74 p., The country case studies and thematic papers in this series examine social policy issues facing small states and their implications for economic development. They show how, despite their inherent vulnerability, some small states have been successful in improving their social indicators because of the complementary social and economic policies they have implemented. This paper focuses on Grenada, a small state that has made impressive initial achievements in economic and human development since independence. However, continuing unemployment and poverty, the recent erosion of trade preferences, and the changing international donor aid environment have exposed structural weaknesses in its economic model. Tables, Figures, References.