SCO Development Bank, AI and new transport corridors: Tokayev’s proposals in Bishkek

President of Kazakhstan Kassym-Jomart Tokayev proposed launching several new initiatives in the areas of economic development, transport, technology and security at the Shanghai Cooperation Organisation (SCO) Summit in Bishkek, El.kz reports citing Akorda.

The President of Kazakhstan participated in a meeting of the Council of Heads of State of the Member States of the Shanghai Cooperation Organisation. In his address, he spoke about how the SCO could adapt to the changing international environment and translate the Organisation’s existing potential into concrete joint projects.

SCO Trade Approaches One Trillion Dollars

According to Tokayev, mutual trade among the SCO Member States has already approached one trillion US dollars. At the same time, he noted that the potential of the Organisation’s largest economies remains significantly underutilised.

Kazakhstan proposes establishing an SCO-wide space with fewer trade barriers, streamlined digital procedures and closer transport and logistics connectivity. Industrial consortia could serve as one of the instruments for this purpose, enabling several interested Member States to launch joint projects without waiting for the participation of all members of the Organisation.

Another proposal concerns cross-border trade. Tokayev believes that SCO special trade zones could be established on the basis of existing border trade centres, where digital procedures, settlement mechanisms and simplified arrangements for the movement of goods could be piloted.

Kazakhstan ready to host  the SCO Development Bank

The establishment of the Organisation’s own financial institution was another key issue addressed by the President. Kazakhstan supported China’s initiative to establish an SCO Development Bank.

According to Tokayev, the bank’s resources could be allocated to infrastructure, industrial and technological projects in the SCO Member States. Should the Member States reach a consensus, Kazakhstan is prepared to host the financial institution and its headquarters on its territory.

Such a bank could serve as a dedicated financing mechanism for joint projects that currently require separate intergovernmental arrangements and the identification of sources of capital.

Proposal to move freight onto a unified digital platform

Tokayev also called for accelerating the development of transport connectivity across Eurasia. Kazakhstan is interested in linking major routes, including the Trans-Caspian International Transport Route and the North–South Corridor, with trade routes connecting Central and South Asia.

To this end, the President proposed establishing a Unified SCO Transit Digital Platform. The proposed platform would enable interoperable digital solutions to support cargo throughout its entire journey, from the point of departure to the final destination, thereby facilitating document exchange and customs clearance procedures.

Another Kazakhstani initiative is the development of an SCO Transport Strategy through 2035. The strategy is intended to provide a common framework for the further development of transport connectivity among the Organisation’s Member States.

SCO may eatablish a network of AI centres

Tokayev identified technological cooperation as a separate priority area. He proposed establishing an SCO network of artificial intelligence centres involving leading universities, research institutions and technology companies from the Member States.

Under Kazakhstan’s proposal, such a network would enable Member States to jointly pursue research and development and exchange expertise and capabilities in the field of artificial intelligence. Tokayev also noted that Kazakhstan had joined the group of founding members of the World AI Cooperation Organization (WAICO).

The development of an indigenous technological base is becoming an increasingly important area for the SCO amid the rapid adoption of artificial intelligence and digital solutions in the economy and public administration.

Tokayev’s proposals in the area of security

Another part of the President’s address focused on stability in Eurasia. Tokayev proposed convening an SCO Ministerial Conference on Strategic Stability and Confidence-Building Measures. He identified reducing military risks, preventing an arms race and averting dangerous incidents among the issues for discussion.

Tokayev also addressed the fight against terrorism, extremism, separatism, drug trafficking, illicit arms trafficking and cyber threats. Kazakhstan supports the establishment and effective functioning of relevant SCO bodies tasked with coordinating the activities of competent authorities of the Organisation’s Member States.

In conclusion, the President proposed continuing the reform of the SCO itself and entrusting the foreign ministries of the Member States with further work in this area. According to Tokayev, changes in the international system require the Organisation to review certain mechanisms of cooperation and adopt a more action-oriented approach to joint initiatives.