentary Group on India China Institutes of Contemporary International Relations of Strategic Communication at Peking University Friendship. Li Daokui Economics professor and director of and former deputy editor-in-chief of China Radio T. C. A. Rangachari Former Indian Ambassador to the Center for China in the World Economy at International France and Germany, dealt with India’s relations Tsinghua University Sun Shihai Former director of the Chinese with China for over 15 years in the Ministry of External Affairs Lin Minwang Research fellow and Deputy Chief Association for South Asian Studies and former of the Center of South Asian Studies, the Institute deputy director of the National Institute of Yang Yifeng Director of India Broadcast of South of International Studies at Fudan University, International Strategy under the Chinese Academy Asia Center, China Radio International and a research fellow with the Collaborative of Social Sciences Zhang Wenmu Professor of the Center for Strategic Innovation Center of South China Sea Studies at Sun Yuxi Former Special Envoy of the Chinese Studies at Beihang University CHINDIA NEWS

2018 China Higher 7th China-India Forum in Langfang Education Expo in Kolkata The 7th China-India Forum was held on May 17 in Langfang, China’s Higher Education Hebei Province. Themed “mutual learning, mutual appreciation, mutual Achievement and Enrollment appreciation and sharing,” the forum further promoted Sino- Expo 2018 was held on May 10. Indian friendship and sought to expand economic and trade The expo, co-hosted by the cooperation through speeches, thematic introductions and Chinese Consulate General and contract signing. Large domestic state-owned enterprises, the Kolkata Chinese School, was financial investment institutions, and Development Zone held at the Biswa Bangla operators gathered to consolidate advantages in industries such as Convention Centre in Kolkata. solar power, energy, communication and intelligent Members of Indian Parliament, manufacturing. Attendees focused on the prospects of China- heads of governments and India economic and trade development, future investment, and members of parliament from cooperation and development of production capacity and industry. West Bengal, heads of local colleges and universities, the Chamber of Commerce and thousands of teachers and Chinese Sinologists and Indian Counterparts students from Indian On May 18, representatives from the Chinese Ministry of Culture universities and high schools and Tourism and the Publicity Department of the Communist Party participated in the event. of China (CPC) Central Committee, and Sinologists and Chinese According to Chinese Consul research experts from Jawaharlal Nehru University, Delhi University, General Ma Zhanwu, over 60 the Institute of Chinese Studies and the Central University of Gujarat Chinese universities joined discussed how to promote ideological and cultural exchange and representatives of government cooperation between China and India. departments from Shandong, Besides Charge d’Affaires of the Embassy of China Mr. Li Bijian and Cultural Counsellor of the Embassy of China Zhang Jianxin, over 50 Henan and Guizhou provinces. Sinologists attended and spoke at the seminar, including , prominent India also considered the scholar and former member of the Indian Rajya Sabha Prof. Lokesh exhibition very important and Chandra, former president of Parliamentary Group on India China endorsed the site selection, the Friendship and former member of Rajya Sabha Tarun Vijay, Prof. early publicity and the layout of Sabaree Mitra of Jawaharlal Nehru University and Prof. Chakrabarti the expo. It has now become the of Delhi University. biggest education festival sponsored by China in East India. “Many Indian students SCO Supreme Court Cooperation are looking forward to studying On May 25, Beijing hosted the XIII Meeting of Presidents and in China,” declared Ma. “What Chief Justices of the Supreme Courts of SCO Member States. A joint makes China the favorite statement was signed during the meeting. destination for India’s students Participants discussed how to intensify legal cooperation within the today is the quality education SCO and exchanged views. They also held discussions on court and low costs of Chinese computerization, “smart courts,” law enforcement, cross-border universities. Furthermore, court cooperation against terrorism, drug trafficking, money China is also geographically laundering, and other crimes, legal standards and judicial practice closer to India, which is with regard to excluding inadmissible evidence in criminal justice, appealing to them.” legal standards and judicial practice on international purchase and 02 CHINA-INDIA DIALOGUE

sale agreements, and on how to improve the SCO international legal China-India IT cooperation mechanism. They reached agreements to intensify mutual Industry Cluster in exchange and cooperation between SCO member states in the judicial Guizhou and legal sphere. On May 27, a China-India IT industry cluster project was launched at the 2018 Mobike Peddles into India China-India IT&DT Industrial Cooperation and Chinese bicycle sharing company Mobike announced the launch of Development Forum in its service in Pune, India on May 25. China’s Guizhou Province. Mark Lin, head of International Operations of Mobike, explained The project aims to that Pune has plentiful young bike riders as well as wide suburban maximize the respective dedicated cycling lanes. It is the ideal city for the company to land in advantages of both sides the Indian market. “The roll-out in Pune is just the start of this and strengthen exchange journey,” he said. and cooperation between “We are working with a number of cities across the country and Guizhou’s Guiyang City are confident that the launch in Pune will be the first of many such and India in the field of partnerships with city administrations in India,” announced Vibhor software and information Jain, CEO of Mobike India. technology to accelerate Meanwhile, Mobike has signed a Memorandum of Understanding Guiyang’s development as with Pune Municipal Corporation to support the municipality’s Pune China’s “Big Data Valley” Cycle Plan. In 2016, the Pune Municipal Corporation launched a plan and erect a platform for to promote green public transport by focusing on the development of NASSCOM to enter the sustainable urban transportation, promoting intelligent urban Chinese market and create solutions to reduce traffic congestion and providing convenient and opportunities. environmentally friendly travel modes for the public. The NASSOM (Guiyang) Jt. Secretary of MoU Department Shri Kunal Kumar elaborated, IT Industry Cluster “We are delighted that Mobike is launching operations in Pune. District was jointly Mobike is an outstanding example of how technological solutions can founded by Guiyang Big solve challenges of urban mobility and reduce carbon emissions, Data Committee, Guiyang which aligns well with Pune’s overall developmental plan.” National High-Tech Zone Another Chinese bicycle sharing company OFO already provided Management Committee services through pilot projects in New Delhi, Indore, Bangalore and and NASSCOM as a seven other Indian cities. landmark project of China- India industrial cooperation. The district is First Political Party Forum of the SCO set to become an important base and one of the ten The first Shanghai Cooperation Organization (SCO) Political major industrial parks of Parties Forum was held in Shenzhen, Guangdong Province in Guiyang, and NASSCOM southern China, on May 26, 2018. Attendees agreed to consolidate has become BPM’s top parties’ wisdom, carry forward the Shanghai Spirit and promote body with more than 2,200 construction of a community of shared future. members. Accounting for Song Tao, head of the International Department of the 90 percent of India’s IT Communist Party of China (CPC) Central Committee, delivered a industry revenue, keynote speech during the forum. Around 200 representatives of NASSCOM is highly more than 30 political parties from 18 SCO member states, recognized by the observer states and dialogue partners attended the forum. international community. 03 OPENING ESSAY

SCO A New Global Solution to International Relations

By Rashid Alimov

As a new type of regional organization, the SCO has abandoned patterns of alliance, disagreements over ideology and frequent confrontation in favor of dedication to solving urgent regional and international issues.

he young and dedication to solving urgent relations. Considered the energetic Shanghai regional and international soul of the SCO, the Shanghai Cooperation issues. The SCO’s past work Spirit values mutual trust Organization has laid a solid foundation for and equality, respect for T(SCO) has grown into effective and development- other countries’ reality the world’s largest com- oriented cooperation among and mutual beneficial prehensive regional member countries. cooperation. According to organization for cooperation The Shanghai Spirit the SCO Charter and the after the admission of India written in the SCO Charter Treaty of Long-Term Good- and Pakistan. The SCO demonstrates its members’ Neighborliness, Friendship has abandoned patterns determination to tackle and Cooperation between the of alliance, disagreements challenges together and Member States of the SCO, over ideology and frequent their will to develop a its member countries will confrontation in favor of new type of international seek consensus only on 04 CHINA-INDIA DIALOGUE

April 24, 2018: The Meeting of the Council of Foreign Ministers of the Member States of the Shanghai Cooperation Organization (SCO) is held in Beijing as a preparation for the SCO Qingdao summit in June. [IC]

equal footing and with China—ranking in the top members accounts for 21 broad deliberation, a ten of the world in terms percent of the world’s total principle fueling extensive of resource reserves. The and their industries have great cooperation. combined GDP of its full potential. In recent years,

EXPANDING FIELDS FOR February 5, 2017: The first train loaded with 720 tons of wheat from COOPERATION Kazakhstan arrives at China-Kazakhstan Lianyungang Logistics Transit Base War has been frequent before heading to the Southeast Asian market, marking the opening of a safe throughout history on the grain passage from Kazakhstan through China. [Xinhua] Eurasian supercontinent. So when SCO member states in the region consciously and responsibly implement cooperative programs in key fields of international politics, economics and culture, the value of the SCO and its prospects for future development become clear. SCO members, observers and dialogue partners together hold rich energy, forest and fresh water resources, with three countries—Russia, Iran and 05 OPENING ESSAY

SCO member countries have paid greater attention to high- tech, innovative production and the development of the digital economy in realms like metallurgy, machinery, energy and transportation. The countries’ outputs of products such as grain, maize, sunflower seeds, potatoes, soybeans, tea and cotton also top the world. SCO member countries have acted as one to solve June 27, 2017: A joint anti-terrorism drill by two SCO members, China and global economic problems, Kyrgyzstan, is carried out on the borders of the two countries. [Xinhua] greatly promoting their own growth. For example, the SCO supports constantly Organization, the Eurasian separatism and extremism improving the international Economic Community, worldwide. The experience trade system to make it more BRICS, the Organization that the SCO gained can be open and fair and forcefully of the Islamic Conference, adopted by other international opposes any form of trade and the Conference on or regional groups. protectionism. In recent Interaction and Confidence Deepening globalization years, the SCO has taken Building Measures in Asia, has motivated regions and active measures in economics which has helped the SCO nations to pay more attention to enable smoother flow of develop external relations to national and regional commodities, capital, services and foster more opportunities distinctiveness. SCO members and technology within the to promote cooperation have also joined the trend. organization as well as among international They are exploring channels better alignment of different organizations and high-level for cultural exchange at economic initiatives from exchange between countries, different levels in hope of member countries. maintain peace and security, demystifying the spiritual, SCO member countries have and enhance sustainable material and cultural worlds adopted their own effective development. of their partners while main- foreign policies and played taining their own civilization, an active role in large-scale MAINTAINING PEACE AND culture and national international organizations, SECURITY characteristics. especially the United Nations Covering the most important Today it is more urgent and its agencies like the Office geopolitical region in the than ever to stop the spread on Drugs and Crime and world, the SCO faces almost of terrorism and extremism the Economic and Social every kind of threat and and fight against behaviors Commission for Asia and the challenge including terrorism, that incite terrorism. This Pacific (ESCAP). The SCO drug trafficking, organized is an urgent mission for the has also carried out direct cybercrime and money SCO. Against this backdrop, or indirect collaboration laundering. SCO member countries are with organizations and SCO member countries and taking bolder action to combat mechanisms like the its Regional Anti-Terrorist extremism, ethnic prejudice Association of Southeast Structure (RATS) have jointly and xenophobia. And their Asian Nations, the taken active measures to experiences are universally Commonwealth of the fight such crime forcefully, meaningful. Independent States, contributing greatly to the Considered the birth place Collective Security Treaty fight against terrorism, of almost every major world 06 CHINA-INDIA DIALOGUE civilization, religion and making the SCO the largest The SCO Development culture, the SCO region is cross-region coalition— Strategy until 2025 targets of strategic importance for a natural result of the solving real problems faced maintaining the peace and world’s dramatic changes in by its member countries. security of Eurasia and even geopolitics at the turn of the These issues, threats and the world. The SCO’s vast century. challenges cut across borders territory and great potential In the present global and demand collective determine its status in global context, the will to pursue wisdom. The admission of economics, politics and independence, progress and India and Pakistan not only culture, and the group’s stable development unites members increases the strength of growth will exert lasting of the SCO. Two permanent the organization but also influence on major sectors of members of the United creates new possibilities for global development. Nations Security Council, realizing its aims. With its In the future, by continuing Russia and China, actively increasing expansion and to adhere to the principles of embed global strategies into further cooperation with peace, common development their own foreign policies, SCO’s observer countries and equal cooperation, the a practice which has taken and dialogue partners, the SCO will strengthen dialogue the SCO to the forefront of potential for the SCO will and collaboration with international relations. definitely grow. Obviously, international organizations Among the countries having the new group of eight and contribute more to nuclear weapons, four are countries will help address peace, safety and sustainable SCO members: Russia, China, current challenges and development of the region and India and Pakistan. The threats more efficiently and even the world. five Central Asian countries take advantage of current including Kazakhstan, opportunities to deal GREAT EIGHT Tajikistan, Kyrgyzstan and with social and economic The SCO remains open to Uzbekistan are contracting problems. In the SCO, the all nations and international parties of the Central Asian voices of all countries, big or organizations, as evidenced Nuclear-Weapon-Free Zone small, rich or poor, are heard by its expansion process. The (CANWFZ) treaty. And equally, an advantage of the organization will accept new Russia, China and India have group. members who respect its launched long-term space In this fast-changing world, objectives and principles and programs. regional organizations are comply with the provisions of So, against the backdrop playing a more important role relevant international treaties of an increasingly turbulent in solving real problems. A and instruments, which has world, the eight countries in new pattern of cooperation, been written in the SCO greater Eurasia, a new “G8,” the SCO is using practical Charter, demonstrating the will play an important role action to raise its status as openness of the organization. in assessing, addressing and a prestigious multilateral At the Astana summit in determining global issues. coalition that enhances the June 2017, heads of member This year’s SCO summit peace and stability of the states of the SCO determined will be held in June in China’s region, solves new threats to accept India and Pakistan Qingdao City. It is expected and challenges, strengthens as full members after they that under the framework of trade and cultural cooperation had served as observers for the “eight member countries and taps into the potential of 12 years. A week later, the of the SCO,” they will identify good-neighborly and friendly national flags of the two new cooperative fields and relations among the peoples of South Asian countries rose strengthen determination to member countries. at the SCO headquarters in maintain peace and security Beijing. Since then, eight and promote common countries in Eurasia have development in concert on the The author is SCO Secretary-General and been members of the group, broad platform of the SCO. holds a Ph.D. degree in politics. 07 MILESTONES IN THE HISTORY OF THE SCO

June 15, 2001 implementation of the SCO and passed of the SCO was held in Moscow, Russia. regulations of permanent residences of The Agreement on Disaster Relief Mutual China representatives of SCO member states Assistance between the Governments of the Shanghai in the Secretariat and the rules for the Member States of the SCO was signed and The first meeting of the Council of Executive Committee of the Regional Anti- the establishment of the SCO Interbank Heads of Member States of the Shanghai Terrorist Structure (RATS) of the SCO. Consortium was announced. Cooperation Organization (SCO) was held in Shanghai, China. At the meeting, September 23, 2003 the six member states, the Republic June 4, 2006 China of Kazakhstan, the People’s Republic China of China, the Kyrgyz Republic, the Beijing Shanghai Russian Federation, the Republic Premiers and prime ministers of SCO of Tajikistan and the Republic of member states signed an outline The SCO Business Council was established Uzbekistan signed the Declaration of multilateral economic and trade in Shanghai, China. on the Establishment of the SCO, cooperation of SCO member states in marking the official founding of the Beijing, China. organization. The Shanghai Convention June 15, 2006 on Combating Terrorism, Separatism and June 17, 2004 China Extremism was also signed at the summit. Shanghai Uzbekistan The sixth meeting of the Council of Tashkent September 14, 2001 Heads of Member States of the SCO was The fourth meeting of the Council of held in Shanghai, China. At the meeting, Kazakhstan Heads of Member States of the SCO was the heads of SCO member states put Almaty held in Tashkent, Uzbekistan. Participants forward a long-term development plan The first meeting of the Council of Heads officially launched the SCO RATS, for the organization and signed the of Government (Prime Ministers) of the signed the Agreement on Cooperation in Declaration on the Fifth Anniversary of SCO was held in Almaty, Kazakhstan. Combating Illicit Traffic of Narcotic Drugs the Shanghai Cooperation Organization, Psychotropic Substances and Precursors themed around promoting the “Shanghai between the Member States of the SCO Spirit,” deepening pragmatic cooperation June 7, 2002 and approved the Regulations on Observer and promoting peaceful development. Status at the SCO. At the meeting, the Russia An agreement on intergovernmental Republic of Mongolia became an St. Petersburg education cooperation was also signed observer state of the SCO. The second meeting of the Council of during the meeting. Heads of Member States of the SCO July 5, 2005 was held in St. Petersburg, Russia. August 16, 2007 At the summit, the Charter of the Kazakhstan Kyrgyzstan Shanghai Cooperation Organization and Astana the Agreement on Regional Anti-Terrorist Bishkek The fifth meeting of the Council of Heads Structure between the Member States of Member States of the SCO was held in The seventh meeting of the Council of of the SCO were signed, which laid the Astana, Kazakhstan. At the meeting, Heads of Member States of the SCO was foundation for the institutionalization and the Islamic Republic of Pakistan, held in Bishkek, Kyrgyzstan. During the legal construction of the SCO. the Islamic Republic of Iran and the meeting, participants signed the Treaty on Republic of India became observer Long-term Good-Neighborliness, Friendship May 29, 2003 states of the SCO. and Cooperation to document their commitment to promoting everlasting Russia October 26, 2005 friendship and make the concept of Moscow “permanent peace between member The third meeting of the Council of Heads Russia states” the law. An agreement on of Member States of the SCO was held Moscow intergovernmental cultural cooperation in Moscow, Russia. Participants signed an The fourth meeting of the Council of was also signed during the meeting. agreement on budget preparation and Heads of Government (Prime Ministers) 08 CHINA-INDIA DIALOGUE

November 2, 2007 of SCO member states adopted the July 10, 2015 Astana Declaration in honor of the Uzbekistan 10th anniversary of the SCO, drawing Russia Tashkent strategic plans for the development Ufa Premiers and prime ministers of SCO of the organization over the coming The 15th meeting of Council of Heads of member states signed an agreement on decade. An intergovernmental Member States of the SCO was held in Ufa, intergovernmental customs cooperation agreement on health cooperation Ruassia. The meeting approved documents and mutual assistance in Tashkent, among SCO member states was also including an SCO development strategy Uzbekistan. signed during the summit. lasting until 2025. An agreement on border defense cooperation was signed. The process June 6 - 7, 2012 of accepting India and Pakistan as member August 28, 2008 states was launched. Also at this meeting, Tajikistan China Belarus became an observer state and Dushanbe Beijing Azerbaijan, Armenia, Cambodia and Nepal became dialogue partners. The eighth meeting of the Council of The 12th meeting of the Council of Heads of Member States of the SCO Heads of Member States of the SCO was held in Dushanbe, Tajikistan. The was held in Beijing, China. During the August 18, 2015 Regulations on the SCO Dialogue Partner meeting, Afghanistan and Turkey Status was approved during the meeting. were added as an observer country Tajikistan and a dialogue partner of the Dushanbe organization, respectively. Ministers of justice of SCO member states October 30, 2008 signed an agreement on cooperation Kazakhstan September 13, 2013 between ministries of justice of SCO member Astana states in Dushanbe, Tajikistan. Kyrgyzstan Representatives of customs agencies of Bishkek SCO member states signed the Agree- June 24, 2016 ment on the Exchange of Information on The 13th meeting of the Council of Customs Energy Supervision. Heads of Member States of the SCO was Uzbekistan held in Bishkek, Kyrgyzstan. The meeting Tashkent approved the Plan of Action for 2013-2017 The meeting of the Council of June 15 - 16, 2009 16th on Implementation of the Treaty on Long- Heads of Member States of the SCO was term Good-Neighborliness, Friendship and Russia held in Tashkent, Uzbekistan. Participants Cooperation. Representatives of member Yekaterinburg approved the Action Plan for 2016-2020 on states signed an SCO intergovernmental The ninth meeting of the Council of Implementation of the SCO Development agreement on scientific and Heads of Member States of the SCO Strategy until 2025 and witnessed India technological cooperation. was held in Yekaterinburg, Russia. and Pakistan signing the Memorandum of Heads of SCO member states signed the Obligations to join the SCO. Representatives Convention on Combatting Terrorism of the November 29, 2013 of member states signed an outline for Shanghai Cooperation Organization. tourism cooperation among SCO member Uzbekistan states. During the meeting, an Tashkent intergovernmental cooperation Representatives of SCO member states November 4, 2016 agreement to enhance the information signed the Program for Informing on security of SCO member states was also Epidemiological Situation Caused by Kyrgyzstan signed. In addition, Sri Lanka and Belarus Infectious Diseases in the Territory of Bishkek were granted dialogue partner status in the SCO Member States in Tashkent, The 15th meeting of the Council of Heads the SCO. Uzbekistan. of Government (Prime Ministers) of the SCO was held in Bishkek, Kyrgyzstan. The June 11, 2010 From September 11 to 12, 2014 meeting approved the List of Events for Further Development of Project Activities in the Uzbekistan Tajikistan| Framework of the SCO 2017-2021. Tashkent Dushanbe The 10th meeting of the Council of The 14th meeting of the Council of June 9, 2017 Heads of Member States of the SCO Heads of Member States of the SCO was held in Tashkent, Uzbekistan. was held in Dushanbe, Tajikistan. Heads Kazakhstan The meeting approved the procedure of SCO member states signed the Astana of admitting new members to the Intergovernmental Agreement on Creation The 17th meeting of the Council of Heads organization and organizational of Beneficial Conditions for International of Member States of the SCO was held in procedural rules. Road Transportation of the SCO. Astana, Kazakhstan. Heads of SCO member states signed a convention on anti- June 15, 2011 December 15, 2014 extremism. Representatives of member states signed a joint action plan for 2017- Kazakhstan Kazakhstan 2018 on implementing the outline of Astana Astana tourism cooperation among SCO member The 11th meeting of the Council of Representatives of SCO member states states. During the meeting, India and Heads of Member States of the SCO signed a plan for customs enforcement Pakistan became member states of the was held in Astana, Kazakhstan. Heads cooperation in Astana, Kazakhstan. organization. 09 OPENING ESSAY

Igniting the ‘Shanghai Spirit’ at the SCO Summit

By Sudheendra Kulkarni

India and China should partner to make Asia and the world secure, peaceful and prosperous.

t a time when the fundamentally different from now closer than ever to sat- global order is un- those before. We can identify isfying the basic needs of all dergoing a funda- three distinguishing markers. human beings on the planet mental shift, some First, the world has become and also restoring the health ofA the most hope-inspiring interconnected and interde- of the degraded ecology of initiatives are being imple- pendent in an unprecedented the planet itself. Yet, this mented by China under the manner. No nation in today’s promise and possibility have visionary leadership of Pres- times can be an island in itself yet to happen because inter- ident Xi Jinping. This will and fulfill either its security or national cooperation has not manifest once again when the development needs. Yet, some become sufficiently broad, Shanghai Cooperation Orga- old powers like the U.S. are deep and strong. nization (SCO) holds its next refusing to adjust to the trends Third, the world order that summit in Qingdao in June. of the times and swimming prevailed in the 18th, 19th and The remarkable evolution upstream by practicing protec- 20th centuries is undergoing of the SCO over the 17 years tionism and exclusivism. a fundamental change. The since its birth has attracted the Second, accelerating the West is declining, and the rest attention of all those seeking a phenomenon of globaliza- is rising. Within the non-West- better future for Asia and the tion are unstoppable ad- ern world, Asia is rising par- world. To understand how it vancements in science and ticularly fast—so much so happened, one must examine technology, which have that scholars of international how Asia—and China in par- unleashed never-seen-be- affairs are unanimous in the ticular—have come to play a fore productive forces on the consensus that the 21st centu- leading role in world affairs. economy. As a result, for the ry will be the Asian Century, The 21st century is becoming first time in history, we’re just as the 20th century was 10 CHINA-INDIA DIALOGUE

production of new techno- logical innovations is also rapidly transitioning from North America and West- ern Europe to Asia. Another important point: Unlike the West, Asia’s relations with Africa and Latin America (which too are experiencing a resurgence) are not antag- onistic, but cooperative. It is clear that Asia can and must shape the future of the world, not alone in isolation or even in rivalry with the West, but in cooperation with all the other continents and countries in the world. This wisdom is best cap- tured in Chinese President Xi Jinping’s inspiring slogan: Indian Foreign Minister Sushma Swaraj (left) shakes hands with Chinese ‘Building a Community with a Foreign Minister Wang Yi as a news conference begins at the Diaoyutai State Shared Future for Humanity.’ Guest House in Beijing, China, April 22, 2018. [VCG] A GANDHIAN WORLD VISION America’s and the 18th and was 32 percent. Now, the How can Asia fulfil this 19th, Europe’s. Yet, old pow- numbers are reversed: Asia historic task? It can share ers, especially the U.S., are accounts for roughly 34 per- and practice a superior vision continuing to behave as if their cent while Europe accounts of its own—and the entire dated position in the world for about 21 percent of global global community’s—securi- should continue forever. economic activity. By 2050, ty and development. It must Asia will account for more emphatically avoid the disas- trous road taken by the West SEEING XI JINPING’S VISION than 50 percent of global GDP. The only two nations in the in the previous three centu- Clearly, the center of gravity world with populations more ries. When European pow- for world affairs has shifted than one billion, China and ers became industrially and from the West to the East. India, are both in Asia. Three economically advanced, their After freeing themselves from of the five largest economies fierce rivalry to colonize the the curse of colonialism and in the world are Asian: China rest of the world resulted in imperialist domination of the (second-largest), Japan (num- the two horrific World Wars last century, the countries of ber 3) and India (number 5). in the last century. The U.S., Asia are now writing their Moreover, China is projected which took the baton from own destinies. to become the world’s largest Western Europe in dominat- Asia is not only the largest economy, overtaking the U.S., ing the world, followed the continent in the world (with by 2032. Asia has accumu- same policy of threats, inva- nearly fifty countries, home lated more than half of the sions, wars and establishing to 60 percent of the global world’s total foreign exchange military bases near and far. population), but also the most reserves, over US$4 trillion. Now, Asia has an opportunity dynamic. In 1980, Asia’s share And over half of these are as well as a responsibility to of the world economy was 20 held by China alone. show to the world that it can percent, while that of Europe The relative balance in the foster a future without wars 11 OPENING ESSAY and violent conflicts. brotherhood for their own In this context, the SCO has good and for the good of Asia already emitted some rays of and the world.” hope. At its summit in Astana In Wuhan, President Xi last year, the SCO admitted and Prime Minister Modi gave both India and Pakistan as many indications of their re- full members. This will cer- solve to develop mutual trust, tainly ensure leaders of the understanding and coopera- two countries to resolve their tion between the two coun- disputes and differences in tries. In this sense, the ‘Wuhan peaceful ways. The prolonged Spirit’ certainly conformed hostility between India and with the ‘Shanghai Spirit’ that August 15, 2017: Foreigners learn Pakistan has become a big is sought by the SCO. a traditional paper-making method hurdle in South Asia, which using flowers and grass at a SCO is home to over 1.7 billion cultural exchange activity held in IGNITING THE ‘SHANGHAI Wangda Town, Qiandongnan Miao people. It now seems to be SPIRIT’ and Dong Autonomous Prefecture, moving towards a region of Guizhou Province. [Xinhua] What is the ‘Shanghai Spir- peace, prosperity and prog- it’? President Xi described it ress through comprehensive convincingly when meeting cooperation. ceptual framework and goals with foreign ministers from The other ray of hope came have been well articulated Russia, India, Kazakhstan, from the informal two-day once again by China, which Kyrgyzstan, Pakistan, Ta- summit between Xi Jinping will be hosting its summit in jikistan, and Uzbekistan in and Indian Prime Minister Qingdao. Now, the task before Beijing recently. Under new Narendra Modi in Wuhan all member countries is taking circumstances in Asia and in April. As two major and practical and result-oriented the world, Xi said, “All the neighboring nations of Asia, steps to put the ‘Shanghai member countries need to both India and China share a Spirit’ into action. How can responsibility to ensure that remain true to their original this be done? Here are five they maintain the civilization- aspirations and firmly advo- specific ideas: al wisdom and maturity to cate the ‘Shanghai Spirit’ of Speaking at the SCO sum- manage their bilateral prob- the SCO, give play to its ad- mit in Astana last year, Pres- lems peacefully through nego- vantages, fully release the po- ident Xi mentioned China’s tiations. India and China both tential of SCO expansion, and proposal that the organi- hold membership in the G20, forge ahead with all-round zation “draws up a 5-year BRICS, CICA and also AIIB. cooperation. The ‘Shanghai outline for implementation Therefore, their partnership Spirit’ features mutual trust, of the Treaty on Long-term can have a positive impact mutual benefit, equality, Good Neighborliness, Friend- globally. Mutual cooperation consultation, respect for cul- ship and Cooperation.” He between the two countries tural diversity and pursuit of further added that doing so will bring enormous benefits common development.” would “help set the direction to them as well as to all of In a separate meeting with for SCO cooperation in all Asia and the world. defense ministers and senior fields in the next phase.” In this context, I would diplomats in Beijing, Pres- Therefore, it should be like to cite the wise words of ident Xi elaborated on this expected that the Qingd- Mahatma Gandhi, the great by saying, “The SCO has set ao summit include specific apostle of peace in modern a model for a new type of programmatic content into times. He wrote in 1942: “As international relations with the proposed treaty so the a friend of China, I long for the characteristics of mutual SCO can present a template the day when a free India and respect, justice and win-win for “Good Neighborliness, a free China will cooperate cooperation.” Friendship and Cooperation” together in friendship and Thus, the SCO’s basic con- for the rest of Asia and the 12 CHINA-INDIA DIALOGUE world to follow. This tem- can join this connectivity World War II, the interna- plate should firmly reject the project. In this context, it is tional community has en- claim of any nation anywhere heartening to note that Prime gaged in a constant, albeit in the world to keep its own Minister Modi and President difficult, search for ways to “exclusive spheres of interest Xi have revived hopes for accomplish two inter-related or domination.” Moreover, implementation of another objectives: How to achieve this template should enable important connectivity proj- common security through co- not only SCO members but ect in South Asia: the Bangla- operation and how to achieve also, through the demonstra- desh-China-India-Myanmar sustainable and equitable tion effect of their actions, (BCIM) Corridor. development for all through other countries in Asia and Fourth, the SCO has a cooperation. Security and the world to move towards a responsibility to help end the development are two sides of system of global governance Afghanistan conflict, which the same coin. And the metal based on principles of peace, is the longest-burning “hot that binds the two sides is equality, justice, inclusive- spot” in Asia. In his speech in cooperation. And the word ness and common prosperity Astana last year, Prime Minis- ‘cooperation’ is the very heart and progress for all of man- ter Modi said, “From a region- of the SCO. kind. A reformed and rejuve- al perspective, Afghanistan Therefore, for the SCO nated United Nations should can also benefit greatly from to fulfill its vision and its be at the core of this new the SCO’s efforts in reinstat- agenda, all its member system of global governance. ing peace and stability in the countries should maximize Second, since both India country.” President Xi had cooperation in the six areas and Pakistan have become full echoed that sentiment in As- that constitute the scope of members of the SCO, their tana when he said, “We hope work of the organization: leaders should make serious the SCO-Afghanistan Contact politics, economics, security, efforts to normalize relations Group will play an even more people-to-people exchange, hastily. To this end, other SCO active role for Afghanistan’s external exchange, and members (especially China peace and reconstruction.” In mechanisms for compre- and Russia) should encourage Qingdao, a concerted effort hensive collaboration. Max- New Delhi and Islamabad should be made by China, imum cooperation means to resume bilateral dialogue Russia, India, Pakistan and maximum benefits for all. on all outstanding issues, other members to produce Here again, the lead should including Kashmir and count- a well-coordinated plan to be taken by India and Chi- er-terrorism, without any bring peace to Afghanistan. Of na—the leading architects of preconditions, and achieve course, the U.S. must change a new world order. step-by-step progress towards its own flawed Afghan policy In other words, SCO mem- good-neighbor relations. for this plan to succeed. bers have a responsibility to Third, China has provided In this context, the decision actually practice “new inter- a very good opportunity, in by Modi and Xi in Wuhan to national relations” in the 21st the form of the ambitious Belt undertake a joint India-Chi- century to ensure the Asian and Road Initiative, for both na development project in Century develops in a manner India and Pakistan to achieve Afghanistan is heartening. that is fundamentally differ- shared prosperity through It is precisely this kind of ent from previous European bilateral and regional coop- constructive partnership and American centuries. eration. For this to happen, between New Delhi and Bei- China should suitably rename jing that smaller countries in the China-Pakistan Eco- South Asia need. They worry nomic Corridor (CPEC) and when India-China relations also expand its geographical strain. And they are relieved coverage so that India (and when India and China work The author was an aide to India’s former Prime Minister Atal Bihari Vajpayee. He is other countries in the region together and walk together. now a political analyst and founder of the such as Afghanistan and Iran) Lastly, since the end of Forum for a New South Asia. 13 COMMENT

India’s Expectations for the SCO

By Liu Zongyi

By joining the SCO, India hopes to strengthen anti-terrorism cooperation, stabilize the situation in Afghanistan and realize connectivity to Central Asia.

t the Astana summit development marked the scholars doubted that India of the Shanghai SCO’s first expansion since its would join the organization. Cooperation establishment in 2001. First, they argued that as the Organization (SCO) India and Pakistan had largest democratic nation inA 2017, India and Pakistan both become SCO observer in the world with a state became full members of countries as early as 2005. system contrasting the other the organization. The Many Indian and Western member countries, India was

February 23, 2018: Afghan President Ashraf Ghani (middle) with Gurbanguly Berdimuhamedow President of Turkmenistan (2nd left), Pakistani Prime Minister Shahid Khaqan Abbasi (right) and India’s Minister of State for External Affairs Shri M. J. Akbar (left) during the TAPI gas pipeline project inauguration in Herat Province. [VCG]

14 CHINA-INDIA DIALOGUE not a good fit. Second, they organization forward. Also, relations with the U.S., India considered the SCO an anti- SCO member countries are has become a cornerstone of American security coalition active in cultural exchange the U.S. Indo-Pacific strategy. formed to counterbalance after reaching many And increasing tensions the North Atlantic Treaty agreements on cooperation in between Russia and the U.S. Organization (NATO). And education, disaster relief and have resulted in deteriorating in recent years, India has healthcare. SCO University, a relations between India and inched closer to countries like large-scale cultural exchange Russia. So, India chose to join Japan and the U.S., actively program, is underway. the SCO to demonstrate its promoting the quadrilateral When it joined the SCO, “strategic independence” to security talks with Australia, India had clear aims which balance its leanings between Japan and the U.S. and were discussed extensively Eurasia and the Indo-Pacific accepting a role as the by Indian strategists and region. No doubt India also “linchpin” of the U.S. Indo- scholars. Economically, hopes to counter China’s Pacific strategy. India hopes to merge with influence in the SCO and But actually, India had been the progress of the regional strengthen cultural exchange consistently striving to join economic integration and with Central Asian countries the SCO and contributed to achieve connectivity to to raise its international many of its achievements. The Central Asian countries in status. SCO has made impressive a bid to access their energy, India still has concerns progress in security, economic resources and markets. about its entry into the SCO and cultural cooperation. In terms of security, India due to the ongoing dispute And security collaboration hopes for a peaceful regional with Pakistan over Kashmir is just one priority on its environment. and various disagreements agenda. In 2001, the signing The Trump administration’s with China. According to the of the Shanghai Convention new strategies in Afghanistan Shanghai Spirit, the core value on Combating Terrorism, and South Asia seem to of the SCO, member countries Separatism and Extremism leave the Afghanistan issue should be “good neighbors.” heralded a new era of as a mess for neighboring India worries that Pakistan security cooperation among countries to handle. would ask the SCO to pressure member countries of the Since ISIS was defeated it and mediate the Kashmir organization. Since the launch in the Middle East, many affair. The country has always of the Regional Anti-Terrorist terrorists have returned to opposed interference from Structure (RATS) in 2004, Afghanistan, Pakistan and third parties on the Kashmir it has become a permanent the neighborhood, which dispute. But actually, the organ of the SCO that plays has troubled India. India SCO has not done enough an important role in fighting hopes to work with other to mediate border disputes terrorism, separatism and SCO members to combat among its Central Asian extremism and maintaining terrorism and extremism, member countries, leaving regional security. In recent constrain Pakistan and jointly some unsettled. SCO member years, the SCO has greatly promote peace and stability in countries need to adhere promoted economic Afghanistan. to the Shanghai Spirit, cooperation, set up the SCO Also, India hopes to especially considering that Business Council and the become closer to Russia and military conflict has been SCO Interbank Consortium, China by entering the SCO. frequent along the India- and made considerable In recent years, Western Pakistan border. Now that progress in infrastructure for countries such as the U.S. both countries have joined energy, transportation and have attempted to isolate the organization, they should telecommunications. Security and contain Russia through eliminate their cross-border and economic cooperation issues like the Ukraine crisis, military activities and avoid are now referred to as the while hindering China’s provoking border disputes or “two wheels” driving the development. Due to its close agitating for nationalism to 15 COMMENT

India in combating terrorism and extremism. China and Pakistan can both participate in the construction of the International North-South Transport Corridor. Iran has shown that it clearly hopes China will join the construction of the Chabahar port and has encouraged Pakistan to participate in the construction of the Gwadar November 17, 2016: The armies of China and India jointly carry out an anti- port. China, Pakistan and terrorism drill in Pune, India. The troop commanders from the two parties visit a weapon show. [Xinhua] Afghanistan are discussing extending the China- win domestic elections. To organization could hollow it Pakistan Economic Corridor solve disputes among member out and marginalize them. to Afghanistan. If possible, countries, the SCO needs As a brand new member, the corridor will include the to develop the functionality India has been keeping a Turkmenistan-Afghanistan- to maintain internal peace low profile in the SCO. India Pakistan-India (TAPI) through friendship treaties. expects the organization pipeline project. If India seeks The admission of India and to play an active role in to join in the future, China Pakistan evidenced strategic fighting terrorism and and Pakistan will extend a trust between China and promoting regional economic warm welcome. Russia. At present, Russia integration. It understands During a recent informal faces great pressure from that the SCO is different from meeting between Chinese and the West, which motivates the South Asian Association Indian leaders, they agreed to the country to strengthen for Regional Cooperation enhance mutual strategic trust cooperation with China. (SAARC), which it dominated. and coordination, conduct Russia can work more with But SAARC persists in name more mature handling of India to solidify the unity of only after failing to hold conflicts and disagreements the SCO and build its internal an annual meeting for two between the two countries, mechanisms. successive years. promote more effective The entry of both countries India has two primary operation of mutual military has also brought challenges expectations from the SCO: and security communication to the organization. Due fighting terrorism to promote and strengthen coordination to the expansion of its stability in Afghanistan and of their respective membership, the SCO achieving greater connectivity neighborhood policies. faces greater difficulty in to Central Asia through Though limited to bilateral coordinating the interests the International North- interaction, the informal of all member countries. South Transport Corridor. meeting produced a series of At SCO meetings, member In these realms, China and consensuses, especially on countries must prepare more India have shared interests cooperation in Afghanistan, documents, endure more and can cooperate well. which should be seen as a complicated decision-making China can persuade the concrete step to practice the procedures and produce Pakistani government and Shanghai Spirit after India’s broader consensus. In this military to focus on long- entry into the SCO. circumstance, some SCO term interests, meet their resolutions may not be carried responsibilities in regional out at all. Central Asian stability and economic The author is an associate researcher at countries worry that the entry integration, and increase the Shanghai Institutes for International of India and Pakistan into the information exchange with Studies. 16 17 STRATEGY

SCO A Tighter Community

By Pang Zhongying

Aiming to forge a “community with a shared future for humanity,” the SCO is intended to be a regional community of common security, economic collaboration and social cooperation.

romoting to the SCO in 2017 marked a building a community with construction of a new chapter for the regional a shared future for humanity community with a multilateral organization. doesn’t mean it intends to shared future for It is meaningful to link the impose the concept on other humanityP was identified as a SCO to the goal of building SCO member states, nor key goal and task of China’s a community with a shared did it cause a fundamental diplomacy in both the report future for humanity. As an change in the guidelines of to the 19th National Congress underlying principle forged China’s foreign policy. While of the Communist Party of by the SCO, the Shanghai maintaining its previous China (CPC) in October 2017 Spirit calls for inclusiveness diplomatic principles, China and the Amendment to the and openness. The enlarged is becoming more active and Constitution of the People’s SCO is striving to enhance enterprising in international Republic of China passed at multilateral cooperation, and affairs. Nevertheless, it still the first session of the 13th China expects support from insists on developing state- National People’s Congress in other SCO member states to-state relations with March 2018. in building a community of partnership or even strategic The rotating presidency of shared future for humanity. partnership rather than the Shanghai Cooperation In terms of the relationship alliances. China will never Organization (SCO) currently between the SCO and interfere in the internal rests with China, who will the concept of building a affairs of other countries, host the first SCO summit “community with a shared but only contribute through since the organization was future for humanity,” some “constructive involvement.” expanded last year in Qingdao, misconceptions should be Although China will never a coastal city in the eastern avoided. seek hegemony, it may province of Shandong. The First, just because China still play a leading role addition of India and Pakistan first presented the idea of in international affairs, 18 CHINA-INDIA DIALOGUE

December 14, 2014: National flags of member states of the Shanghai Cooperation Organization (SCO) fly high in front of Beijing Palace in Astana, capital of Kazakhstan. [Xinhua] abandoning the “never take the fact that the system an important role in global the lead” principle that the remains imperfect and has governance. Since the end country adopted just after the some major defects in terms of the Cold War, multiple end of the Cold War. of equality, representation, international platforms Second, building a fairness and efficiency, the and mechanisms have been community with a shared current world order still established to address future for humanity doesn’t has the greatest degree of common challenges faced by mean that China is attempting openness, inclusiveness, humankind, and the SCO is to use the SCO to forge a progress and freedom in one of them. new order to replace the human history. The concept of a current world order. China’s Third, building a “community with a shared attitude toward the current community with a shared future for humanity” consists world order is clear: As part future for humanity, of three key components: of the world order, China is simply speaking, embodies “community,” “shared future” a protector and reformer. the realization of global and “for humanity.” By The current world order governance. Global dissecting the phrase, we can doesn’t belong to the U.S. nor governance requires joint better answer the following does it involve “peace under efforts from the international questions: What kind of the rule of the U.S.,” but is community as well as community of shared future represented by the United international cooperation for humanity is the SCO? Nations and its system as well based on multilateralism. Why is the SCO a community as other intergovernmental This is the fundamental with a shared future for organizations, especially reason China proposed humanity, and how should it international financial building a community with a perform as one? institutions and multilateral shared future for humanity. First, “for humanity” means trade mechanisms. Despite Currently, China is playing the SCO is people-centered. 19 STRATEGY

A free world order must be systematic knowledge about either NATO based on U.S. people-oriented. However, such interdependency. In hegemony or the EU with this doesn’t mean it should the 1970s, American political common security policy, ignore differences between scientists Robert Keohane and it is a new type of security different people. Presently, Joseph Nye both discussed community. humanity is a community “interdependence” from the What is the nature of of many individual nations angle of power. The SCO sets the SCO as a security which comprise many another important example community? In my opinion, international organizations, for interdependence between the SCO represents a regional including regional and countries and peoples. collaboration mechanism—an interregional ones. Finally, the SCO is a new international congress system Geographically, the SCO is a type of regional community. led by major countries such trans-regional organization, It sharply contrasts other as Russia, China and India representing a new type of regional organizations such and featuring participation regional organization. In this as the European Union (EU), from many other smaller sense, the SCO itself can be the African Union and the nations in Central Asia, South seen as a new “region.” Association of Southeast Asia and the Middle East. Second, SCO member states, Asian Nations in terms In particular, the admission as well as their societies and of origin, aim, structure, of India and Pakistan to the peoples, are interdependent, institution and priorities, but SCO consolidated its nature with a “shared future.” A at the same time shares some as a regional collaboration result of globalization after similarities with them from mechanism. the end of the Cold War, the the perspective of regional Some often confuse SCO is a group of doers in community. “collaboration” with the world in a region where Over the past 17 years “coordination.” In fact, all countries depend on each since its inception, the SCO “collaboration” is far other. Interdependence has focused on security more complicated than between countries was cooperation, forging an “coordination” and can exert already a reality in Europe by effective cooperative long-term effects on world the 19th century, but not until mechanism in the field. peace. The first and most the second half of the 20th The SCO has emerged as a successful international century did humans develop security community. Unlike collaboration system so far has

April 24, 2018: The 15th Defense Ministers’ Meeting of the Shanghai Cooperation Organization (SCO) Member States is held in Beijing, China. [VCG]

20 CHINA-INDIA DIALOGUE

under the framework of the to remind people of the EU. For this reason, the EU importance of maritime issues was awarded the 2012 Nobel in the SCO collaboration Peace Prize. mechanism. As global governance In addition, the SCO becomes a major topic in should serve as both the research of international an economic and social relations, some scholars community. It still needs argue that the Concert of to do better at enhancing Europe marked the origin of economic cooperation. The August 9, 2015: Students from global governance in the 19th SCO will become a stronger East China Normal University century. The expansion of organization when it becomes give a choral performance during SCO membership testifies to a real economic community. an exchange event for college students from member states and a boost in the organization’s After all, economic growth observer countries of the Shanghai sustainability and complexity. is the foundation of Cooperation Organization (SCO) in It is noteworthy that the development for all countries. Changning Library, Shanghai. [IC] enlarged SCO is also facing SCO member states have also increasing internal conflict carried out cooperation in the been the Concert of Europe, and instability. For instance, exchange of nongovernmental which was the primary driver conflict between India and organizations and on other of a “Century of Peace” in Pakistan remains, the U.S. social issues. For instance, 19th-century Europe. The army has yet to completely these countries regularly essential component of the retreat from Afghanistan, the participate in the SCO system was a European Iranian nuclear issue is one of People’s Forum and think congress system, which was the severest threats to global tank forums on public policy even acclaimed by some as a nuclear nonproliferation and engage in cooperation in “civilizational achievement (second only to the Korean areas like education, science, of the 19th century.” Austro- Peninsula nuclear crisis in culture, health and sports. All Hungarian economic historian terms of severity) and the of these are pushing the SCO and sociologist Karl Polanyi world is still gasping for a towards a social community. elaborated on the topic in his fundamental solution to the Positioned at a new starting book The Great Transformation: long-term standoff between point, the SCO needs to The Political and Economic Iran and the U.S. In this redefine itself. With the Origins of Our Time. context, some scholars believe organization’s rotating At the end of World War II, that the legacy of the Concert chairmanship this year, the United Nations, with an of Europe should remain China has provided a new aim to eliminate wars globally, inspiring for the promotion definition for the SCO: a and the European Community of world peace in the 21st community with a shared that eyed preventing wars century, as a theory on global future for humanity—namely, regionally, were founded and governance to avoid war and a regional community of quickly became international prevent conflict. common security, economic collaboration systems that The SCO, whose role collaboration and social made the Concert of Europe was once ignored, has also cooperation. obsolete. Then, the EU was introduced new topics that formed on the basis of the demand attention such as European Community. It The author is a distinguished scholar international maritime issues. of international relations at the Ocean still inherited the nature of The China-proposed Belt and University of China, president of the its predecessor: replacing Road Initiative integrates Institute of Marine Development, director of the Global Governance war with peace and hostility land and maritime issues Research Center, executive chairman of with solidarity. The long- concerning the SCO. Holding the Academic Committee of Grandview held dream of “lasting peace” Institution and a doctoral tutor at the SCO summit in the coastal Macao University of Science and in Europe eventually arrived city of Qingdao is intended Technology. 21 STRATEGY

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23 STRATEGY

New Opportunities and Challenges for the SCO

By Wang Chenxing

Now is a great time for the expanded SCO to make a big difference.

n 2017, India and or regions in favor of openness. expanded SCO faces the Pakistan joined the This spirit has forged a new following new opportunities: Shanghai Cooperation type of state-to-state relations First, expansion of the SCO Organization (SCO), and regional cooperation is conducive to enhancing markingI the first expansion model featuring lasting peace the organization’s capacity of the organization since its and friendship, presenting the for participating in global establishment in 2001. The international community with and regional governance. SCO is a new type of regional new concepts for security, The addition of India and organization that integrates cooperation and diplomacy Pakistan extends the SCO’s cooperation in areas like that contrast the outdated reach into South Asia for the security, economics, politics Cold War mentality and enrich first time and connects the and culture in the post-Cold the theories and practice of region with West Asia to form War era. As a non-Western international relations. a transregional bloc covering international organization, its Alongside the advance of the eastern, northern, member states are transitional the China-proposed Belt and central and southern parts countries or emerging Road Initiative, a community of Eurasia. Moreover, the countries on the Eurasian SCO’s roles in sectors like with a shared future for supercontinent. security, economics, energy, humanity is taking shape. In terms of the combined culture, and scientific and Just as Chinese President population and area of its technological innovation Xi Jinping said, the SCO member states, the SCO is have further expanded. has steadily moved towards the world’s largest regional As two major countries construction of a community cooperation organization. in South Asia, India and Guided by the Shanghai Spirit of with shared future for Pakistan play important roles “mutual trust, mutual benefits, humanity and set a model for in international relations, equality, consultation, respect a new type of international security governance, for diverse civilizations, and relations featuring win-win economic growth, pursuit of shared development,” cooperation. technological innovation and the organization follows a other fields. Their entry into principle of seeking no alliances FIVE NEW OPPORTUNITIES the SCO evidences that the nor outside interference in Positioned at a new influence of the Shanghai internal affairs of any countries historical starting point, the Spirit is strong, and the 24 CHINA-INDIA DIALOGUE

April 27, 2017: A truck of Lianyungang China-Kazakhstan International Logistics Co., Ltd. tranports cargo to be delivered to Europe via China Railway Express. [VCG] organization’s capacity for general secretary of the China will finish building a participating in global and Communist Party of China moderately prosperous society regional governance as well as (CPC) Central Committee, in all respects, realize basic its international influence has pointed out in his report modernization and then move been enhanced. to the 19th CPC National on to transforming into a great Second, similar Congress that China will not modern socialist country in development goals of close its door to the world, every dimension. This is the SCO member states are but will only become more strategic vision for developing conducive to strengthening and more open. He also noted socialism with Chinese the organization’s solidarity that China will pursue the characteristics in the new era. and attractiveness. In Belt and Road Initiative as a In March 2018, Vladimir today’s world, peace and priority, give equal emphasis Putin was reelected president development remain the main to “welcoming in” and “going of Russia by an overwhelming themes. Democratization and global,” follow the principle majority. The Russian delayering of international of achieving shared growth government has prioritized relations have proven to through discussion and consolidating its position be an irresistible trend. collaboration, and increase as the world’s fifth-largest In this context, all SCO openness and cooperation to economy and reviving the member states regard build innovation capacity to national economy. “promoting openness, seeking reach new ground in opening Kazakhstan is where cooperation and achieving China further through links President Xi Jinping first development” as the core of running east and west, across proposed building the their governance strategies. land and over sea. From 2020 Silk Road Economic Belt. President Xi Jinping, also to the middle of this century, Kazakh President Nursultan

25 STRATEGY

Nazarbayev personally and consolidating security announced a new economic through development,” November 29, 2016: SWAT police policy “Nurly Zhol”—the SCO member states have officers demonstrate how to use Bright Path, and has pushed it moved beyond the Cold non-lethal weapons in an anti- to align with China’s Belt and War mentality, constantly riot exercise during a meeting Road Initiative. enhanced mutual trust in on law enforcement cooperation of the Shanghai Cooperation Under the leadership of politics and security, and Organization (SCO). [VCG] Prime Minister Narendra conducted joint efforts to Modi, India is striving to address security threats and become a developed country safeguard regional peace and with greater inclusiveness stability, creating a new model and realize the goals of India for international security Vision 2020. cooperation. The enlarged Pakistan has actively SCO is expected to play a participated in the Belt greater constructive role in and Road Initiative and maintaining regional security attaches great importance to and fighting terrorism, construction of the China- separatism and extremism. In Pakistan Economic Corridor. 2017, when India and Pakistan Since Shavkat Mirziyoyev were accepted to the SCO as was elected president of full members, one of the first promoting implementation of Uzbekistan, the Central documents they signed was the Belt and Road Initiative, Asian country has embarked the Convention of the Shanghai facilitating alignment of on a path towards greater Cooperation Organization on Combating Extremism, regional development openness. Kyrgyzstan and evidencing the two countries’ initiatives and strengthening Tajikistan enjoy stable urgent need to participate in multilateral economic domestic political situations, SCO security cooperation. In cooperation. Regional and their respective social addition, the SCO can play economic collaboration and economic developments a positive role in improving has long been a focus of are reaching new levels. India-Pakistan relations and cooperation among SCO It seems that all SCO member enhancing the stability of member states. The SCO states are walking a path of South Asia. Muhammad Amir region boasts rich natural revival and development, and Rana, director of Pak Institute resources, vast consumer their national interests tightly for Peace Studies, believes markets and solid scientific align with the goals of the SCO. that as a more inclusive and educational foundations, This further strengthens the platform, the SCO can provide and its member states are organization’s solidarity and opportunities for India and mutually complementary attraction. Pakistan to cooperate with economically, creating Third, expansion of the SCO each other and ease tensions favorable conditions for them is conducive to promoting between them. He also notes to strengthen economic and regional security cooperation. that China, Russia and Central trade cooperation. After the Maintaining regional security Asian countries hope the expansion, the SCO region and stability is the priority addition of India and Pakistan covers almost all pioneering task for the SCO cooperation to the SCO would provide a and key areas involved in mechanism. Adhering to chance for the two countries the Belt and Road Initiative. a new security concept to repair their relations so From north to south, major featuring “mutual trust, that all member states work connectivity plans and mutual benefits, equality together to achieve regional projects concerning the and collaboration” and the peace and security. Initiative include integration guidelines of “promoting Fourth, expansion of between the Silk Road security through cooperation the SCO is conducive to Economic Belt and the 26 CHINA-INDIA DIALOGUE

mechanism of BRICS, the SCO provides a new regional mechanism and platform for China and India to deepen dialogue, properly address and control disputes and promote comprehensive development of their bilateral relations. Second, China-India relations have a long history. In April 1950, India became the first non- socialist country to establish diplomatic relations with China. Historically, the two neighbors worked side by side and supported each other in the fight against imperialism and colonialism, making remarkable contributions to advocating Eurasian Economic Union, and facilitate negotiations on national independence for alignment of the China- the Regional Comprehensive Asian and African countries Russia Polar Silk Road with Economic Partnership and safeguarding world the China-Russia-Mongolia (RECP), thus providing peace. These historical Economic Corridor, docking favorable conditions for accomplishments have of the Belt and Road Initiative regional trade cooperation become precious assets with Kazakhstan’s Bright and facilitation. cherished even today. Path and connection of the Fifth, expansion of the SCO Third, China and India Trans-Caspian East-West is conducive to promoting share a similar diplomatic Trade and Transit Corridor positive interaction between philosophy. Both countries with the China-Pakistan China and India. Compared to pursue an independent Economic Corridor and the its ties with Russia, Pakistan foreign policy of peace and Bangladesh-China-India- and member states in Central development and have long Myanmar Economic Corridor. Asia, China’s relations with advocated the Five Principles Specific connectivity projects India have suffered frequent of Peaceful Coexistence. include the International fluctuations, leaving a huge Finally, both China and North-South Transportation space for improvement. India are willing to improve Corridor jointly proposed by Within the framework of the bilateral ties via the platform Russia, India and Iran and SCO, China and India have of the SCO. An old proverb India’s Project Mausam, Spice justified reasons to work goes that a nearby neighbor is Route and Freedom Corridor. together and can consolidate better than a far-off brother. The SCO is a natural platform their bilateral ties to jointly The SCO is a bloc comprised for its member states to carry participate in global and of neighbors. The Shanghai out transregional cooperation. regional governance. Major Spirit is also the fundamental Such initiatives and projects factors include: values for handling relations will take root and sprout in First, in addition to with neighbors. China and the SCO region. The expanded enhancing bilateral ties India both see their ties with SCO can coordinate member between China and India as neighboring countries as states to better align the Belt well as trilateral relations the core of their respective and Road Initiative with other between China, Russia and foreign policies. regional development plans India and the multilateral More noteworthy, state 27 STRATEGY leaders of the two countries hastened the pace towards collaboration. Security have personally made efforts achieving a sound strategic cooperation and economic to solidify bilateral ties. Since interaction model. collaboration are two major 2018, guided by top leaders drivers for the development of of the two countries, China- THREE NEW CHALLENGES the SCO. Over the past nearly India relations have greatly While facing new two decades, the organization improved. The two countries opportunities, the enlarged has realized much greater have maintained friendly SCO should also rationally achievements in security interaction particularly in handle new challenges: cooperation as compared to areas like trade and cross- First, after its expansion, economic collaboration. For border river cooperation. the SCO will find it harder instance, plans to establish From April 27 to 28 this year, to coordinate stances of the SCO Development Bank just before the SCO summit its member states. The and SCO free trade zone have in Qingdao, Indian Prime organization adopts a yet to come to fruition. With Minister Narendra Modi fundamental principle of the addition of India and visited China. During the “reaching consensus through Pakistan, the SCO will need visit, President Xi Jinping consultation” in terms of to devote more energy to and Prime Minister Modi operation and decision- issues like the India-Pakistan exchanged views on long- making. As two major conflict, the Kashmir issue, the term, strategic issues of overall countries in South Asia, Afghanistan issue and anti- importance concerning the India and Pakistan pursue terrorism. In this context, how international situation and independent foreign policies the SCO should balance its bilateral relations as well as and have contrasting views roles in security cooperation their respective development on several international and economic collaboration is visions and domestic and and regional issues. Such a pressing conundrum. How foreign policies. Prime factors may make it more can multilateral economic Minister Modi will also attend difficult for the SCO to cooperation be promoted the Qingdao summit this June. coordinate member states within the framework of It has been rare for an Indian and threaten its principle of the SCO? How should the head of state to visit China “reaching consensus through SCO conduct pragmatic so frequently throughout consultation.” cooperation with neighboring the history of China-India Second, the SCO tends economic integration relations, indicating that to focus more on security mechanisms such as the the two countries have cooperation than economic Eurasian Economic Union and

May 7, 2018: The home port of passenger liners in Qingdao, the host city of the 18th Shanghai Cooperation Organization (SCO) summit. [Xinhua]

28 CHINA-INDIA DIALOGUE the Association of Southeast the wellbeing of the people SCO. With the addition Asian Nations (ASEAN)? Such of its member countries. of India and Pakistan, the questions are worth pondering In the era of globalization, combined land area of SCO for SCO member states. with so many interests member states now accounts Third, the SCO still faces intermingled, all countries for three-fifths of the entire constraints from Western should seek common ground Eurasian continent, and countries. Currently, the SCO and cooperation while putting their combined population is the largest non-Western aside past differences to represents half of the world’s regional organization. For pursue win-win or multi-win total. Moreover, they together a long time, it has been results. contribute more than 20 considered unhelpful to the The enlarged SCO is a percent of global GDP, with Western world and even an promoter of global and the SCO’s internal market “anti-Western organization” regional peace rather than a potential further expanding. or “NATO of the East” by troublemaker. After the end of In these circumstances, Western countries. Thus, the Cold War in the 1990s, the the SCO should seize the Western countries maintain international situation didn’t opportunity to accelerate a strategy of keeping a close restore harmony and stability negotiations on trade watch on the SCO while after the collapse of a bipolar facilitation and a cooperation refusing to directly contact world. From Operation framework on trade of it. The expansion of the SCO Desert Storm to the Kosovo services, actively promote can enhance its capacity War, from the Afghan War to research on the feasibility to resist pressure from the Iraq War and the Russo- of establishing an SCO free Western countries, but the Georgian conflict, from the trade zone and build a new organization needs to be more Color Revolutions to the Arab economic growth pole for alert for Western penetration. Spring, from the Ukraine Eurasia. crisis to the Syrian conflict, As a founding member STARTING WITH COOPERATION almost every regional conflict of the SCO and host of WITH NEIGHBORS was triggered by factors the 2018 Qingdao summit, In general, the benefits related to Western countries. China firmly believes that of the SCO’s expansion Clinging to the myth that cooperation should start outweigh the disadvantages. liberal democratic values with collaboration between The organization should are the culmination of the neighbors. Adhering to not neglect challenges while evolution of human society, the Shanghai Spirit and grasping opportunities, stay Western countries continue the principles of “amity, optimistic about its prospects seeking expansion and sincerity, mutual benefits when facing challenges and hegemony worldwide. But and inclusiveness” in its expand the common interests the SCO is totally different. relations with neighboring of its member states based on Despite the changing countries, China is using its how it can forge a new type of international climate, the foresight to accelerate the regional governance system enlarged SCO will continue healthy development of the and regional community adhering to the Shanghai SCO and contribute Chinese with a shared future. Spirit and the guidelines of wisdom to achieving Undoubtedly, the SCO is “promoting openness, seeking peaceful, open and shared facing an important strategic cooperation and achieving development in the region. opportunity and a historical development,” taking an opportunity to step up and active role in international more. Its security concept affairs and playing a central role in safeguarding peace The author is an associate researcher featuring mutual trust, at the Institute of Russian, Eastern mutual benefits, equality and and stability of Eurasia. European and Central Asian Studies collaboration meets the need Promoting regional under the Chinese Academy of Social Sciences and a postdoctoral fellow at of the times, the interests of economic cooperation is a the Nankai Institute of International regional development and priority task for the enlarged Economics. 29 STRATEGY

Wider Avenues for India- China Cooperation

By Mukul Sanwal

As global wealth shifts back to Asia, the two nations need to work together as two nodes of the Asian Century.

On June 1, 2018, the first media summit of the SCO, hosted by the Information Office of the State Council of China, opened in Beijing. Huang Kunming, member of the Political Bureau of the CPC Central Committee and head of the Publicity Department of the CPC Central Committee, read President Xi Jinping’s congratulatory letter and delivered a keynote speech at the opening ceremony. by Wan Quan

30 CHINA-INDIA DIALOGUE

he Shanghai emphasis on the domestic Cooperation consumption market over Organization exports as the principal driver (SCO) is a of future economic growth EurasianT political, economic, and is leapfrogging the West in and military organization critical new technology sectors established in Shanghai in including biotechnology, 2001 by leaders of China, informational technology, Kazakhstan, Kyrgyzstan, and artificial intelligence Russia, Tajikistan and within the framework of Uzbekistan. Its objectives are environmentally sustainable cooperation between member development. India, with its nations on security-related young population, is emerging concerns, military cooperation, as a driver of global growth. intelligence sharing and In the area of trade and On April 13, 2018, Yang Jiechi, counter-terrorism. With member of the Political Bureau investment, there is much the addition of Uzbekistan, of the CPC Central Committee and in common between the India and Pakistan, the group director of the Office of the Foreign interests of China and India in Affairs Committee of the CPC Central covers 40 percent of the global Committee, held talks with Indian supporting multilateralism. population. National Security Advisor Ajit Doval A breakthrough on Eurasian With India joining the in Shanghai. [CNS] connectivity, trade and SCO as a full member, investment will be an area to Indian Prime Minister of flux as the United States’ which all members of the SCO Narendra Modi declared, “I “pivot to Asia,” a major policy are looking forward. China look forward to deepening shift first outlined in 2011, has indicated willingness to India’s association with the has consolidated with the re- discuss concerns while other SCO to work on economic, named and extended Pacific India-led initiatives promote connectivity and counter- Command into the Indo- connectivity in South Asia. terrorism cooperation among Pacific Command, with two- The unresolved issue is about other things.” He added that thirds of capital military assets how they will converge. he also looked forward to deployed in this region. India India-led connectivity further progress in ties with recently agreed with Russia, initiatives are gaining steam. SCO nations for “mutual another Eurasian power, on a On April 23, a Bangladesh- betterment and growth of our non-bloc security architecture Nepal bus service through countries and our people.” for the Indo-Pacific region. India commenced under the Cooperation on counter- These developments will have Bangladesh-Bhutan-India- terrorism is expected to be an impact on security-related Nepal (BBIN) motor vehicles a major chunk of India’s discussions in the SCO. agreement. Although Bhutan exchange with the SCO. India did not ratify the agreement is also likely to get greater SHARED CONNECTIVITY due to opposition from its access to major gas and As countries are now gaining parliament, the country oil exploration projects in in influence due to economic encouraged others to move Central Asia. The grouping strength rather than military ahead, indicating that it hoped is expected to play a role in might, discussions on trade to join once it can secure regional geopolitics, security will be important. The United parliamentary approval. This and trade negotiations. It is States is questioning the role is an example of an India-led a step towards achieving the and relevance of the rule-based initiative establishing physical Asian Century. World Trade Organization and connectivity through India to Future international withdrawing from the Asian foster immense cooperation security order in the region trade and the Trans-Pacific potential even when all will be an area of discussion. Partnership. members are not able to Regional security is in a state China has placed new participate at the same time. 31 STRATEGY

China and India-led regional Qingdao Summit. FUTURE CONNECTIVITY AND initiatives would benefit The United States built TRADE states in the region. China the current order after China’s re-emergence is leading with its BRI. The World War II with two evidences the benefits of Maritime Silk Route crosses pillars: First, a number of infrastructure development the Bay of Bengal and reaches international institutions and connectivity. China has Bangladesh, Myanmar and including the UN, the Bretton transformed from an agrarian Sri Lanka. The South Asian Woods machinery and the and farm economy to one Association for Regional GATT (later WTO). Second, dominated by megacities, Cooperation (SAARC) the country maintained a rapidly growing towns and an remains dormant with little hegemonic role in setting urban middle-class society. expectation of it becoming the agenda and designing Overall, urbanization stands functional in the near future, the rules. This system was at 59 percent according largely because of differences supported by its global to the National Bureau of between India and Pakistan. network of alliances, such as Statistics, with Guangdong, The Bay of Bengal too remains NATO in Europe and bilateral the most populous province, among the least integrated security partnerships across most citified with an urban regions despite the immense East Asia. Many Western ratio of 70 percent. By potential of enhancing citizens are disillusioned comparison, U.S. urbanization trade through its ports and with this arrangement and is at 82 percent, Thailand waterways. The India-led their own democratic forms 50 percent and India Bay of Bengal Initiative for of government with rising 33 percent. The drivers Multi-Sectoral Technical inequality and stagnation behind this shift include and Economic Cooperation in median incomes, while improved infrastructure and (BIMSTEC) involving incomes continue to rise transport networks, better Bangladesh, Bhutan, India, in China and India. Those economic integration and Myanmar, Nepal, Sri Lanka countryes have the potential policy-makers’ initiatives to and Thailand has made solid to overtake the U.S. economy rebalance regional progress in energy cooperation as global wealth shifts back to development. and grid interconnection. Asia. South Asia, with a Developing the BRI, Both China and India are population of 1.8 billion, is BIMSTEC and BBIN creating new multilateral currently conducting around and regional agendas in a institutions such as the Asian 5 percent of intraregional complementary rather than Infrastructure Investment trade because connectivity competing manner through Bank and the International remains a barrier. Non-tariff coordination and consultation Solar Alliance. These countries barriers (NTBs) continue between the two Asian giants do not see their role as simply to affect the movement of would lead to enormous replicating the current global goods and services within the benefits to both China and order. Instead, they address region. It has been estimated India as well as smaller economic concerns and that addressing infrastructure countries in the region. promote sharing prosperity— deficits can eliminate realms that were kept out 80 percent of NTBs. In NEW GOALS of the United Nations. Both addition to enhancing trade, A new framework is needed China and India are working connectivity can significantly with such connectivity together to question the improve people-to-people initiatives becoming the agenda and priorities of the interaction and lead to better building blocks of a new current order which was understanding and closer global order. Implications established without input from diplomatic relations in for the future of the global other countries. However, the region. order will be among the most they have yet to define what Convergence between important outcomes of the the new arrangements would 32 CHINA-INDIA DIALOGUE look like, even as they work the concept of “ecological India seek to consolidate their together closely on climate civilization” at home and relationships with neighboring change and in the WTO, the within the BRI. New ideas states, the recently concluded two most important areas of are also needed to reframe Wuhan summit between Prime multilateral cooperation. global trade to better share Minister Modi and President prosperity in a digitized Xi has led to a congruence of ASIAN CENTURY world. In an interconnected views on settling the colonial The tectonic shifts from urbanized middle-class world, legacy of the border issue. a unipolar to a multipolar equity and environment are There is a meeting of minds world should not be more powerful integrating on the broad contours of the analyzed through a Western themes than earlier political emerging world order focused lens focused on how to ideologies. on sharing prosperity based accommodate re-emerging Aging society, rising on economic engagement powers, but rather as a return inequality and middle- through trade, investment and to the world that existed before class unemployment are capital flow, creating a sound the arrival of the Europeans key determining factors of template for a meaningful SCO in Asia. Interests, influence national policy, and leaders meeting. and power are very different and their ideas are now the The question is whether than they were seventy years biggest game-changers at the the SCO will accept the ago when the current world global level. As China and importance of Asian order was established, and regionalism and if it will re-emerging powers cannot have global implications. become ‘status quo powers’. On April 24, 2018, the 11th China Sustainable development Connected development Dongguang International Packaging will now be a central theme Machinery Exhibition was held in eliminates ‘spheres of Dongguang County, Hebei Province, of global governance, rather influence’ as a territorial China, attracting more than 20,000 than a stand-alone and concept, as China spreads its businessmen from over 40 countries. meaningless side discussion. Belt and Road Initiative (BRI) The picture shows several Indian The old framework is no businessmen taking a selfie at the even as far as Latin America. exhibition. [CNS] longer acceptable, even Asia does not want to choose to its proponents, and between India and China, and could provide a conceptual is really concerned about how framework to bring together they relate to each other. countries at different levels Asia is reverting to its of development. Rather than historical equilibrium as an looking at the world in terms integrated continent. It never of regions and major powers in fully endorsed the current isolation, we now need a world multilateral framework nor view characterized by sharing does it accept the rejection of prosperity and working with multilateralism and is looking others to jointly determine to China and India to jointly new global goals. Outcomes set the new goals because depend on China and India they have similar objectives in working together as two nodes national development. of the Asian Century, as has Prime Minister Modi’s re- been the case throughout framing of global climate civilization. concern in terms of ‘climate justice’ has challenged the Western conceptual framework to focus on human The author is a former UN diplomat well-being within ecological who has served as Visiting Professor at limits. China is pushing Tsinghua University in Beijing. 33 TREND

SCO Security Cooperation Greater Challenges

By Yuan Shengyu

Peaceful settlement of disputes among member states through negotiation and consultation is the key factor driving effective security cooperation in the SCO.

May 22, 2018: China’s Minister of Public Security Zhao Kezhi (right) and Shanghai Cooperation Organization (SCO) Secretary-General Rashid Alimov attend a news conference after a plenary meeting of the SCO security secretary summit in Beijing, China. [VCG]

34 CHINA-INDIA DIALOGUE

he 2018 Shanghai Cooperation Organization (SCO) summit Twill be held in Qingdao, a coastal city in China’s eastern Shandong Province, this June. Against the backdrop of major challenges in the international landscape, the summit has drawn wide attention both at home and abroad as the first of its kind since the organization expanded last year, testifying to the global importance From September 15 to 21, 2016, the “Peace Mission-2016” joint anti-terrorism military exercise of the Shanghai Cooperation Organization (SCO) was held of the SCO as the world’s in Kyrgyzstan, the first of its kind in the Central Asian country. The exercise largest regional cooperation aimed to improve training and cooperation of armed forces of SCO member organization. Security states. [IC] cooperation is the core mission of the organization. maintain regional stability. the curse of zero-sum With India and Pakistan now As the five countries began games by effectively solving admitted to the SCO, how to prioritize the fight against the “prisoner’s dilemma” should its member states terrorism, separatism threatening SCO member work together to strengthen and extremism, the SCO states in security cooperation. security cooperation and was gradually incubated. By doing so, the SCO has integrated regional stability fight cross-border terrorism The regional cooperation with the national security threatening the stability of organization has since been of every member state and the SCO region? The future of hailed as an innovative realized win-win cooperation SCO security cooperation has model for post-Cold War and holistic security, setting become a hot topic within and international security. a good example for building a beyond the region. Over the past 17 years since its inception, the SCO has new security concept for the made fruitful achievements post-Cold War world. SECURITY COOPERATION AT and accumulated rich Peaceful settlement of THE HEART OF THE SCO experience in security disputes among member Officially founded in 2001, cooperation. The close, states through negotiation and the SCO originated with a effective security cooperation consultation is a key factor bloc of five countries (China, between its member states driving the effective security Kazakhstan, Kyrgyzstan, over the years laid a solid cooperation of the SCO. Russia and Tajikistan) foundation for the SCO. History has shown that issues that became known as the The Shanghai Spirit of concerning the core interests Shanghai Five after their “mutual trust, mutual benefits, of neighboring countries such first meeting in 1996. Initially, equality, consultation, respect as demarcation and border the Shanghai Five focused for diverse civilizations garrisons can be settled by on demarcation negotiations and pursuit of shared peaceful means through and establishing mutual development” is the core equal-footed consultation. trust militarily in the border value and guidelines for the Such issues remain major areas. Since 1998, the focus SCO to carry out cooperation obstacles hindering security of the group has shifted in multiple areas including cooperation. to multilateral security security. Unlike the Cold Adhering to the principle cooperation and efforts to War mentality, it transcends that the interests of all 35 TREND member countries, big without long-term, effective development of the region. or small, are equally security cooperation among Economic interaction in important, the SCO has relevant countries. Data has and beyond the region will effectively carried out shown that wars, terrorism, become more frequent, and military cooperation, separatism and extremism personnel exchange will see information exchange and radically undermine and a substantial increase. At the joint drills aiming to combat hinder development. same time, security risks will terrorism, separatism and Strengthening security grow accordingly. Therefore, extremism, realizing positive cooperation to safeguard the SCO will face greater achievements in security the development of the SCO future challenges in building cooperation. Regarding region is a task that requires a sound regional environment the fight against terrorism, long-term, joint efforts of all and coping with the threats separatism and extremism, SCO member states. of terrorism, separatism and SCO member states have Over the years, the effective extremism. The mission and developed joint concepts security cooperation among governing regulations of the and taken concerted action SCO member states has SCO security cooperation to make their security maintained the overall mechanism will continue cooperation more pragmatic security and stability of expanding. For instance, and safeguard the broader the region, created a sound cooperation in information security of the region. environment for domestic security will become more The SCO properly balances development in every and more important. the relationship between relevant country, guaranteed security and development. the sustainability of various Actually, security and economic activities and NEW DAY FOR SECURITY development are not helped foster a sense of COOPERATION independent from each security so work can move In recent years, new other—pursuing only one forward smoothly. Moreover, problems have emerged in or the other will make both the overall safe environment some Western countries, unsustainable. Over the past of the SCO region provides which have resulted in 17 years, the SCO has not a fundamental guarantee profound changes in only maintained regional for international economic international and regional stability and guaranteed cooperation, trade and landscapes. Isolationism shared development of all investment in and beyond and protectionism are member countries through the region, thus effectively intensifying, and anti- security cooperation, but also promoting regional prosperity globalization sentiment paved the way for eliminating and development. and populism are on the security risks and forging The SCO is undergoing rise, causing anxiety over a beneficial cooperation changes with time. instability and uncertainty. In model based on common Nevertheless, the role of this context, the traditional development. security cooperation in regional cooperation model promoting regional stability is facing new challenges. SAFEGUARDING REGIONAL and prosperity will only Meanwhile, some Eastern STABILITY AND PROSPERITY become more crucial. countries represented by Development won’t Especially after the addition China have maintained steady continue for long without of India and Pakistan, the development while striving security. Pursuing SCO’s potential for regional to build a community with development while ignoring economic cooperation has a shared future for mankind potential risks will leave it greatly expanded. The and a multi-polar world. In unsustainable. The stability alignment of development addition to the increasingly and prosperity of the SCO strategies of different complicated international region over the years could countries will become an situation, the SCO also not have been achieved important driver for future faces a severe threat from 36 CHINA-INDIA DIALOGUE

November 28, 2016: Infantry forces from member countries of the Shanghai Cooperation Organization (SCO) kick off a seven-day joint training exercise in Korla in China’s northwestern Xinjiang Uygur Autonomous Region. The exercise aimed to improve combat ability, boost military communication and improve troops’ ability to deal with security threats. [Xinhua] international terrorism. In under the guidance of the ambitions to become a great particular, Afghanistan has Shanghai Spirit. power while maintaining been plagued by terrorism, With the addition of new a certain amount of separatism and extremism. members, the SCO needs to independency and influence in Facing these new challenges, adjust its existing security terms of international security the SCO is embarking on cooperation mechanism to cooperation. Coordinating a new journey in security address changes through security cooperation within cooperation. consultation to better the SCO while optimizing the Both long plagued by safeguard the overall organization’s influence in terrorism, separatism and security interests of all international security affairs extremism, India and Pakistan member states and guarantee is a mission that requires naturally took their concerns the effectiveness of its concerted efforts of all on such problems to the cooperation model. Now member states, old and new, SCO when they joined the that India and Pakistan through friendly consultation. organization. SCO member have been admitted to the In particular, SCO member states maintain different SCO, a total of four of the states need to work together concepts and practices in organization’s member states to explore solutions to the security cooperation. The have nuclear weapons, so it is Afghanistan issue, a common Shanghai Spirit remains necessary for it to formulate security threat to all of them, the solution to bridging plans and mechanisms while avoiding internal friction differences. As Chinese concerning nuclear caused by different interests, Foreign Minister Wang Yi security cooperation. And which could prevent them said, the fundamental reason considering the increasing from acting as a consolidated for the SCO’s development numbers of maritime force. With the Afghanistan and growth is that its member powers in the SCO, the issue as a central focus, states have consistently and organization must strengthen the SCO should continue firmly upheld the Shanghai institutionalization of reinforcing its regional and Spirit. Security cooperation is maritime security cooperation global influence in security. the foundation for the SCO’s and formulate new continual development, so its cooperation plans. The author is a professor and president of member states must further As the largest country the Institute of SCO Studies at Shanghai consolidate the foundation in South Asia, India has University of Political Science and Law. 37 TREND

What Does the SCO Mean for Pakistan and India?

By Wali Zahid

A new challenge for the SCO will be fostering peace between two conflicting countries to achieve a win-win outcome.

t the Astana Uzbekistan, India and considered a cohesive body. A summit of the Pakistan. The states host newfound challenge for the Shanghai nearly half of the world’s SCO is to calm two quarreling Cooperation population and create over 20 countries and foster a win- OrganizationA (SCO) in 2017, percent of global GDP. win outcome. India and Pakistan became We have already seen full members of the OPPORTUNITY AND modest progress by both organization. The CHALLENGES countries to resolve their development marked the Relations between Pakistan bilateral issues and SCO’s first expansion since its and India have remained contribute to SCO goals in establishment in 2001. tense since their regional development. The All eyes are on the eastern independence in 1947. After usual cross-border firing Chinese coastal city of fighting three wars, they have incidents along the Line of Qingdao in Shandong come close to more wars Control (LoC) and occasional Province, which will host this several times in recent exchange of harsh words year’s summit of the SCO, the decades. Both countries are continued last year. Usually, world’s most populous members of the South Asian only after the Director regional bloc, from June 9 to Association for Regional Generals of Military 10. This will be the first SCO Cooperation (SAARC), but Operations (DGMOs) get on summit since Pakistan and that regional bloc has failed the phone together are issues India became full members of to achieve substantial deescalated. the body at its Astana summit progress, precisely because Some symbolic progress, in Kazakhstan last year. the pair can hardly share the however, has come to pass. The SCO’s eight member stage at the forum. While maintaining aggressive states now include China, With this baggage in tow, stances against each other on Kazakhstan, Kyrgyzstan, Pakistan and India have been the surface, the two will Russia, Tajikistan, admitted to the SCO, which is participate in a joint military 38 CHINA-INDIA DIALOGUE exercise to counter terrorism SCO banner will be a godsend seen much progress. in Russia in September under to the civilian government to the SCO’s 2018 Peace make peace with India and WILL THE SCO BRING PAKISTAN Mission. However, real open bilateral or transit trade. AND INDIA CLOSER? progress will be easing Regionally speaking, it is in In short, yes and no. tensions and launching China’s interest to return The civilian government bilateral cooperation on all peace to Afghanistan, which and military in Pakistan are matters, trade in particular. has observer status in the not on the same page about If we merge the SCO with eight-member body. It is still how to deal with India. Some the China-proposed Belt and plagued by bomb blasts that analysts believe that the Road Initiative, SCO member cause massive casualties on a army’s India-centric strategy states will further improve daily basis. But Pakistan and is an attempt to secure more cross-border logistics India distrust each other on budgetary resources in the conditions and increase their respective roles in country. Civilians largely capacity. Some major joint Afghanistan. For instance, want to deal with India as a projects have been completed India’s investment and neighbor with which they in the region, including development goals in have issues but still carry on highways, railways and Afghanistan are seen as as other nations do, and give power plants. According to strategic inroads by diplomacy a chance. official figures, China has Pakistan’s army. Both Pakistan and India built 21 economic and trade Furthermore, neither the are nuclear powers so war is cooperation zones within four-member Quadrilateral not an option. SCO countries so far. Coordination Group (QCG) At the same time, both mechanism, which includes Pakistan and India are REGIONAL COOPERATION China, the U.S., Afghanistan countries with much of their It is yet to be seen how and Pakistan, nor bilateral population living below the India and Pakistan will framework under the poverty line. They can learn a behave as full members of Afghanistan-Pakistan thing or two from the SCO’s the SCO. Action Plan for Peace and rotating presidency: China This is an election year in Solidarity (APAPPS), has Pakistan. When the SCO summit takes place, the tenure of Pakistan’s current June 18, 2017: Indian cricket fans cheer as they watch the Champions Trophy finals between India and Pakistan at London’s The Oval, in a university hotel government led by Pakistan in Chandigarh. [REUTERS] Muslim League-N will end and a provisional government will go into place before a new government takes charge in August. Election results will determine how ties with India take shape. Foreign and security policies in Pakistan are under the army’s control which sees India as an enemy. A hung parliament may not tilt towards peace with India as Prime Minister Nawaz Sharif did after he won the 2013 general election However, if Sharif’s party returns to power with majority in parliament, the 39 TREND brought its extreme poverty rate from 88 percent in 1981 to less than 3 percent in 2018. If a weak government returns to power, the army will maintain status quo. A strong civilian government could deal with India with more confidence, and the region could finally see some peace. If and when peace returns, tourism alone could become a big economic boost for the region. Alongside regional security and stability, another major priority of the SCO is tourism development. SCO member states have seen a major surge in tourism within the bloc, both inbound and outbound.

THE WAY FORWARD India will be a major Two soldiers, one from India and the other from Pakistan, shake hands at a beneficiary of the 18th SCO flag-lowering ceremony on the border of the two countries. [CNS] summit in Qingdao. China has been warming up to India after the Dong Lang (Doklam) standoff last year. So, will Pakistan benefit opportunity that comes So far China has failed to from the SCO framework to Pakistan’s way, they need to secure Indian support for the increase economic appeal to voters based on Belt and Road Initiative for opportunities for its millions respective performances in two key reasons: One of the of poor? How will their governed provinces. projects, the China-Pakistan relationships with neighbors SCO membership should Economic Corridor (CPEC), like India, Iran and only help Pakistan open passes through Pakistan- Afghanistan better shape doors. It requires our own administered Kashmir, and Pakistan’s SCO membership national effort across two India sees the Initiative as upgrade? And, will Pakistan’s pillars—media and politics— ambition for regional or politicians and media behave playing visionary and global domination. differently now that they are futuristic roles, to help Despite India’s part of a different league? Pakistan reap the benefits reservations, both countries’ The jury is still out. and, like China, lift our foreign and defense ministers However, a way forward is millions out of poverty. This have visited each other’s only possible if the media and is the only way. capitals to prepare for the politicians mend their ways. Qingdao summit. When it comes to China’s foreign ministry, international opportunities, however, is assuring politicians need to abandon The author is president of the Institute of Islamabad that closer petty politics. Instead of Media and Communication in Pakistan, a Pakistani futurist and longtime China- cooperation with India will conspiring to time street watcher. An award-winning journalist, not be a detriment to Pakistan. agitations at every global he blogs on at walizahid.com. 40 CHINA-INDIA DIALOGUE

Can the SCO Bring India and Pakistan Closer?

By PK Vasudeva

Open communication and tremendous tact are the needs of the hour.

n June 2001, the launching the formal process handled with tact and creation of the of joining the SCO as full sensitivity. When the two Shanghai Cooperation members. South Asian neighbors Organization (SCO), a In 2017, at a summit in became part of the SCO, EurasianI political, economic, Astana, Kazakhstan, India apprehensions were initially and security organization, and Pakistan officially joined raised. But because dialogue was announced by the the SCO as full members. and participation of member ‘Shanghai Five’ group Subsequently, the SCO’s eight nations are mandatory, India comprising of China, full members accounted for and Pakistan might find a Kazakhstan, Kyrgyzstan, approximately half of the better, more open and Russia and Tajikistan. The SCO Charter was signed in Opening up channels of communication for June 2002 and took effect in September 2003. India and Pakistan and strengthening their At the Dushanbe, summit in 2000, members agreed to relationship will go a long way towards “oppose intervention in other solidifying the SCO’s power and influence in countries’ internal affairs on the pretexts of the global arena. ‘humanitarianism’ and ‘protecting human rights’; world’s population, almost a cooperative platform on and support the efforts of one quarter of the world’s GDP which they could discuss another to safeguard the five and about 80 percent of persisting issues. The countries’ national Eurasia’s landmass. As the memorandum of obligations independence, sovereignty, member nations prepare for also makes joint military territorial integrity and social this year’s summit in China’s exercises compulsory. stability.” The SCO summit in Qingdao City, the scope of Rather than focusing too Ufa, Russia, voted to admit their influence is poised much on differences, India and Pakistan as full to expand. commonalities need to be members. Both countries But with relations between harnessed and channeled signed the memorandum of India and Pakistan on uneasy properly to build a mutually obligations in June 2016 in footing, a handful of potential beneficial relationship. Tashkent, Uzbekistan, challenges will need to be India and Pakistan are also 41 TREND both members of the Regional Anti-Terrorist Structure (RATS) headquartered in Tashkent, Uzbekistan, under the SCO. It is a permanent organ of the SCO, which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism. Over the past few years, the organization’s January 28, 2018: Eighty-three couples from Pakistan and India hold a activities expanded to include collective wedding in Karachi, Pakistan. [VCG] increased military cooperation, intelligence replied: “I see the journalists Pakistan disputes. Beijing can sharing, and counter- from Pakistan sit right here probably keep its close friend terrorism. while journalists from India Islamabad in line at the SCO, With India and Pakistan as sit over there. Maybe but New Delhi would also newly admitted members of someday you can sit closer to have to fall in line. the SCO, China will likely to each other.” Global Times Regardless of bickering face increasing divisiveness published an op-ed between countries that may within a regional economic suggesting that SCO break out, host China could and security organization membership for India and emerge as the peacemaker of accustomed to extreme Pakistan would lead to the continent if it handles the comity and cooperative positive bilateral summit carefully by accepting discussion. But the SCO could developments. Even if it is members’ genuine viewpoints bring both India and Pakistan overly optimistic, such a and resolving their justified closer despite the Jammu and development would set the demands amicably. Kashmir disputes and rising right tone as the organization Establishing an ongoing and geopolitical competition forges ahead. lasting channel of between the two Asian giants But the odds remain communication between of India and China as well as stacked against China’s India and Pakistan is difficult. bring in contrasting desired outcome. Beijing The relationship of the two approaches to counter- needs to look no further than South Asian neighbors has terrorism, because of the South Asia for a cautionary seen a number of sharp ups healthy environment of ‘give tale. In this region, both India and downs. But while this and take’ in the SCO. and Pakistan are members of situation presents a unique India-Pakistan tensions the South Asian Association challenge for the SCO, it can occasionally flare up, and for Regional Cooperation also prove a litmus test. Beijing may have to brace for (SAARC). New Delhi, along Opening up channels of either side using the SCO as a with Afghanistan, Bangladesh communication between platform to mediate for an and Bhutan, boycotted last India and Pakistan and amicable solution. In the year’s summit in Islamabad strengthening their absence of a major incident, because it believed Pakistan relationship will go a long Beijing has admirably was behind a terrorist attack way towards solidifying the handled the delicacy of this on an Indian army base in SCO’s power and influence in situation. When asked at a Jammu and Kashmir. Even the global arena. press conference whether with an official ban on SCO membership would discussing bilateral issues in positively impact India- its proceedings, SAARC has Pakistan relations, China been perennially hobbled by The author is a defense analyst and spokesperson Hua Chunying the intrusion of India- retired professor of international trade. 42

CASE STUDY

Chabahar India’s Gateway to Eurasia

By P. Stobdan

India’s participation in Eurasian connectivity projects will serve to address the integration process under the EAEU and the SCO in more viable ways.

he completion of has recently imported cranes committed a US$500 million the first phase of from Germany for the first line of credit to develop the the Shahid Behesh- terminal jetty at Shahid port soon after sanctions were ti terminal last Beheshti, where shipments of lifted when the Iran nuclear TDecember and the successful wheat from India were deal went into effect in shipment of 1.1 million tons of recently offloaded and January 2016. wheat to Afghanistan through trucked to Afghanistan. The It looks as though the Iranian port have proved German-made cranes and Shanghai’s Zhenhua Heavy that Chabahar could become equipment worth US$85 Industries Co., Ltd. (ZPMC) an easy gateway for India to million to outfit the terminal will supply four gantry access Eurasian markets. were financed through Indian cranes to accommodate large In fact, Chabahar offers an investment. Earier, India container ships in the first attractive opportunity for 8.5 million-ton jetty. Of India given Iranian interest in course, more jetties will be building the port into a added to increase the port’s commercial hub. It is the only capacity to 82 to 85 million Iranian port on the Indian tons. The expansion will Ocean and can serve larger create greater prospects for vessels than Bandar Abbas. enlarging both the One terminal there, Shahid operational and practical Kalantari, is already handling scope of Chabahar to make it about 2.1 million tons of cargo a vital gateway as the short- per year. With the opening of est land route to access the second terminal, Shahid Central Asia. Beheshti, the capacity of The 2016 Trilateral Transit Chabahar will increase to Agreement requires India to about 10 million tons. Iran build and operate Chabahar 44 CHINA-INDIA DIALOGUE

Port (two terminals and five nomically viable, connection meter single-rail track be- berths with cargo handling) to Central Asian states is tween Hairatan, a town on for 10 years. The MoU imperative. The region holds the Uzbek-Afghan border, and provides the necessary legal a wealth of strategic and the Afghan city of Ma- framework for shipment of high-value minerals such as zar-i-Sharif at a cost of US$1.5 goods to Afghanistan. uranium, copper, titanium, billion, funded by the Asian Also, India, Iran and Russia iron, yellow phosphorus, Development Bank (ADB). will soon being working on aluminium, propane, butane, Uzbekistan was keen to ex- the 4,474-mile-long land and zinc and coking coal. For tend the line to other parts of sea trade route known as the example, Kazakhstan alone Afghanistan. However, the International North-South wants to increase its non-oil Salang Pass posed a major Transport Corridor (INSTC). exports by 50 percent by obstacle in connecting north- Indian Prime Minister Modi 2025. But without direct ern Afghanistan with Parwan and Russian President Putin transport access, India cannot Province and onward connec- recently discussed minor procure Central Asian miner- tions in Kabul Province. issues impeding early als its manufacturing indus- At the same time, a plan to operation of the INSTC. Once tries need. extend the railway line operational, India will send India’s current trade with approximately 700-kilometer consignment through Iran to Central Asia is minimal at a from Mazar-i-Sharif through Central Asia, Russia, Turkey little over US$1 billion and the towns of Sheberghan, and Europe. has not grown much. Trade Andkhoy and Maymana to The corridor is expected to with the region accounts for Herat in the west of cut transit time and merely 0.11 percent of India’s Afghanistan was discussed by transportation costs in half. It total trade. Similarly, India’s Ozbekiston Temir Yollari and would help boost India-Russia share of Central Asian total Afghan railways. Importantly, trade from the current US$7 trade is only about one an agreement to complete the billion to US$30 billion over percent. Only by improving line was signed by Uzbek the next 10 years. transport connectivity can the President Shavkat Mirziyoyev According to some prospects for commercial ties and Afghan President Ashraf estimates, with operational with the region improve. Ghani in Tashkent on Chabahar port and the For the landlocked December 5, 2017. INSTC, India’s trade with countries of Central Asia, Herat is a gateway to Iran, Eurasia could grow rapidly up Chabahar is now the nearest and when this trans-Afghan to US$170 billion (US$60.6 sea port by land. Now they transport corridor project is billion of exports and rely on port facilities in completed, both Afghanistan US$107.4 billion of imports). Turkey, Russia, the Baltic and Uzbekistan will get a States, Iran (Bandar Abbas) direct link to sea ports and be PATH FORWARD and China. Until recently, able to send and receive cargo However, further benefits only Kazakhstan had to and from Chabahar. of the multi-purpose terminal expressed interest in The completion of the at Chabahar such as India’s constructing a terminal in trans-Afghan railway corridor plan to build a 610-kilometer Mundra (Gujarat). But with would enhance the strategic north-south railway the opening of Chabahar port, role of Chabahar port to (Chabahar to Zahedan) Uzbekistan sought access to develop an integrated cannot be realized unless a the Indian Ocean through a transportation network. For Central Asian state other than deal with Afghan railways India, the proposed Afghanistan joins the project just two days after the Shahid Chabahar-Iranshahr- as a direct stakeholder or Beheshti terminal opened on Zahedan-Mashad corridor is India joins a December 3, 2017. the most ideal route to Central Asian-led transport In 2011, Uzbek state railway connect to Sarakhs on the mechanism. company Ozbekiston Temir Turkmen border. India has For Chabahar to be eco- Yollari built a short 75-kilo- already committed to laying 45 CASE STUDY rails from Chabahar to With this in mind, India across international borders, Zahedan. recently joined the Ashgabat Transports Internationaux The corridor can be linked Agreement, which was Routiers (TIR), has made the to the existing Eurasian signed in April 2011 to operational logistics easier. railway line which connects establish an international India hopes to use the TIR other parts of Central Asia. multimodal transport and convention after it finds some Similarly, this route can transit corridor between trading intermediaries and merge with ongoing corridor Central Asia and the Persian logistics partners. plans and programs like Gulf. The Agreement was All of these initiatives along Transport Corridor Europe- first joined by Uzbekistan, with the Chabahar operation Caucasus-Asia (TRACECA), Turkmenistan, Iran, Oman should kindle enthusiasm Central Asia Regional and Qatar on April 25, 2011. among Indian companies to Economic Cooperation Qatar subsequently become part of various (CAREC) and other withdrew from the international transport multilateral transport agreement in 2013, but corridors in Eurasia. initiatives in the region. Kazakhstan and Pakistan But more significantly, the India could solidify joined the grouping in 2016. Chabahar link would connectivity to Central Asia The Ashgabat Agreement singularly make Afghanistan through both bilateral and came into force in April 2016. the most important regional multilateral mechanisms. So Its objective is to enhance transportation hub and a far, India has completed the connectivity within the bridge connecting the 218-kilometer road from Eurasian region and Indian Ocean and Central Delaram, Afghanistan, to synchronize it with other Asia. Afghanistan shares Zaranj on the Iran- regional transport corridors borders of 137, 744 and 1,206 Afghanistan border. including the INSTC. kilometers with Uzbekistan, In Eurasian container India will now be part of a Turkmenistan and transport plays a significant single transport transit Tajikistan, respectively. role, and India could join the corridor system within the However, trade among the competitive market in the framework of the Ashgabat three countries has Euroasian transit system with Agreement. Among other remained low due to poor active participation in things, the regional transport transport infrastructure. transportation projects. grouping is considering The construction of railway India’s connectivity approach measures to create a “green” tracks would enable need not be limited to corridor for vehicles to Afghanistan to play a increasing trade and reduce the time spent at bridging role in integrating commerce but should aim to railway checkpoints replacing the Central Asian region enhance investment and wheel sets, create favourable with global markets. The services, interlinking sources conditions and effective ADB had earlier estimated of raw-material, centres of schemes for storing and that an improved production and markets handling cargo and using transportation link between across the supercontinent. berths of sea ports. To Central Asia and For example, the proposed increase the attractiveness of Afghanistan would boost Free Trade Agreement (FTA) the routes as well as the regional trade by up to between India and the Eur- volume of transit cargo, the US$12 billion. asian Economic Union group has considered unified (EAEU) could facilitate an tariffs for transit goods PROSPECTS FOR CONNECTIVITY unimpeded flow of raw mate- transported by rail. CONVERGENCE rials as well as an inflow of Moreover, India’s recent A myth has persisted that capital and technology to accession to the UN India is opposed to any Eurasia through new indus- convention on global connectivity projects, trial infrastructure along transport and customs transit especially China’s Belt and Chabahar and INSTC routes. system for moving goods Road Initiative (BRI). India 46 CHINA-INDIA DIALOGUE certainly objected to the prospects for convergence prosperity and ensuring China-Pakistan Economic will still emerge if parties political stability. Corridor (CPEC) project move ahead under the India’s participation in because it goes through principle of extensive Eurasian connectivity Pakistan-controlled Kashmir consultation, transparency projects through the which is claimed by India as and sharing benefits. Ashgabat Agreement will its sovereign territory—the China has already aligned address the integration reason India boycotted the its BRI projects with those of process under the EAEU and BRI Forum in China last year. EAEU through a FTA signed the SCO in more viable ways. However, New Delhi has between the two. Many A breakthrough for the sufficiently indicated that it stakeholders are waiting for regional infrastructure would have no objection to India and EAEU to sign a network arrived with the joining any BRI-related FTA, which should come recent successful trial projects if the CPEC project happen this year when Modi operations of the China- could be diverted through and Putin hold their annual Kyrgyzstan-Uzbekistan non-disputed areas such as summit in India. international road being done by the It will be quite natural transportation through the Turkmenistan, Afghanistan, for India’s Chabahar project Ferghana Valley. Pakistan and India (TAPI) to ultimately align with In the coming years, India pipeline project. other ongoing connectivity will need to start working India would not oppose projects now going on in the with one or more Central CPEC if it instead passed Eurasian region. Asian countries, preferably through Afghanistan. To be sure, connectivity Uzbekistan and Kazakhstan, Significantly, at the recent requires better transport on the Chabahar project, Wuhan summit, both Prime alignment, closer which could be pursued Minister Modi and President coordination in international under the SCO framework. Xi agreed to jointly work on customs clearance, efficient The Tashkent conference on reconstruction of regional logistics including Afghanistan from March 26 Afghanistan, which could not reloading facilities and better to 27 confirmed the need to be possible without financial institutions. India firm up multilateral reconciling each other’s should be amenable to cooperation including in the connectivity schemes. support any viable plan to set SCO framework. Therefore, an encouraging up an SCO Development Bank However, the U.S. pulling decision on Afghanistan is considering the reasons it out of the landmark nuclear expected at the upcoming joined the Asian accord, the Joint SCO summit in Qingdao. For Infrastructure Investment Comprehensive Plan of Action the first time, Modi and Xi, Bank (AIIB), which was (JCPOA) with Tehran, along as well as Modi and Putin, in founded as a multilateral with the renewed threat of back-to-back informal financial institution to bring sanctions on Iran and Russia meetings agreed to work countries together to address under the Countering Ameri- together in Afghanistan— daunting infrastructure ca’s Adversaries through possibly in the development issues in Asia. Sanctions Act (CAATSA) sector. Recent reports An early realization of a would severely endanger the reinforce what Chinese trans-Afghan rail corridor prospect of the Chabahar Foreign Minister proposed connecting Chabahar with project moving ahead. to his Pakistani and Afghan Central Asia would bring counterparts on extending about tremendous CPEC to Afghanistan. breakthroughs in Eurasian Differences on issues transport connectivity and related to regional have enormous implications The author is the former Indian connectivity are quite natural, for the entire region in terms Ambassador to Kyrgyzstan and an but in the long-term, of both spurring economic expert on Eurasian affairs. 47 DISCUSSION

Reconnection to Central Asia for India’s Energy Security

By Yang Xiaoping

As two major emerging countries in Asia and SCO members, the two neighbors—China and India—need to focus on their strategic interests, cultivate new fuel for regional economic growth and explore new models for future interaction.

Cars line up to be filled up at a gas station in Mumbai, India. [VCG]

ounded as a and building of a new security India and Pakistan became permanent concept, the Shanghai full members of the SCO, intergovernmental Cooperation Organization making the organization the organization (SCO) has evolved into a new most promising regional Ffocusing on anti-terrorism historical phase. In June 2017, organization, accounting for 48 CHINA-INDIA DIALOGUE

43 percent of the world’s Khanate of Khiva, resulting in programs. India has already population and 24 percent of the separation of Central Asia become the fourth largest its GDP, with members from and South Asia geopolitically. energy consumer in the Central, East and South Asia. Later, Afghanistan and world. The Oil Market Report The expansion of the SCO Central Asia served as the 2018 issued by the means it now includes three bridge linking the core area of International Energy Agency major emerging countries: the Soviet Union and sub- forecast that by 2023, the China, Russia and India. In region of South Asia. After world’s oil demand would today’s geopolitical context, the Soviet Union collapsed, reach 104.7 million barrels the SCO demonstrates even though they are still per day, 6.9 million barrels different thinking and influenced by Russia, Central more than that in 2017. China demands for the current Asian countries chose their and India are expected to global governance political systems according to contribute nearly 50 percent mechanism. Clearly, since the their own national conditions. of the global growth in oil U.S. troops withdrew from Again, Afghanistan has demand, with India’s growth Afghanistan in 2011, the SCO, become a cut-off point rate increasing slightly. as a regional architecture, has between Central Asia and Between 2012 and 2040, played an important role in South Asia. India’s oil consumption is maintaining regional stability In 2015, India applied for predicted to maintain a and promoting regional membership in the SCO, compound annual growth development. making it possible for the rate of three percent, the country to connect Central fastest in the world. Today, CENTRAL ASIA AND SOUTH Asia with South Asia at a India still relies on the Middle ASIA: SO CLOSE YET SO FAR strategic level. There is a East and Indonesia for its Central Asia is the core of historical base for the energy imports through the SCO. For a long time, connection between India marine transportation via the Kazakhstan, Kyrgyzstan, and Central Asia— Persian Gulf and Malacca. If Tajikistan and Uzbekistan Afghanistan, Turkey, Greece India can access energy in have maintained a and Mongolia all once Central Asia via land routes, it complicated connection with reached the Indian plains. could diversify its energy Russia in term of history, After the partition of India, its imports to prevent seaborne territory, economy and trade. geographical link with risk while cutting the cost of Since the 1990s, China has Central Asia was cut off by energy importing. been strengthening economic Pakistan, leaving India As for Pakistan, its entry relations and energy disconnected from Central into the SCO was motivated cooperation with Central Asia. Except for cooperation by the domestic security Asian countries. in uranium mining with situation and a “chain As a regional organization, Kazakhstan, India has little reaction” after India’s the SCO must carefully interaction with Central application. Since 2001, the handle historical, Asian countries. As for U.S.-led war in Afghanistan geographical and economic security, India is plagued by has kept Pakistan at the links between Central and terrorism in Afghanistan and forefront of the fight against South Asian countries. longs to combat terrorism terrorism, which has proved Historically, they were through international quite costly for the country. considered to hail from the cooperation. Pakistan believes that the same cultural origins and From a wider angle, as an situation in Central Asia is geographical plate and even emerging developing country, closely related to its anti- experienced fierce cultural India has a voracious appetite terrorism campaigns and collision and fusion in for energy considering the security, so its admission into Afghanistan. In the mid-19th Modi administration’s “Make the SCO is justifiable. century, Russia conquered the in India” and Additionally, with regards to Khanate of Bukhara and the “Reindustrialization” the regional power balance, 49 DISCUSSION after over a decade of Development Bank over the the progress of TAPI could combating terrorism, Pakistan past decade. Certainly, the even alleviate old grudges has lost many of its improvement and between the two countries. advantages over India. So it reinforcement of U.S.-India And in Central Asia, certainly cannot sit by and strategic relations meant the Turkmenistan may be the watch India harvest a greater U.S. greatly pushed the biggest beneficiary because it strategic advantage by joining progress of TAPI. will earn a fortune by adding the regional mechanism. If TAPI can move forward, another big buyer, India, Actually, the thinking of the direct beneficiary should following China, to diversify Central and South Asia as the be Afghanistan. Just income its exports and prevent the same strategic unit was not from energy transit will strategic risk of becoming too new to 2017 when India and produce a great deal of dependent on the Chinese Pakistan became full revenue, let alone market. members of the SCO. Before infrastructure related to the However, the development that, the Obama pipeline and other measures of TAPI does not look administration introduced that will spark local economic optimistic. In March 2013, the the Afghanistan-Pakistan (AFPAK) Strategy focusing on Central and South Asia. When Hilary Clinton was U.S. Secretary of State, she greatly promoted a U.S.-led “New Silk Road” plan to link Central and South Asia. But all of these initiatives were aborted due to the troublesome Afghan issue. So Afghanistan has always played a critical role in linking Central Asia and South Asia, which are so close geographically but so far in spirit. March 11, 2013: In Chabahar City in southern Iran, Iranian workers weld a ENERGY CORRIDOR: pipeline linking Iran and Pakistan at the inauguration ceremony of the Iran- MORE THAN PIPELINES Pakistan natural gas pipeline project. [Xinhua] India’s demand for the energy of Central Asia was on growth. Alongside its launch ceremony of the Iran- its agenda long before its economic growth, Pakistan natural gas pipeline entry into the SCO. In May Afghanistan is expected to was held at the border of Iran 2012, after years of restore stability. India will and Pakistan. After the negotiation, India, Pakistan win strategically by ceremony, the two countries and Turkmenistan signed an connecting to Central Asia signed agreements to important agreement on through TAPI, a move which establish trading ports in constructing the not only guarantees India’s their border cities of Gabd Turkmenistan-Afghanistan- energy supply but also and Pishin and build an Pakistan-India (TAPI) natural introduces it to Central Asia, Iranian petroleum refinery in gas pipeline. It is generally making it an important player Pakistan’s Gwadar City. believed that breakthroughs in the region. Certainly, Objectively, the advancement in the TAPI project can be considering the relations of Iran-Pakistan relations attributed to the great between India and Pakistan, does not help TAPI’s support from the Asian the former can declare that prospects. Running from 50 CHINA-INDIA DIALOGUE north to south, TAPI is along with China’s large impact to its neighboring expected to transfer energy market, has made the SCO the country Afghanistan. from Central Asia to South most intact and promising However, connectivity Asia and intersect with the regional architecture in within the SCO still has some east-west Iran-Pakistan Eurasia. real problems. Despite pipeline. The two pipelines Connectivity between becoming a member of the involve the direct interests of Central and South Asia has SCO, India still maintains a Iran, India and Pakistan, so some basic infrastructure in negative attitude towards the the U.S. and Russia and even place now. Since China Belt and Road Initiative solely some Central Asian countries proposed the Belt and Road because CPEC passes through have interest. And in 2014, the Initiative, the eight full the controversial Kashmir substantial withdrawal of members of the SCO as well region. In 2017, the Dong NATO from Afghanistan as many observers and Lang standoff dragged resulted in changes of the dialogue partners have relations between China and country’s situation. All these aligned with China’s India to the lowest point in factors make the prospects of development strategy at history, greatly raising the the two pipelines more various levels. For example, deficit of strategic mutual complicated. Kazakhstan proposed its trust. In this context, in April Against this backdrop, in “Bright Path” and “New 2018, the informal meeting 2017, with the strong support Economy Policy” to align between two countries’ of Russia, India became a full with China’s Silk Road leaders can be seen as a member of the SCO, which Economic Belt. Uzbekistan resumption of bilateral enables it to access Central and Kyrgyzstan also have relations. Asian resources with an signed agreements on In the new era, as major institutional guarantee. At cooperation with China under emerging countries in Asia present, Iran and Afghanistan the framework of the Silk and SCO member countries, are observers of the SCO. Road Economic Belt. China and India need to After its entry into the SCO, Additionally, China and surpass traditional India obtains the legal right to Russia have enhanced geopolitical logic marked by step into Central Asia and a strategic and practical competition and represented green light to turn to Central cooperation in the realms of by the “Asia-Pacific Asia and Russia for energy energy, high-speed trains, rebalancing strategy,” security. Of course, as one of aerospace, infrastructure fabricated “string of pearls” the founders of the construction and the or “Indo-Pacific.” The two organization, China welcomes development of the Far East Asian neighbors need to focus India’s admission and has region. on their major strategic shown sincerity and Meanwhile, the China- interests, cultivate new fuel determination to eliminate Pakistan Economic Corridor for regional economic growth the trust deficit and strategic (CPEC) has harvested early and explore new models for gap between the two fruits, evidenced by the future interaction between countries. construction of the Gwadar them. At some specific points, port and progress in the two countries may have to CONNECTIVITY: EXPLORING infrastructure like energy and consider exchanging some NEW POSSIBILITIES roads. The projects of CPEC interests in order to With the addition of India are scattered across Pakistan, contribute to the SCO’s and Pakistan into the SCO, involving 60,000 local innovative cooperation. Central Asia, the core region workers in their construction. of the organization, has been In the next five to seven years, closely connected to South CPEC is expected to create Asia via China’s western 500,000 jobs in the country, The author is executive researcher at the National Institute of International border areas and Afghanistan. whose economic growth and Strategy under the Chinese Academy of And the vastness of Russia, stability will bring positive Social Sciences. 51 DISCUSSION

A Win-Win in Central Asia

By Suyash Desai

The upcoming SCO summit is the optimum time for member countries to take a fresh new look at the Energy Club initiative.

very year, the dip- in 2001 by the Shanghai Five geopolitics of Eurasia and lomatic calendar (China, Russia, Kazakhstan, the world. Though it has the for the Eurasian Kyrgyzstan and Tajikistan) as potential, the current reality region is cleared in a grouping intended to build is quite different. earlyE June to make way for trust in their border regions. The SCO was primarily the Shanghai Cooperation At the Shanghai Five summit formed to jointly fight Organization (SCO) sum- 2001 in China, Uzbekistan terrorism, separatism and mit. It is an annual meeting was added to the group and extremism, which the region wherein a selected group of the Declaration of the SCO faces. Eventually, the scope of Eurasian countries comes was signed, institutionalizing the organization, considering together to deliberate on it furthermore. The first cooperative potential within geopolitical, geo-economic nominal expansion of the the region, expanded to and strategic ‘interests’ of organisation took place in economic activities. The Ufa the region. 2005 at the Astana summit in summit in Russia played a Like most regional Kazakhstan, at which India, vital role in laying out the organizations, the fact that the Pakistan, Iran and Mongolia organization’s economic SCO has no implementation were added as observer development strategy for the capacity is perceived by some countries, and Sri Lanka, next ten years. Upon review scholars to limit it to a talk Belarus and Turkey became of the scope of the SCO in the shop. However as geostrategic dialogue partners. But a major economic sphere, two major analyst Brahma Chellaney expansion happened in 2017 aspects pops up, which, if puts it, the withdrawal of the when India and Pakistan were implemented with care and U.S., via President Trump’s admitted as full members caution, could change the decision, from various of the organization. This fate of the organisation: the multilateral arrangements put expansion means that the planned SCO FTA (free-trade the rule-based world order SCO now accounts for half of area) and the existent SCO at risk and created a gloomy the world’s population, about Energy Club. situation. In such a scenario, a quarter of the world’s GDP the SCO can be qualified as a and 80 percent of the Eurasian LEASHED POTENTIAL high-performing group just by landmass. These numbers The SCO is sitting on a being functional and having should not be construed to gold mine of energy reserves no withdrawals. mean that the SCO has a with 25 percent of global oil The SCO was established hugely important role in the reserves, over 50 percent of 52 CHINA-INDIA DIALOGUE global gas reserves, 35 percent of a unified energy market for as the world turned towards of coal and over half of the oil and gas and the promotion global depression and crude world’s uranium with its of regional development oil prices dropped sharply. member states. The world’s through preferential energy Even after the signing of largest oil and gas pipelines agreements. In this context, the draft document to form are being built or already Kazakhstan’s President the energy club in 2013, passing through the region. Nursultan Nazarbayev agreed the different approaches of Pooling of resources through with President Putin at the respective countries made the SCO in the field of oil and 2007 Bushkek summit. “We the process delayed. Some gas could yield rich dividends consider it necessary to set up members wanted creation of for this region considering the SCO Energy Club, which the club to take precedence that the organization hosts will directly address problems while others wanted both the largest producers and in the sector,” he declared. “No emphasis on energy strategy. consumers of energy. But such one will resolve them for us.” Another major issue was a task is easier said than done. However, the plan didn’t the functionality between Efforts have been made since materialise until 2013. This producer and consumer 2004 to introduce the idea is considered by many to be a countries, which limited of an energy club to the SCO. lost decade in which global oil the initiative to discussion. In 2006, Russian President prices were steadily increasing Concerns about zero sum Vladimir Putin launched a to reach an all-time high. The games were clear due to the debate on “energy dialogue, energy club and joint strategies behaviour of the countries, integration of our national could have been highly which minimized the energy concepts and creation beneficial for the region during efficiency of the initiative. of an energy club.” The debate this decade. Unfortunately, Major political decisions resulted in the establishment the energy club was formed and funds are needed if the

June 15, 2014: Workers examine the facilities at the Horgos Metering Station in the Xinjiang Uygur Autonomous Region for natural gas transmitted through Line C of the Central Asia-China gas pipeline. [CNS]

53 DISCUSSION

SCO Energy Club is to work India is in desperate need of important. The June 2018 SCO to its full potential. As Meena diversification to reduce its summit in China will be of key Singh Roy, a research fellow reliance on the region. This importance to India. Prime and coordinator at the West is where the SCO, Russia and Minister Modi will attend the Asia Centre, IDSA, New Delhi, Central Asia could play a SCO summit with a backlog puts it, consensus is required pivotal role. During the Cold of domestic baggage such as on pricing, standardization War, India maintained close rising fuel costs waiting for of tariffs for transportation of relations with the Soviet him at home. Although one energy resources, development Union. After the fall of the summit meeting may not make of a unified common tax Soviet Union, India-Russia much difference in the current base, coordination among the relations remained tight. scenario, even a seemingly suppliers and other issues. Similarly, India has shared innocuous move by Modi cultural and trade relations could go far in stabilizing the INDIA’S PLACE IN THE PUZZLE with Central Asian countries domestic ship. China has set India is the third-largest in the past. In the post-Cold up multiple energy pipelines energy consuming nation after War period, India’s goodwill and project through this the U.S. and China. One of the with these oil-rich countries region as part of President most important components was mostly due to the Soviet Xi’s signature project, the Belt of India’s import portfolio legacy. But India failed to and Road Initiative, which is energy, which arrives in capitalize on its good relations is backed by the SCO, while several forms. Needless to due to a lack of financial and India’s TAPI (Turkmenistan- say, energy in the form of economic leverage. After Afghanistan-Pakistan-India) petroleum products are in high losing so much ground in the gas pipeline is still languishing. demand domestically. Energy energy race, India attempted to One of the prime reasons for is a ticking-time bomb about to catch up in 2012 with ‘Connect India to join the SCO was explode as the country enters Central Asia’ policy initiatives. this cause. But the country’s its five-year election cycle. However, this policy failed to major pipeline project has India is highly dependent the attention it needed in the yet to see progress due to on the West Asian region for diplomatic circles of India. instability in Afghanistan its imports of oil and energy. In this context, India and disagreements with But considering the instability acquiring full membership Pakistan. Help with this in this part of the world, in 2017 in the SCO is vitally issue is something India will look for at the 2018 SCO summit. Furthermore, the Workers prepare for the construction of the China-Myanmar oil and gas commissioning of the North- pipeline. The project began construction on September 10, 2010 when the South transport corridor along China National Petroleum Corporation began to build a giant oil refinery in with the Chabahar port of Yunnan Province. [CNS] Iran will provide India better access to the energy markets of the SCO region.

POSITIVE-SUM GAME In the current state of affairs, the formation of the SCO Energy Club, which happened in 2013 with a mission to discuss issues related to energy strategy and future cooperation, was a positive development. This indicates potential for growth in this sector. The future of 54 CHINA-INDIA DIALOGUE

more that are stuck, could get a much needed push. The en- ergy club could also rejuvenate other organs of the SCO and lead towards a greater SCO Free Trade Agreement, which is in the work for 2020, in a phased manner. The SCO, an organization formed over a security mandate between many highly contrasting member countries, has still been confined to a talk shop on many occasions. With this energy club initiative, the August 28, 2015: The “Shandong-Xinjiang-Europe” train sets out from a organization could build win- logistics park in Qingzhou, China’s eastern Shandong Province. [IC] win situations for its member states by facilitating planning, the energy club will depend energy club will go a long way energy and working together upon the approaches of both in resolving pressing issues the with a strategic objective in producers and consumers. region faces. mind. By virtue of remaining Through game theory The 2018 SCO summit will functional in a world in which (positive sum situation) and be hosted by China and pres- global leaders lobby for votes neorealism, one can explain ents an opportunity to vitalize by procrastinating, the SCO, the convention of competitive the SCO energy club initia- along with other regional states—in this case producers tive. The structural compul- organizations like ASEAN and and consumers—over a shared sions are conducive and the the African Union, is making interest. The future of the SCO only requirement, as in any many right moves. In the wide Energy Club will depend upon regional/multilateral initia- playing field of Central Asia, development of a cooperative tive, is the will of the mem- energy diplomacy conducted framework by these countries. ber states. Some challenges through the SCO, could prove Presently, the price of remain like competition for an ace in the hole that alters the international crude oil is rising. controlling energy resources geopolitical situation globally. Thus consumer countries between Russia, China and In this context, the 2018 like India, China, Mongolia, India, diversification of energy Qingdao summit of the SCO Tajikistan and Kyrgyzstan are projects going from Central will be historic if member worried. At the same time, Asian countries to Europe countries move past their producer countries like Russia, and possible sanctions on differences to work on the Kazakhstan, Uzbekistan Iran, which could impact the energy club and creating win- and Iran are looking for an progress of the organisation. win situations in the vast opportunity to make the But despite these obstacles, a landscape of Central Asia. most of rising oil prices after full-functioning SCO energy four tough years. In such club would go a long way in a scenario, coordination of capitalizing on the untapped limited strategies in the energy potential of the region. Various sector, development of system projects like TAPI, Iran-Paki- of transport for the energy stan-India (IPI) gas pipelines, security, joint implementation Russia-China-India gas proj- The author was a Ph.D. Scholar at the Centre for International Politics, units, coordination of ects, initiatives linking Central Organization and Disarmament (CIPOD) investment plans and an Asia to Iran and India through at Jawaharlal Nehru University in New Delhi. He currently works as a informal setting for regular Chabahar-Russia-China gas correspondent for Outlook Money in coordination through the SCO pipeline initiatives and many Mumbai. 55 DATA

17 Years of Cooperation SCO’s Profound Journey

Edited by Hu Zhoumeng Designed by Andrey Maleev

he Shanghai development of the current states, with increasingly Cooperation international system. deepening partnership as TOrganization (SCO), The SCO has built more friendly neighbors, have founded at the dawn of the than 30 meeting made joint efforts to 21st century, has grown into mechanisms at different preserve peace, security and one of the most influential levels and signed more than stability and work together international and regional 100 documents for in politics, economics, organizations. Across 17 years, cooperation, laying a solid culture and more areas. it has become an active factor foundation for the The SCO is becoming a role supporting the security, organization to function model for a new type of stability and sustainable effectively. SCO member international relations.

56 CHINA-INDIA DIALOGUE

57 DATA

58 CHINA-INDIA DIALOGUE

59 YOUNG VOICES

Multilateral Mechanisms Boon or Bane?

Concept by China-India Dialogue

Next-Gen Mechanisms such multilateral organizations, to Pakistan, it has continued which are still in their infancy. politely. Its primary focus is on They do provide considerable securing energy routes, counter- value to member states in terrorism and working with Piyush Singh getting their voices heard in a Russia on its initiatives. The Age: 24 multilateral forum and also help SCO does not yet have much Occupation: Research Associate at in setting standards for future to show in terms of results, but Takshashila Institution Birth place: Bihar, India of international governance its focus on security and ever Current residence: Bangalore structures. expanding dialogues on trade The main objective of and infrastructure will surely set organizations such as the SCO a future narrative for Asia and and BRICS has been to provide slowly reduce U.S. influence in alternatives to institutions such the region. as the UN, IMF, World Bank and The Asian Infrastructure others. Developing countries Investment Bank (AIIB) is such as India and China have another institution to consider. long raised objections about the The thinking behind launching asymmetry of power in those the AIIB was to fulfill the organizations, and thus went growing infrastructure needs ahead and created multilateral of developing countries while China and India will remain organizations that reflect their at the same time providing invested in current overarching interest and growing stature. an alternative to the U.S.-led global institutions. China, along with Russia and IMF, World Bank, and Asian Central Asian states, primarily Development Bank (ADB). World leaders from India, established the SCO as an China and India have long been China, Russia, Pakistan, and overarching security organization demanding that the voting several Central Asian states to resolve border disputes structure and overall governance will convene in China in June to between member states and of organizations such as IMF, further increase economic and has subsequently broadened its World Bank, and ADB be security cooperation between scope to cover counter-terrorism, reformed to reflect the growing them under the banner of narcotics and energy. India was interests of countries such as the Shanghai Cooperation recently admitted to the group India and China but to no avail. Organization (SCO). However, along with Pakistan, and even Such complaints resonated with questions have been asked though India hasn’t been happy many developing countries about the effectiveness of about the frequent comparisons around the world, which had 60 CHINA-INDIA DIALOGUE long been denied loans and any When China launched the as rule-makers rather than say in the governing of these AIIB, India was one of the first followers. institutions because of reasons supporters of the development From India’s perspective, it like human rights records and bank and is the second-largest is more beneficial to be inside corruption. The AIIB has not only donor. BRICS started gaining these groups rather than out, provided them with a say in traction as an organization late where chances to influence the the operation of the institution last decade and since then has next generation of international but also provided loans at a since cemented its place in the governance would fade. Even far cheaper rate than other world. No longer just a one- though it plays a secondary institutions. time event, it has evolved into role to China in most of these The United States tried its a more of a year-long process groups, it is important not best to stop its allies from of cultural exchange, youth to lose sight of the larger becoming members of the AIIB, summits and other areas of picture. If India were to sit out but failed. Crucial allies such cooperation, culminating in the of these groups complaining as Britain and Australia went annual BRICS summit. The New about some sort of disparity ahead with membership even Development Bank launched by in power-sharing, it would be after diplomatic protest from BRICS is another example of the thrust to the back of both U.S.- the U.S. Herein lies the main equal power and vote-sharing led international organizations point: The United States was not between the member states and those founded by China, in fact very concerned about as an alternative to IMF, World finding itself isolated in both. the AIIB’s views on human Bank and Japan-led ADB. It’s far better to hedge its bets rights and corruption but more BRICS has further turned focus and policy from the inside and concerned about an emerging to counter-terrorism, security, subsequently gain a larger say power providing an alternative environment and trade. All in how policies and governance to U.S.-led international these sectors are evolving are conducted in BRICS, organizations, but had to find a continuously, and the BRICS the SCO, the AIIB and other better narrative protest. countries are looking to serve organizations.

Bigger Role of normal international order. The multilateralism, as one of main Multilateral governance principles, accords Institutions in Global with the governance logical Governance norm and comes into play within global governance. Multilateralism in its most Liu Xiaowei basic sense involves norm- Age: 27 based or rule-governed Occupation: Ph.D. student at the School of behaviors. International International Relations of Peking University In an era marked by Relataions Professor, Amitav Birth place: Henan Province shifting boundaries, relocated Acharya, says that both in Current residence: Beijing authorities, weakened states, economic and security arena, and proliferating global crisis the primary objective of at various levels of community, multilateral interactions is to The trend of rationalization the time has to confront the discourage participating actors and pluralism of international insufficiency of our ways of from discriminating against each politics provides fertile soil to thinking about governmental other, promote transparency anticipate a more indispensable actors. Global governance with and mutual reassurance, and role of multilateral regimes in actors from different levels resolve contentious issues international governance. comes into being to maintain a peacefully and constructively. 61 YOUNG VOICES

With the development and There are three main military exercises, it has set up improvement of multilateral approaches for the multilateral a basic information exchange institutions, the state has made regimes to perform governance network and a unified network multilateralism the major way in international arena. The security platform. Besides, to further national interests. To first is enhancing policy the multilateral regimes give date, global governance can coordination through the non- institutional security to related be characterized as a complex binding self-commitments players to enhance strategic array of fragmented institutions from member states. The mutual trust and promote operating at different levels. second is reaching their goals international trade. What’s They can build their own through interactions with the more, the multilateral regimes multilateral institutions for the international organizations. can defend the basic principles protection and expansion of The third is promoting the of international law and human national interests. regimes’ power of influence rights, and subtly influence the The multilateral institutions by incorporating the NGOs. In ideology and ideas of the states experience a long history and daily practice, the summits as a result. process of evolvement. While and conferences are the most Of course, in a world of the dominated theme of common approaches. anarchy, the effectiveness of international relations changed The multilateral regimes can different kind of multilateral from conflict into cooperation, play a significant role in dealing regimes is varied in the international regulation with the global crisis and international society. They became a rather realistic norm building consensus. It provides have to handle the interest model in global governance. As an effective framework for divisions among members, as we all know, there is a complex jointly coping with increasing well as bring the inclusiveness multilateral institutions network non-traditional security threats. and effectiveness into balance composed by multilateral Based on expertise and in internal governance. regimes from both international information, it plays a ‘catalytic’ Although the multilateral level and regional level. Also or ‘convening role’ in bringing regime is a relatively young some regimes are economy- divergent stakeholders together actor in global governance centered and others are security- and proposing workable and and has so far produced less centered. Take the regional mutually beneficial outcomes. tangible results compared multilateral institutions around For example, the Shanghai with big powers, the trend of China for example, the security Cooperation Organization has rationalization and pluralism in regimes contain ARF, ADMM+, progressed fairly quickly from international politics provides SLD, SCO, CICA and so on, and its inception to become a fertile soil to anticipate a the multilateral institutions relatively prominent regional more indispensable role aimed at economic coordination player. Through a series of of multilateral regimes in includes APEC, EAS and the like. jointly multilateral or bilateral international governance.

Multilateral Institutions: Equal Consultation and Win-win Cooperation

Deng Han Strong global multilateral Age: 31 institutions are inherent Occupation: Ph.D. student at the School of requirements for countries to International Relations, Peking University effectively participate in global Birth place: Yunnan Province Current residence: Beijing governance. 62 CHINA-INDIA DIALOGUE

In early June, the 18th required for countries and other developing countries summit of the Shanghai to participate in global have proposed a series of Cooperation Organization governance. First, multilateral new ideas and proposals for (SCO) will be held in Qingdao, institutions shape and manage climate change, anti-terrorism, Shandong Province, China. This the interests of involved international and regional is another important diplomatic countries by helping them issues through multilateral opportunity for China and define and understand global institutions such as BRICS, the neighboring countries to issues while building consensus SCO and the G20. enhance cooperation and and generating greater Furthermore, the global strengthen global and motivation to participate in political and economic situation regional governance under global governance. Second, has undergone a series of the framework guidance of when facing complex and ever- complex and profound changes multilateral institutions after changing global and regional and developments. Global the seventh China–Japan–South issues, multilateral institutions governance is facing many Korea trilateral summit in May. can effectively reduce the opportunities and challenges. The rise of multilateral transaction costs of decision- Multilateral institutions provide institutions has been making and enhance the routing selection for equal reflected primarily in three legitimacy and transparency consultation and win-win aspects: First, the number of of decision-making by forming cooperation for all countries multilateral institutions has a flat cooperation network. around the world to participate greatly increased and involve Consolidating similar interests in global governance. This is many fields such as politics, is helpful to most countries, important progress. However, economics, culture and social especially small and medium- it should also be noted that in development. Second, types sized countries and developing the complex and multilateral of multilateral institutions countries. Third, multilateral international environment, the are more varied. Regional institutions create mechanism- role and impact of multilateral integration organizations based interactive platforms institutions still need further such as the European Union, through which all countries adherence and improvement. the Arab League, the African can participate in global In particular, they need to Union, and the Union of governance through the attract more actors and opinion South American Nations, establishment of a secretariat, leaders to further enhance the have emerged alongside working group meetings, effectiveness and influence of regional cooperation dialogue high-level officials meetings, multilateral institutions. Young institutions such as APEC, the ministerial meetings and people represent a special ASEAN Regional Forum and leaders’ summits. Multilateral group that is keen on global the SCO and sub-regional institutions also embrace governance and has long cooperation institutions such multiple stakeholders in the been active in international as the Lancang-Mekong cooperation framework through organizations and non- Cooperation and the Greater topic setting and forum governmental organizations. Tumen Initiative. Third, these discussion to form a “common By holding youth leaders’ multilateral institutions’ voice” and increase their forums and youth conferences effectiveness has been widely influence and representation within multilateral institutions, recognized. Combined with within the global governance the strength, knowledge and leading power diplomacy and system. enthusiasm of young people bilateral diplomacy, multilateral In recent years, the can be consolidated and guided institutions have become discourse power and influence to better contribute to global an important platform for of emerging developing governance. The “Shanghai exchange and cooperation countries in participating in Youth Cooperation Exchange among countries. global governance through Camp” that was launched Strong multilateral multilateral mechanisms have in 2016 is one such positive institutions are inherently risen constantly. China, India, attempt. 63 BOOKS

Indian Civilization

Indian nation and the vitality of its Third, Indians carry on the tradition civilization. of learning from other countries. Indian Religiosity, diversity and inclusiveness civilization has never been static or are some of the brightest features of stagnant, but continuously develops Indian civilization. However in modern and becomes enriched by absorbing times, Indian civilization has also different cultures. developed some new features during Indians may have had Western its transformation from tradition to culture forced upon them in the modernity. colonial era, but independent India First, the religiosity of the country has has been actively absorbing every gradually diminished since the middle advanced culture in the world to enrich Indian Civilization of the 19th century. After gaining and develop its own. Consequently, national independence, Jawaharlal contemporary Indian people are very Liu Jian, Zhu Mingzhong and Ge Weijun Nehru, India’s first prime minister, open-minded and eager to learn. Encyclopedia of China Publishing designated secularism as one of the By learning from foreign civilizations, House (ECPH) July 2017 important principles for governing the Indians have developed unique country with an aim to limit sectarian advantages, as characterized by the rise conflict and theocratic politics. of the India’s software industry. Not only This policy has achieved positive does it evidence Indians’ extraordinary results and has fundamentally mathematical abilities—it has largely been India is one of the earliest major affected the development trends of driven by their English abilities. world civilizations—one of the four Indian civilization. Through economic Although Indians are connected to major countries born of ancient development and scientific progress, Western people both genetically and civilizations, alongside China. The Indian civilization has become more linguistically and Indian civilization many brilliant achievements of Indian modern and secular. Compared to continues to absorb the nutrition of civilization across many fields as well countries practicing theocracy or Western civilization, Indian civilization as its unique values and ideological religion-heavy politics, India has made has maintained unique features and systems have cemented its important many more empowering achievements value systems. Changes to Indian position on the global civilizational map. in social development. civilization can only come in the With strong radiant power, Indian Second, Indians cherish their form of internal evolution—neither civilization has exerted a profound national traditions. Indian society has abandoning traditions nor being impact on Asia and the world for never experienced any radical cultural confined to the beaten track. It remains thousands of years by making movements. Since the independence of rooted in history while facing reality. outstanding contributions to the the country, India’s social and cultural In the process of transformation from continuous progress of human society. development has remained quite stable traditional to modern, India is glowing Also, Indian and Chinese civilizations and avoided destruction of traditional with impressive vitality. are closely linked and deeply rooted. culture. In its long history of national Indians cherish their cultural heritage Liu Jian and Ge Weijun are research development, Indian civilization has and traditions very much. For example, fellows at the Institute of Asia-Pacific experienced all manner of ups and to protect Delhi, an old city with many and Global Strategy of the Chinese downs, but it has survived tremendous cultural relics and historic sites, they Academy of Social Sciences (CASS). Zhu Mingzhong is a research fellow at difficulties across four thousand opted to build a new capital (New the Institute of Asia-Pacific Studies of years and even experienced a sort of Delhi) to the south of it. By doing so, the the CASS and a research fellow at the renaissance in the mid-20th century. ancient capital was completely preserved Buddhism Research Center under the This evidences the greatness of the alongside its history and culture. CASS. 64