| Summary: | The paper seeks to understand the dynamics of the economy of the Palmares-AL Union, based
on the interpretation of the theory of the two circuits of the urban economy (2008, [1979]) and the
performance of space production circuits in the characterization of stages in the garment industry. It is
proposed to analyze the lower circuit of the clothing retail sector in the city of União dos Palmares and its
relation with the lower and upper marginal circuit of the Polo de Confecções de Pernambuco, constituted by the
triangle of the cities of Caruaru - PE, Santa Cruz do Capibaribe - PE and Toritama - PE. We understand that
the lower circuit is formed by the set of small activities that meets the needs of the poor population, in the
cities. The upper marginal circuit corresponds to the survival of activities that do not interest the agents who
command the economy or the emergence of activities that fill the vacancies left by recent modernizations. In
order to understand the dynamics of the activities of the circuits, they are considered, characteristics the
organization of the activities. The analysis of the lower circuit from the performance of micro and small
companies, however it is understood that this characterization gives us only a partial apprehension, since it
encompasses several activities from the peddler to the small establishment. It is considered other elements in
the investigation, which show the directions of consumption and the persistence of poverty and the insertion of
new variables attributed to the process of modernization in the lower circuit. However, we understand that the
modernization is selective, occurs at different levels in the same city, in the center and in its periphery.
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