ABSTRACT
This chapter traces the evolution of the Shanghai Cooperation Organization (SCO) from its origin as a border settlement mechanism to the informal coordination process of the 'Shanghai Five' and eventually to its current formalised incarnation. It discusses the developments in the consolidation of the SCO's organisational structure and functional divisions. The chapter focuses on the regional SCO's institutionalisation process. Implementing the SCO programme became the main focus of economic cooperation in the SCO, and two important non-governmental organisations (NGO's) were subsequently created. The first few years of the SCO witnessed the most rapid development of the newly born regional organisation and most particularly its important accomplishment of building an institutional arrangement that would facilitate multifaceted and multilevel cooperation between the member states. From the 'Shanghai Five' period into the current SCO incarnation, China has practised its negotiation skills to influence the results of mutually acceptable deals and how issues are presented.
