In the past, economic development in the rural United States, particularly in the rural South, relied principally on the attractiveness of a low-wage work force to mass-production manufacturing industries. Now however, the viability of the traditional mass-production economy's organizational structure and operating procedures has been eroded by technology and international competition. Competitiveness now requires attention to quality, flexibility, and productivity. Unfortunately, few companies in rural America are striving to be high-performance work organizations, nor do rural workers possess the skills necessary to function in such organizations. Using literature reviews, surveys, and case studies in the rural South and Europe, this book explores the ways in which rural industry and government are responding to technological change. A chapter on "retooling the training system" examines education and training resources in the rural South, including technical colleges, public schools, technical equipment producers, apprenticeships, and corporate education; and employers' perceptions of training and educational needs. A variety of development strategies are suggested, including methods for improving both rural public education and technical training systems for noncollege-bound students and adults. This book contains over 250 references, 52 figures and data tables, and an index. (SV)