China’s Path for Optimizing the Supply of Public Goods in the SCO Region after its Expansion

Abstract

The effective supply of regional public goods is the fundamental driving force for the sustainable development of the Shanghai Cooperation Organization (SCO). After the expansion of the SCO, member states have increasingly diversified demands for regional common goods. The article analyses the supply of the regional public goods in three different fields: security, economy and cultural cooperation. Although currently the SCO regional public goods supply appears at its peak, several problems and constraints remain, such as the disequilibrium between supply and demand, shortage of funds, lack of effective organizational and procedural mechanisms, and a degree of regional overlap. These issues seriously constrained the SCO regional activities such as the effective supply of public goods that requires integration of the development of new and old members. As one of the important SCO member states, China should actively promote the optimization of regional public goods supply through several steps. First, based on the “Shanghai spirit” China should promote the SCO’s community building, political mutual trust, enhance the political cooperation between member states and consolidate the regional environment facilitating the public goods supply. Second, the design of the SCO system should be improved through the innovation of the mechanisms of regional public goods supply able to increase its efficiency. Third, Russia and China should coordinate their activities more closely in order to create a harmonious environment in which both countries play the leading role in regional public goods supply. Fourth, the SCO should strengthen the cooperation with “One Belt and One Road” initiative to promote a rapid regional economic development. Finally, mechanisms of cooperation with other regional organizations such as the Eurasian Economic Union (EEU) and the Collective Security Treaty Organization (CSTO) should be also strengthened in order to create an integrated and complementary supply system.

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