SHANGHAI COOPERATION ORGANISATION

Tuesday, August 8th, 2023

The Shanghai Cooperation Organization and the Imperative for Hard Assets

The Shanghai Cooperation Organization (SCO) is an influential coalition, bringing together China, Russia, and several Central Asian countries. Born out of the need to foster mutual cooperation and ensure regional stability, the SCO has grown to become a powerhouse in the geopolitical arena. As the organization continues to rise in prominence, there’s is an increasing focus on hard assets – physical commodities or tangible items that hold intrinsic value.

1. Understanding the SCO’s Ambitions

The SCO’s vision revolves around creating a harmonious regional environment. Its members focus on aspects like combating terrorism, advancing economic collaboration, and fostering cultural ties. However, beneath this mission lies a strategic push for securing hard assets that will be instrumental for future growth and stability.

2. The Role of Hard Assets

Hard assets, such as gold, oil, and real estate, have always been coveted for their ability to hedge against economic downturns and inflation. For nations, these assets offer security against economic volatility and a tangible means to underpin their economies.

3. SCO’s Pursuit of Energy Resources

Central Asia is rich in oil and natural gas. The SCO countries, notably China and Russia, are increasingly investing in these resources. By securing energy assets, these nations aim to ensure long-term energy supply, thereby reducing dependency on external providers.

4. Gold Reserves and Economic Security

Several SCO members have been steadily increasing their gold reserves. Gold, being a global currency of sorts, provides a safety net against economic uncertainties. By accumulating gold, countries can protect their economies from currency fluctuations and potential economic sanctions.

5. Infrastructure and Real Estate

The China-led Belt and Road Initiative (BRI) exemplifies the emphasis on hard assets. Infrastructure projects, railways, roads, and ports within and beyond the SCO territory not only boost trade but also act as long-term assets bolstering the region’s economic strength.

6. The Need for Diversification

While digital assets and financial instruments are growing in popularity, the inherent volatility associated with them makes tangible assets a safer bet. Hard assets provide a sense of security, especially in turbulent times, ensuring that countries have a foundation upon which they can rely.

Conclusion

The Shanghai Cooperation Organization’s focus on hard assets isn’t merely a trend but a strategic move ensuring future growth and stability. As global economies continue to evolve and face uncertainties, the emphasis on tangible assets will remain paramount for nations looking to safeguard their economic interests. The SCO, with its foresight, exemplifies this push towards a more secure economic future.