Shanghai Cooperation
Organization
 

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Yekaterinburg will host 2009 session of Shanghai Cooperation Organization leaders council

The Shanghai Cooperation Organization

The Shanghai Cooperation Organization (SCO) is a permanent intergovernmental international organization. Its creation was declared in Shanghai, China, on June 15, 2001 by the Republic of Kazakhstan, the People’s Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, and the Republic of Uzbekistan.

The Shanghai Cooperation Organization was established on the basis of the Shanghai Five created with the signing of treaties on deepening military trust and mutual reduction of military forces in border regions between Kazakhstan, Kyrgyzstan, China, Russia, and Tajikistan.
In January 2001, Uzbekistan approached the Shanghai Five with a request to be admitted thereto as an equal member.

The transformation of the Shanghai Five into the Shanghai Cooperation Organization happened at the summit in Shanghai, China, on June 15, 2001. Heads of the six states signed the Declaration of SCO and the Shanghai Convention on struggle against terrorism, separatism, and extremism.

The 2004 Tashkent meeting of the Council of Heads of the SCO member states approved the Provisions on the observer status in the SCO.
In 2004, Mongolia received the observer status.
At the 2005 Astana meeting of the Council of heads of the SCO member states countries, India, Pakistan, and Iran received the observer status in the SCO.

On September 14, 2001 in Almaty, the first meeting of the heads of governments of the Shanghai Cooperation Organization member countries. During this meeting, the governments of the SCO member countries signed the Memorandum on key purposes and directions of regional economic cooperation. At the same meeting, establishment of a framework for regular meetings of the heads of governments of the SCO member states was announced.

On June 7, 2002, at the meeting in Saint Petersburg, Russia, the Council of heads of the SCO member states signed the SCO Charter which expounded on the organisation's purposes, principles, structures and main directions for cooperation.
Additionally, an Agreement on Regional Anti-Terrorist Structure was signed between the SCO member states.

On September 23, 2003, the heads of governments of the SCO member states met in Beijing. At this meeting, the Program for Multilateral Trade and Economic Cooperation between the SCO member states was signed and the Organization’s first 2004 budget adopted. The Program has clearly defined the key purposes and tasks of the economic cooperation within the SCO, priority cooperation areas and specific practical steps. It has also pointed out the course for the SCO economic cooperation – free flow of goods, capital, services, and technologies for a 20-year period.


Purposes of the Shanghai Cooperation Organization

The key purposes of the Shanghai Cooperation Organization include: 
Deepening mutual trust and good-neighbourliness between its member countries; 
Helping them to efficiently cooperate in the areas of politics, trade and economy, science and technology, and culture, as well as education, energy, transportation, tourism, environmental protection, and others; 
Mutually securing and maintaining peace, security, and stability in the region; 
Moving towards the creation of a democratic, fair, and reasonable new international political and economic order.

Relations within the Organization are based on ‘The Shanghai Spirit’. The Shanghai Cooperation Organization member states adhere to the principles of mutual trust, mutual benefit, equality, mutual consultations, respect of cultural diversity and aspiration for joint development. In their external relations, they adhere to the principle of non-alliance, non-directedness against someone, and openness.


The structure and permanent bodies of the Shanghai Cooperation Organization



The Council of Heads of member states (CHS) is the top decision-making body in the SCO.
The Council meets each year. During these meetings, it adopts resolutions and guidelines on all vital issues of the Organization.

To arrange for the interaction between ministries and agencies of the SCO member states, the Council of National Coordinators (CNC) has been established.

The Council of Heads of Governments of the SCO member states (CHG) has been operating since 2001.
The Council of Heads of Governments of the SCO member states meets once a year to discuss the multilateral cooperation strategy and priority areas within the Organization, to resolve issues of principle and importance for economic and other cooperation, and to approve the Organization's annual budget.

Since January 2004, the following permanent bodies have been operating:
„X The SCO Secretariat, located in Beijing
„X The Executive Committee of the SCO Regional Anti-Terrorist Structure (RATS), located in Tashkent.
At the 2006 Shanghai meeting of the Council of Heads of the SCO member states, Bolat Nurgaliyev and Myrzykan Subanov were elected to the posts of the SCO Secretary General and Director of Executive Committee of SCO RATS, respectively, as of January 1, 2007.

The member states of the Shanghai Cooperation Organization established frameworks for regular meetings between: 
Heads of parliaments, 
National security councils, 
Foreign ministries (CFM), 
Defence ministers, 
Law enforcement agencies, 
Ministers of economy, transportation, emergency, culture, education, and health, 
Heads of frontier services, 
General prosecutors, 
Supreme and arbitration courts, 
National coordinators (CNC).

An institute of permanent representatives of the SCO member states has been established at the SCO Secretariat in Beijing. At the 2005 Astana summit heads of the member states adopted a resolution to establish an institute of permanent representatives of the member states to SCO RATS.

The following non-governmental associations operate within the Shanghai Cooperation Organization: 
SCO Business Council 
SCO Interbank Consortium 
SCO Forum


The Shanghai Cooperation Organization Regional Anti-Terrorist Structure

The initiative of creating the Shanghai Cooperation Organization Regional Anti-Terrorist Structure (SCO RATS) has for the first time been reflected in Clause 5 of the Dushanbe Declaration by Heads of state of the Republic of Kazakhstan, the Kyrgyz Republic, the People’s Republic of China, the Russian Federation, and the Republic of Tajikistan, of July 5, 2000.
SCO RATS is established in accordance with the Declaration of Shanghai Cooperation Organisation of June 15, 2001; the Shanghai Convention “On combating terrorism, separatism, and extremism” of June 15, 2001; and the Agreement between the Shanghai Cooperation Organization member states on the Regional Anti-Terrorist Structure of June 7, 2002.
Technically, the SCO RATS Executive Committee commenced its operation in the 4th quarter of 2003. On November 15, 2003 the RATS Executive Committee was accredited with the Foreign Ministry of the Republic of Uzbekistan.
The official opening of the SCO RATS Executive Committee in Tashkent, which was attended by the heads of SCO member states, took place on June 17, 2004.
The RATS Executive Committee is divided into 5 sectors:
1) Coordination and operational activities;
2) Information and analytical activities;
3) International legal support;
4) Administration and financial activities;
5) Security and staffing issues.

The activity of the SCO RATS Executive Committee is to establish and maintain operation of the SCO RATS data bank; to maintain contacts and exchange of materials on the issues of combating terrorism, extremism, and separatism with other international organizations and states; to assist in the detection of terrorist attacks prepared within the SCO member states; to prepare information and analytical reviews on the issues of combating terrorism, extremism, and separatism both within the SCO member states and on the global scale.
SCO RATS does not possess its own force contingents. It is a framework for coordination, information and analytical support for the competent agencies in the SCO member countries with relevant material on combating terrorism, extremism, and separatism.
The RATS Council serves the purpose of a more efficient operation of SCO RATS. Members of the Council are heads of national security services of the SCO member states.

Major General Vyacheslav Temirovich Kasymov, a representative of Uzbekistan, was appointed to be the first director of the RATS Executive Committee.
Vyacheslav Kasymov’s powers expired on December 31, 2006. In this connection, Colonel General Myrzykan Usurkanovich Subanov, a representative of the Kyrgyz Republic, was appointed to be the new director of the SCO RATS Executive Committee as of January 1, 2007, by resolution of the Council of heads of SCO member states.

On September 28, 2007 the 10th Anniversary meeting of the SCO RATS Council took place in Ekaterinburg.
The meeting was hosted by Sergey Smirnov, First Deputy Director of the Federal Security Service of Russia, who has been the head of this structure as a representative of Russia – the country that presides over the Shanghai Cooperation Organization in 2008-2009.
The SCO RATS meeting discussed the issues of improving cooperation between the SCO member countries in the area of combating terrorism, separatism, and extremism, as well as developing new framework for interaction and improving the information exchange system between competent authorities of the SCO member states.
Special focus was given to discussing the progress of implementing the program for cooperation between the SCO member countries in combating terrorism, separatism, and extremism in 2007-2009.
At the Council meeting, the parties discussed drafts of Agreement on training the personnel for anti-terrorist teams of the SCO member states and Agreement on the procedure for SCO member states to organize and hold joint anti-terrorist exercises.
As part of implementing the initiative of China, Council meeting participants reviewed the issue of helping Chinese counterparts to ensure security during the events of the Beijing 2008 Olympic Games.



The Shanghai Cooperation Organization Business Council

The SCO Business Council was established in Shanghai on June 14, 2006. The founding session of the Business Council was attended by representatives of national sections of the Council from the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, and the Republic of Uzbekistan. The same session approved documents regulating the activity of the Council and its permanent Secretariat, which is located in Moscow.

The Council was established in accordance with the resolution by the Council of Heads of SCO member states. It is a non-governmental structure that unites the most competent representatives of the business community of the six countries with a purpose to expand economic cooperation within the Organization, to establish direct relations and dialogue between business and financial communities of SCO member states, and to assist in the practical promotion of multilateral projects as defined by heads of governments in the Trade and Economic Cooperation Program adopted in 2003.

Annual Session of the Business Council (BC) is its supreme body that determines priorities and develops key areas of its activity and solves the most important issues of relations with business associations of other states.

The SCO Business Council is an independent structure capable of making recommendatory decisions and issue expert assessments on long-term areas of involving representatives of the SCO states’ business community in trade and economic as well as investment interaction within the Organization.

Such a structure as the Business Council is special because it specifies interaction between SCO states in the area of education, science, innovative technologies, healthcare, and agriculture as priority areas for intergovernmental cooperation, along with energy, transportation, telecommunications, credit and banking sector. This means that the new body accepts the responsibility for a serious component - economic as well as social – and believes it to be an important element of economic development.

Harmonization of national laws in the area of economy is another important aspect of the Business Council’s activity. In this area, the BC expects to prepare necessary recommendations, including draft laws ready for revision. This work complies with approaches expressed at the first meeting of the heads of parliaments of the SCO member states in Moscow on May 30, 2006.

The SCO BC sees its role in organizing interaction between state structures and business - first of all, with a purpose of establishing a discussion forum within the SCO EC. At this forum, on a regular basis, a focused discussion would take place on topics like energy strategy of the Organization, opportunities for joint implementation of projects in the sector of exploration, production, processing, transportation, and transit of energy resources.

At the same time, part of the activity of the Russian sector of the SCO Business Council is to discuss the outlook for establishing several R&D structures under the auspices of the SCO BC and regional representations of the SCO BC. Preparations are underway to develop an agreement on long-term cooperation between the SCO Business Council and SCO Interbank Consortium.

Business activity in 2007

On November 22, 2007 heads of the SCO member states signed a Customs Treaty.
On December 20, 2007 Russia, Kazakhstan, and Turkmenistan signed an Agreement on the Caspian Sea coast gas pipeline.
On October 24, 2007 Astana hosted a meeting of ministers in charge of international economic and trade relations of the SCO member states.

At the level of interaction in the SCO Business Council format, these meetings took place: four meetings of the SCO Business Council Executive Committee, a meeting of the SCO national coordinators, a meeting of SCO Interbank Consortium Expert Council, and meetings of SCO member states’ expert groups took place.
The SCO Business Council held the 9th St. Petersburg International Economic Forum, the 1st International Insurance Conference, a round table ‘SCO and international communications and telecommunications projects'.
In October 2007, as part of the Shanghai Healthcare Organization project, the ‘Health’ medical train operated within Kazakhstan.
In all, in 2007 and the beginning of 2008: 
11 cooperation agreements were signed. 
10 goods/services delivery agreements were signed. 
9 joint venture agreements were signed and 7 transactions executed. 
5 visits were made at the level of trade and industry chambers. 
2 meetings were held at the level of ministries. 
8 meetings were held at the regional level.
2 presentations were made.
18 forums, conferences, and meetings were held.
5 exhibitions were held.

The SCO Business Council healthcare projects

Following the results of working meetings of the SCO Business Council, guidelines for cooperation between the SCO member states in the healthcare sector have been developed:
Promoting prevention of virulent diseases and tuberculosis. Establishing a unified coordination system for operations in emergency situations, man-made and natural disasters;
Enhancing accessibility of medical aid to SCO citizens, including migrants; improvement and unification of regulatory and legal framework in the healthcare and medical insurance sector;
Developing health resort therapy, treatment, and rehabilitation on the basis of national recreational and tourist areas;
Creating a unified information space; training and best practice exchange between national medical schools. Rendering aid by specialists to improve healthcare management system;
Cooperation in the medical high-tech sector.
Creation of a unified organ and tissue donorship bank.

Factors that help develop cooperation between the SCO member states:
High level of political and economic integration, historical differentiation of labour, and cooperation between the SCO member states;
Historical traditions in the specialists and nationals training system in all sectors of social and economic life, first of all for former USSR republics;
Increasing migration of the population in the labour market and in the tourism sector that imposes additional burden on state budgets and structures responsible for healthcare and prevention of virulent disease dissemination.

Key targets for implementing the cooperation guidelines:
1. Establishing an organizational structure (Shanghai Healthcare Organization) with the authority to coordinate the activity between state institutions and business communities towards the implementation of prioritized projects taking into account national, territorial, and industrial particulars of the SCO member states.
2. Analysing the existing intergovernmental agreements between SCO member states in the healthcare sector. Assessing the practices of interaction between in-house medical structures (Russian Railway, Gazprom, KazMunaiGaz, etc.).
3. Search for and implementation of efficient ways of cooperation on the basis of public-private partnerships and enhanced social responsibility of businesses.

Role and place of public-private partnership in integration processes within the SCO member states in the healthcare sector:
Creating favourable financial conditions for attracting private capital into the healthcare sector
Enhancing the role of intergovernmental regulation of services provided to the population, including the establishment of preferential regime for travel and insurance companies
State assistance to investment processes in creating joint medical objects and developing recreation areas
Attracting private companies as operators, contractors, and investors for nationwide as well as interregional projects within SCO.

Meetings of the Council of Heads of SCO member states

The Council of Heads of member states (CHS) is the top decision-making body in the SCO.
The Council meets each year. During these meetings, it adopts resolutions and guidelines on all vital issues of the Organization.

On June 14-15, 2001 in Shanghai, a meeting of six heads of states – Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan – took place. At this meeting, creation of the Shanghai Cooperation Organization was declared.

In June 2002, the second meeting of heads of SCO member states took place in St. Petersburg. At this meeting, ds

In May 2003, the third summit - the key one in the SCO history - took place in Moscow. At this meeting, documents that determine operation procedures for the key SCO bodies, budgeting framework, and other issues related to current work of various SCO subdivisions were signed. Emblem and flag of the Organization were adopted.
Zhang Deguang, a Russian-speaking Ambassador of PRC in Russia, was elected the first executive secretary of SCO.

On May 14-29 in Moscow, the third meeting of heads of the SCO member states took place.
Heads of the Republic of Kazakhstan, the Kyrgyz Republic, the People’s Republic of China, the Russian Federation, the Republic of Uzbekistan, and the Republic of Tajikistan signed the Declaration of the Shanghai Cooperation Organization, the Shanghai Convention on Combating Terrorism, Separatism, and Extremism, and a Joint Declaration of engaging Uzbekistan with the Shanghai Five framework.
The Declaration of the Shanghai Cooperation Organization adopted at the summit proclaimed, among its prime objectives, maintaining and ensuring peace, security, and stability in the Middle Asia, as well as development of cooperation in such areas as politics, trade and economy, science and technology, culture, education, energy, transportation, ecology, and others.
Another important document is the Convention on Combating Terrorism, Separatism, and Extremism. For the first time at the international level, it fixed the definition of separatism and extremism as violent, criminally prosecuted acts.
Following the results of the meeting, a Bulletin was released.
During the meeting of heads of states, foreign ministers signed Temporary Provisions on the procedure for the Council of National Coordinators of the SCO states, while defence ministers held a meeting and issued a Joint Communique.

On June 7, 2002 in St. Petersburg, the second meeting of heads of the SCO states took place.
Three documents were signed – the Charter of the Shanghai Cooperation Organization, an Agreement on the Regional Anti-Terrorists Structure between the SCO member states, and a Declaration of heads of the SCO member states.
The Charter of the Shanghai Cooperation Organization has legally fixed the SCO development guidelines proclaimed a year before in the Declaration. This Charter renders ‘the Six’ the status of an international organization and is the basic document that determines, along with cooperation guidelines, the internal structure and framework for establishing the general course and building relations with other countries and organizations.
The Regional Anti-Terrorist Structure (RATS) was established on the basis of the 2001 Convention, which proposed the improvement of interaction in combating terrorism, separatism, extremism, drug and arms traffic, as well as illegal migration. In 2002 it received the status of a permanent SCO body. Its function is to coordinate the activities of SCO states’ law enforcement structures and special services.

On May 28-29 in Moscow, the third meeting of heads of the SCO member states took place.
The heads of six member states approved and signed an Agreement on the procedure of SCO budget establishment and execution; Provisions on the Council of heads of the SCO member states; Provisions on the Council of heads of governments (prime ministers) of the SCO member states; Provisions on the Council of national coordinators of the SCO member states; Provisions on meetings of heads of ministries and/or agencies of the SCO member states; Provisions on the SCO Secretariat; Procedures of the SCO Regional Anti-Terrorist Structure Executive Council; and Provisions on permanent representatives of the SCO member states with the SCO Secretariat. They also approved the candidacy of the first Executive Secretary (Ambassador Zhang Deguang) and symbols of the SCO, and they signed and published the Declaration of heads of the SCO member states.

In 2004, the Council of heads of the SCO member states took place on June 17 in Tashkent, Uzbekistan.
The heads of the six states summarized the operating results of the Organization along various guidelines rolled out at the previous Moscow summit, and developed a whole range of important specific guidelines for its further operation. They stressed the fact that, as the Organization moves on to the next stage of its development, it is necessary to gradually shift the focus of its operations. By way of integrated practical cooperation, the Organization aims to speed up the achievement of realistic results in terms of establishing cooperation in the areas of security, trade and economy, humanitarian work, and others, which serves the interests of prosperity of the peoples of the six countries. Additionally, the necessity was acknowledged to continue and expand exchange and cooperation with other states and international organizations, with a purpose of a more active and constructive participation in the cause of supporting peace and development in the region and the world as a whole.
The heads signed and adopted ‘Provisions on the status of observer in the Shanghai Cooperation Organization’; ‘Agreement between the SCO member states on combating traffic of drugs, psychotropic substances, and precursors thereof’; ‘Convention on privileges and immunities of the Shanghai Cooperation Organization’; a resolution on establishing June 15 as ‘The Shanghai Cooperation Organization Day’ within the SCO; as well as the political document of the summit – the Tashkent Declaration.
During the meeting of the Council of heads of states, the following documents were signed: Protocol of cooperation and coordination of activities between foreign ministries of the SCO member states; and Agreement on conditions of stay between the People's Republic of China and the Republic of Uzbekistan, on the one part, and permanent bodies of the Shanghai Cooperation Organization in host countries, on the other part.

On July 5, 2005 in Astana, Kazakhstan, a new meeting of the Council of heads of the SCO member states took place.
The meeting was attended by President of the Republic of Kazakhstan N. Nazarbayev; Chairman of the People’s Republic of China Hu Jingtao; acting President of the Kyrgyz Republic K. Bakiyev; President of the Russian Federation V. Putin; President of the Republic of Tajikistan E. Rakhmonov; and President of the Republic of Uzbekistan I. Karimov. It was also attended by President of Mongolia Nambaryn Enkhbayar; First Vice President of Iran Dr. Mohammad Reza Aref; Prime Minister of Pakistan Shaukat Aziz; Indian Foreign Minister Natwar Singh; and the SCO Executive Secretary Zhang Deguang.
Following the results of the meeting of the Council of heads of the SCO member states, the Declaration of the heads of the SCO member states was issued.

On June 15, 2006 in Shanghai, China, the sixth meeting of the Council of heads of the SCO member states took place.
Following the results of the meeting, the heads of states issued a joint communique.

On August 16, 2007 a meeting of the Council of heads of the SCO member states took place in Bishkek, Kyrgyzstan.
An Agreement on long-term good-neighbourliness, friendship, and cooperation was signed. This document sets the guidelines for joint long-term work. It also establishes a good basis for an integrated development of SCO and a growing interaction with both member and observer states.
Important agreements were signed at the level of culture ministries and financial and economic structures of SCO – the Business Council and the Interbank Consortium.
The Bishkek Declaration and a joint communique were adopted.
Also at this time, it was announced that the 2008 meeting of the Council of heads of the SCO member states would take place in Dushanbe; 2009, Ekaterinburg.


Presidency of the Russian Federation in the Shanghai Cooperation Organization

At a meeting with ambassadors of foreign countries in the Kremlin in 2007, Vladimir Putin said:
“Decisions to hold the 2009 SCO summit in Ekaterinburg, the 2012 APEC summit in Vladivostok, and the 2014 Winter Olympic Games in Sochi are proof of Russia’s strengthening international authority and its growing partnership qualities. We are planning to hold these events at the highest standards of modern excellence”.

One of the member states presides in the Shanghai Cooperation Organization every year.

The presiding SCO member state hosts a meeting of the Council of heads of the SCO member states.
Furthermore, traditionally during the presidential term there are events aimed at strengthening multilateral intergovernmental, business, trade and economical, scientific and technical, and humanitarian relations between the SCO member states.

In the summer of 2008, upon completion of the Dushanbe meeting of the Council of heads of the SCO member states, the presidency of the SCO will be handed over to the Russian Federation.

The joint communique, which was adopted as a result of the August 2007 Bishkek meeting of the Council of heads of the SCO member states, declares that the 2009 meeting of the Council will take place in Ekaterinburg, Russia.


Events of the Presidency of the Russian Federation in the Shanghai Cooperation Organization

During the presidency of the Russian Federation in the Shanghai Cooperation Organization, more than 40 events aimed at strengthening multilateral intergovernmental, business, trade and economical, scientific and technical, and humanitarian relations between the SCO member states could take place.

A detailed plan of the events of Russia’s presidency in the Shanghai Cooperation Organization will appear after the official inauguration of Russia as the SCO Chair. However, we can already say that some of the events of Russia’s presidency in SCO will take place in Ekaterinburg and the Sverdlovsk Oblast proper.

The Sverdlovsk Oblast continues to expand multilateral relations with regions of the SCO member states.

In 2008-2009, the Sverdlovsk Oblast will host events that will be attended by representatives of the SCO member states.



Information about the Shanghai Cooperation Organization

The website of the Shanghai Cooperation Organization:
http://www.sectsco.org

Information on Russia’s preparation for the presidency in the Shanghai Cooperation Organization in 2008-2009 is posted on the website of the President of the Russian Federation:
http://www.kremlin.ru


The website about the activity of the Shanghai Cooperation Organization
www.infoshos.ru

The website about preparation in the Sverdlovsk Oblast for holding the 2009 meeting of the Council of heads of the Shanghai Cooperation Organization member states in Ekaterinburg:
http://www.shos2009welcome.ru


For more information about the SCO summit in Yekaterinburg in 2009, please contact Oleg Gusev - Vice-chairman of Sverdlovsk region government.
Tel.: +7-343-371-82-08
Fax: +7-343-377-17-05
e-mail: info@shos2009welcome.ru