he dictionary meaning of federation is "Association of autonomous bodies uniting for a common perceived benefits". "an association of autonomous bodies united for common perceived benefits" (FWWB, 1998).
A federation is an association of primary organizations. Primary organizations may federate to realize economies of scale or to gain strength as an interest group. Federations of cooperatives have a long history. (Nair 2002).
A Cluster Level Federation is a network of several SHGs and a structure or body evolved by SHGs themselves consisting of representatives from all member SHGs, with a motive of supporting member-SHGs attain the goals of economic and social empowerment of women members and their capacity building. (TNCDW, 1999)
In other words, it is an another forum for SHGs to step up development of women members taking advantage of collective effort of members SHGs, enabling a holistic and need based economic and social development. A SHG Federation is a democratic body formed with certain number of SHGs functioning in a specific geographical area with the objective of uniting such SHGs for common cause and for achieving these causes which an individual SHG would not be able to do. In short, the SHG Federation has to be necessarily of SHGs, by SHGs and for SHGs.
Objectives of Self Help Groups:
Experiences and literature shows that federations are set up with one or more of the following objectives:
- To get access to policy making bodies through political empowerment and social mobility
- To facilitate linkages between SHGs and banks/govt. agencies/local institutions
- To have better access to development information and marketing linkages
- To resolve any conflicts that may arise within member SHGs
- To assist in strengthening the performance of member SHGs
- To help in achieving sustainability of SHG
- To strengthen (through training, information dissemination, on-site support, etc) the capacity of member-SHGs in one or more of a variety of fields (bookkeeping, accounting, marketing, financial management, advocacy, bank-linkage, accessing government schemes, to name some)
- To provide credit, especially multiple credit lines
- To provide savings facilities, especially voluntary savings
- To undertake marketing of the produce of the members of the SHGs
- To provide life/loan insurance services
- To provide staff support to member-SHGs
- To write and/or audit the accounts of member-SHGs
- To review/regulate/supervise the functioning of member-SHGs
- To promote new SHGs
- To create the political/social space that women need to live their lives as fully as they desire to
- To be the window to the outside world, in replacement of the promoter organisation
- To undertake all that the external facilitator was undertaking, after its departure.
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