Measuring and comparing the development of the digital economy of the SCO member states

With the implementation and further development of the Digital Silk Road initiative, the countries along the route have gradually formed common interests in the field of digital economy. The active development of the digital economy within the framework of the implementation of the Belt and Road initiative in these countries contributes to their socio-economic development, increasing the level of trade and openness, accelerating the growth of the green economy and forming a new development model both at the domestic and international levels. Most of the countries participating in the Belt and Road initiative and the Eurasian Economic Union (EAEU) are members or observers of the Shanghai Cooperation Organization (SCO). Economic ties between these countries are constantly strengthening, and the SCO has become an important regional economic and strategic platform. Since 2015, when the SCO began to develop cooperation in the field of digital economy, there has been insufficient research on the development of the digital economy and cooperation between China and the SCO member states. This article analyzes the current situation and development problems of the SCO member states from the perspective of the digital economy. By comparing the existing digital economy development index systems, a digital economy development index system for the SCO was developed, including six dimensions: digital infrastructure; digital connectivity; digital industry development; digital innovation competitiveness; digital economic environment; digital governance. The entropy method was used to measure the degree of digital economy development of China and the SCO member states, as well as the level of cooperation between them. The digital economy development indices of China and the SCO member states for the period from 2005 to 2022, as well as bilateral digital economy cooperation indices, were measured and compared. The comparative analysis shows that the SCO member countries have made rapid progress in the development of digital infrastructure, digital applications, digital development and digital innovation competitiveness. However, the level of digitalization has not grown so fast. China has an absolute advantage in the digital economy, but its development pace has slowed down at present. The level and speed of digital economy development of Russia, Belarus and India are above average, while the level of digital economy development of Uzbekistan and Pakistan is relatively low. In recent years, the digital development of the SCO member countries has grown rapidly, and economic and trade cooperation has become closely related to digital cooperation. In the future, the SCO member countries are expected to further strengthen cooperation in the digital economy, especially in building digital infrastructure, empowering digital innovation, promoting digital trade, cross-border e-commerce, digital finance, etc., as well as in digital security and privacy protection, helping to solve the problem of “digital inequality” and digital economic governance. All this is expected to further promote economic prosperity and sustainable development of the SCO member countries.