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 .