The Shanghai Cooperation Organisations 2023 Sumit just got over in the city of Astana, in Kazakhstan, bringing across leaders from across the region. Shanghai Cooperation Organisation (SCO) is a political, economic security and defence organisation founded by China and Russia in 2001. It now has 10 countries as its members. India and Pakistan joined in 2017. Iran joined it in 2023. And Belarus this year. This year India was represented by our External Affairs Minister, Mr Jaishankar. The next meeting of the council of heads of SCO is slated to be held, in China in 2025. The SCO is a strategic partner of the United Nations on issues relating to political affairs, peace and security.
The theme of the Summit is ‘Towards a SECURE SCO’. The SECURE acronym was coined by our Prime Minister Modi, at the 2018 SCO Summit. It stands for Security; Economy and Trade; Connectivity; Unity; Respect for Sovereignty and Territorial Integrity; and Environment. The 10 members of the SCO are Tajikistan, Uzbekistan, Russia, Kazakhstan, Pakistan, India, China, Kyrgyzstan, Iran and Belarus.
International North South Trade Corporation. (instc)
India and Iran signed a ten-year agreement to manage the Chabahar Port, in Iran, enhancing regional connectivity and providing an alternative to China’s Belt and Road initiative. Naturally China was not happy about this initiative. But the U S too issued a cloaked threat to India for dealing with Tehran. This deal not only strengthens bilateral relations with Iran and Afghanistan but also facilitates trade with Central Asia. The initiative plans to integrate the port into the INSTC. India’s investment in Chabahar’s infrastructure aims to improve trade routes and access to Central Asian markets. At present there are 13 members in INSTC, namely India, Iran, Russia, Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine Belarus Oman and Syria.
As a direct result of this initiative, India received 2 train loads of coal, directly from Siberia in Russia through this INSTC. This came at a time when India’s coal reserves were fast dwindling, due to a long harsh summer in the country. And the excessive use of electricity, made thermal electric production inevitable. These two loads took less than three weeks reaching Bombay from Russia, while the same 2 loads would have taken nearly 7 weeks reaching India, if it was transported through the old trade routes via Europe. See the map below.
Prime Minister Modi’s visit to Russia criticised
Global media has been going after Narendra Modi and India’s foreign policy establishment in the context of the PM’s visit to Russia. Apparently, an Indian state visit to Russia, a meeting with President Vladimir Putin, and so on are seen as endorsements of Russia’s war efforts-nay-alleged war crimes in Ukraine. India pursues its national interest ignoring moralistic running commentary on global affairs. This is EXACTLY the same thing that the West also does. Except when the West does it, the western media houses work to manufacture consent both at home and abroad.
It was heartening to see Modi being presented Russia’s highest civilian award and the bonhomie on display between the two leaders of Russia and India. Naturally it wouldn’t be to the liking of the US media and its leadership. But for Modi, what matters is, what benefits his nation rather than what pleases the New York Times.
The Rise and Growth of Russia.
Amidst all this, what’s heartening is, the rise and growth of Russia. It will be quite surprising, if I am to tell you, that amidst the 16000 plus sanctions the U.S imposed against Russia, in the wake of the Russia-Ukraine war, Russian economy is on the rise. The other countries cooperating with the US in these sanctions are, Australia, Japan, European union and Canada. Russia has been continuously at war with Ukraine, this past year and a half. Yet the Russian economy was just given a stamp of approval by the world bank. The last time Russia was considered a high-income nation was in 2014.
Sanctions limited Moscow’s ability to trade with the West. It has been trading with all these nations in the past. It received a crippling blow when trading with these nations stopped due to the thousands of sanctions imposed on it. But Russia relied on its wartime economy to boost economic growth. It concentrated on producing weapons for its war time requirements and has been trading these with middle eastern nations and nations of global south. Moscow also rerouted its other trade through the Global South. This helped Russia rise economically even under sanctions.
How USA and the West will react to Russia’s growth is yet to be seen? The last time Russia was considered a high-income nation in 2014, thewest started imposing sanctions on Russia over its annexation of Crimea.
Russia has spent the last decade adapting to Western sanctions. Expansion of its trade with the Global South has helped Russia to regain its high-income status. According to a recent world bank report it has upgraded Russia from an “upper middle income ” to a “high income” country with a per capita income of $14250/- in 2023.
Major Biddanda Nanjappa,
Recipient of President’s Gold Medal
Convener FMCGT Forum.
The facts and views presented are of the author.
