The paper investigates the major economic and sociological factors influencing education systems in the rural South. A review of the significant economic factors reveals the overall lack of industrial capital in the area. Sociologically, the dual cultural systems of the Negro and white populations are pointed out as the most important feature of southern states. Various aspects of the interrelation of these two factors, such as the impact of segregation on the southern economy, are examined. In his conclusions, the author discusses possibilities for the alleviation of poverty in the South, based upon the elimination of racial segregation. An appendix containing the section on "The Nonmetropolitan South" from the Coleman-Campbell report on "Equality of Educational Opportunity" is included. (JM)