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Hierarchical Integration: The Dollar Economy and the Rupee Economy
Authors:Anirudh Krishna  Jan Nederveen Pieterse
Institution:1. is Associate Professor of Public Policy and Political Science at the Sanford Institute of Public Policy, Duke University, Box 90245, Durham, NC 27708‐0245, USA;2. e‐mail: ak30@duke.edu (see http://www.pubpol.duke.edu/krishna). His research investigates how poor communities and individuals in developing countries cope with the structural and personal constraints that result in poverty and powerlessness. Most recently he has been examining poverty dynamics, tracking movements into and out of poverty of over 35,000 households in a varied group of 350 communities of India, Kenya, Uganda, Peru and North Carolina, USA.;3. is at the University of Illinois at Urbana‐Champaign (see http://netfiles.uiuc.edu/jnp/www/), and specializes in global sociology. His recent books are Is There Hope for Uncle Sam? Beyond the American Bubble (Zed, 2008), Ethnicities and Global Multiculture: Pants for an Octopus (Rowman & Littlefield, 2007), and Globalization or Empire? (Routledge, 2004).
Abstract:While contemporary globalization makes the world more interconnected, it also reworks and builds on existing cleavages and uneven development. This is an under‐researched dimension of the emerging twenty‐first century international division of labour. The core question is whether new developments (associated with exports, offshoring and outsourcing) spin off to the majority in the countryside and the urban poor. This article examines the relationship between the dollar economy and the rupee economy in India. It documents the ways in which inequality is built into and sustains India's development. The authors discuss other instances of multi‐speed economies and analytics that seek to come to grips with these relations, from combined and uneven development to global value chains. They present three ways of capturing contemporary inequality: asymmetric inclusion, enlargement‐and‐containment and hierarchical integration, each of which captures different dimensions of inequality.
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