Abstract
N newspaper headlines remind us every day of the destructive effects of the war. Yet in the midst of the fighting, fundamental social and economic changes have taken place in South Vietnam; changes which touched and altered the social structure and political system, as well as the techniques of production. At the time of partition, South Vietnam was primarily an agricultural country. It lacked most of the facilities necessary for industrial development. Industries were located in the North, and the South possessed few of the physical and human resources necessary to support balanced economic growth. South Vietnam faced the basic challenge of all underdeveloped countries-that is where to begin. To a large extent, what was being done was dictated by the exigency of war. It is paradoxical that while the war limited economic growth and development, it also brought about conditions necessary to exert a favorable influence on economic development and growth in the years ahead.
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