Reaching the Hard to Reach: Self-Help Groups (SHG) and Mutually Aided Cooperative Societies (MACS) - Does Federating Enable Remote Outreach?

This paper examines the advantages and disadvantages of self-help group (SHG) federations through the case study of Ankuram Sangamam Poram (ASP), a sub-district level federation of SHGs.Federations help SHGs achieve broader economies of scale. The apex body serves as the wholesale financier and supervisor. It aims to centralize and supervise human resource management, capacity building, operational management and internal controls. Study findings indicate that federations:

• May be better at ownership and leadership development;
• Face governance and cost challenges;
• Have decentralized decision making and governance in order to allow flexibility at the group level;
• Find it difficult to balance member ownership and decentralization with the demands of running an efficient organization at scale;
• Suffer from inconsistent reporting, supervision, and management capacities.

The study demonstrates ASP's ability to reach the unreached in large numbers in remote areas. It shows that member ownership is not enough to ensure loyalty from lowest tier clients if inputs and services are not adequate.