The military perspective of sco, forecasting Turkey's defence spending

Shanghai Cooperation Organization (SCO) was developed under the leadership of Russia and China in order to primarily meet China?s growing needs of energy and find a way for Russia to get rid of economic crisis caused by falling apart of Soviet Union. Futhermore, it kept working to solve border dispute between member countries and laid the foundations of economic and military cooperation as a result of consolidated military exercises after unexpectedly and positively flourishing relationships. Since the date SCO was founded in 1996, mission of the organization has been changed in the progressive period and the idea of reviving of the old Warsaw Treaty Organization has growed.The small-scale battles, controversies and even wars broke out between other allied powers under the auspices of leader countries as seen in cold war period in which super power controversies occurredIran, an observer member to SCO and has strained relationships with USA lately, is very important for Turkey. In this study it is aimed to point out the possible tensions between an NATO member Turkey and a SCO member Iran in the domain of politic, economic, religious and ideologic controversies.An econometric model is set to forecast defence spending by using time series analyses. To forecast the defence spending ARIMAX technique is preferred and the defence spending of Iran, which is thought to be effective in model, is used exogen variable.The primary duty of a government is to manage the public expenditure, prepare the budget, and specify the source of revenue and manage them in order to meet citizens? all needs. In order to determine the defence budget, the balance point of marginal costs and marginal utility can be used. Futhermore, to determine how to use this budget it is very important to consider deterrence which can prevent threats.