Final answer:
The Civil War drastically impacted the southern economy through decreased agricultural production, destroyed infrastructure, and disrupted trade due to the Union blockade and Confederate policies. Increased industrialization was not a direct effect of the Civil War on the South; it primarily occurred in the North.
Step-by-step explanation:
The Civil War had profound effects on the southern economy, including decreased agricultural production, destroyed infrastructure, and disrupted trade. Decreased agricultural production stemmed from the lack of manpower, as many men were serving in the military, coupled with Union control over key food-producing regions after 1862. This situation was further exacerbated by the nature of the southern economy which was primarily focused on export crops, making the transition to food production difficult. The war also led to the destruction of infrastructure, with railroads and farms being prominent targets, disrupting movement and supply chains. The Union blockade and the lack of internal transportation severely disrupted trade, leading to shortages and rampant inflation as the Confederate government began printing money to compensate for the lack of funds.
Interestingly, industrialization increased primarily in the North due to the war effort, while the Southern economy struggled to convert from its agrarian base to industrialization during the war period. As a result, the war did not directly lead to an increase in the Southern industrial base; this was a post-war development largely concentrated in the North.