Study of Geo-economic Position of Shanghai Cooperation Organization on World Economy

Document Type : Original Article


1 -Assistant Professor of Political Geography, World Studies Faculty, Tehran University, Tehran

2 - Scientific Board Member, Institute for Trade Studies and Research, Tehran


This article, is studying the geo-economics parameters of Shanghai Cooperation Organization Economy (SCO) and its permanent and observer member countries variables of this organization and its place in the world economy according to the latest statistical data. This article at the first step is going to clarify the comparative studies of key parameters influencing geo economy and their abilities and talents in creating regional economic convergence. Summarize the article suggests that:
1- SCO merely is not a military - security alliance, and gradually the economic agenda will consider as its priorities. The organization at the present situation has six permanent members and four members are observers. With full membership of this organization in the future, Iran will be the first time that is going to join in a non-economic (respectively military - security) organization. The areas of the  Member States (the main and observer members both) of SCO approximately  is equal by 37 million square kilometers, equivalent to or more than 28 percent of Earth's surface and its members from point of geographical view in fact they are both natural trade partners to each other. The organization with 2.9 billion population, has 43.62 percent of the world population, and from this point stands as the first regional actor in the world.
2- In this realm the two economic giants of Asia (India an China) are strengthening as the powers that are affecting both the region and the world, but they do not have enough energy resources and compelled a large part of the energy used for growing their economies from the outside world to import. In this treaty the two major oil-producing giants (Iran and Russia) have rich deposits of gas and petroleum also. Thus the three factors mentioned, energy resources (oil and gas), manufacturing products (industrial and agriculture) and consumption markets (significant population) there are in the region. Large population of the region itself, is the main local market for agricultural and industrial products of the region.
3- But in the this regional treaty, there are several negative points. Shanghai treaty member countries in addition separatism movements, is faced with current drug trafficking, arms and human smuggling, Taliban Islamism, are common threats that can work together. Future threats could damage the framework of common cooperation of members countries are including the hostilities between Chinaand India between one side and India and Pakistan is the other side. Algebraic sum game they can play is zero. Hence the covenant with two powerful and populous members could collapse if the negative balance, and if the balance becomes positive influence.
4- Primarily regional organizations in the international arena without a high security factor failed to be successful. Three powers of this important treaty (China, India and Russia) are Muslim countries, thus they are with different religious and cultural perspectives, the traditional Muslim countries (Iran and Pakistan) have gathered together to work in the framework of Islamic values. It is too early to be able to continue working on the final decision issued in Shanghai, but these countries wills that they decided and want to come together to work in a regional organization, is a step forward. If we know that the SCO in the 1990’s played a positive role to eliminate military threats and fight against radical Islam, and formed for solving boundary disputes(remaining from the Cold War between China and the Soviet Union), expectations of economic cooperation development is not out of expectation. However, the future world and regional cooperation organization in the world, could be successfully considered in SCO too.


Volume 7, Issue 23
September 2011
Pages 101-135
  • Receive Date: 11 August 2010
  • Revise Date: 27 September 2010
  • Accept Date: 07 March 2011
  • First Publish Date: 23 September 2011