SCO Development Bank Announcement
Chinese Foreign Minister Wang Yi shared on Monday that member states of the Shanghai Cooperation Organization (SCO) have reached an agreement to create a development bank. This initiative aims to bolster economic cooperation in the region, as reported by Reuters.
Speaking in Tianjin during discussions among SCO countries, Yi noted that the organization plans to kick off the process of establishing financial institutions soon. This development bank is anticipated to play a significant role in funding infrastructure and other projects throughout the member states.
“The SCO Development Bank will greatly support infrastructure initiatives and provide fresh momentum for the economies of our member nations,” Yi mentioned in the Tianjin Declaration.
This announcement was made during the inaugural address of the 25th SCO Summit, where member states were encouraged to expedite their banking efforts, according to a PTI report. Xi emphasized that the SCO has become the largest regional organization globally, collaborating in over 50 regions with 26 partner countries, which collectively generate nearly $30 trillion in economic output.
China has long advocated for the creation of the SCO Development Bank, drawing parallels with similar multilateral entities like the BRICS New Development Bank and the Asian Infrastructure Investment Bank. Both of these banks, based in China, were once seen as competition to institutions like the IMF, World Bank, and Asian Development Bank, but have since built a cooperative relationship.
Highlights from the Tianjin Declaration
Alongside the decision to initiate the SCO Development Bank, the Tianjin Declaration included several key announcements aimed at enhancing regional cooperation. According to Reuters, new categories of SCO partner countries have been established, integrating dialogue partners and observers, resulting in an expansion to 27 member states. Former Minister Wang Yi also noted that Pakistan and Armenia have officially established diplomatic relations within this framework.
The declaration reaffirmed the bloc’s unified position on global governance and expressed strong opposition to the militarization of information and communications technology. It also highlighted the commitment to improving cooperation in drug management and holding security dialogues within the broader SCO framework in Uzbekistan.
Furthermore, the document stressed the importance of fostering exchanges and cooperation with the United Nations and its specialized agencies, underscoring their significance in the organization’s international relations.
