Chinese People's Political Consultative Conference (CPPCC)
member Wang Xianzhang said at the ongoing session of the top
advisory body that the country is in urgent need of an improved
charity system.
"Currently, 60 million Chinese people are disabled and 30
million are living under poverty line, plus a large number of
people are at risk from natural disasters. All these people are
badly in need of financial, material and medical aid and other
related support. We should dynamically build charities to arouse
societal concern and provide substantial help for the disadvantaged
groups."
As the general manager and Communist Party secretary of China
Life Insurance (Group) Company, the country's largest life insurer,
Wang is intimately familiar with China's need for social aid and
compensation systems.
The development of charities was first incorporated into the
social welfare net last September at the Fourth Plenary Session of
the Communist Party's 16th National Congress. The decision
indicated that charities have become an important part of building
a harmonious socialist society.
However, Wang indicated that successfully operating charitable
organizations requires far more than recognizing the need for
them.
"In 2002 there were more than 100 charitable organizations [in
China], which raised a combined 5 billion yuan (US$603 million).
This only accounts for 0.05 percent of that year's GDP. In the US,
by comparison, in 1996 there were 1.2 million tax-free charitable
organizations raising a total sum of US$150.7 billion, which
accounted for 2 percent of its GDP."
Wang attributed the weakness of China's charities to
shortcomings in existing management systems, such as insufficient
transparency in fund management. The country lacks such
fundamentals as substantive laws and regulations, as well as
necessary services and facilities.
In other countries, noted Wang, citizens are inculcated with the
ethos of charitable social contribution throughout their lives.
This is lacking in China. "The All-China Charity Federation reports
that of the donations it receives, 80 percent are from overseas
countries while only 20 percent are from domestic contributors," he
said.
Wang suggested that special laws relating to charities be
created as soon as possible. They should specify the nature and
mission of charitable organizations and provide basic guidelines
for their operations and management.
Moreover, the registration and licensing system should be made
more convenient to encourage the formation of more organizations. A
comprehensive system covering asset management, supervision,
performance assessment and disclosure must be established.
Finally, said Wang, a comprehensive and uniform taxation system
is needed to cultivate the development of charities.
(China.org.cn by Wind Gu, March 9, 2005)
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