SCO Summit Tests Kathmandu’s Balancing Act

Founded in 2001 at the initiative of China and Russia, the Shanghai Cooperation Organisation (SCO) has emerged as the largest regional organization in Asia’s geopolitical landscape. Its roots, however, stretch back to the ‘Shanghai Five’ Agreement of 1996', which united China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan to strengthen border security and mutual trust. With Uzbekistan’s entry, the grouping evolved into a permanent institutional structure and was formally renamed the SCO in 2001. Initially, it comprised six members: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. Over time, its ranks expanded to include India, Pakistan, Iran and most recently Belarus, which became the 10th member on July 4, 2024. Afghanistan and Mongolia hold observer status, while Nepal and 13 other countries are dialogue partners. Today, the SCO has grown beyond a regional bloc into a significant global power centre. The statistics underscore its weight: As of 2024, SCO covers approximately 42% of the world's population—about 3.45 billion people. Collectively, the bloc accounts for nearly $23 trillion in GDP, more than 20 percent of global output. It also commands a fifth of the world’s oil and gas reserves. Unsurprisingly, Western nations increasingly view the SCO not just as a security platform but as an economic and energy powerhouse.