The Shanghai Cooperation Organization and Afghanistan: The Path of Regional Integration and the Transformation of the Global Order

By: Center for Strategic & Regional Studies

Note: Click here for the PDF file of this analysis.

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In this issue:

1. 1. The Shanghai Cooperation Organization and Afghanistan: The Path of Regional Integration and the Transformation of the Global Order
   2. The Shanghai Cooperation Organization
   3. Afghanistan and the Shanghai Cooperation Organization
   4. The SCO and Regional Integration
   5. The Role of the SCO in Transforming the Global Order
   6. The Security and Political Dimensions of the SCO
   7. The Economic and Energy Dimensions of the SCO
   8. Challenges Facing the Shanghai Cooperation Organization
   9. Conclusion
   10. References

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Introduction

The Shanghai Cooperation Organization (SCO), as one of the most significant regional institutions at the outset of the twenty-first century, has not only provided a platform for cooperation among its member states in security, political, and economic domains but has also gradually evolved into an influential actor in shaping the structure of the global order. Originally established to resolve border disputes and strengthen mutual security trust between China, Russia, and several Central Asian states, the organization has since broadened both its activities and membership to include other major regional powers such as India, Pakistan, and Iran. In today’s international environment, where clear signs of transition from a unipolar to a multipolar order are increasingly evident, the SCO functions not only as a platform for regional integration among Asian states but is also steadily transforming into a mechanism for balancing power vis-à-vis the West and U.S.-led institutions. A scientific and analytical review of the SCO’s position and performance demonstrates that the organization has succeeded in fostering trust among its members by establishing mechanisms for cooperation in the areas of security, economics, culture, and energy, thus laying the foundations for an alternative, non-Western order in global politics. Within this framework, Afghanistan, situated in the heart of Asia and sharing borders with several SCO member states, holds a unique position in the organization’s security and economic considerations. However, Afghanistan’s internal problems and political challenges continue to hinder the country’s full engagement with the opportunities for cooperation within the SCO framework. This paper examines the history of the SCO, Afghanistan’s relationship with the organization, the SCO’s role in shaping the global order, with a particular emphasis on its economic and security dimensions, as well as the challenges confronting the organization.

The Shanghai Cooperation Organization

In 1996, five countries China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan—established a regional mechanism known as the “Shanghai Five.” Its primary purpose was to strengthen security trust, reduce militarization in border areas, and resolve disputes peacefully in the aftermath of the Soviet Union’s collapse. At their first meeting in Shanghai, the states signed a treaty to enhance military confidence through limiting military exercises, exchanging information, and conducting joint military reporting. This was followed in April 1997 by a treaty on reducing military forces along the border regions. On June 15, 2001, with the inclusion of Uzbekistan, this mechanism was formally transformed into the Shanghai Cooperation Organization (SCO). A declaration signed in Shanghai that year marked the beginning of a new stage in regional multilateral cooperation. The SCO’s official charter was signed at the 2002 summit in St. Petersburg and was formally adopted in September 2003. From the outset, the SCO’s objectives rested on three core pillars:

1. Building security trust among neighboring states.
2. Jointly countering transnational threats such as terrorism, separatism, and extremism.
3. Promoting regional cooperation in political and economic fields.

These goals were first shaped under the “Shanghai Five” agreements on military confidence-building and border force reduction (1996–1997), which sought to ease post–Cold War tensions and stabilize frontiers. With the SCO’s formal establishment in 2001 and adoption of its charter, the coordinated struggle against the so-called “three evils” became the organization’s permanent focus. To this end, the Regional Anti-Terrorist Structure (RATS) was created to strengthen coordination and intelligence sharing. In addition, the SCO’s charter and subsequent declarations set out ambitions for broader cooperation in trade, transport, energy, culture, and science, aiming to promote stability and growth through bilateral and multilateral initiatives. The evolution of SCO membership also reflects the organization’s growing significance in regional security cooperation and confidence-building. With Uzbekistan joining in 2001, the SCO’s institutional framework took shape. In 2005, India, Iran, Pakistan, and Mongolia were admitted as observers. At the 2017 Astana Summit, India and Pakistan became full members, bringing the organization’s reach to nearly half of the world’s population and expanding its geographic scope. Iran, after years as an observer, began its formal accession process in September 2021 and became the SCO’s ninth permanent member in 2023. Altogether, these developments illustrate the SCO’s transformation from a narrow security mechanism into a multidimensional organization that now includes major regional and global powers.

Afghanistan and the Shanghai Cooperation Organization

Afghanistan was admitted as an observer to the Shanghai Cooperation Organization (SCO) in 2012. However, following the return of the Islamic Emirate to power in 2021, the official participation of Afghan representatives in SCO meetings has been suspended. This situation reflects the complex challenges surrounding Afghanistan’s engagement with the organization. As noted earlier, the SCO was originally established to address common threats such as terrorism, separatism, extremism, and drug trafficking. Afghanistan, sharing borders with several SCO member states, occupies a pivotal position in regional security dynamics. The issues of insecurity, radicalization, and narcotics trafficking, often associated with Afghanistan, have been consistently identified by SCO members as serious threats, particularly along shared borders with Pakistan, Iran, Tajikistan, and China. In response, the SCO has sought to mitigate these risks through enhanced security and intelligence cooperation. The Regional Anti-Terrorist Structure (RATS), for instance, has been tasked with countering terrorism and drug-related activities across the region. Despite its challenges, Afghanistan also holds potential opportunities for cooperation with the SCO. Strengthening transit infrastructure, expanding joint economic projects, and deepening security collaboration could all contribute to improving Afghanistan’s domestic stability. For example, initiatives such as the China–Pakistan Economic Corridor (CPEC) could serve as a vital link connecting Afghanistan with Central and South Asian states. The future of Afghanistan’s role in the SCO, however, will largely depend on its domestic political developments and broader international relations. While countries such as Russia are inclined to expand engagement with the Taliban government, others continue to withhold formal recognition. Under these circumstances, Afghanistan may remain an observer state or, should conditions change, move toward full membership. In either case, Afghanistan’s position as a key state at the crossroads of Central and South Asia gives it strategic significance within the SCO, with potential implications for shaping the emerging global order.

The SCO and Regional Integration

The Shanghai Cooperation Organization (SCO) was established as a multilateral institution in Central Asia with the primary aim of fostering trust and cooperation in the security domain, particularly in countering terrorism, extremism, and separatism. In comparison with the European Union (EU), whose model of regionalism is founded on principles such as the rule of law, human rights, and a free market economy, the SCO emphasizes the “Shanghai Spirit,” which is rooted in respect for national sovereignty and non-interference in the internal affairs of its member states. This divergence in principles and approaches has positioned the SCO more as a political and security platform rather than an economic or legal union akin to the EU. The accession of India and Pakistan to the SCO in 2017 marked a significant expansion of the organization into South Asia. This enlargement not only increased the SCO’s population base and cultural diversity but also introduced new challenges for regional cooperation. India, with its long-standing experience in multilateral diplomacy and counterterrorism efforts, has the potential to strengthen the SCO’s security capacities. Pakistan, on the other hand, with its strategic location along major transit routes and involvement in large-scale infrastructure projects such as the China–Pakistan Economic Corridor (CPEC), plays a vital role in enhancing the region’s economic and transit connectivity. Afghanistan, with its strategic geographical location at the heart of Asia, likewise holds a pivotal role in regional integration processes. As a bridge between Central, South, and West Asia, the country possesses significant potential to facilitate economic, transit, and security linkages across the region. In this regard, the SCO, as a key regional institution, could provide Afghanistan with meaningful opportunities to participate actively in regional integration initiatives.

The Role of the SCO in Transforming the Global Order

Amid the geopolitical transformations of the twenty-first century, the Shanghai Cooperation Organization (SCO) has emerged as one of the most influential regional institutions with the potential to play an increasingly important role in reshaping the global order. Initially established to address security threats and extremism in Central Asia, the SCO has gradually evolved into a platform for countering Western unilateralism and promoting multilateralism. The official declarations of recent SCO summits, particularly the Tianjin meeting, illustrate the members’ explicit rejection of Cold War mentalities and Western hegemonic systems. Both China and Russia, as the organization’s core powers, have repeatedly emphasized the need for a more balanced, just, and multipolar international order. This approach is not only a reaction to Western sanctions and economic pressures but also an effort to enhance the political and economic independence of member states, especially across the Global South. Drawing on principles such as mutual trust, shared interests, and respect for cultural diversity, the SCO seeks to introduce a new model of international cooperation as an alternative to Western-centric structures. One of the SCO’s most strategic initiatives has been the establishment of independent financial institutions, such as the proposed Shanghai Development Bank. Backed by China and recently discussed at SCO summits, the bank aims to provide credit lines without political preconditions while financing infrastructure projects under the Belt and Road Initiative (BRI). Such an institution could serve as a counterweight to Western-dominated financial bodies like the World Bank and the International Monetary Fund, which often attach political and economic conditions to their loans. Likewise, the SCO’s growing efforts to reduce reliance on the U.S. dollar in trade reflect another strategic step toward financial independence. This process, accelerated by the participation of states like Iran, Russia, and China, countries facing Western sanctions, has led to a greater use of national currencies in bilateral and multilateral trade. In turn, this reduces currency risks and lays the foundation for a multipolar global financial system. Another important dimension of the SCO’s global role is its convergence with similar institutions, such as BRICS, and its active engagement with countries of the Global South. Increasing cooperation between the SCO and BRICS in economic, security, and cultural fields demonstrates a collective effort to build a new power bloc capable of counterbalancing Western-led structures such as NATO and the G7. This convergence not only strengthens the immense economic capacities of member states but also enhances the political and civilizational legitimacy of the East in contrast to Western liberalism. By emphasizing principles such as non-interference, respect for national sovereignty, and the peaceful resolution of conflicts, the SCO is presenting itself as a cultural and political alternative to the post–World War II international order. Its outreach to African, Latin American, and South Asian countries further reflects the organization’s ambition to extend its influence beyond traditional boundaries and position itself as a global actor with a multipolar vision. If these trends are consolidated through institutional capacity-building and the practical implementation of cooperative frameworks, the SCO could well become one of the key pillars of the emerging world order. Within this broader context, Afghanistan’s outlook in the regional order is particularly significant. With its strategic geographic location and vast natural resources, Afghanistan has the potential to play a vital role in fostering integration between Central and South Asia. Its status as an SCO observer state provides opportunities to participate in regional transit, economic, and security projects. Yet, meaningful engagement will depend on domestic political stabilization and greater international interaction. Should these conditions improve, Afghanistan could assume a more active and decisive role in regional integration processes and in shaping the broader transformation of the international order.

The Security and Political Dimensions of the SCO

The Shanghai Cooperation Organization (SCO), as a multilateral security and economic body in Central Asia, plays a vital role in addressing transnational threats. Its security and military dimensions have been increasingly strengthened, particularly in combating terrorism, extremism, and drug trafficking, through joint military exercises as well as enhanced intelligence and operational cooperation. For instance, the joint counterterrorism exercises of 2024 and 2025, conducted in China with the participation of all SCO members, demonstrated the collective resolve of member states to confront terrorist threats and to build mutual trust. Similarly, the Regional Anti-Terrorist Structure (RATS) of the SCO, serving as the central coordinating body for countering terrorism, separatism, and religious extremism, has played an effective role through organizing joint drills, facilitating intelligence exchange, and developing strategies to combat extremist and terrorist groups. In the fight against narcotics trafficking, the SCO has prioritized joint initiatives, given the geographical position of its member states and their proximity to Afghanistan, particularly in Central Asia. Member countries, in coordination with other international and regional institutions, including the United Nations, the European Union, the Collective Security Treaty Organization (CSTO), the Organization for Security and Cooperation in Europe (OSCE), NATO, and the Conference on Interaction and Confidence Building Measures in Asia (CICA)—have undertaken collaborative measures to combat terrorism, drug trafficking, and organized crime. These efforts include holding joint meetings, exchanging intelligence, and coordinating anti-trafficking operations. Regional developments, especially the crisis in Afghanistan and the ongoing instability in the Middle East, have had a significant impact on the SCO’s security policies. The return of the Taliban (Islamic Emirate) to power in Afghanistan and the resulting security concerns have prompted SCO member states, particularly China, Russia, Pakistan, and Iran, to intensify their security cooperation. In this context, Chinese Foreign Minister Wang Yi, during meetings with Afghan and Pakistani officials in Kabul, stressed the importance of strengthening trilateral cooperation in the fields of security, countering cross-border terrorism, and combating narcotics trafficking. These developments underscore the SCO’s growing importance as a regional security framework aimed at addressing common threats and fostering stability in Central Asia.

The Economic and Energy Dimensions of the SCO

The Shanghai Cooperation Organization (SCO), as one of the world’s largest economic and political coalitions, brings together both emerging and developed economies, thereby commanding vast economic potential. By 2024, the nominal GDP of SCO member states accounted for approximately 23 percent of global GDP, while their share based on purchasing power parity (PPP) reached nearly 36 percent. These figures correspond to a consumer market of more than 3.2 billion people, about 40 percent of the world’s population. Such economic capacity positions the SCO as a key global actor capable of fostering deeper economic and trade cooperation among its members as well as with other regions. In pursuit of strengthening economic infrastructure, the SCO has launched numerous joint initiatives in the fields of transportation, energy, and digitalization. These projects include the development of energy corridors, cross-border railways, and digital networks, all aimed at facilitating trade, reducing transportation costs, and enhancing digital connectivity among member states. For instance, clean energy projects such as the Karot Hydropower Plant in Pakistan and broader cooperation in the field of green energy within the SCO framework reflect the members’ commitment to sustainable development and the use of renewable energy resources. Furthermore, the regular convening of summits and joint forums in various economic sectors has contributed to consolidating cooperation and fostering synergy among member states. Given the geographical and economic positioning of its members, the SCO plays a pivotal role in promoting economic connectivity across Central, South, and East Asia. Initiatives such as the China–Kyrgyzstan–Uzbekistan Corridor and the development of Pakistan’s Gwadar Port exemplify the organization’s efforts to establish transportation and energy networks linking these regions. Such projects not only facilitate trade and energy transfer but also serve as catalysts for economic development and stronger ties among SCO members and neighboring states. Ultimately, by prioritizing infrastructure development and advancing economic cooperation, the SCO seeks to lay the foundations for an integrated and sustainable economic region that is better equipped to withstand global challenges.

Challenges Facing the Shanghai Cooperation Organization

The Shanghai Cooperation Organization (SCO), established as a multilateral regional body to enhance security, economic integration, and political cooperation in Central Asia and Eurasia, continues to confront a series of structural and strategic challenges that hinder the full realization of its objectives. Political and Border Disputes. Persistent political and territorial disputes among member states, particularly between India and Pakistan, or China and India, complicate internal coordination and directly affect decision-making in the security domain. These tensions underscore the divergence of security priorities and strategic outlooks among member states, limiting the SCO’s capacity to forge an effective common policy. Moreover, the diversity of national interests and geopolitical strategies makes consensus-building on critical issues of foreign policy, economics, and security both time-consuming and complex, and at times, organizational priorities come into conflict with members’ national interests. Economic Constraints. The absence of a unified economic structure or common currency restricts financial and trade cooperation within the SCO. While discussions on using national currencies in trade have been initiated, the institutional and infrastructural prerequisites for establishing a joint currency or effective cross-border payment system remain underdeveloped. Such limitations weaken the organization’s ability to withstand economic pressures or sanctions imposed by rival powers, and they constrain the SCO’s capacity to advance large-scale infrastructure and energy projects. Additionally, the diversity of members’ economic systems, ranging from state-controlled to liberalized or mixed economies, complicates the harmonization of policies and the promotion of joint investment initiatives. Security Issues and Regional Threats. Security cooperation within the SCO is further complicated by divergent priorities and limited resources. While the organization has emphasized counterterrorism and combating extremism in Central Asia, differing assessments of threats have impeded the development of a coherent strategy. For example, during the 2025 Defense Ministers’ Meeting, India refused to endorse a joint statement, citing concerns that recent terrorist attacks in Kashmir were overlooked, highlighting the complexities of intra-organizational relations and their impact on regional integration. Furthermore, members’ external alignments, such as India’s ties with the United States, Russia’s strained relations with the West, and ongoing Western sanctions on Russia and Iran—along with Sino-Russian competition for regional influence- undermine internal cohesion and slow down both decision-making and program implementation. Structural and Managerial Challenges. The SCO also suffers from institutional limitations, including the absence of strong enforcement mechanisms, a reliance on consensus-based decision-making that is often slow, and insufficient resources for program execution. These weaknesses restrict the organization’s ability to respond swiftly to crises and global developments. Taken together, these challenges illustrate that while the SCO remains a significant regional and multilateral actor, its effectiveness in shaping a multipolar order and advancing economic and security cooperation depends on the pursuit of structural reforms, the strengthening of internal coordination, and the articulation of shared strategic priorities.

Conclusion

An examination of the role and performance of the Shanghai Cooperation Organization (SCO) demonstrates that over the past two decades, it has evolved from a limited security pact into a multidimensional institution. Today, the SCO not only plays an active role in countering common security threats but also seeks to serve as a platform for political, economic, and energy cooperation among Asian powers. The accession of countries such as India, Pakistan, and Iran has broadened the organization’s scope, transforming it into a wider forum for policy coordination and the strengthening of global multipolarity. China and Russia, in particular, utilize the SCO as a mechanism to balance Western influence while simultaneously advancing initiatives such as the Belt and Road Initiative under its framework. Nevertheless, internal disputes among members, divergences in political and economic systems, and persistent regional security challenges, notably in Afghanistan, have hindered the SCO from fully realizing its potential. Despite these constraints, the organization retains the capacity to emerge as one of the principal pillars of global order transformation in the near future, provided that its members succeed in managing their differences and institutionalizing deeper cooperation. The SCO’s role in the transition from a unipolar to a multipolar world order is increasingly evident, as it has elevated security and economic collaboration among its members to a level that reshapes the balance of power vis-à-vis the West. For Afghanistan, more active engagement in SCO-led projects and regional initiatives could contribute to political stability, reduce security threats, and bolster its fragile economy. However, the absence of international recognition for its government and persistent economic difficulties remain formidable obstacles. Ultimately, the future trajectory of the SCO will depend on the extent to which member states can reconcile internal disputes, mobilize adequate resources, and expand strategic coordination. Should these conditions be met, the SCO is poised to become both a central actor in redefining the global order and a vital catalyst for regional integration.

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