Country S is an island state with a population of around 20 million in 2007. At this time, its GNI per capita was US$1,540 — just above the threshold of a middle-income country as classified by the World Bank. Its economic progress in recent years has been adversely affected by civil conflict. Ethnic conflict erupted into civil war in 1983 and this continued until 19 May 2009, when the country’s president declared the country free of rebels. It is estimated that this conflict reduced the economy’s growth rate significantly over the 26-year period.
Figure 1 provides context in terms of a development diamond, comparing Country S with the UK. This suggests that Country S is a country of contradictions. In 2007, GNI per capita in Country S was less than 4% of the UK’s and yet its performance in terms of adult literacy and life expectancy is almost comparable.
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