EIR has obtained and examined the full text of the “Tianjin Declaration of the Council of Heads of State of the Shanghai Cooperation Organization,” issued on September 2 at the SCO Heads of State summit in Tianjin, China.
The document includes an extremely important section that proposes creating an SCO Development Bank, the expansion of trading in local currencies, and identifying joint economic projects for physical economic development and investment in the SCO region. Such ideas, in conjunction with parallel ideas in the BRICS, are the seed crystal for an emerging new credit-generation and settlement system, that will supersede the collapsing, derivative- and crypto-riddled, Western financial system
The Tianjin Declaration document states:
“Member states emphasize the important role of financial cooperation in promoting economic growth in the SCO region, and believe it is important for the relevant member states to continue implementing the ‘Roadmap for Expanding the Share of Local Currency Settlement among the SCO Member States’ (Samarkand, September 16, 2022).
“The relevant member states reaffirm the importance of establishing an SCO Development Bank and decide to establish the Development Bank and accelerate consultations on a range of issues related to the operation of this financial institution.
“Member states emphasize the important role of the SCO Interbank Consortium [comprising SCO member nation banks], noting that after 20 years of development, the SCO Interbank Consortium has become a preferred mechanism in the financial field, and advocate accelerating the resolution of the issue of the authorized bank of the Islamic Republic of Iran joining the Consortium.
“Member states note the productive activities of the SCO Economic Think Tank Alliance and the proposal to establish an SCO Financial Think Tank Network….
“Member states are committed to developing mutually beneficial cooperation in the industrial field, including exchanging data on industrial investment projects and holding exhibition events. They note the outcomes of the Meeting of the Ministers of Industry of the SCO Member States held during the International Innovation Industrial Exhibition in Yekaterinburg (Yekaterinburg, July 7, 2025).
“The SCO Development Bank will give a strong boost to infrastructure development and inject fresh momentum into the economies of member countries,” Chinese Foreign Minister Wang Yi asserted September 1, reported the Mumbai Economic Times. China has pledged 10 billion yuan ($1.4 billion) for loans within the SCO over the next three years, although the SCO Development Bank will be a larger project.
The SCO Development Bank will achieve a long-term goal of Chinese President Xi Jinping. Speaking at a joint press conference with SCO Secretary-General Nurlan Yermekbayev, Chinese Foreign Minister Wang Yi proclaimed, “The initiative to form a development bank of the SCO more than 10 years ago by the Chinese side will finally come to fruition.”
This institution can be part of forming a new credit-generating mechanism that can realize science-driven anti-entropic development, the ending of poverty, and uplifting the creative-productive powers of all mankind.
