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On July 4, 1973, Barbados, Trinidad and Tobago, Guyana, and Jamaica signed a treaty in Trinidad to found the Caribbean Community (CARICOM). In May 1974, most of the remaining English-speaking Caribbean states joined CARICOM, which now has 14 members. Barbados also is a member of the Caribbean Development Bank, established in 1970, with headquarters in Bridgetown. The eastern Caribbean's Regional Security System, which associates Barbados with six other island nations, also is headquartered in Barbados. In July 1994, Barbados joined the newly established Association of Caribbean States (ACS).

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

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.

Barbados has diplomatic missions headed by resident ambassadors or high commissioners in Canada, the U.K., the U.S., and Venezuela, and at the European Union (Brussels) and the UN. It also has resident consuls general in Toronto, Miami, and New York City. Australia, Brazil, Cuba, Canada, Colombia, People's Republic of China, Guatemala, the United Kingdom, the United States, and Venezuela have ambassadors or high commissioners resident in Barbados

In May 1997, Prime Minister Owen Arthur hosted President Clinton and 14 other Caribbean leaders during the first-ever U.S.-regional summit in Bridgetown, Barbados. The summit strengthened the basis for regional cooperation on justice and counternarcotics issues, finance and development, and trade.

Barbados is divided into eleven parishes: Christ Church, Saint Andrew, Saint George, Saint James, Saint John, Saint Joseph, Saint Lucy, Saint Michael, Saint Peter, Saint Philip, and Saint Thomas.

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.

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%.