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In 1468 the last great acquisition of Scottish territory occurred when James III married Margaret of Denmark, receiving the Orkney Islands and the Shetland Islands in payment of her dowry.

The modern system of branch banking (in which banks maintain a nationwide system of offices rather than one or two central offices) originated in Scotland. Only strong political pressure during the 19th century prevented the resultant strong banking system from taking over banking in England. However, although Scottish banks proved unwelcome in England at the time, their business model became widely copied, firstly in England and later in the rest of the world.

This state of affairs continued until May 1999 when Scotland's Parliament was established following a referendum. Whereas the old Scottish Parliament had functioned as the full parliament of a sovereign state, the new parliament governs the country only on domestic matters, the United Kingdom Parliament having retained responsibility for Scotland's defence, international relations and certain other areas.

The feudal system lingered on in Scots law on land ownership, so that a landowner still had obligations to a feudal superior including payment of feu duty. In 1974 legislation began a process of redeeming feuduties so that most of these payments were ended, but it was only with the attention of the Scottish Parliament that a series of acts (http://www.ejcl.org/83/art83-5.html) were passed, the first in 2000, for The Abolition of Feudal Tenure on November 28, 2004.

Until 1832 Scottish politics remained very much in the control of landowners in the country, and of small cliques of merchants in the burghs. However by 1885 around 50% of the male population had the vote, the secret ballot had become established, and the modern political era had started.

Scotland has its own BBC services which include the national radio stations, BBC Radio Scotland and Scottish Gaelic language service, BBC Radio nan Gaidheal. There are also a number of BBC and independent local radio stations throughout the country. In addition to radio, BBC Scotland also runs two national television stations. Much of the output of BBC Scotland Television, such as news and current affairs programmes, and the Glasgow-based soap opera, River City, are intended for broadcast within Scotland, whilst others, such as drama and comedy programmes, aim at audiences throughout the UK and further afield. Sports coverage also differs, reflecting the fact that the country has its own football leagues, separate from those of England.

Scotland has many national sporting associations, such as the Scottish Football Association (SFA) or the Scottish Rugby Union (SRU). This gives the country independent representation at many international sporting events such as the football World Cup. Scotland cannot compete in the Olympic Games independently however, and Scottish athletes must compete as part of the Great Britain team if they wish to take part. Scotland does however send its own team to compete in the Commonwealth Games.

Before 1975 local government in Scotland was organised on the county system. In reforms that took effect from 1975, the Conservative government of Edward Heath introduced a system of two-tier local government in Scotland, divided between large Regional Councils and smaller District Councils. The only exceptions to this were the three Island Councils, Western Isles, Shetland and Orkney which had the combined powers of Regions and Districts. In 1995 the Conservative government of John Major decided to abolish this system and merge their powers into new Unitary Authorities, roughly equivalent to the old counties.

The largest political party operating in Scotland is the Labour Party. They replaced the Liberals as Scotland's main political force in the early twentieth century and traditionally represent the interests of workers and trade-unionists. They currently operate as the senior partners in a coalition Scottish Executive.

In 1326, the first full Scottish Parliament met. The parliament had evolved from an earlier council of nobility and clergy, the colloquium, constituted around 1235, but in 1326 representatives of the burghs — the burgh commissioners — joined them to form the Three Estates.

The traditional political divides of left and right have also intersected with arguments over devolution, which all the UK-wide parties have supported to some degree throughout their history (although both Labour and the Conservatives have swithered a number of times between supporting and opposing it). However, now that devolution has occurred, the main argument about Scotland's constitutional status remains between those who support Scottish independence and those who oppose it. Recent trends indicate, according to the State of the Nation Poll 2004, that 66% of Scots would like the Scottish Parliament to have more powers, while only 2% would like to see the powers returned to Westminster.

In 1512 under a treaty extending the Auld Alliance, all nationals of Scotland and France also became nationals of each other's countries, a status not repealed in France until 1903 and which may never have been repealed in Scotland. However a year later, the Auld Alliance had more disastrous effects when James IV was required to launch an invasion of England to support the French when they were attacked by the English under Henry VIII. The invasion was stopped decisively at the battle of Flodden Field during which the King, many of his nobles, and over 10,000 troops — The Flowers of the Forest — were killed. The extent of the disaster impacted throughout Scotland because of the large numbers killed, and once again Scotland's government lay in the hands of regents.

The Parliament is elected with a Proportional Representation electoral system, namely, the Additional Members System. This is unlike Westminster which is still elected by the First Past the Post method. It is elected every four years and contains 129 members (referred to as MSPs).