India and the Shanghai Cooperation Organisation (SCO)

[panduranghari]

I would say buy as much gold as you personally can. Instead of speculating in the stock market or buying property or but money into a FD, buying gold is the most sensible thing in the very short, short, medium and long term.

 

[blank_quest]

yaa but this is speculative in toto ~! What I think is that BOP is also pushing India to reduce Gold imports as it is creating the current account deficit. it means lowering of Rupees Value and inflation.

 

[spikey360]

Well, the way that the value of a US dollar is artificially jacked up, the fall of the Dollar is a matter of time. The only real reason it has not fallen yet is due to the romance that investors and economic institutes have for it. Printing of it in excess has also helped the cause somewhat.
However, the Iran sanctions and the ensuing bypasses used by other countries to deal with Iran has clearly shown that such romance if fast fading and it is, again, a matter of time before dollar loses its place as the de-facto international currency.
GOLD
Gold has always been the obsession for people of the subcontinent. There are religious ethos attached to gold too, not to mention psychological affinity for the yellow metal. Therefore it is highly unlikely that customers will now stop buying gold any more. There is a line of reasoning that says that a person who has gold has already been paid while the person with currency bills is yet to be paid. Therefore, buying gold as much as possible, personally, is very much recommended. that way, your savings/investments are future proof. Gold is never going to disappear. Wars may be waged, countries may fall, whole currency and economic regimes may be abolished or wiped out. However, your wealth in Gold will remain and will gain in value as long as it exists.

 

[panduranghari]

Well, the way that the value of a US dollar is artificially jacked up, the fall of the Dollar is a matter of time. The only real reason it has not fallen yet is due to the romance that investors and economic institutes have for it. Printing of it in excess has also helped the cause somewhat.
However, the Iran sanctions and the ensuing bypasses used by other countries to deal with Iran has clearly shown that such romance if fast fading and it is, again, a matter of time before dollar loses its place as the de-facto international currency.
GOLD
Gold has always been the obsession for people of the subcontinent. There are religious ethos attached to gold too, not to mention psychological affinity for the yellow metal. Therefore it is highly unlikely that customers will now stop buying gold any more. There is a line of reasoning that says that a person who has gold has already been paid while the person with currency bills is yet to be paid. Therefore, buying gold as much as possible, personally, is very much recommended. that way, your savings/investments are future proof. Gold is never going to disappear. Wars may be waged, countries may fall, whole currency and economic regimes may be abolished or wiped out. However, your wealth in Gold will remain and will gain in value as long as it exists.

There are approximately 100 references to Gold in the Vedas.

 

[spikey360]

There are approximately 100 references to Gold in the Vedas.

No wonder. Bharatvarsh was the wealthiest nations of ancient time. The Vedas can testify for it. Foreign travellers can testify for it. Even Macaulay's speech in the British Parliament can testify for it.

One particular aspect of the article is very interesting.

If she escalates her attacks on Iran, she threatens the interests of China, India and other SCO members. At this stage it is too early to judge the political reactions of the SCO members to this threat, but there are broadly two possibilities: either military or economic.

If the present machinations of war which is obscurely but undeniably going on, continue, we would find ourselves in a flashpoint where war between two major factions with US on one side and China-Russia on the other side becomes imminent. What would trigger the war exactly is a question only time can answer. In this context, do you think that India will go to war against the US to secure her national economic interests? [Post-2014 LS Elections]

 

[asianobserve]

 

[panduranghari]

In this context, do you think that India will go to war against the US to secure her national economic interests? [Post-2014 LS Elections]

India never goes to war. Indian people have, are and always will secure their own economic interests. They do this by buying gold. Not an exchange traded fund, Not a Gold fund of funds, Not shares of gold companies

The simple folk who may not have enough money and no access to CNBC or MSNBC or Bloomberg actually make the most sensible decisions. They spend what ever they need to on necessities but with excess left over they buy gold. easy peasy lemon squeezy

 

[The Messiah]

Bought gold last year, its value its much more now

 

[panduranghari]

Bought gold last year, its value its much more now

Probably the most common misconception is that price and value are the same thing. They are not. They are related but different. Price can be precisely known, but true value can only be estimated or guessed. And because price changes, price is always wrong while true value is always right, even though it is unknown. So price and value are always different. Value is always either higher or lower than price.

There is a little trick to knowing whether value is higher or lower than price. This trick will reveal the direction of value, but not the magnitude of the disparity. The trick is to look at which direction the government wants to influence any price. If the government is attempting to manage a price upward, then it is a safe bet that the value is lower than the price. And if the government would like to keep a price down, then you can be pretty sure the value is higher than the price.

It is certainly fair play to place your bets on the ability of government to overpower the gravitational pull of value. But when you do, you should be aware that you have just purchased the opposite of real value. And to understand why this may be detrimental to our financial wellbeing, we must first understand the concept of value.


Messiah I ask you this - Is 50 gm of 9999 purity gold more valuable than the price of 2012 model BMW M3 coupe limited edition?

or

Tell me is the value of 1 equal or greater or lesser than the other.

Serious question.

 

[The Messiah]

For me gold is more valuable than bmw provided at the time of purchase there price was similar. Simply because the value of bmw will depreciate while value of gold can rise or stay constanst or even fall slightly. Plus i wont have to spend more money on gold on maintainence which i would do on bmw.

 

[LETHALFORCE]

India pushes for SCO full membership

India ups Shanghai Cooperation Organisation sales pitch

India ups Shanghai Cooperation Organisation sales pitch

India Thursday pitched for a ''larger and more constructive role'' in the six-nation Shanghai Cooperation Organisation (SCO) as a full member and underlined that the grouping is ''a promising alternative regional platform'' to help stabilise Afghanistan.

"As we have emphasised at various SCO fora, India would be happy to play a larger, wider and more constructive role in the SCO as a full member, as and when the organisation finalises the expansion modalities," External Affairs Minister S.M. Krishna said at the 12th SCO summit at the Great Hall of People here.

India, along with Iran, Pakistan and Mongolia, currently enjoy the status of observer at the SCO.

The SCO comprises Russia and China, the two regional giants and permanent members of the UN Security Council, and the energy-rich Central Asian states, including Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan.

"We welcome the general trajectory of the SCO towards expansion and redefinition of its role. We feel a wider and more representative SCO will be able to deal more effectively with the common challenges of security and development in our region," he said.

Underlining India's proactive participation in multifarious SCO activities as an observer, Krishna said: "India, on its part, has been participating constructively at all SCO meetings open to the Observers."

"By doing so, we have shown our strong willingness to be meaningfully associated with this grouping."

Krishna stressed that India is already engaged with the SCO member states in areas such as information technology, management and entrepreneurship development.
"We will be happy to share with SCO countries our unique experience in specific areas of economic endeavour, such as banking,capital markets, micro-finance, small and medium enterprises."

Given elaborate procedures and rigorous criteria, India's admission into the SCO could take up to two years after the SCO members unanimously decide to open the doors for new members. India is now eyeing 2014 as the target for getting inside the SCO tent.

Alluding to India's cooperation with Regional Anti-Terrorism Structure (RATS), the SCO's premier counter-terror body, Krishna also called for greater regional cooperation in combating terrorism, a core focus of the SCO.

"India is a long-standing victim of terrorism emanating from our region and believes that there is need for stronger resolve and firmer efforts in tackling this scourge," he said.

Describing Afghanistan as the "most important security challenge" Krishna underscored that the SCO "provides a promising alternative regional platform to discuss the rapidly changing Afghan situation".

"The economic development projects of the SCO can be a meaningful additional effort for Afghanistan's reconstruction."

The SCO's future role in Afghanistan got an added boost with Afghanistan upgraded as an observer at the SCO summit.

India has pledged over $2 billion for reconstruction and developmental activities in Afghanistan.

"This is a reflection of our commitment to the prosperity of the Afghan people. We will be unwavering in our support to this cause," he said.

The explosive mix of Islamist militant networks and narcotics trade in the region that directly impinges on the stability of Afghanistan is a major factor driving India's desire to seek an upgrade in the SCO.

Given the geographical contiguity of all SCO states with Afghanistan and their collective efforts to counter terrorism, the SCO could be an effective regional platform to stabilise Afghanistan in the run-up to the withdrawal of the US-led international coalition troops from that country.

 

[Sam2012]

Yes, India is like a beautiful girl every man wants to marry right now. However, play such geo game is tricky and sometimes back fire. Those dirty "men", be it Russian or American, could dump their new girl friend very quickly. India need be like a grown up man stands strong and tall

Ok India is like a girl so be it but not a third gender like china

 

[Drsomnath999]

Although India has been engaging with the Shanghai Cooperation Organization (SCO) ever since 2005, it is yet to be accepted as a full member. At the SCO Prime Ministerial Meeting in Bishkek, the capital city of Kyrgyzstan, in December, the Secretary (East) in India's Ministry of External Affairs (MEA) who represented India at the meeting, made it clear that "India stands ready to play a larger, wider and more active role in the SCO as a full member as and when the members of the SCO decide to take forward the expansion process", thereby laying to rest any doubts as to India's intentions regarding joining the SCO as a full member.
India is presently an observer in the SCO along with countries like Pakistan, Iran, Mongolia and Afghanistan. In the light of India's renewed push for full membership in the SCO, it will be worthwhile to lay down how both India and the SCO stand to gain from India's bid.


What does India stand to gain?
Firstly, India, like Russia and other SCO member countries share common interests in the stability of Afghanistan, especially after the withdrawal of the Western troops by 2014. India is one of the biggest international donors in Afghanistan, having already committed nearly $2 billion in aid. Once the Western troops exit Afghanistan by 2014, there will be a power vacuum in the country, which China will try its best to fill, both by itself and through the SCO mechanism. Hence it is important for India not to give China a free run in post-2014 Afghanistan.

Secondly, the fight against terrorism is another important area of cooperation between India and the SCO member countries because these countries, like India, are also at risk from terrorist attacks. India has indicated its willingness to increasing its engagement with the RATS (The Regional Anti Terrorism Structure) which is based in Tashkent and is a permanent organ of the SCO, in the light of its own experience of being at the receiving end of some major terrorist attacks.

Thirdly, the Central Asian countries are very important for supplying India with stable energy supplies at a time when its energy demand is increasing. The much-touted Iran-Pakistan-India (IPI) gas pipeline does not seem to be going anywhere due to ostensible pressure from the United States. On the other hand, the TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline is set to bring natural gas from Turkmenistan to India via Afghanistan and Pakistan. Kazakhstan is already a major source of energy for India. There is an agreement in place between India's state-owned Oil and Natural Gas Corporation(ONGC) Videsh Limited and KazMunaiGaz for the Satpayev oil block in Kazakhstan while a Memorandum of Understanding(MoU) exists between India's state-owned NPCIL(Nuclear Power Corporation of India Limited) and Kazatomprom for the supply of uranium to India. During the visit of the Indian Prime Minister Manmohan Singh to Kazakhstan in April 2011 an agreement was signed between the ONGC Videsh Limited and Kazmunaygaz for the purchase of a 25 percent stake in the Satpayev Oil Block in the Caspian Sea.


Fourthly, Pakistan is lobbying hard for full membership of the SCO and is most likely to be inducted as a full member with the tacit backing of Beijing. Hence it is important for India to be in the SCO since otherwise Pakistan is likely to use the forum as a smokescreen to cover up its support for anti-India activities from its own soil.

Fifthly, membership of the SCO also gels well with India's "Connect Central Asia" policy, which aims to increase its political, economic and people-to-people links with the Central Asian nations. India has always had close historical and civilisation ties with the SCO member countries. The bilateral ties between India and the SCO member countries have been very strong, with the exception of China, with which India has a long-running boundary dispute. It may be mentioned here that during the visit of the Tajik President Emomali Rahmon to India earlier in September this year, the relationship was upgraded to the level of a "strategic partnership".


What does the SCO stand to gain?
Firstly, the SCO stands to gain from India's rich experience, especially in sectors like IT. Besides, it can also gain from India's experience in areas like finance and banking. The Secretary (East) in India's Ministry of External Affairs outlined at the Bishkek summit that "we would also like to share our experience in specific areas of economic endeavour such as banking, capital markets and micro-finance."

Secondly, India had cooperated with countries like Russia, Iran and Tajikistan in backing the Northern Alliance in Afghanistan and after the withdrawal of the Western forces by 2014, such an arrangement may need to be resuscitated in the light of the Taliban regaining strength in most parts of Afghanistan.

Thirdly, the presence of India as a full member in the SCO will ensure that China does not become the dominant force in the grouping. Chinese backing for Pakistan has also not gone down too well with some of the SCO member countries since Pakistan has provided sanctuary to almost all the terror groups and separatists active in the SCO member countries, including in the restive Xinjiang province of China.

The Road Ahead
However, the fact that India was not represented by somebody from the ministerial level would certainly be taken note of by the SCO member countries when they analyze India's bid for a full membership. While not discounting the fact that there were domestic compulsions (the debate on Foreign Direct Investment in the Retail Sector was raging in the Indian Parliament), India needs to add more punch to its bid for full membership of the SCO. This region is crucial if India is to continue on its growth trajectory since it is rich in energy resources. Although the Middle-East has traditionally been the major source of India's energy imports, this is likely to see a change in the near future as the region has got embroiled in a series of crises ever since the onset of the so-called " Arab Spring".

In case even limited hostilities break out over Iran's alleged nuclear programme, the Indian economy will take a hard hit. For India, its best chance for a full membership is now since Russia is set to take over as the next chair of the SCO. Besides, peace and tranquillity in the region is crucial to ensure India's security. Hence, full membership of the Shanghai Cooperation Organisation is a bus India cannot afford to miss.

Dr Rupakjyoti Borah is an Assistant Professor of International Relations at the School of Liberal Studies, Pandit Deendayal Petroleum University, India.
India and the SCO: Can they tango? | Russia & India Report

A very good article indeed india should take initative to be a member of SCO as it would be vital for india's energy security indeed & also it would increase our influence in the region further

 

[JBH22]

WE are in position to project ourself as regional power forget about global power. The economy is facing challenges and most importantly we do not have a clear political vision I believe our leaders have no idea about geopolitics check your national leaders to get a hint.

India at best will become US lackey in this part of the world.

 

[t_co]

As long as India and Pakistan are at each other's throats, China and Russia are unlikely to back either country's membership. The main point of the SCO is a tacit commitment to each other's security, sort of like a multilateral nonaggression pact. That won't work if India and Pakistan join, since India is large enough not to be cowed by China and Russia, and they both have severe disputes with each other.

 

[t_co]

Also, having either India or Pakistan join in the absence of the other could drag the SCO into a South Asian war, which it does not want.

If India and Pakistan can get some sort of formal resolution of Kashmir and other border disputes in place and/or start a nuclear disarmament process, then I think China and Russia would be happy to have India and Pakistan join the SCO.

 

[spikey360]

The OP does not mention the strong Anti-nato element in an expanded SCO. That should be one of the basic tenets of SCO.

 

[LETHALFORCE]

India and the SCO: Can they tango? | Russia & India Report

Although India has been engaging with the Shanghai Cooperation Organization (SCO) ever since 2005, it is yet to be accepted as a full member. At the SCO Prime Ministerial Meeting in Bishkek, the capital city of Kyrgyzstan, in December, the Secretary (East) in India's Ministry of External Affairs (MEA) who represented India at the meeting, made it clear that "India stands ready to play a larger, wider and more active role in the SCO as a full member as and when the members of the SCO decide to take forward the expansion process", thereby laying to rest any doubts as to I

India's intentions regarding joining the SCO as a full member.
India is presently an observer in the SCO along with countries like Pakistan, Iran, Mongolia and Afghanistan. In the light of India's renewed push for full membership in the SCO, it will be worthwhile to lay down how both India and the SCO stand to gain from India's bid.

What does India stand to gain?

Firstly, India, like Russia and other SCO member countries share common interests in the stability of Afghanistan, especially after the withdrawal of the Western troops by 2014. India is one of the biggest international donors in Afghanistan, having already committed nearly $2 billion in aid. Once the Western troops exit Afghanistan by 2014, there will be a power vacuum in the country, which China will try its best to fill, both by itself and through the SCO mechanism. Hence it is important for India not to give China a free run in post-2014 Afghanistan.

Secondly, the fight against terrorism is another important area of cooperation between India and the SCO member countries because these countries, like India, are also at risk from terrorist attacks. India has indicated its willingness to increasing its engagement with the RATS (The Regional Anti Terrorism Structure) which is based in Tashkent and is a permanent organ of the SCO, in the light of its own experience of being at the receiving end of some major terrorist attacks.

Thirdly, the Central Asian countries are very important for supplying India with stable energy supplies at a time when its energy demand is increasing. The much-touted Iran-Pakistan-India (IPI) gas pipeline does not seem to be going anywhere due to ostensible pressure from the United States. On the other hand, the TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline is set to bring natural gas from Turkmenistan to India via Afghanistan and Pakistan. Kazakhstan is already a major source of energy for India. There is an agreement in place between India's state-owned Oil and Natural Gas Corporation(ONGC) Videsh Limited and KazMunaiGaz for the Satpayev oil block in Kazakhstan while a Memorandum of Understanding(MoU) exists between India's state-owned NPCIL(Nuclear Power Corporation of India Limited) and Kazatomprom for the supply of uranium to India. During the visit of the Indian Prime Minister Manmohan Singh to Kazakhstan in April 2011 an agreement was signed between the ONGC Videsh Limited and Kazmunaygaz for the purchase of a 25 percent stake in the Satpayev Oil Block in the Caspian Sea.

Fourthly, Pakistan is lobbying hard for full membership of the SCO and is most likely to be inducted as a full member with the tacit backing of Beijing. Hence it is important for India to be in the SCO since otherwise Pakistan is likely to use the forum as a smokescreen to cover up its support for anti-India activities from its own soil.

Fifthly, membership of the SCO also gels well with India's "Connect Central Asia" policy, which aims to increase its political, economic and people-to-people links with the Central Asian nations. India has always had close historical and civilisation ties with the SCO member countries. The bilateral ties between India and the SCO member countries have been very strong, with the exception of China, with which India has a long-running boundary dispute. It may be mentioned here that during the visit of the Tajik President Emomali Rahmon to India earlier in September this year, the relationship was upgraded to the level of a "strategic partnership".

What does the SCO stand to gain?

Firstly, the SCO stands to gain from India's rich experience, especially in sectors like IT. Besides, it can also gain from India's experience in areas like finance and banking. The Secretary (East) in India's Ministry of External Affairs outlined at the Bishkek summit that "we would also like to share our experience in specific areas of economic endeavour such as banking, capital markets and micro-finance."

Secondly, India had cooperated with countries like Russia, Iran and Tajikistan in backing the Northern Alliance in Afghanistan and after the withdrawal of the Western forces by 2014, such an arrangement may need to be resuscitated in the light of the Taliban regaining strength in most parts of Afghanistan.

Thirdly, the presence of India as a full member in the SCO will ensure that China does not become the dominant force in the grouping. Chinese backing for Pakistan has also not gone down too well with some of the SCO member countries since Pakistan has provided sanctuary to almost all the terror groups and separatists active in the SCO member countries, including in the restive Xinjiang province of China.

The Road Ahead

However, the fact that India was not represented by somebody from the ministerial level would certainly be taken note of by the SCO member countries when they analyze India's bid for a full membership. While not discounting the fact that there were domestic compulsions (the debate on Foreign Direct Investment in the Retail Sector was raging in the Indian Parliament), India needs to add more punch to its bid for full membership of the SCO. This region is crucial if India is to continue on its growth trajectory since it is rich in energy resources. Although the Middle-East has traditionally been the major source of India's energy imports, this is likely to see a change in the near future as the region has got embroiled in a series of crises ever since the onset of the so-called " Arab Spring".

In case even limited hostilities break out over Iran's alleged nuclear programme, the Indian economy will take a hard hit. For India, its best chance for a full membership is now since Russia is set to take over as the next chair of the SCO. Besides, peace and tranquillity in the region is crucial to ensure India's security. Hence, full membership of the Shanghai Cooperation Organisation is a bus India cannot afford to miss.

Dr Rupakjyoti Borah is an Assistant Professor of International Relations at the School of Liberal Studies, Pandit Deendayal Petroleum University, India.

 

[anoop_mig25]

I doubt with china in SCO , India may never be allowed to become permanent member of SCO. Second indian foregin policy makers seems to more pro-alligned towards western alliance then that led by russia-china

 

[no smoking]

I doubt with china in SCO , India may never be allowed to become permanent member of SCO. Second indian foregin policy makers seems to more pro-alligned towards western alliance then that led by russia-china

India is never keen to become a permanent member of SCO. On the other hand, there is nothing India can contribute to this organisation: this is a group trying to block foreign influence in central asia.