It is necesary to examine both historic and current events in order to understand the role of race in the United States today. The South's formerly rigid caste system has come to resemble the more flexible Northern social order, which has always been open to blacks in times of labor shortage. A number of important social and economic phenomena (such as a rise in the standard of living, changes in the labor market due to World War II, the economic and cultural integration of the South, and the internationalization of the race issue) helped to bring about this change. The subtle and covert qualities of the conditional segregation which now exists nationwide have led some analysts to suggest that our present form of racial segregation is a temporary residue of historically defunct behaviors. However, this viewpoint does not explain the continuing lack of economic progress among blacks. Therefore, alternative views of black socioeconomic status must be considered. A model which combines the theses of (white) interest group benefit from discrimination, institutional racism, and internal colonialism predicts that unequal race relations will be maintained even with continued economic growth. In order for racial barriers to be eliminated, white privilege must either decline or be redistributed. (Author/GC)