A scandal last June around a young woman named Guo Meimei set off a public "trust crisis" on China's charity programs. Guo claimed to be a general manager for the Red Cross Commerce and detailed her lavish lifestyle on the Internet. This set off a chain of events that led to a sharp decline of public donations for various charitable organizations.

During an interview with Dahe Daily and CCTV on Monday, Minister of Civil Affairs Li Liguo explained his position on how to regain the public's confidence and how the legislation of Charity Law is progressing.

Q: What do you think of the "trust crisis" on welfare and charitable institutions following last year's scandal? What kind of supervisory mechanism does the Ministry of Civil Affairs have to create transparency for public donations?

Li: Last year's event did not mean [an overall] slow-down of the development of Chinese welfare and charitable organizations. People have a more sober-minded approach to and a more reasonable requirement for the industry. Criticism of individual charitable organization has drawn nationwide attention, and thus promoted the self-discipline of welfare and charitable organizations. This helps to create transparency and improve the integrity and credibility [in the charities]. Actually, the number of welfare and charitable organizations increased from 440,000 to nearly 460,000 last year.

The Ministry of Civil Affair issued the Guidelines for Transparency of Welfare and Charitable Donation Information last year, and hopefully it will help the public to have a better understanding of the situation and to supervise the conducts of charitable organizations. Our next step is to upgrade these guidelines into binding rules and regulations.

Q: In recent years, deputies to the NPC have continuously called for the legislation of Charity Law. How is the legislation of Charity Law progressing now?

Li: Since 2005 deputies to the NPC have submitted many proposals related to the legislation of Charity Law, and we also hope to speed up the legislative process. Relevant departments are working together on research and demonstration, and the Ministry of Civil Affairs will actively participate in and promote [the legislative process].

Q: Premier Wen Jiabao has made clear in this year's Government Work Report to untangle the relationship between the government and social organizations. Do you think some of the government functions will be transferred to social organizations?

Li: To promote the reform of administrative system, the government will transfer its administrative functions to the public and the market. Undoubtedly, social organizations are capable of taking on the responsibilities.

Meanwhile, the healthy development of social organizations also needs supervision and management according to the rules of law. This way, both the quantity and internal structures of the organizations can be improved.

Civil affair departments will focus on three areas of work in the future, including speeding up the registration system reform of social organizations, improving the policies to bring the potentials of social organizations into full play, and promoting social organizations in terms of their credibility with the public.