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As is the case in many of the other Caribbean and Latin American countries, Carnival is an important event for many people on the island, as well as the thousands of tourists that flock to the island to participate in the annual events.

Traditional trading partners include: Canada, the Caribbean Community (especially Trinidad and Tobago), the United Kingdom, and the United States.

The government continues its efforts to reduce unemployment, encourage direct foreign investment, and privatise remaining state-owned enterprises. Unemployment has been reduced from high levels of around 14% in the past to only under 10%.

The smaller of the two events is the Congaline Festival, which takes place during the last week of March. The Crop Over Carnival which includes various musical competitions, and other traditional activities usually kicks into high gear from the beginning of July, and ends in its entirety during the first week of August.

Historically, the Barbadian economy had been dependent on sugarcane cultivation and related activities, but production in recent years has been diversified into the manufacturing and tourism sectors. Offshore finance and information services have become increasingly important foreign exchange earners, and there is also a healthy interest into the island's light manufacturing sector. In the last ten years the Government has been seen as business-friendly and economically sound. Since the late 1990's the island has seen an increasing construction boom, the island began to see new hotels, re-developments, new homes, office complexes, condos, and mansions being developed across the island.

In the 1950s, R&B and rock and roll became popular on the island, and many jazz bands found themselves pushed aside. A wave of Guyanese musicians also appeared on the island, including Colin Dyall, a saxophonist who later joined the Police Band, and the Ebe Gilkes.

The three political parties of Barbados--the Barbados Labour Party (BLP), the Democratic Labour Party (DLP), and the National Democratic Party (NDP)--are all moderate and have no major ideological differences; electoral contests and political disputes often have personal overtones. The major political problems facing Barbados today are in promoting economic growth: creating jobs, encouraging agricultural diversification, attracting small industry, and promoting tourism.

In the early 1970s, jazz fan and critic Carl Moore launched a project to keep jazz alive on the island, while Zanda Alexander's performance in Bridgetown in 1972 is said to be the first Caribbean jazz festival. Oscar Peterson's 1976 performance in Trinidad also inspired Barbadian musicians, as did the radio program Jazz Jam, which was broadcast starting in the mid-70s on the Caribbean Broadcast Corporation. In 1983, however, the Belair Jazz Club closed, and was not replaced by any long-term clubs.

As a small nation, the primary thrust of Barbados' diplomatic activity has been within international organizations. The island is a member of the Commonwealth and participates in its activities. Barbados was admitted to the United Nations in December 1966. Barbados joined the Organization of American States (OAS) in 1967.