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The key economic development in the South, particularly in the post-Civil War era, was the transition from an agrarian economy reliant on slave labor to one that incorporated sharecropping and tenant farming systems. This shift allowed for a degree of economic diversification, albeit within the constraints of poverty and limited opportunities for African Americans. Additionally, the rise of industries such as textiles and tobacco processing began to reshape the Southern economy, leading to gradual urbanization and industrialization. However, these changes often reinforced existing social and racial inequalities.

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