The Republic of Croatia is a southern European country on the Balkan peninsula, bordering the Adriatic. Its neighbors are Hungary and Slovenia to the north, Serbia to the east, and Bosnia and Herzegovina to the south, In 1991, Croatia entered its modern form after a war of independence against Yugoslavia. Though the country is relatively new, the Croats have inhabited the region since at least the 8th century, when the Kingdom of Croatia was established. The country boasts a high Human Development Index rank, and is an emerging developing economy with a large service sector.