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The beloved children's palaces are commonly recognized as somewhere youngsters of all ages can absorb knowledge and enjoy themselves.

However, with rapid market economic development, many such public welfare facilities in China are struggling for survival, Xinhua News Agency reported on April 23. Because of a shortage of funds and operational losses, they have to find new outlets for their development. Many of them now are occupied by enterprises for profit-making activities.

In Children's Palace of Changchun, capital city of northeast China's Jilin Province, Xinhua reporters found in the big deserted courtyard only a row of billboards advertising various training classes such as dancing, painting and the like. The charges for the classes ranged from 360 yuan (US$37) to 1,200 yuan (US$149) half yearly.

The Children's Palace in Jilin City is also occupied by various off-school training activities. Usually classes start at 16:00 from Monday to Friday and operate all day during weekends.

Renting out facilities for profit-earning activities is now a common practice for children's palaces across the country, according to insiders.

Most of these palaces were built in the 1950s with an aim to enrich the recreational and sports activities of young people after school. They often held scientific knowledge education, cultural and social activities without fees at that time.

"The interest and openness of the palaces used to attract numerous youngsters," said Xu Fang, a lady who used to be a member of a Children's Palace's Chorus in the 1970s. "They were a paradise for children."

Zhang Ying, director of the Changchun Municipal Children's Palace, claimed that it was difficult to operate a children's palace nowadays. "A children's palace is aimed at providing a good environment for children to study and grow up in but now we find we're caught in a dilemma."

According to Zhang, a children's palace used to depend on a financial allocation from central government. However, the government's investment and the actual expenditure of running it are out of proportion now.

Yu Xiaojie, director of the Youth's Palace of Changchun, shared Zhang's views. "Shortage of funds, shabby buildings and outdated equipment are my palace's current situation," she said. "The shortage of funds has resulted in a brain drain. The investment from the central government is far short of the need and therefore we simply can't organize any large event and activity."

To fill the gap they move towards the market for help. "As the state fund allocated to us is insufficient, we've to earn money for our increasing expenditure through running training classes," said Zhang Ying.

"Pushy Chinese parents want to have their children gifted in one or another field and there are many outside-school training classes nowadays," she said. "To tailor to the needs of the market and solve our own problems, we also offer training courses."

In early April, the State Council issued a circular, reiterating that children's palaces and clubs, scientific and technological centers for teenagers and other similar initiatives which had been established with state investment should remain for the public good. Profit making activities were not allowed in these centers.

"To be a completely public welfare institution it's imperative to have government funding in line with the different needs of these institutions," said Zhang Ying. "In addition society must support after-school education for younger people."

"In the past many places gave free access to our organized activities but now the cheapest fee for a venue is 4,000 yuan," she said.

Zhang held that the children's palaces should be allowed to run some specialized training classes to supplement state funding.

Yu Xiaojie observed that the old management system of a children's palace should be changed and that such places should be treated as a social undertaking which requires  support and patronage from enterprises and other circles.

(China.org.cn by Guo Xiaohong and Li Jingrong, May 3, 2006)