During the last decade, there has been an internal migration of Latinos to the Southeast. Attracted by the rural South's healthy economy, the Hispanic population in the South is projected to double by 2025. Most in-migrants are seeking permanent rather than seasonal employment. With an increased Hispanic population comes increased purchasing power. On the downside, higher concentrations of Latinos also impose immediate needs for education to meet additional or special needs of the new population; for bilingual media and religious services; and for bilingual service providers in health care, social services, and law enforcement. Many factors in successful development are related to social capital. Latinos must acquire additional social and human capital to fully contribute to the economic prosperity of the rural South. This will require that meaningful interaction takes place between Latino and non-Latino residents in host communities. How the South decides to funnel its resources to enhance the skills and knowledge necessary for full participation of Latinos will determine how successful it will be at remaining in the economic forefront. (Contains 20 references and data tables on Hispanic population growth and school enrollment in 13 southern states.) (TD)