No abstract

We analyze polarization in India roughly in the past two and half decades using consumption expenditure data. We show that both bipolarization and multidimensional polarization (on several dimensions: caste, rural-urban, state, region) have increased since the 1990s. In the case of bipolarization, this is a reversal from the earlier trend (in the 1980s). Overall, our results suggest that the high growth that India has been witnessing since the 1990s has been associated with widening disparities. Comparing polarization and inequality, we find similarities, but also some differences. Our results therefore underscore the importance of studying polarization as distinct from traditional inequality.

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This study uses micro-data from the 1998-99 Indian Time Use Survey (ITUS; covering 77,593 persons in 18,591 households in Gujarat, Tamil Nadu, Madhya Pradesh, Meghalaya, Orissa, and Haryana) to argue that time use data provides a natural metric for measuring "social capital" building activities and for distinguishing between the relative importance of "bonding" into groups or "bridging" within communities. The study examines the correlation between inequality in landownership, caste status, measures of local social capital, and whether or not a household will have to collect water. In India, the probability that a rural household fetches water is 4.8% and 9.1% lower in communities in which the average time spent on social interaction and community-based activities at the district-level doubles, but it is 18.9% greater when the time in group-based activities doubles. Inequalities in landownership and home ownership are associated with considerably larger differences in local tap water availability.

This article discusses credit and marketing arrangements for small farmers in developing countries. The authors draw on the mixed experience with agricultural cooperatives in developing countries to present the design of a credit and marketing cooperative. The authors argue that in conjunction with other state policies, this arrangement works better for small farmers than other alternatives, in particular corporate ones.