China's SCO development bank idea meets needs of Central Asian nations

19:55, December 01, 2010      

Email | Print | Subscribe | Comments | Forum 

China's proposal to establish a development bank for the Shanghai Cooperation Organization (SCO) was not surprising because the need had been there for a long time, a Russian expert told Xinhua Wednesday.

Gennady Chuprin, an adviser at Russia's Academy of Science, also said it was a logical continuation of SCO's further development.

Chinese Premier Wen Jiabao attended the Ninth Prime Ministers' Meeting of the SCO on Nov. 25, calling for deeper financial and monetary cooperation among SCO member states and proposing to conduct research on establishing a SCO development bank.

Chuprin said economic cooperation among SCO members would gradually outweigh other dimensions of their activity.

"This is Beijing's point of view that economy must go first," he said, adding the global financial crisis proved this view was correct.

Chuprin said, "Beijing sees the initiative as a means of supporting the Central Asian countries, whose financial systems have been ruined."

Currently, the financial sector has been a bottleneck in the SCO's development. All SCO members got financial support via the Eurasian Economic Community treaty institution, of which they were members, Chuprin said.

Currently, China, which is not a member of the Eurasian Economic Treaty, had the overwhelming share of Central Asian nations' foreign trade but "Beijing remains aside", he said.

"So the countries' leaders will be happy to receive support from Beijing to finance their national infrastructure in the current context where their own financial institutions have been gradually fading," Chuprin said.

The professor also said that, to establish such a bank, was only a preliminary intention so far, and the SCO members would have to go a long way to decide several important issues, such as its shape and the currency to be used.

However, "creation of the SCO bank will mean that quantity transforms itself into quality," he said.

Chuprin was optimistic for SCO's future development.

The professor also predicted that China would soon obtain a dominant position within the SCO after the establishment of the bank, squeezing Russia into the second place.

However, "Moscow does not see this qualitative shift in the SCO's power balance as something negative or threatening for Russia," he said.

"Moscow is interested in SCO as a whole getting stronger. And if your friend becomes stronger, you become stronger too," he said.

Source: Xinhua

(Editor:李牧(实习))

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion