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The main factors responsible for the improvement in economic activity include an expansion in the number of tourist arrivals, an increase in manufacturing, and an increase in sugar production. Recently, offshore banking and financial services also have become an important source of foreign exchange and economic growth.

Citizens are officially called Barbadian, however residents of Barbados colloquially refer to themselves or the products of the country as "Bajan". The term "Bajan", may have come from a localized pronunciation of the word Barbadian which at times can sound more like "Bar-bajan". The term Barbadian, is used less frequently than is "Bajan".

Though mainstream audiences were still listening to R&B and rock, modern jazz retained a small core of followers into the 1960s. The foundation of the Belair Jazz Club in Bridgetown in 1961 helped to keep this scene alive.

Barbados has an independent judiciary composed of magistrate courts, which are statutorily authorized, and a Supreme Court, which is constitutionally mandated. The Supreme Court consists of the high court and the court of appeals, each with four judges. The Chief Justice serves on both the high court and the court of appeals. The court of last resort is the Judicial Committee of Her Majesty's Privy Council in London, whose decisions are binding on all parties. Judges of the Supreme Court are appointed by the governor general on the recommendation of the prime minister after consultation with the leader of the opposition.

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 largest Carnival cultural events which take place in Barbados are the Congaline Festival and Crop Over Festival as known internationally.

Barbados is home to spouge music, which is played on guitars, mandolins and drums, but is best known as a second home for Trinidadian calypso and soca, as well as a reggae/soca fusion called ragga-soca. The 1974 revival of the Crop Over Festival, which features the Pic-O-De-Crop Calypso Competition, revitalized and organized the Barbadian calypso scene. Beginning in the mid-1980s, Barbadian artists like Spice, Gabby and Red Plastic Bag became popular in Trinidad and elsehwere, leading the way for a more fully-developed Barbadian sound (often characterized by Eddy Grant's Ring Bang pan-Caribbean fusion rhythm that arose around 1994) and was popularized by groups like Square One and krosfyah. Barbados is, along with Cuba, Puerto Rico, Trinidad and the Virgin Islands, one of the few centers for Caribbean jazz.

In 1937, riots over poverty and disenfranchisement occurred, and people like Clement Payne had risen to fame advocating reform. In that year, Payne was deported and riots broke out in Bridgetown, spreading throughout the island. The following year, the Barbados Labour Party was formed by C. A. Braithwaite and Grantley Adams.

Beginning in about the 1940s, when the Crop Over Festival was cancelled due to the decline of the sugarcane industry, Barbados has seen the influx of popular music from other countries, including the United States, United Kingdom, Jamaica and Cuba.

The ruling BLP was decisively returned to power in January 1999 elections, winning 26 seats in the Parliament with the DLP only winning two seats. The Prime Minister, Owen Arthur, who also serves as Minister of Finance, has given a high priority to economic development. The main opposition party, the DLP, is led by David Thompson.

Progress toward more democratic government for Barbados was made in 1951, when universal adult suffrage was introduced. This was followed by steps toward increased self-government, and in 1961, Barbados achieved internal autonomy.

Between eight and nine tenths of all Barbadians (also known colloquially as Bajan) are of African descent, mostly descendants of the slaves and workers on the sugar plantations. The remainder of the population includes small groups of Europeans and Asians, including the Redlegs. The official language is English and while most Barbadians are Protestant Christians, chiefly of the Anglican Church, there are other Protestant, Roman Catholic, Hindu and Muslim minorities.

British sailors who landed on Barbados in the 1620s at the site of present-day Holetown on the Caribbean coast found the island uninhabited. As elsewhere in the eastern Caribbean, Arawak Indians may have been annihilated by invading Caribs, who are believed to have subsequently abandoned the island.