Situated to the northeast of Trinidad, Barbados is the most easterly of the West Indian Windward Islands. In the 16th century, the Portuguese were the first Europeans to reach the island, then inhabited by Arawak Indians. However, Barbados was not colonized until the 1620s, when British settlers arrived. Popularly referred to by its neighbors as "little England," Barbados now seeks to forge a new national identity for itself.

Most Bajans are the descendants of Africans brought to the island between the 16th and 19th centuries; there are also small groups of south Asians and Europeans, mainly expatriates from the UK, many of whom take up residence on retirement. There is some latent tension between the white community, which controls most of the economy, and the majority black population, although this rarely spills over into violence. Increasing social mobility has allowed many black Bajans to move into the professions and the civil service. Barbados enjoys a higher standard of living than most Caribbean countries.

Strengths

Well-developed tourism based on climate and accessibility. Sugar industry. Information processing and financial services are important new growth sectors.

Weaknesses

Narrow economic base, vulnerable to downturns in tourism, failures of sugar harvest, and the sector's dependency on loans and secure markets. Relatively high manufacturing costs.

Barbados is a multiparty democracy. A primarily European, affluent elite finances the parties and has an indirect influence on government policy. The BLP swept to power in 1994 and won a further landslide in 1999. Owen Arthur, BLP leader and prime minister, prioritizes economic growth and international competitiveness. He has pledged to transform Barbados into a republic, while remaining a member of the Commonwealth.

Considered to be an international tax haven, Barbados has been under pressure to implement reforms.

The small Barbadian army and the constabulary benefit from financial support and training from the US and UK governments, which also supply equipment. Barbados is the headquarters of the Regional Security System, established in 1982 by the Windward and Leeward Islands, a body which acts as a multinational security force for its members.

Barbados has few strategic resources. The domestic petroleum industry provides about one-third of the country's energy requirements.

Oil slicks created by waste dumped from passing ships are polluting the encircling reef and adversely affecting the life cycle of the flying fish, Barbados's main fish stock.

A multimillion dollar expansion program has upgraded facilities at the international airport. Piers at Bridgetown's port have been improved with foreign aid, as have the island's paved roads. There are bus routes over most of the island.

The health system is based on subsidized government-run clinics and hospitals, supplemented by more expensive private clinics and private doctors. Facilities are within easy reach of all Bajans.

A seven-year plan to restructure education includes the rehabilitation of schools and a computerization program. Barbados hosts a campus of the University of the West Indies.

A firearms amnesty announced in 1998 proposed heavy fines and prison sentences for illegal possession of guns; the measure was in response to growing drugs-related and other violent crime. Money laundering is a problem.

A significant disparity exists between most Bajans and a small affluent group, its members usually of European origin, which owns and controls business and industry, and parades status symbols such as yachts. Prime Minister Arthur stated in 1998 that "abject poverty" existed in the country.

Tourists, essential to the Barbadian economy, are attracted by the island's white sandy beaches and sporting activities, as well as its post-colonial ambience and the generally laid-back culture.

Colonized by the British in 1627, Barbados grew rich in the 18th century from sugar produced using slave labor.

• 1951 Universal adult suffrage.
• 1961 Full internal self-government.
• 1966 Independence from Britain.
• 1983 Supports and provides a base for the US invasion of Grenada.
• 1994, 1999 The BLP wins two successive general elections.