- 4 weeks ago
Could Vladimir Putin’s proposed SCO Development Bank become a major challenge to America’s financial power? At the SCO summit in Bishkek, Putin called for an independent development bank that could finance infrastructure, energy, transport, technology and cross-border projects among member states. The bigger objective: reducing dependence on Western financial systems, the dollar and sanctions.
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00:08can a new bank quietly challenged one of Washington's biggest weapons its financial
00:13power and while Russia China and India debated new economic route another danger is rising far
00:20beyond the conference room today two stories about power pressure and preparation one is
00:26about Putin's push for an SEO development bank a financial lifeline that could reduce dependence
00:32on Western systems and give Eurasian powers another way to fund trade and infrastructure
00:37the other is closer to home Nepal's deadly Himalayan disaster has raised a frightening
00:44question for India if a mountain collapses tomorrow will the warning come in time one story
00:51is about building an alternative system the other is about surviving a system we cannot
00:55control hello and welcome you're watching statecraft with me Gita Mohan US president
01:02Donald Trump has found a new way to put his name on the map this time he wants the street
01:07of Hormuz to become the Trump's trade now Trump floated the idea on truth social asking whether
01:13the crucial waterway should be renamed now that he claims it is under US control but there's
01:19one small problem Iran does not agree that America controls it this trade remains at the center of the
01:26US Iran conflict and has become a major flashpoint for global energy supplies roughly a fifth of the world's
01:32oil passes through this narrow waterway so even a small disruption can send shockwaves through all
01:39energy markets he renamed the Gulf of Mexico the Gulf of America after returning to office more recently
01:46Apple and Google renamed Lake Ontario Lake America for the users in the United States of America while
01:53users in Canada continue to see its original name Canada has rejected the change installing a sign
01:59declaring Lake Ontario now and always now comes Hormuz Trump has repeatedly threatened to claim sovereignty
02:08over the waterway and even shared a map portraying it as a new US territory Iran however has effectively shut
02:15the
02:15choke point amid the war then on Tuesday US forces launched fresh strikes near the strait after Trump
02:22accused Iran of laying new mines oil prices have risen again so while Trump's strait may sound like
02:28another Trump style joke the location is anything but funny this is a vital global trade route a war zone
02:35and
02:36now apparently the latest target of Trump's naming spree President Trump has delivered another brutal
02:43verdict on Prince Harry and Meghan Markle and this time he's celebrating their exit from America Trump
02:50says he's glad the couple has returned to Britain but he's also gone further saying that if he were part
02:56of
02:56the royal family he would never have taken Harry back Donald Trump has made his feelings about Prince Harry and
03:03Meghan Markle crystal clear he's glad they're gone speaking in the Oval Office Trump said he was happy about it
03:10after the couple moved back to Britain from their California home and then came the attack Trump
03:17accused Harry and Meghan of showing great disrespect to the royal family he singled out Meghan saying he
03:23disliked the way she behaved and accused her of being terribly disrespectful to Queen Elizabeth and King Charles
03:30the criticism comes six years after Harry and Meghan walked away from royal duties and moved to the United States
03:36of America the departure was followed by a series of explosive accusations and public criticism of the royal family
03:43Harry has reportedly improved relations with his father King Charles who is battling cancer but the rift with his brother
03:50Prince William reportedly remains and Trump says he would have handled it very differently he said and I quote
03:57I wouldn't have taken him back I'm happy about it I was not a fan I thought look I had
04:04a very good relationship with the Queen
04:08really good I got to know very well a really good relationship with King Charles I know him as Prince
04:15Charles and King Charles
04:16I've known him for a long time he's great great guy and I thought they treated the royal family with
04:22great disrespect
04:23I didn't like it I didn't like the way she acted I thought she was terribly disrespectful to the Queen
04:30to King Charles and I don't know maybe I'm different I wouldn't have taken him back
04:38if I were the royal family I would I would not have taken him back
04:43the Duke and Duchess of Sussex may be back on British soil but Trump has made one thing clear
04:48had he been in the royal family Harry would not have been welcomed back
04:53President Trump is selling Boeing planes to Bangladesh and he's doing it with a very personal
04:59pitch a warm letter to Bangladesh Prime Minister Tariq Rahman a promise that Boeing will not let Dhaka
05:06down and a message from Trump himself saying I will not forget in a letter dated 31st of August
05:13Trump thanked Bangladesh Prime Minister Tariq Rahman for Dhaka's commitment to purchase Boeing aircraft
05:19Trump did not stop at a routine diplomatic thank you he sent his warmest regards and his love to the
05:26people of Bangladesh then came the sales pitch Trump told Rahman that Boeing will not let you down and
05:33added I will not forget the letter comes after Bangladesh agreed to significantly expand its Boeing
05:39commitment US Envoy Sergio Gore says Trump and Rahman struck an incredible deal with Dhaka committing
05:46billions of dollars for additional aircraft but the details remain unclear no exact number of planes has
05:52been announced no models have been specified and there is no confirmed value of the deal however
05:59Bangladeshi aviation expert Kazi Wahidul Alam has triggered a storm by saying that Trump is acting like a
06:06salesman Ireland says every head of state tries to sell their country's products Trump is no
06:12exception but with Trump the message is unmistakable American planes American business America first
06:19every country or head of the state is is a salesman I must say I mean everybody every I mean
06:27if you look
06:27at other all other countries in the world every head of the state of the government one visits other
06:34country or exchange ideas with other counterparts they always try to sell their product and president
06:43Trump is no exception I mean he'll definitely try to sell his products to other countries and
06:48Bangladesh since there is a great market for aviation Vladimir Putin wants a new bank one
07:04one that India China Russia and other SEO countries could use to finance projects and trade a bank
07:10designed to reduce dependence on Western financial systems and now India is at the table Finance Minister
07:18Nirmala Sitharaman might have discussed the idea with a Russian counterpart Kazakhstan has even offered
07:24to host its headquarters but there's one obvious question what happens if this bank actually takes
07:30its shape because Washington has spent years using the dollar and financial sanctions as instruments of
07:36economic power and Donald Trump has shown he's willing to use them aggressively the idea came directly from
07:43Putin at the SEO summit in Bishkek the Russian president called for an SEO development bank that would
07:49be as independent as possible from financial systems used by countries to gain unilateral economic and geopolitical
07:57advantages the timing is crucial Russia and Iran remain under heavy Western sanctions Moscow has been
08:05pushing national currencies and alternative payment mechanisms to reduce its dependence on the dollar and
08:11investment in Western financial infrastructure
08:13in Western financial infrastructure
08:45Putin says the numbers are already moving in that direction.
08:50He said Russian trade with SEO countries crossed $400 billion last year.
08:56And more than 98% of Russia's settlements with SEO members are now conducted in national currencies.
09:03The proposed bank would take that idea one step further.
09:07Instead of simply finding alternative ways to pay, SEO countries could create an institution to finance their own economic projects.
09:16Think infrastructure, energy, transport, industry, technology, cross-border projects.
09:23A development bank essentially provides long-term financing for exactly these kind of investments.
09:29Putin said such an institution could support joint economic projects and complement existing SEO financial mechanisms.
09:38But there is a crucial catch.
09:40The bank does not exist yet.
09:43And that distinction matters.
09:45The SEO summit did not approve a founding document for a bank.
09:49There is no SEO development bank operating today.
09:52There is no confirmed capital structure, no agreed headquarters, no final governance model.
09:59What exists is a proposal.
10:01But it is a proposal that is gaining momentum.
10:04Because India is now part of the conversation.
10:07Finance Minister Nirmala Sitaraman met Russian Finance Minister Anton Silvanov on the sidelines of the G20 Finance Ministers and Central
10:15Bank Governors meeting in Asheville, America.
10:18They discussed bilateral cooperation.
10:21They discussed the new development bank.
10:23They discussed the Asian Infrastructure Investment Bank.
10:27And the establishment of the SCO Development Bank was also on the table.
10:33The irony is striking.
10:35The Russian finance minister might have been discussing an alternative financial institution with India while standing on American soil.
10:42And this is happening at a time when India and Russia are already demonstrating that trade can be conducted without
10:49relying entirely on the dollar.
10:52Russia says 96% of its trade with India is now facilitated through rupee and ruble-based payment arrangements.
10:59But then came another major development from Kazakhstan.
11:03President Qasem Jomart Tokayev publicly backed the idea.
11:07And he went further.
11:08He offered to host the headquarters of the proposed bank in Kazakhstan if SCO members reach consensus on creating one.
11:17That is significant because Kazakhstan is not simply offering office space.
11:22Tokayev sees the bank as part of a much bigger economic architecture.
11:27He wants greater SCO trade and investment, fewer barriers, better transport links, digital customs,
11:34new settlement mechanisms, and financing for infrastructure, technology, and industrial projects.
11:42The geography makes Kazakhstan's offer particularly interesting.
11:46It sits at the crossroads of major Eurasian trade routes.
11:50The Belt and Road Initiative passes through the country.
11:52So does the Trans-Caspian Corridor.
11:55The North-South Transport Corridor also runs through the region.
11:58A development bank headquartered there could potentially finance the infrastructure connecting China, Central Asia, Russia, and beyond.
12:07But now comes the question Washington will be watching very closely, as it does the BRICS' new development bank, Donald
12:14Trump.
12:15How would the Trump administration react to an SCO bank designed, at least in part, to reduce exposure to Western
12:22financial systems?
12:23The Trump administration's existing behavior provides a clear warning.
12:28Washington has repeatedly threatened secondary sanctions against countries and institutions that help sanctioned economies.
12:35Trump has also made it clear that ditching the dollar will have repercussions.
12:40And the U.S. Treasury has already targeted entities in countries including India, China, and Russia over Iran-related activities.
12:49So would Trump simply sanction the SCO bank?
12:52Not necessarily.
12:53A bank that finances ordinary infrastructure among SCO members is not automatically sanctionable.
12:59But if it becomes a channel for sanctioned Russian or Iranian entities to evade U.S. sanctions, the calculation changes
13:07dramatically.
13:07And this is where the phrase, a bank Washington can't touch, needs a reality check.
13:13No bank is magically beyond U.S. reach.
13:16If the institution or its members have significant exposure to the U.S. financial system, dollar transactions, or American companies,
13:25Washington could potentially create enormous pressure.
13:28It could threaten counterparts with sanctions, restrict access to dollar clearing, or impose secondary sanctions on institutions that materially support
13:38sanctioned activity.
13:40Trump has already shown that he is prepared to use economic pressure as a weapon.
13:45His administration has warned countries doing business with Iran that they could face secondary sanctions.
13:50It has also targeted financial networks and companies operating across borders.
13:56And crucially, Washington has sometimes held back from immediately sanctioning major Chinese financial institutions because of the wider economic and
14:05diplomatic consequences.
14:07That last point may be the key to understanding Trump's possible response.
14:12China is the economic heavyweight inside the SCO.
14:16India is a major U.S. trading and strategic partner.
14:18And Russia remains under sanctions.
14:22If Washington moved aggressively against an SCO bank, it would not simply be confronting Moscow.
14:28It would be confronting Beijing and potentially putting pressure on New Delhi as well.
14:32And India is unlikely to want this framed as an anti-American or anti-Western bank.
14:38New Delhi has consistently pursued strategic autonomy.
14:42It wants multiple financial and economic options, but it also has deep economic ties with the U.S.
14:48So for India, the objective may not be to destroy the Western financial system.
14:53It may simply be to ensure that SCO members have another door to walk through.
14:58That is perhaps the biggest significance of the proposal.
15:01This is not yet a new BRICS bank.
15:04It is not a new global financial system.
15:06And it certainly does not mean the dollar is about to disappear.
15:10But it could be the beginning of something more consequential.
15:14A financial safety net for countries facing sanctions.
15:18A development lender for Eurasian infrastructure.
15:21A mechanism to expand national currency trade.
15:24And potentially, a way to reduce the power of Washington's financial leverage.
15:28For Putin, that is strategic insurance.
15:31For China, it could deepen its economic influence across Eurasia.
15:35And for India, it could provide another instrument of strategic autonomy.
15:40But there is one final obstacle.
15:43The SCO itself.
15:44India and China have competing interests.
15:46Russia and China have their own ambitions.
15:48And every member will want to know one thing.
15:51Who controls the money?
15:52Because creating a bank is easy compared with agreeing on who funds it, who gets voting power,
15:59where the money goes, and what rules govern lending.
16:03So the SCO Development Bank is not a done deal.
16:06It is a battle over the future architecture of money.
16:09And if Putin, Xi, Modi, and other SCO leaders eventually turn this proposal into a functioning institution,
16:16Washington will have a choice.
16:19Fight it, pressure it, or adapt to it.
16:22And Donald Trump has already shown that when American financial power is at stake,
16:27he does not like giving up leverage without a fight.
16:30On Nepal floods, my colleague Ashutosh Mishra is on the ground where the aftermath of the flash floods
16:38left more than 1,250 people dead, with nearly 4,875 still missing.
16:46As joint rescue teams continue their search on the ninth day,
16:50Ashutosh has been tracking the destruction and the remarkable structures that survived the force of the floods.
16:56Take a look at this report.
16:59Exactly right behind, there are two buildings, which also stood tall,
17:03and perhaps one or two floor has gone under the muck and loose debris.
17:07But look at this, the rooftop, the upper low floors have been absolutely safe.
17:12And perhaps why people, during the peak of the wave of Bhatkoshi,
17:16they chose to go upstairs, and that's exactly where they were earlier rescued by the quick response team.
17:22Now coming further, look at these two other buildings.
17:24These two buildings were exactly came between the, you know, extremely, potentially powerful flow of Bhatkoshi and Drisholi.
17:32Despite that, only we see a couple of these floors were under the muck and rest of the structure standing
17:37tall.
17:38This was also helped people to save the life during peak wave.
17:41Now, again, in Dhunga Bazaar, there are a couple of more buildings, including one agriculture structure.
17:46So this is somewhere the construction power of the construction and the design.
17:50Then again, there are two, three more buildings that I see,
17:53which brace the impact of Bhatkoshi and Drisholi, and they're too tall.
17:58Still, there is hardly any damage, structural damage.
18:01However, the muck that entered up to two or three floors, the rest of the structure remained intact.
18:08Ironically, you know, these blocks that came between the floor,
18:12who brace the peak power impact of the river, are still standing tall.
18:16But just across on the road, which these structures, which were on the edge,
18:21and perhaps when we see the, you know, the water level that gone up to 15 to 16 feet,
18:26many of these houses have collapsed.
18:29This is, I mean, these houses would not brace the impact of the flow on the very first day.
18:35So these all houses have collapsed.
18:37However, there are many such houses, which are also known as a miracle.
18:41It is science, it is technology, or it is this structure that was,
18:45that helped these buildings to sustain, because they resisted the flow,
18:49they resisted the power of the river, and now these miracle houses are standing tall.
18:54Many of these people from the affected areas would be able to begin their life quickly and soon,
19:01since at least their houses are intact.
19:03In Dhunge Village, this is Ashutosh Mishra, Ground Zero in Nepal reporting.
19:08Is India prepared for a Nepal-type flash flood disaster?
19:12Nepal's deadly floods may have happened across the border,
19:15but the danger does not carry a passport.
19:18On the 26th of August, a hanging glacier near Langtang Lirung collapsed,
19:23sending ice, rock, and debris into the Trishuli Valley.
19:27More than 900 people died, over 4,000 went missing,
19:31and in some places, the river rose by 9 meters in just 30 minutes.
19:37That left people with as little as 5 minutes to run.
19:415 minutes.
19:42That is not an evacuation plan.
19:44That is a race against physics.
19:47And India is in the same Himalayan system,
19:50with thousands of glaciers feeding the rivers that power our farms, cities, hydropower projects.
19:56So when the mountain moves this fast, can India really afford to wait for the alarm?
20:02How does a falling mountain outrun an emergency alert?
20:06Because in the Himalayas, one disaster can trigger another before anyone has time to react.
20:12The Nepal collapse unleashed ice, rock, and debris into a river valley.
20:17That surge pushed river levels up by as much as 9 meters in half an hour.
20:23In some villages, the warning window was just 5 to 10 minutes.
20:26Why so little time?
20:28Because a high-altitude collapse does not behave like a normal flood.
20:32A huge mass of ice and rock can rush downhill,
20:35carry debris with it, block water, create temporary lakes,
20:39and then unleash another flash flood.
20:43One failure becomes a chain reaction.
20:45And once that chain starts,
20:47a siren that arrives late is basically a doorbell after the house has fallen down.
20:53That brings us to the bigger question.
20:55Does an avalanche in Nepal respect India's political map?
21:00Obviously not.
21:01The Hindukush Himalaya has more than 63,000 glaciers
21:05spread across more than 55,000 square kilometers.
21:09They feed major river systems, including the Indus, Ganga, and Brahmaputra,
21:14supporting nearly 2 billion people downstream.
21:17The water does not stop at a border post.
21:21Neither does the debris.
21:22So what India needs is not just information about what happened in Nepal after it happens.
21:28It needs real-time warning when danger starts high in the mountains.
21:32Sensors, alerts, and cross-border data sharing can buy minutes or hours.
21:38In a disaster where people may get only a few minutes,
21:42that difference can decide who gets out alive.
21:45But why are these mountains becoming more dangerous?
21:48Because the ice is disappearing faster.
21:51Between 1990 and 2020, glaciers in the Hindukush Himalaya
21:54lost around 12% of their area and about 9% of their ice reserves.
22:00In some places, ice thickness has fallen by up to 27 meters since 1975.
22:07And the rate of ice loss has roughly doubled since 2000.
22:11What happens when that ice melts?
22:14Water collects behind loose piles of rock and gravel called moraines.
22:18These glacial lakes can expand and become unstable,
22:21add heavy rain or an ice collapse,
22:24and suddenly a scenic mountain lake can turn into a wall of water and debris.
22:30The Gangotri Glacier offers India its own warning.
22:34Its snout has retreated roughly 25 to 30 meters a year in recent decades.
22:40The ice is not just retreating.
22:42The landscape it leaves behind can become more unstable.
22:45So did India treat Chamoli and Sikkim as disasters that would never repeat?
22:50The record says India has already had several warnings.
22:55In 2013, the Kedarnath disaster killed thousands
22:58and wiped out towns and pilgrimage sites.
23:01In 2021, an ice rock avalanche in Chamoli triggered a flash flood,
23:06destroyed two hydropower projects, and killed more than 200 people.
23:10Then came Sikkim in 2023.
23:13Rocks collapsed into south Lonark Lake
23:16and generated a 20-meter displacement wave.
23:19The flood tore through downstream areas,
23:22killing at least 18 people and leaving nearly 100 missing.
23:26Dharali in 2025 added another warning.
23:29These were not identical disasters, but they exposed the same weakness.
23:33Narrow valleys, packed with people and infrastructure,
23:37leave very little room for error.
23:39And that raises another uncomfortable question.
23:42Are Himalayan dams and infrastructure clean energy assets?
23:46Or can they become traps when a glacial burst hits?
23:50Himalayan hydropower projects in narrow valleys risk becoming catastrophic traps
23:55during glacial bursts.
23:57Furthermore, China's planned 60,000-megawatt Midog Megadam on the Yarlung Tsangpo River
24:05threatens India with water manipulation and severe flash floods.
24:09To counter these threats, establish riparian rights, and buffer surges,
24:14India plans the 11,000-megawatt Upper Siang Reservoir to protect its downstream ecosystems.
24:21My personal opinion is that the large hydropower projects are actually not environmentally benign
24:26and the return on investment is negative.
24:30If you look at all the costs involved in terms of the social environment costs,
24:36including other costs that go into building hydropower,
24:40that is something that puts all the economists to shame
24:45because it is not a return on investment, it's zero, in fact, negative.
24:50And that's the whole part.
24:51In fact, the costs are much more higher.
24:53And most of the ecological economists actually have been in favor of this,
24:57that you have to rethink about this.
24:59We are planning many hydropower projects,
25:02and that's where we also have to rethink about
25:04what is the energy security that brings in.
25:06Now, my question is, and this I have, I know,
25:09contributed for long, that, you know,
25:11even after all the disasters happening,
25:13all the problems are happening,
25:14why are states after states going after hydropower?
25:18I think it's time for us to rethink
25:19what is the model of development in the Himalayan states that we have.
25:22And we have one of the biggest number of states
25:24who are actually falling in the Himalayan states.
25:26And we have to rethink about what is that,
25:29especially the economic model that we are building in those areas.
25:32Hydropower should be a no-go here, especially the large one.
25:36India has already identified around 7,500 glacial lakes,
25:40including roughly 4,700 in the Ganga Basin.
25:44Around 200 are considered high-risk,
25:47while 195 at-risk lakes have been identified
25:51under the National GLOF Risk Mitigation Programme.
25:55The numbers alone show the scale.
25:57Mapping a lake is useful.
26:00Knowing it is dangerous is better.
26:02But detecting a breach early enough to evacuate people
26:06is what actually saves lives.
26:09So if a Nepal-scale flash flood struck Uttarakhand,
26:12Himachal Pradesh or Sikkim tomorrow,
26:14what would decide who survives?
26:17Not a glossy disaster briefing.
26:19The weakest link could be a sensor lag,
26:23a failed warning system,
26:24blocked roads, damaged tunnels or communities
26:27that never get enough time to evacuate.
26:30So what actually saves lives?
26:33I would say yes and no.
26:35We are prepared.
26:36We have, you know,
26:37our early warning systems have been much better now.
26:41Our rainfall predictions have been very sophisticated now.
26:46What I see and I'll repeat this point
26:49that I have said in the beginning
26:50is that the last mile connectivity,
26:52the distance between what is,
26:56you know,
26:56what information comes from the top
26:58versus how people get it on the ground.
27:00That's where the last mile connectivity
27:02is required in terms of the information flow.
27:06And I guess we need to fix that.
27:08Second,
27:09we also must re-look at the development process
27:12in the entire region,
27:13keeping security issues in mind.
27:16Can we do minimal damage to the whole process?
27:19Also,
27:20re-look at the hydropower,
27:21the large hydropower project
27:22that we have in planning.
27:24We must have a 360 degree understanding
27:28of the change needed
27:29for those planning to be executed.
27:32I do not see much of this investment
27:35going a good way
27:36unless there is a,
27:38you know,
27:38a different ways in which you understand.
27:40So we have to rethink about
27:41what kind of a development process
27:43is benign to the environment,
27:45keeping the climate realities in mind
27:47and keeping the climate projection
27:49that scientists are telling us.
27:50There has to be more dialogue
27:51between the scientists
27:53and the policymakers
27:55and the local community.
27:57This kind of understanding
27:59has to be there.
28:00This is where I think the crux lies.
28:01India has still some lacks
28:03in terms of the total understanding
28:07from all the three perspectives.
28:08Thousands of lakes mapped and monitored,
28:12automated sensors and sirens
28:13in high-risk valleys,
28:15stricter rules for construction
28:16in exposed corridors,
28:18evacuation drills,
28:20and real-time information across borders.
28:23India has started that work.
28:25But the Nepal disaster shows
28:27why it must move faster.
28:29So is India prepared
28:30for the next glacial lake outburst flood?
28:33The answer is very complex.
28:35India has identified the danger,
28:36but preparation still has to catch up
28:38with the speed of change.
28:41The Himalayan warning is no longer subtle.
28:43Ice loss has accelerated,
28:45dangerous lakes are expanding,
28:46and one mountain failure
28:48can become a catastrophe
28:49within minutes.
28:51Nepal has shown
28:52what five minutes can look like.
28:54India cannot wait
28:56for the next mountain to move
28:57before it decides
28:58whether five minutes is enough.
29:01That's all in this edition of Statecraft.
29:03Before we go,
29:04India has once again
29:05put its growth story
29:06in the spotlight.
29:07Indian ambassador
29:08to the United States of America,
29:10Vinay Quatra,
29:11rang the NASDAQ opening bell
29:13in New York
29:14as India reported
29:15a strong 7.8% GDP growth
29:18for April-June quarter.
29:20Quatra called India
29:22the world's fastest-growing
29:23large economy
29:24and highlighted
29:24its expanding technology sector,
29:27digital capabilities,
29:28and young workforce.
29:29He said the ceremony
29:30reflected the growing
29:32economic and technological partnership
29:34between India and the US.
29:36With India's growth story
29:37meeting Wall Street's
29:38biggest technology names,
29:40the message from New York
29:41was clear.
29:42India wants to build bigger
29:44and build better.
29:45Take a look.
29:46Goodbye and take care.
30:25Music by Ben.