Archive · 2 Sep 2026
SCO Economic Rise Challenges G7 and Western Financial Dominance
The Shanghai Cooperation Organisation is a group of countries that work together on economic, security and other issues.
It has grown from six members to 10.
China, India and Russia provide most of the group’s economic strength.
The group’s share of the world economy, measured using purchasing power parity, is now larger than the G7’s share.
Russia wants the group to create a development bank that does not depend on Western financial systems.
Russia and Iran see this as a way to reduce the effects of Western sanctions.
The SCO is not officially an alliance against the United States.
However, its growing economy and alternative trade and finance plans are attracting attention in Washington.
Narendra Modi said the group should focus on turning its plans into real results.
Russian President Vladimir Putin urged Shanghai Cooperation Organisation members to create an independent development bank.
Russia and Iran are seeking alternatives to Western-dominated financial networks amid continuing sanctions.
The SCO has expanded from six members to a 10-country bloc including China, India, Russia and Iran.
The SCO’s share of global GDP at purchasing power parity surpassed the G7’s in 2021 and is estimated at 34.3% in 2026, compared with 28% for the G7.
Prime Minister Narendra Modi called for the SCO to turn its cooperation into practical results focused on security, connectivity and opportunity.
- Who
- The Shanghai Cooperation Organisation, its member states, Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
- What
- The SCO is expanding its economic and geopolitical influence, while Russia is proposing an independent SCO development bank.
- When
- The SCO’s share of global GDP surpassed the G7’s in 2021; IMF estimates cited in the article project figures for 2026, and Modi spoke at the 26th SCO Summit.
- Where
- Within the Shanghai Cooperation Organisation and its alternative trade and financial frameworks; the summit location is not specified.
- Why
- Russia wants to reduce reliance on the US dollar and Western financial networks, while SCO leaders seek stronger cooperation and practical results.
- SCO membership
- The organisation has grown from six members to 10 countries.
- SCO GDP share in 2001
- 10.6% of global GDP at purchasing power parity.
- G7 GDP share in 2001
- 47.2% of global GDP at purchasing power parity.
- Projected SCO GDP share in 2026
- 34.3%, according to IMF April 2026 estimates cited in the article.
- Projected G7 GDP share in 2026
- 28%, according to the same estimates.
- SCO economic concentration
- China accounts for 58% of the bloc’s output, India nearly 25% and Russia about 10%.
- Modi’s priorities
- Security, Connectivity and Opportunity.