Economic cooperation

A Framework Agreement to enhance economic cooperation was signed by the SCO member states on September 23, 2003. At the same meeting the PRC's Premier, 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. A follow up plan with 100 specific actions was signed one year later, on September 23, 2004.

On October 26, 2005, during the Moscow Summit of the SCO, the Secretary General of the Organisation said that the SCO will prioritise joint energy projects; such will include the oil and gas sector, the exploration of new hydrocarbon reserves, and joint use of water resources.

SCO Council was also agreed upon at that summit in order to fund future joint projects. The first meeting of the SCO Interbank Association was held in Beijing on February 21–22, 2006. On November 30, 2006, at The SCO: Results and Perspectives, an international conference held in Almaty, the representative of the Russian Foreign Ministry announced that Russia is developing plans for an SCO "Energy Club". The need for this "club" was reiterated by Moscow at an SCO summit in November 2007. Other SCO members, however, have not committed themselves to the idea. However on August 28, 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."

On June 16, 2009, at the Yekaterinburg Summit, China announced plans to provide a US$10 billion loan to SCO member states to shore up the struggling economies of its members amid the global financial crisis. The summit was held together with the first BRIC summit, and the China-Russia joint statement said that they want a bigger quota in the International Monetary Fund. At the 2007 SCO summit Iranian Vice President Parviz Davudi addressed an initiative that has been garnering greater interest and assuming a heightened sense of urgency when he said, ―The Shanghai Cooperation Organisation is a good venue for designing a new banking system which is independent from international banking systems. The address by Russia‘s Putin also 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. ―The world is seeing the emergence of a qualitatively different geo-political situation, with the emergence of new centers of economic growth and political influence. ―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.

1. What do you understand under „economic cooperation‟ in SCO?

2. What was the most important idea on October 26, 2005 Summit in Moscow?

3. Have the members of SCO made something to help each other during the financial crisis in 2009?

4. Is it possible with the help of SCO creating special funds to support the countries of so-called “third world”?

A. Divide into two groups, with one group representing the NATI and one group representing SCO. Speak on the problems, existing in the organizations. Take into consideration the following:

The real power of the NATO and SCO. Do all of decisions accepted by the SCO carried out?

SCO today: main achievements of the organization in carrying out the policy of developing cultural, social and economic spheres.

Date: 2016-01-14; view: 833