The Economy

Scotland has a predominantly industrial economy, the origins of which go back to the Industrial Revolution. During the 19th century, the economy was led by coal and iron-ore mining; steel, engineering, and textile industries; and shipping. Many Scottish products, especially ships, received worldwide acclaim for their excellence. After World War I there was a drastic industrial decline, brought on partly by dwindling resources, outdated production methods, and increased foreign competition.

The economy was revived by World War II After the war, however, many industries, especially ones dating from the 19th century, were in decline. Many people left Scotland for England and overseas lands. To revitalize the economy and reduce unemployment, a government program of industrial development was begun. As a result of this program many new industries have been established, including the electronics industry, which is one of Scotland's most rapidly growing industries. There has been a shift from heavy manufacturing to service industries. Most of the employment in Scotland is provided by the service industries, light manufacturing, and the energy industry.

Service industries provide employment for more than two-thirds of the labor force in Scotland and contribute nearly two-thirds of Scotland's economic production. In terms of the number of employees, retail sales, finance and business services, education, and medicine lead the service industries. Other major employers are public administration, tourism, transportation, and communications.

Oil exploration and exploitation in Britain's section of the North Sea since the late 20th century brought a boom to some parts of Scotland, especially along the east coast and to the city of Aberdeen.

Manufacturing employs about one-sixth of Scotland's work force, which constitutes around one-fifth of Scotland's economic production. Scottish manufacturing is heavily concentrated in the Central Lowlands Along the Clyde River, in and near Glasgow, is the area called Clydeside, center of Scotland's iron and steel, shipbuilding, and marine-engineering industries Many of the world's largest ships have been built here. Clydeside also has a great variety of other industries, such as the manufacturing of locomotives, chemicals, Scotch whisky, and textiles. Few of these industries, however, are thriving; Clydeside has long been among the most economically depressed areas in Britain.

Cities in the east, particularly the coastal cities from Dundee to Edinburgh, have some heavy industries such as shipbuilding and petroleum refining, but they are primarily centers of light manufacturing. Food processing, beverages, textile-making, woolens, printing, publishing, industrial equipment, metal products, chemicals, brewing, and the distilling of whisky are traditional activities. Here, too, are many of Scotland's new industries, including the manufacturing of electronic equipment, business machines, electrical appliances, and plastics.

Aberdeen, the leading city on the northeast coast, has both heavy and light industries and is the operational center for companies developing Britain's North Sea oil and gas. With few exceptions, there is little or no manufacturing elsewhere in Scotland.

Livestock has long played a prominent role in Scottish agriculture. Products such as meat, milk, and wool contribute approximately two-thirds of Scotland's farm production Some of the world's best breeds, including the Aberdeen Angus and Galloway beef cattle and Ayrshire dairy cattle; Clydesdale horses; the Shetland pony, a sheepdog, the collieand Cheviot and Black-faced Highland sheep, were developed in Scotland.

Only about two-thirds of the land is suitable for crops or permanent pasture; the rest is classed mainly as rough grazing land suitable only for sheep. The chief crop area is the eastern part of the lowlands. Production here is the most varied in Scotland and includes wheat, barley, oats, potatoes, turnips, sugar beets, hardy fruits, and berries. The barley is mostly used for brewing and distilling and the rest becomes livestock feed. Dairying dominates in the western part of the lowlands and along the southwest coast, traditionally associated with Ayrshire cattle; the raising of beef cattle leads along the northeast coast. Elsewhere, the rearing of sheep prevails. In the Highlands, most of the sheep are raised on crofts—small farms that provide a bare subsistence. The Tayside Region in eastern Scotland is home to soft fruits such as raspberries. Most of the Scottish farms are owned and operated by families.

Fishing has long provided a livelihood for thousands of Scots living in the cities and villages along the coast. The chief fishing ports are along the east coast in or near Edinburgh, Peterheadand Aberdeen. Many of the fishing ports, especially those on the north and west coasts, are small. The catch, obtained mainly from coastal waters and nearby seas, includes cod, haddock, plaice, herring, turbot, pilchard, prawns, mackerel, and such shellfish as lobsters and crabs. In the Tay and other rivers, salmon are caught and raised on fish farms. About 15 per cent (close to one-sixth) of Scotland is forested, mainly by conifers. Scotland accounts for about a third of Britain's timber production.

Its forest area almost tripled during the second half of the 20th century. The government has provided grants in order to encourage expansion of Scotland's forests, and trees have been planted by the state forestry service. An important industry is wood processing.

Scotland's chief mineral resource is oil, obtained from the North Sea. Production began at the end of the mid 20th century; by the late 20th century Scotland's output was largely responsible for making Britain one of the leading oil-producing countries in the world. The only mineral obtained in quantity from the mainland is coal, which comes chiefly from the lowlands.

Much of Scotland's energy is supplied by the oil and gas fields under the North Sea. The fields are connected to the Scottish mainland and to shipment points on the Orkney and Shetland islands by pipelines. Nearly 45 per cent of Scotland's electric power is supplied by nuclear power plants. 30 per cent is provided by coal and natural gas and hydroelectric power plants supply most of the rest. Since the late 20th century, when the production of North Sea oil and gas began, coal mining has declined considerably. It was formerly Scotland's chief energy source.

Many tourists are attracted to the beautiful scenery and vigorous cultural life in Scotland. The economy in both urban and rural areas, especially in Edinburgh and such Highland towns as Inverness and Fort William is benefiting greatly because of the tourist industry.

General cargo port facilities are mainly on the Clyde River below Glasgow and at Leith and Aberdeen. There are large petroleum ports on the east coast and in the Orkney and Shetland islands that handle oil from the North Sea. Scheduled domestic and international air service is provided by a number of carriers, mainly through international airports near Glasgow, Prestwick, Edinburgh, and Aberdeen. The offshore oil industry is served by the world's busiest commercial helicopter port which is at Aberdeen.

The main railway and highway routes connect the cities of the lowlands and extend southward into England. Except along the east coast, relatively few roads or railways penetrate the Highlands. There is a dense network of roads throughout most of Scotland. There are motorways and fast roads which link the main cities, and most roads are toll-free. Railways provide service to the chief towns and cities in Scotland. Much of the northwest coast is rather isolated; here coastal shipping is important. Most canals, including those in the lowlands that were once of great economic value, are either little used or abandoned.