Micro-Credit Loans, China

One of the threats to elephants is habitat fragmentation and reduction, which is in part caused by increased human activities, such as farming. In China, crop damage occurs during the harvest season. Elephants can frequently be observed eating crops in the early evening during this season and the damaged fields can be found near the villages. Elephants come right up to houses within the villages at these times and a small number of villagers have been killed during encounters.

Increasingly, the local people have planted crops in the once wild areas to grow sufficient food to sustain their livelihoods. However, this encroachment of humans into the elephants’ natural habitat has resulted in the animals eating and trampling the farmers’ crops - directly affecting the lives of local people and creating a sense of hostility towards the animals. Human-elephant conflict stems from this vicious circle.

Within China, IFAW’s “micro-credit loan” approach and assistance in providing alternative farming activities helps the local communities to develop their economy which, in turn, reduces the tensions between humans and elephants. Tea plantations are a profitable and sustainable alternative to the traditional corn farming that is so attractive to hungry elephants. In collaboration with local forestry bureaus, IFAW provides small sums of money (about US$ 100/household) as “micro-credit” loans to the funding groups (of local villagers/farmers) in different project communities to aid the shifting to alternative economy which eases the land pressure in the forest.

Since its inception in July 2000, this project has established 50 funding groups in seven pilot communities involving more than 370 households. Each of the funding groups is made up of “micro-credit loans” from IFAW and individual family pledges. The rate of return plus interest for these micro-credit loans is 100 per cent.

In addition to the loans, education in agricultural techniques, accounting and loan management techniques is also provided. IFAW has developed education initiatives covering human safety, wildlife protection and habitat conservation to raise general public awareness about the need for humans to “live in harmony” with wildlife.

As a result of IFAW’s direct intervention and active participation, local farmers are more accepting of wild elephants and willing to protect their shared habitat voluntarily.

Villagers in Shi Tou Shan, Simao, China attend a training session on farming technology and Asian elephant habitat conservation organized by IFAW Asian Elephant Protection (AEP) project.
Photo © IFAW/A. Zang