"The current system of poverty alleviation has many shortcomings," he said. "Funds from the government are delayed at different levels of administrations and sometimes do not even reach the needy."

"The new co-operation between the government and NGOs will lead to a win-win result," said Kang Xiaoguang, professor at Renmin University of China.

"Funds can reach the poor without delay and the government can achieve its aim of poverty reduction. And NGOs will have more funds to survive."

He Daofeng, deputy secretary- general of CFPA, added: "It can also help domestic NGOs improve their management and performance."

In another development, the All-China Federation of Trade Unions will strengthen its annual charity campaign to help the nation's 22 million urban residents who subsist on the government's minimum living allowance.

The federation will try and find jobs for laid-off workers, provide occupational training to migrants and help retirees with medical insurance.

"Each family has a different story and we aim to solve their problems practically," said Dong Li, a senior federation official.

"So our charity campaign will not focus only on donations of clothes and cash."

The federation has earmarked about 40 million yuan (US$5 million) to be given out from New Year's Day to the lunar New Year, which falls on January 29.

Source: China Daily