The Study on Non-Governmental Organizations in China Abstract Since late 80th of last century, international community revolution embark

on this world silently, non-governmental organizations (NGOs) emerge in large numbers throughout the world. Main character is its independence from government and market nonprofit-making, it is both a significant organization innovation and system innovation which occur beyond market system and state system with unique character and specialized advantage, this kind of innovation can positively take various activities solve certain social economic problems. These play efficiently an important role in pulling social economic development throughout the world. In such situation, neither market nor government can reach it. Currently, Chinese reformation, which aims at adjustment of significant interest relationship, is on solid foundation period, social transformation has already come to crucial times. Therefore, the research on development issue of non-government enables Chinese non-government organization to take on an important social part, during the transformation course of small government, big society "governmental functions. This has significant meaning in improving Chinese social economys continual stabilized healthy fast development. 1NGOs definition Characteristics and their role in public management 1The definition of NGO There are some misuses of definition due to different concert rating point of different countries and scholars. The development of international relationships theory has moved from state-centric to Transnationalism," "Interdependence," "International Regimes," "Pluralism." The union of people's strength besides governments is enlarging its effect among international relationship. How to use the different approaches of research about NGOs to observe variables' qualitative change and quantitative change among international relationship is becoming the new topic in 21 century. NGOs is called the third sector, in fact, is the response to the first sector and the second sector. It reflects one's growing and the other's declining between the interaction of international relationship and NGOs, and the behind predictions should be the third sector's operating logic because the interaction between nations has to be zooming under globalization. That is, the interaction between international

relationship and NGOs, which only shows each other's, but their interaction is under the logic of global operation, so we should include other related rules about global operation, and then we can see the general shape of whole pattern. Now professor Salamon makes the most authoritative definition. Professor Salamon considers it as the greatest innovations in 20th century (Lester. Salamon. 2000). His definition of non-profit organizations raised in the international comparison program of non-profit organizations is widely accepted now. He mentioned 7 characteristics of NGOs or NPOs (Salamon, 1994) as following: Formal organization; Nongovernmental; Nonprofit-distributing; Self-governing; Voluntary; Nonpolitical; Nonreligious. But developed rapidly as a sector only in the last 20 years of 20th century, especially in the 1990s, Professor Salamon considers it as the greatest innovations in 20th century (Lester. Salamon. 2000). Professor Salamon crossed out the limitation of nonpolitical and nonreligious in his later works. Then the first five factors are considered key to define non-governmental organizations. NGO and two other terms non-profit organization and third sector organization are also frequently used in China. Technically, these terms have different nuances, but they are often used interchangeably. (2) Characteristics of NGOs and their Role in Public Management The reason why non-governmental organizations are called The Third Sector is that they have some features different from governmental and enterprises. Shaoguang Wang (1999) concluded 10 characteristics that non-governmental organizations have, that is: nonprofit, indifferent, independent, mission important, various, professional, flexible, initiative, participating and low-cost. In fact, the definition of non-governmental organizations has already revealed the most important particularity that NGOs have. Compared with governmental sector, NGOs are independent social organizations that do not have bureaucracy system as government does, and they are not running according to certain administrative orders. They are society-based, independent, with power flowing both from up to down and from bottom to top. Compared with enterprises, they are nonprofit-distributing. And differ from both governmental and enterprises, non-governmental organizations have strong voluntary tropism, being established and participating by citizens voluntarily. The specialties that non-governmental organizations possess determine their different role or status from governmental sector and enterprises in public management. Such an understanding establishes the basis of the theory of

non-governmental sector. In general, when Market Failure or Government Failure happens in collocating resources because of their disadvantages, non-governmental organizations will be an alternative choice. NGOs have special advantages in dealing with some social problems which the market system and government cant or dont want to solve. In general, Market Failure includes the following situations: failure of supply of public products, monopoly in market economy, exteriority (the influence to the third one or the environment), market fluctuate and economic instability, inequality, etc. And Government Failure includes: overplus in production and high cost as a result of the division of cost and income, low efficiency, low qualified policy caused by complexity of policy making process, inefficiency in policy performance, interiority (pursuing for departments or officials interests but not the publics), inequality of power allocation, rent seeking and corruption, deformity of ownership, etc.(Chenfu management: 1) NGOs can supply public products effectively. Some theory believes that the third sectors are the private organizations supplying public products (Shaoguang Wang, 1999). This sentence actually reveals two aspects of the features of non-governmental organizations: they have the function of supplying public products just as the governmental sector, but they also run as enterprises do, with efficiency as one of their advantages. This is decided by non-governmental organizations characteristics of non-governmental and nonprofit-distributing. In these organizations, mission is one of the key factors. Their performance aims not to gain the most profit as enterprises do, but to realize some certain mission. The mission is nonprofit-distributing, represents a kind of ideal, and has a strong color of commonweal, which decides non-governmental organizations fundamental character. Someone considers nongovernmental organizations as organizations with the strongest sense of duty. At the same time, non-governmental organizations are independent from the governmental bureaucracy, voluntary participating by citizens, and autonomy. It has an structures with various, voluntary participating, and self-governing features, which makes a great different in performance from the bureaucratic of government, and have Zhang, 2001). Compared with government and enterprises, non-governmental organizations have the following peculiarities in public

superiority of low cost and high efficiency than government in supplying some public products. 2) What roles NGOs cant take on in public management? As showed above, NGOs can supply public products efficiently, but this does not mean they can replace government. Their effectiveness can only be seen in some aspects. Public Management has a connotation of three levels: the first is management of institutions, to establish the legislation system and other basic systems for a society. The second is management of public products such as security, environment, infrastructure and basic social services, to maintain competition in market, balance the macro economy, and promote social justice. The third is management of public organizations themselves. As NGOs have strong sense of mission, they play an important role in the improvement of social justice, maintenance of competition order, supply of social services, and supervision on public sectors. However, they have some disabilities for their own features. Government sector has a rigorous bureaucratic structure, so they can make policies caring the national interests. They should pay attention to various aspects of interests during their policy-making, comparing the advantages and disadvantages of different sectors and making a balance of their interests. In the contrast, non-governmental organizations are various, competitive, and independent from each other. Each of them has its own mission, being active everywhere. They established for diversified social needs, and their way of action is usually question discovering -solution seeking. So they are agile, flexible, responsive and efficient, but they can hardly be organized together as a whole. Thats why someone considers the third sector not really forms a sector as the government and the enterprise sector do (Wang Ming,2002). Thus, they cant realize the mission that should have social consistency, such as legislation and institutional construction. Moreover, NGOs act much like the enterprises do in the market, which may be lack of macro balance and need to be regulated. 3) NGOs have different action pattern with government, so they can play some special roles as following in public management. Advocacy in institutional construction: NGOs cant ultimately complete the construction of legal and institution system, but they can play an important role of social advocacy and influence the policy making process. NGOs reflect information from various aspects, represent the demand of people from bottom, thus their

participation in policy making process could improve the rationality of the policy. Thats the most important role NGOs can play in public management. As a social autonomy mechanism: NGOs perform their function of maintenance of market order, supply of social services, and satisfactory of social demand in different mechanism from the governments. NGOs fulfill these functions more depended on volunteerism and self-governing mechanism. They are based on communities, have widely civilian participation, mobilize extensively to achieve self-action, self-management and self-discipline. As an agency between government and market: NGOs are generally indifference and can act as an agency between government and market, which is frequently seen in economic activities. For example, trade unions are well developed in the west countries. Many functions of industry management, such as the regulation of an industry, the maintenance of competition, the coordination of enterprise, are realized not directly by the government but by the guilds. Special advantages in providing social services: Many NGOs set the social inferior groups or social edged groups as their service objects, to promote social welfare and social justice in the aspects that government failed to care about. Enhance transparency in management of public sectors: Through strengthening transparency, promoting social publicity and playing a role in social supervision, NGOs can restrict corruption, improve social commonweal, and contribute to institutional innovation for the society. 4) Therere disadvantages and problems that NGOs may have when perform their role in public management. NGOs carry out actions separately, so they lack of holistic visual angle. And more important, theres chaos brought by complexity of this sector. Non-governmental organizations or the Third sector is neither like governmental sector that has rigorous ranking system, nor like enterprises that have definite economic criterion to evaluate. Their connotations are ambiguous, the borderline being dim, and there are no commonly accepted evaluation standards. Under this background, there is great disparity in quality between different organizations that exist as NGOs. When we see the vitality NGOs bringing to the society, we should realize that they also have some problems hidden. NGOs have their own deficiency, such as internalities, rent-seeking, corruption as the government does, and monopoly as enterprises do, especially when this third sector is not developed very well and lack of supervision. In addition, capacity building is always a challenge that NGOs meet

all over the world. Strictly speaking, in China, there hardly has meaningful NGO which complete coherence with international standard. But in Chinas social transition, there do exist some organizations somewhat separated from government and enterprise, and they have some characters of Self-governing and non-profit. To recognize such social organizations and to promote their development in China, we also call them NGOs though they are not exactly qualified using Salamons definition. According to Chinese scholar the NGO can be definited as long as the formal official organization which is registered lawfully, taken non interested activitiessatisfied volunteer and public requirementshad different scale of independence and autonomy ,that can be called Chinese NGO. From law's view, we have 3 kinds of NGO, including social community, enterprise and foundation .So NGO can be defined according to law, its intrinsic character is to set non governments development orientation, activity scale, operating system and so on. Therefore it will enable government to better formulate nongovernmental organizations development law framework, and then improve the development of non-government organization. The emergence of an NGO sector in China has been a direct consequence of the changes to both the Chinese state and society since the beginning of the reforms in 1978.In additionChina's entry into the WTO and current trends towards globalization also promotes the development of NGOs in China. 2 the profoundly analysis our country's non government organizations development's history and current situation. The emergence of an NGO sector in China has been a direct consequence of the changes to both the Chinese state and society since the beginning of the reforms in 1978. Reforms have not only led to a relaxation of state control over the economy and society, but have also seen the state actively creating and sponsoring NGOs in order to transfer to them certain functions which it used to perform itself under the command system. In the economic sphere, the government has sought to reduce its direct management role by establishing intermediary organizations, such as trade associations and chambers of commerce, to perform sectoral coordination and regulation functions. In the social welfare sphere, the government wants to foster an NGO sector to which it can offload some of the burden of service provision (see, e.g., Wong 1998). In the social development sphere, the government hopes that NGOs can mobilize societal resources to supplement its own spending (see,

e.g., Howell 1997). Seen from the contempory history, our country's NGO can be divided 3 parts by the mark of the found of PRC and the third plenary session of the 11th party central committee, till today, Chinese NGO has already several how essence change in comparison with the past .it plays an important part in the development of the economy and politics. Mainly express in a focalized way that the independence and the whole power of the NGO has greatly improved Social influence expands day by day the quantity, scale, ctivity field, activity ability, interchange of organizations ability to raise funds, have greatly improved and through every channels to influence the government policy. Compared with the NGO of the developed countries, Chinese NGO still remains in the difficult situation .on the aspect of the organization's scale, activity ability especially the basic attribute which accordance with the internationals standard suffers from an inherent shortage. Meanwhile, the law system, the social support culture background which are necessary for development, are relatively not perfect, they are restrained dually by self-ability construction external law system, policy culture environment and so on. From a macroscopic perspectiveChina's transformation of the economic political and social systemshave been developed successively in these years. They have broken the traditional structure of the Government's monopolization of resources and strictly controlling private action space. The reforms have restructured the relationship between the Government and the market societyand thus provided an opportunity for the existence and development of all kinds of NGOs in China. In additionChina's entry into the WTO and current trends towards globalization also promotes the development of NGOs in China. On the one hand various new social problems and social demands have come into being in today's social transformation periodalong with development of Chinas economy a new middle stratum of the society has gradually formed and citizens leisure time has increased which makes citizens participating NGOs' activities and voluntary actions possible. In a word development of NGOs in China has been faced with an unprecedented favorable opportunity and a lot of problems and challenges since the Reform and Open Door Policy. After the establishment of the People's Republic of China China mainly followed the political and economic patterns of the former Soviet Union. In order to

make Chinas military and industry successful enough to catch up with and even surpass some other advanced countries, national defense and heavy industry had to take priority. Hence, the Government had to have overall intervention and control over society, in order to mobilize all domestic resources to realize and ensure such a strategy. Therefore, some experts have named China's society from 1949 to 1978as a total society Sun Liping 1994 Its primary characteristic is that the Government had . power to control and allocate most the social resources. While an individualwhen trying to obtain basic life conditions had to acquire it through institutional arrangement that is system of the Unit household registry system and the the the rank system. This kind of social structure and social organization system corresponds with the planned economy system, which gave pre-Reform China had a strong identity of "Strong Government, Weak Society". Meanwhile, NGOs , especially pure civil organization had no space and environment for existence and development. After 1978China carried outin successionreforms of the economic system political system and society. Establishment of the socialist market economy system simplified and transformed government agencies. Change towards a pattern of "small government, large society" have brought great changes to the relationship between the Government market and society. At the same time, functions of all kinds of social the organizations are faced with new differentiation and reasonable orientation. In this sense, development of NGOs in China has gained an unprecedented opportunity. Moreover, their development has promoted China's reform of the economic system, political structural reform and social transformation. China began its Reform and Opening to the Outside World in 1978.It was firstly carried out in economic area and took reform of the economic system as its in section. It carried through the Household Contract Responsibility System with Remuneration Linked to Outputand abolished the Commune system in rural areas. Reforms changed the relationship between the Government the society and individuals which mainly includes the following three aspects Firstly, in the former planned economyfarmers had no freely allocated land and other production means. Only by depending on people's communes could the farmers gain productive and living resources. However after restructuring of the economy in rural area, farmers acquired the right to use land through contracting and thusthe farm household become the basic production unit in China's rural areas. Secondlybefore the Reformfarmers had to work to a schedule andthus

could not control their own labor. After the Reform farmers could freely arrange the their work and rest time and choose working categories according to their own will. Finally former people's communes had both an administrative function and economic function. The Government could control every aspect of farmers' laboring and private life through these production brigades and production teams. However the people's communes disintegrated after the Reform. In addition two different organs in rural areas performed the former two functions of the people's commune. At the same time"village was established within the scope of former production brigades and villagers' committeesbasal self-governing organization in China's rural area was also founded. In this sense the Government controlled every aspect of China's rural society and thus made it impossible for NGOs to exist before reform of the economic system in rural areas. Neverthelesstoday's rural areas have had basic conditions for NGOs' existence and development: freely flowing resources freely acting space and decreasing Governmental intervention in society. Once there is the environment and demand for NGOs to exist and develop in China's rural areas it is inevitable that a great number of NGOs would come into being. Economic structural reform in China's rural areas established farm household's principal status in agricultural production and thus aroused farmers' production enthusiasm. Since farm households actually had individual status undertaking isolated and unenlightened individual production having backward productive technologies and having difficulty in acquiring informationthey were in urgent need of learning modern agricultural science and technology. However the traditional agricultural service departments of the Government were unable to fulfill all demands of so many individual farm households due to lack of manpower and material resources. Under such circumstancesthe first group of self-organized bottom-to-top technological service NGOs came into being in China's rural areas . The Government agreed to such kinds of rural professional technology associations including technology research society . Since mid-1980srural professional technology associations have undergone a rapid development with assistance and promotion from the Government and China Science and Technology Association. According to official statisticsthe number of China's rural professional technology associationsincluding technology research

society was more than 90000 in 1993 while most of them became Government NGOs. Along with development of the market economy in China individual production status of China's farm households put farmers in a competitively disadvantageous position. Thenthey were in need of establishing their own NGOs to safeguard farmers' benefits through jointly purchasing agricultural productive materials joint distribution coordinating farmers' productive activities and representation of farmers to negotiate with relevant governmental departments and enterprises. Under such new circumstances and demands various kinds of NGOs have come into being in rural areasfor instanceprofessional associations providing purchasingmarketingprocessing, warehousing and transportation services for professional production to their members. According to statistics from the Department of Agriculturethe number of professional farm associationsincluding professional technology associationswas more than 1500000. The economic reform in Chinas rural areas provides a base for rural NGOs' existence and development. Subsequently, the first group's bottom-to-top NGOs came into being in China's rural areas after the Reform and Open Door Policy. Such kinds of NGOs were far from functioning as information communication centers. They lack exchange methods and are neglected by the media these pure civil organizations were not as famous as those pure civil organizations that emerged in the 1990s'urban areas such as Friend of NatureRural Women Knowing All. Some of them have unknowingly emerged and perished by themselves. Howeverit is undoubted that China's rural areas had the first environment for NGOs' existence and development and thus giving birth to the earliest pure civil organization in China. From 1984emphasis of Chinas reform of the economic system transformed from the rural areas to the urban areas. As for NGOs in China the main influence of China's urban reform included changes of the structure of ownership and its impactions the Unit System. Before the Reform and Open Door PolicyChina had a state-owned economy and collective economy. The population of working age in urban areas could only work in administrative units, public institutions state-owned enterprises and collective enterprises. They could gain no productive and living resources without working in some UnitHoweverall resourceschances and benefits possessed or controlled by the Unit were allocated by the Government, that is to say, the Unit

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was dependent upon the Government. Therefore an individual had no freely controlled resources and active space under the Unit System before the Reform and Open Door Policy. Thenafter the Reform, a proportion of the nonpublic economy mainly includes individual economy private economyand economy directly invested by businessmen from Hong KongMacaoTaiwan and foreign countries increased greatly China s GDP. In 1978its proportion was only 1%.It reached 12.3%in 1993and24%in 1996.At the same time employed population in city non the Unit enterprises private enterprises and individual enterprises also increased rapidly. It was half the number of the Unit employed population employed population of state-owned sector. Changes of ownership structure have made the Unit no longer the only form of organization. The population of working age in urban areas can gain productive and living resources without depending on the Unit. All in allin the centrally planed economy period individuals in urban areas depended on the Unitwhich in turn depended on the Government, While the Government also depended on the Unit to control and regulate society. After urban reforms of the economythe Unit System gradually weakened while the relationship between the Government and society were reconstructed. On the one hand self-employed individuals and private enterprises which are not included in the Unit Systemare in need of new communication methods to integrate them in order to protect their benefits. On the other hand the market is in need of a new method to maintain market order while the Government needs a new form of organization to enhance communication between dispersed individuals and itself for reducing social organization cost. Under such circumstances and demandsNGOs in Chinas urban areas acquired unprecedented development opportunities. In this sense Chinas urban reform of the economic system and weakening of the Unit System provided necessary conditions and a good environment for the development of NGOs in China's rural areas. Administrative system reform is an important part of Chinas reform of the political system and an important insurance to further reform of the economic system. China s administrative system reform is very complicatedwhile restructuring of government administration and change of governmental functions has played the most important role in the development of NGOs in China. Under the traditional administrative management systemChinas Government has long played a role of all-powerful government .In the economic area China

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had a highly centralized planed economy while the Government undertook responsibility of disposing social resources and controlled all kinds of productive tasks by directly ordering production targets. In the social area it had strict administrative control and restrained growth of social organizations. In the cultural area the Government provided funds to set up all kinds of cultural facilities. Along with the development of the economic reforms restructuring of government administration is developing steadily. Restructuring of government administration mainly includes reform of traditional government ladder of management and management style and transform functions of the Government firstly the Government transformed from micro management to macro management secondly transformed from direct management to indirect managementthirdly transformed from department management to industry managementfourthly transformed from emphasis on management to emphasis on providing services and supervisionfinallysocial welfares socialization. Administrative system reform emphasizes transform of governmental functions. In addition ultimately this reform devolves administrative power to lower levels and separates the functions of government from those of the enterprise. Therefore administrative setup same as reform of economic system the adjusts the relationship between the Government and the market and society. Thus provides a wider space for development of NGOs in China. In fact in 1993 the Chinese administrative reform directly brought a rapid development of China's social organizations." From 1993 to 1995development of social groups expanded due to the influence a overheated micrographic environment at that time. Although administrative reform and transformation of administrative functions cannot realize their objectives at one time they have further changed the pattern of "Strong Government Weak Society". Current reform of China's government-sponsored institutions is worthy of a special mention since it may change China's image of "Strong GovernmentWeak Society "to a larger extent and even a qualitative forward leap. Such institutions with Chinese characteristics include various departmentsscience and technology educationhealth culture and sports. Their manpowermaterial resourcesbut also their financial power are far more powerful than today's Chinese social groups. If some of these institutions become non-profit organizations and some others become enterprises then, they will greatly increase the capacity of NGOs in China.

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Before the Reform and Opening the Chinese Government exercised its administrative power to strictly control political economic life and all other aspects of China's society through the Unit System the household registry system and the rank system." The Government not only monopolizes most of the existing resources but also puts new resources under its direct control by exercising its compelling power. It also destroys all potential competitors controlling scarce resource through political or administrative methods"Sun Liping1994Then it gave no existing and developing space for NGOs in China. After 1978on the one handreform of economic system ensured society had freely controlled resources and space and thus a lot of bottom-to-top pure civil organizations and NGOs came into being. On the other handreform of the administrative system and transformation of administrative functions led to "separation of the functions of government from those of the enterprise. Which engendered and developed a great many intermediary agents and linked the Government with the market further developing the strength of social organizations. China's social reform began along with the advancement of economic reform and administrative system. Its main symbol is the establishment of an objective model of "Small GovernmentLarge Society. Although former social reforms stopped during the slogan period[4]it at least pinpoints the direction of social reform that is "separation of the functions of government from those of the society" which returns responsibilities that originally were shouldered by the society and develops intermediary organizations However, community developing" "socialization of social welfare" and "autonomy of villagers", promoted by administration of civil affairs pushed China's social reform to a new level and substantive progression. Development of NGOs in China has a looser environment and wider base, fully proved by the following example A high official of the Ministry of civil Affairsin a public speech indicated as follows "Intermediary agents are an important force in a community developingAll intermediary agents abiding by laws and regulations are welcomed by the public and advance development of the community will be supported by this Ministry in order to give full play of their functions" Another example is the Social Development Bureau of Pudong District Shanghai. It provides land and housing for a civil organization YMCA and entrust

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YMCA to provide community service to the local community. It is the first example of "Government sponsored and civil operated "and thus has a great significance for development of NGOs in China. The legal environment is one of the most important factors of NGO development in China. As to NGOs in China the change of the legal environment is the most significant one after the Reform and Open Door Policy. After the foundation of the People's Republic of Chinathe Government enacted the Interim Regulation on Social Organization Registration in 1950 with a purpose to administrate existing NGOs at that time. Thenlegislation of civil organization was suspended due to the "Culture Revolution". It had no substantial development until the late 1980s.Measures on Foundation Management was promulgated in 1988.Regulation on Social Organization Registration and Management and Interim Provisions on Foreign Business Association Management were promulgated in 1989. Along with development of the social economy and changes of situation Regulation on Social Organization Registration and Management enacted in 1989was behind the time by the late 1990s.Therefore it was amended and a new Regulation on Social Organization Registration and Management was issued in September 1998.At the same timeInterim Regulation on Registration and Management of Civil Non-business Unit was promulgated in 1998.Law on Donation for Public Welfare was issued in 1999.In addition Ministry of Civil Affairs has issued more than 50rules the and regulation concerning administration of social organizations. The number of relevant local regulations is even larger. Such laws and regulations constitute the legal environment for development of NGOs in China after the Reform and Open Door Policy. The Ministry of Civil Affairs checked up remanaged and reregistrated the social organizations after the promulgation of Regulation on Social Organization Registration and Management in 1989.The number of established and registered social organizations at the end of 1992was 40000less than that of early 1989.After the promulgation of the amended Regulation on Social Organization Registration and Managementthe Ministry of Civil Affairs checked up and reorganized social organizations all over the country and investigated and prosecuted a lot of illegal cases or principle-breaking cases of China's social organizations. It incorporated many social societies with similar or the same objectives or active scope as well as banned a lot of illegal social organizations. Until the end of 1998the number of China's social

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organizations decreased from 1996's 200000to 165000.Although their number has decreasedtheir quality has increased at the same time. Another interesting phenomenon is, when amending Measures on Foundation Managementissued and implemented in 1988, the Administration of Civil Affairs called relevant foundation leaders together to have a discussion of its amendment listened to their opinion and amended draft. All in all China's laws and regulations concerning civil organizations are still not perfect after the Reform and Open Door Policy. There are still some problems that exist in its legislation for instance it always lagged behind development of civil organizationsit is of low legislative level since there are no laws concerning civil organizations till now the majority content of regulations mainly concentrate on registration procedure while paying little attention to tax administrationfinancial administration and staffs social security Li Yong 1999 .Compared with the status before the Reform and Open Door Policythe legal environment of civil organization has seen great improvement. Legislation concerning civil organization has developed rapidly since the establishment of the Bureau of Administration of NGOs in 1998. There are quite a lot of different opinions towards the concept of "globalization". However it is significant that globalization strengthens mutual influence cooperation and promotion between countries all over the world. This gradually popularizes things in common and standardizes them all over the world. Since China is close to entering the WTO it is certain that globalization will have a greater influence on China's politics economicsculture and even Chinese people's living stylewhich is the same to developing environment of NGOs in China. First of allinviting businessmen to open companies attracting capital and direct administration of enterprises production operations which are originally undertaken by the Government will be regarded as non-market administrative intervention after China's entering WTO. Therefore the business associations or guilds independent of the Government will take over some former functions from the Government. Secondlyafter entering the WTO many aspects of Chinese society will joint with international society otherwise it will meet a lot of inconvenience in exchange or and communication. For instancein foreign countries it is common for business associations or guilds to undertake sectional management and protect benefits of their members moreover international trade union can even formulate trade

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standards and normalize trade actions. Then on the one handit is inconvenient for the Chinese Government to directly contact foreign chamber of commerce or guild sand thus corresponding forms of organizations thus China's own business associations or guilds should be established. On the other handdevelopment of domestic business associations or guilds will be helpful to specialization normalization and internationalization of domestic trade and protection of holistic benefits of domestic enterprises and common benefits of the state and society. Thirdly along with the increase of international cooperation and exchange Chinese people's recognition of NGO and its role in resolving social problems will correspondingly improve. In additionforeign aid to China through NGOs will increasewhich will as a result promote the development of NGOs in China. Fourthlyglobalization will undoubtedly advance China's ReformOpen Door Policy and social development. Howeverin the short termit will also bring about some negative influence expansion of disparity between the rich and the poor rapid increase if unemployment in some local areas or trades prevalence of AIDS in some placesworsen of environmental pollution and so on. The Government will need NGOs in China to play their full role in solving such social problems. On the wholethe trend of globalization will not only increase NGOs in China but also accelerate the transformation of governmental functions and promote NGOs in China' autonomy and self-disciplineespecially business associations and guilds in trade and commercial aspects. Since 1978, China's economic, political reforms, social transformation promulgation of relevant laws and regulations on civil organizations management, have provided the necessary conditions for the development of NGOs in China. As for the macrocosmic environment their development no longer has any strict institutional and legal limitation. At the same time the microcosmic environment for the existence and development of NGOs in China has also changed evidently which includes progressive increase of demand for NGOs forming the middle stratum of the society public participationvolunteer actions and development of West China. During the social transformation period there were new social problems and social demands coming into being in China. Nevertheless the Government had its own limitation when solving such problems and fulfilling such demands. Therefore an invention of a new organization was needed. NGOs have their no replaceable role

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in this aspect. Along with formation of a mixed ownership structure and continuing weakening of the Unit Systemmultiple interest subjects dissociating from traditional Unit System came into being individual farm households self-employed individualsprivate enterprises and joint adventures. Since such new benefits subjects are usually in decentralized operation status they need new forms of organization to protect their benefits in today's severe market competition. For exampleseparate operating farm households are in need of professional associations providing uniform sale and purchase processing preservation and transportation. Self-employed individuals are in need of associated associations to normalize market behaviors and protect their benefits. In addition when there are a great many benefit subjects dissociating from traditional administrative systemthe Government is also in need of intermediary agents to link itself up with such subjects. This will not only reduce the Governments cost of collecting information and increase efficiency of public policy but also be helpful to social control and social stability. Secondlyproduction efficiency has greatly increased since the Reform and Open Door Policy especially the establishment of socialist market system. However it also brings about some unfair social phenomena a lot of new vulnerable groups and social problems such as expansion of disparity between the rich and the poor problems of poor population floating population women and children among them increase in unemploymentformation of an urban underprivileged groupSTD and AIDS problems drug addiction problems problems of swindling and selling women and children problems of old people Evidently is impossible for the market etc. it and unpractical for the Government to solve such problems. Furthermorefiscal capacity of the Government declined year by year since the Reform and Opening. It leads to the Governments incapability of providing enough social welfare and resolving social problems. Under such circumstancessociety will start up new organizations to make up insufficiency of the Government and the market. NGOs have advantages such as innovative flexible having close connection with grass roots knowing actual status of grass roots, low costs and high efficiency. Such advantages give NGOs a non -replaceable function in fulfilling demand of vulnerable groups and resolving social problems. People also hope NGOs can make a contribution to eliminating poverty resolving unemployment problems and advancing social integration.

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Thirdly China has more and more international exchange and cooperation with deepening of Chinas Reform and Open Door Policy and its imminent entry to the WTO. Therefore shall be in accordance with international society in many aspects it which makes China face with an urgent task of developing social intermediary agentsespecially those autonomic trade associations and chamber of commerce linking the Government with the society and the market. The average annual rate of increase of China's economy is as high as 9%percapita.National income has been doubled in the past 20years since the Reform and Open Door Policy. Under such circumstances and directed by "permitting some people to become rich earlier"one of the most significant changes of China's social structure is the forming of the social middle stratum. Up to June 1999Chinas registered private businessmen were more than 2810000with registered capital of 817 700 000RMB.Number of self-employed individuals was nearly 20 000 000.In additiona stratum of new-rich people with high educational attainments have come into being such as IT undertakers Chinese managers in foreign-invested enterprises rich intellectual and some show folks and sportsmen. The formation of China's social middle stratum will not only provide new financial channels and accumulate resources for volunteersbut also engender a new generation of NGO leaders. Before the Reform and Opening the Chinese Government controlled and allocated most of the rare resources and took charge of providing all public articles and social welfare. In this sense the civil society could hardly have any necessity and possibility of participating in public services. Thenthe civil society began to have a lot of freely flowing resources and free active space due to the Government's loosing control over social aspects and emergence of multivariate benefit subjects. On the other hand farmers absolutely have had free control of their time and urban residents changed from working 6daysper week to working 5days per week in additionthey have gained more holidays and thus have more than one third time free time allocated in a year. The above circumstances provide manpower and material basis for public participation and volunteer activity. At the same timethe Chinese Government also began to encourage public participation and volunteer activity. For example China's Agenda for 21st Century issued by the Chinese State Council in 1993clearly indicated that"Participation and

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degree of participation of the publicgroups and social organizations will determine realization process of objects of sustainable development. The Ninth Five-year plan for the National Economic and Social Development and the Outline of the Long-term Objective for the Year 2010of the People s Republic of China issued in March1996also prescribed that "advocating volunteer activities and social mutual helping activities." Under such circumstancesChinese public participation and volunteer activities have undergone an unprecedented development. China has established more than 55200community-volunteer organizations and a large number of youth volunteer associations a lot of important public welfare projects and such as Project Hope and Project Happiness. 3the Problems and Challenges Faced NGOs in China According to the above analysis, NGOs in China are confronted with unprecedented opportunities in both macroscopic and microscopic environment after the Reform and Open Door Policy. However, they are also faced with a lot of problems and challenges. Deepening economic political and social reform is needed for NGOs to takeover some responsibilities formerly undertaken by the Government. It can even be crucial to the success of the Reform. However, today's NGOs in China are too small and incapable to take up all such responsibilities transferred from the Government. Firstly NGOs in China lack funds. Being short of funds is a main problem of NGOs all over the worldwhile it is typically significant in China because China is a poor developing country though it has gained great economic development since the Reform. According to statistics from the World Bank China's per capital in 1998was only $750, which was far below the world's average level of $4,890. In additionthe Chinese Government's limitation of NGOs' undertaking business operations makes fund sources deficient. Moreoverup till now the Chinese Government has limited measures in encouraging donation from individuals and enterprises. Secondly NGOs in China lack human resources. According to relevant investigations NGOs in China have few full-time staff and even less volunteers. Take NGOs in Beijing for example in 19998.7%of NGOs in Beijing had no full-time staff , 34.6%hadfull-time staff of one to four people and 55.8%had no volunteers . In additiondue to some special causes quite a lot of NGOs in China have become "rest-homes for retirees lay-off personnel of government agencies and public

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institutions with people of low education and lacking innovating spiritwhich also restrict the development of NGOs in China. Thirdly lacking relevant knowledge and experience a lot of current NGOs are separated from former government agencies and public institutions which are called second government or "semi government. They still keep the original officialism have no management skills being short of innovation and flexibility little experience and methods of solving social problems and fulfilling social demands. According to relevant statisticsat the end of 1998China had more than1 800national wide social organizations165600local social organizations and 700 000mass-run no business units Wu Zhongze 1999 Besides . China also has a large number of organizations permitted by the Unit and developing activities within the Unit that need no registration. Some grassroots organizations in China had to register with the administration of industry and commerce since they could not find a governing Unit or were unwilling to be administrated by such a governing Unit. That is to saythey are in fact NGOs [9]though they are companies in name. Therefore China has a large number of NGOs. Howeversuch NGOs are not often same level: some NGOs illegally raise funds to earn illegal profit, some have A phenomena of scrambling for power and profit with bad internal frictionsome have jumbled financial affairs and bad corruption, some take superstitious actions to defraud money, and some others even take anti-government, anti-mankind and anti-scientific actions. Due to the existence of a few NGOs with bad reputations, some NGOs cannot win the trust, Which leads to difficulty of collecting funds and recruiting volunteers on the other hand the Government has no consistent policy towards NGOs when there are relatively more problems arisingthe policy will be strict. It strictly restricts long-term development of NGOs in China. Limited Recognition of NGOs Results Restriction of Development of NGOs in China. NGOs are relatively new in China. In this sense most people have a limited knowledge and some misunderstanding of them which restricts the development of NGOs in China. It is often the case that Chinese people will connect NGOs with foreign anti-government organizations and pressure groups. Especially because great changes took place in the former Eastern Europe and Soviet Union and a large number of reports concerning NGOs disturbance of annual session of the WTO and World Bank.

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People s understanding of NGOs has some limitation. As a resultthe Government is in need of developing NGOs to undertake some functions conveyed by the Government to protect achievements of the Reform howeversome people are also afraid of the possibility of NGOs threatening social stability since it is the most important thing in todays Chinese society. Under such circumstancesdevelopment of NGOs in China will inevitably be restricted. The main cause is being a lack of self-government and having too close a connection with the Government as well as some spontaneous NGOs quickly being brought into the administrative system after establishment. Meanwhile, societal actors have been quick to exploit the greater social space and the non-state controlled resources now available to them to pursue their independent interests and agendas. NGOs provide an important channel for such pursuits. With the impetus to the formation of NGOs coming from both the state and society, the number of NGOs has increased rapidly in the reform era. Ministries of Civil Affairs (MCA) statistics show that before 1978 there had been only about 100 national social organizations in China. By the end of 2003 their number had reached 1,736. Meanwhile, the number of local-level social organizations grew from 6,000 to 142,121. Moreover, the social organizations that existed before the reforms were fully controlled by the state and mainly served the states objectives, whereas many NGOs that have emerged since the reforms enjoy considerable autonomy and work to promote societal interests. A good example of such NGOs are those that are organized around marginalized interests (Howell 2004), such as self-help groups formed by people living with HIV/AIDS, or organizations championing labor rights. Despite the rapid growth of NGOs, many factors have prevented them from effectively performing public-benefit functions. These factors range from government policies on NGOs to the characteristics of political participation in China. Due to the lash of the social change, the aspiration spirit, public goods consciousness and social sincere, which are essential to the development of NGO, are scarcely insufficient; they all seriously restrain the development of Chinese NGO. 4conclusion and Suggestion This paper has discussed some major problems that have negatively affected the ability of Chinese NGOs to perform the benevolent functions, which are

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generally expected of such organizations. This suggests that the effectiveness of NGOs either as service providers or as advocates for the interest of their constituencies cannot be automatically assumed but must be empirically proved. Most of the problems faced by Chinese NGOs have no quick or easy solutions. Many of them stem from the institutional and structural arrangements that currently exist in China, such as the way statesociety relations are structured. At the moment organizational capacity building for Chinese NGOs is high on the agenda of many donor agencies. Partly as a result of donor interest, many organizations and individuals have been busy organizing training programmers for these NGOs. However, as this paper has sought to demonstrate, the problems afflicting Chinese NGOs cannot simply be removed by, say, teaching them some modern management techniques, or the importance of working together with other NGOs. The situation is far more complicated. To help Chinese NGOs to better fulfill their potential, interested parties need to look beyond the NGOs themselves and to direct more efforts at improving the general environment for the development of these organizations. According to the current development of Chinese society, which raises a necessary and essential claim to NGO, puts forward the policy idea and suggestion that Chinese NGO develops. During the government reformation the advancement of the market economy and the coming globalization ,NGO is becoming a more and more essential organization system which can solve many social problems .Such as the new born profit unitthe transition of government capability the improvement of social adjustment. The external communication and the volunteer service and so on, they all need the NGO to participate in. Especially in our country which is now in the period of social transition, on one hand, the reformation of Chinese government economic system needs a strong NGO to continue the function which transfers from the government .on other hand, Chinese NGO due to the self result can not continue this transformation .So how to develop the NGO positively becomes the most currently important task. However China is a developing country, economy system hasnt consummated and politics system is different from developed country. Chinese NGOs are also different from other countries. They have some problems like other new things, in all these problems politics systems unsuitability, law systems faultiness, lacking of social self-identity and voluntary are the most important ones. Solving this problems

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need us admitting NGOs' independence and having cognizance of

governmental

administration's validity. We must seek the balance between NGOs' running away and NGOs' independence, search after scientific administration method and administer with law. As a wholeChina's Reform provides an unprecedented opportunity for NGOs in China while well-developed NGOs will also promote development of the Reform. Howeveraccording to the present situation of NGOs in China they still have problems of incapability weak independence and mixture of the good and the bad and thus being difficult to take over functions conveyed by the Government. Then suggestions will be given as following Firstly perfect good governance and responsibilities and realize the subject transition from the social groups to the community. According to relevant investigationsthough China's unofficial NGOs have governance as councilquite a lot of NGOs' councils exists in name only. Few leaders and even leaders of governing departments basically decide their important decisions. Besides a tiny minority of in grass root organizations their leaders are a law onto themselves and lack responsibility due to various kinds of causes. It is one of the major causes of NGOs' bad decision makingcorruption lack of social credit and difficulty in collecting funds. Then first of all NGOs in China shall prefect good governance and establish responsibilities to achieve development. SecondlyDefine the NGOs function properly, prefects its independence and establish supervision and evaluating system of a third part. Although some foreign surveys show that NGOs have high efficiencyHasan1993it is objectively easy for NGOs to not efficient since they have no market competition and individual benefit. In addition China lacks supervision and evaluation of the third part towards NGOs and thus some NGOs and grass root organizations have low efficiency and jumbled financial status and even serious corruption. Consequentlyestablishment of supervision and evaluating system of a third party is an urgent task during the developing course of NGOs in China. Thirdly strengthen of capacity building to enhance NGOs' capability of resolving social problems and meeting social demands. According to domestic and international experienceonly by resolving some long-term social problems and meeting demands did not or could not be resolved by the Government and enterprises. NGOs in China win identification of the Government and the public and acquire a

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real space of existence and development. As a result capability of NGOs in China to resolve actual problems will decide their development in the future. Fourthlystability is the most important task of China. According to current conditions in Chinait is suitable to develop NGOs with developing objects but not with so-called "pressure group in the West. The Government's administration of NGOs shall mainly include macroscopic leading and controlling of NGOs' direction. Fifthly Establish and consummate the laws and preferential policy of the NGO and perfect relevant legal system concerning NGOs as soon as possible. In todays Chinathe Government on the one handis trying to strengthen administration of NGOs to maintain social stability on the other handsome local administration of civil affairs have no laws and regulations to go by[10].It leads to disordered administration and even to some degree losing controlling some aspects. Accordinglyit is an urgent task to accelerate legislating process of NGOs in China and make them undertake all activities in accordance with relevant laws and regulations. Sixthly, Pay attention to the study of NGO, Draft NGO's goal, arounding the development of economy and society and Enhance the propagate degree Finally actively foster and develop social intermediary organizations. After the World Convention of Women 1995more and more Chinese people knew about NGOs. However they lack an all around and objective understanding of NGOs since their knowledge is one-sided and even concentrate on insufficiency of NGOs. As matter of factmost NGOs in China are good because they are playing an important role in poverty alleviation resolving unemployment promoting social integration and building up socialist spiritual civilization. Thenat the same time executing supervision of public opinion towards NGOsthe media shall make corresponding reports of the positive role of NGOs in China to raise all-around and correct awareness of the public. For Chinese NGOs, these methods are not enough, rebuilding social support is more important. Social support is not only a kind of framework but also a kind of social psychology. From the macroscopically way, the development of NGOs is accompanied by the advancement of civil society. Both the role of the government and the role of people need to be altered. The development issue of Chinese NGO is a long and difficulty mission. During this period, we should not only focus on the accordance with international standard,

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but also fully considers the different character. We should explore a development way with Chinese NGO characteristics .It not only comes from government which makes great efforts from top to bottom but also NGO from bottom to top.

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