The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, international security and defence organization established by China and Russia in 2001.

[2] From 2001 to 2008, the SCO developed rapidly, establishing a number of permanent bodies and ad hoc initiatives dealing with economic and security matters.

[10] By 2007, the SCO had initiated over twenty large-scale projects related to transportation, energy and telecommunications and held regular meetings of security, military, defence, foreign affairs, economic, cultural, banking, and other officials from its member states.

This council also holds annual summits, at which time members discuss issues of multilateral cooperation and approves the organisation's budget.

[23] The Regional Anti-Terrorist Structure (RATS) Executive Committee, headquartered in Tashkent, Uzbekistan, is a permanent organ of the SCO which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism.

Turkmenistan has previously declared itself a permanently neutral country, which was recognized by a resolution adopted by the United Nations General Assembly in 1995,[47] thus ostensibly precluding its membership in the SCO.

Turkish Prime Minister Recep Tayyip Erdoğan has stated that he has discussed the possibility of abandoning Turkey's candidacy of accession to the European Union in return for full membership in the Shanghai Cooperation Organisation.

[61] On 11 July 2024, Turkish President Recep Tayyip Erdoğan stated in a statement to the U.S. Newsweek magazine that they did not consider Turkey's membership in NATO as an alternative to the Shanghai Cooperation Organisation and BRICS.

However, since the deposition of President Viktor Yanukovych and increased tensions with Russia, no application has been submitted and there are no current plans to incorporate Ukraine into the organization.

[68] As of 2010, the organisation was opposing cyberwarfare, saying that the dissemination of information "harmful to the spiritual, moral and cultural spheres of other states" should be considered a "security threat".

[71] At the summit in Astana, Kazakhstan, in July 2024, the SCO called for the creation of a fair, multipolar world order based on the key role of the United Nations, international law and the aspiration of sovereign states towards a mutually beneficial partnership.

[8]: 100  However, as of 2017, military exercises have regularly been conducted among members to promote cooperation and coordination against terrorism and other external threats, and to maintain regional peace and stability.

More than 4,000 soldiers participated at the joint military exercises in Peace Mission 2007, which took place in Chelyabinsk, Russia near the Ural Mountains, as was agreed upon in April 2006 at a meeting of SCO Defence Ministers.

Following the war games' successful completion, Russian officials began speaking of India joining such exercises in the future and the SCO taking on a military role.

At the same meeting the Premier of China, Wen Jiabao, proposed a long-term objective to establish a free trade area in the SCO, while other more immediate measures would be taken to improve the flow of goods in the region.

[87] During the 2008 summit it was stated that "Against the backdrop of a slowdown in the growth of world economy pursuing a responsible currency and financial policy, control over the capital flowing, ensuring food and energy security have been gaining special significance".

[89][better source needed] President Putin included these comments: We now clearly see the defectiveness of the monopoly in world finance and the policy of economic selfishness.

To solve the current problem Russia will take part in changing the global financial structure so that it will be able to guarantee stability and prosperity in the world and to ensure progress.

We will witness and take part in the transformation of the global and regional security and development architectures adapted to new realities of the 21st century, when stability and prosperity are becoming inseparable notions.

During the 2019 Bishkek summit, Pakistani Prime Minister Imran Khan suggested taking steps to trade in local currencies instead of U.S. dollars and setting up financial institutions including an SCO bank.

[94] During 19–22 October 2022, Iran hosted SCOCOEX, an international conference and exhibition on economic cooperation opportunities available to the SCO member states and partners.

[116] A report in 2007 noted that the SCO has made no direct comments against the U.S. or its military presence in the region; however, some indirect statements at the past summits have been viewed by Western media outlets as "thinly veiled swipes at Washington".

[123] At a 2005 summit in Kazakhstan the SCO issued a Declaration of Heads of Member States of the SCO which said: "The heads of the member states point out that, against the backdrop of a contradictory process of globalisation, multilateral cooperation, which is based on the principles of equal right and mutual respect, non-intervention in internal affairs of sovereign states, non-confrontational way of thinking and consecutive movement towards democratisation of international relations, contributes to overall peace and security, and call upon the international community, irrespective of its differences in ideology and social structure, to form a new concept of security based on mutual trust, mutual benefit, equality and interaction.

[126][full citation needed] In 2008, one aim of SCO was to ensure that liberal democracy could not gain ground in these countries, according to political scientist Thomas Ambrosio.

[127] In 2016, political scientist Thomas Fingar wrote that China took the lead in establishing the Shanghai Five primarily to limit Russia's ability to reassert its influence in Central Asia.

[129]: 347  Citing principles of sovereignty, territorial integrity, and global order, China used its influence in the SCO to prevent the organization from supporting Russia.

[131] In January 2023, India as SCO chair, invited Pakistan's Foreign Affairs Minister and Chief justice to attend a meeting in Goa in May 2023.

[132] As of May 2023, India and Pakistan continued to spar over terrorism,[133] while Central Asian members Kyrgyzstan and Tajikistan have erupted in armed conflict over border disputes.

[139]: 82 A 2015 European Parliamentary Research Service paper concludes, "The SCO's main achievement thus far is to have offered its members a cooperative forum to balance their conflicting interests and to ease bilateral tensions.

However, major shortcomings, such as institutional weaknesses, a lack of common financial funds for the implementation of joint projects and conflicting national interests have prevented the SCO from achieving a higher level of regional cooperation in other areas.