The Organizational Mode And The Operating Mechanism Of The SCO Development Bank

Russia and the Central Asian countries are rich of natural resources. And they are close geographical neighbors of China. These countries have important strategic significance for China. Between each other friendly relations are always kept. So there is good cooperation potential in all areas between these countries. The Shanghai Cooperation Organization(SCO) has built an excellent cooperation platform for China, Russia and other Central Asian countries. Since the establishment of the SCO,the member states have achieved fruitful results in the field of security cooperation,and the importance of regional economic cooperation has increased to the same level as security cooperation. Finance is the core of modern economy, strengthening financial cooperation among member states can effectively promote regional economic integration process. In order to enhance the level of regional financial cooperation, China has proposed the creation of the Shanghai Cooperation Development Bank. Before the preparatory work of establishment, it is necessary to research and study the organizational model and operation mechanism of the bank.Firstly, this article describes the main obstacles to the creation of the SCO Development Bank since the proposal, it also analyzes the necessity and feasibility of the creation of the SCO Development Bank. Then this article summarizes the development processes of several multilateral development banks, and compares their backgrounds and current operational statuses. Based on the analysis results, the transitional organizational model is proposed and analyzed. Finally, recommendations are given on the design of the operating mechanism of the SCO development bank,including fundamental principles, organization structure, source of funds and vote-allocating issue.