The traditional economic development strategy of the South--concentrating on low-skill, low-wage labor--no longer works; the region cannot compete with other areas of the world that offer low-cost, high-skill labor. The challenges facing rural and central-city communities in the South are immense, and only a comprehensive approach to economic development can hope to address them. Economic development is not just about the creation of jobs. It is the process by which a community or region increases the standard of living of all of its residents. Viewed this way, economic development is part of a larger process of community development, through which a community provides for its citizens the institutions and amenities they need to live in comfort and security. This paper lays out a framework of related issues that together form six interrelated building blocks to economic prosperity. These are: business development; workforce development (at both the K-12 and adult levels); physical infrastructure; social infrastructure; cultural and environmental stewardship; and civic infrastructure. The description of each building block includes a set of potential goals, a summary of relevant challenges, and a series of possible strategies that ensure open and accountable government, develop the civic capacity of communities to address their own challenges and opportunities, and bridge the fault lines of race and class that inhibit community progress and erode civic health. (TD)