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The significance of coal, once Scotland's most important mineral resource, has declined. Oil, however, gained prominence in Scotland's economy during the 1970s, with the growth of North Sea oil extraction companies. Natural gas is also abundant in the North Sea fields. Aberdeen is the centre of the oil industry. Other important industries are textile production (woollens, worsteds, silks, and linens), distilling, and fishing. Textiles, beer, and whisky, which are among Scotland's chief exports, are produced in many towns. Salmon are taken from the Tay and the Dee, and numerous coastal towns and villages are supported by fishing from the North Sea. Only about one quarter of the land is under cultivation (principally in cereals and vegetables), but sheep raising is important in the mountainous regions.

Banking in Scotland also features unique characteristics. Although the Bank of England remains the central bank for the UK Government, three Scottish corporate banks still issue their own banknotes: (the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank). These notes have no status as legal tender in England, Wales or Northern Ireland (although they can be used throughout the UK, particularly in Northern Ireland, where Irish banks also issue their own banknotes, and they are also freely accepted in the Channel Islands). In Scotland, neither they nor the Bank of England's notes rank as legal tender (as Scots law lacks the concept), however banknotes issued by any of the four banks meet with common acceptance

The election of the Labour government in 1997 ensured that there would be a referendum on establishing a devolved Scottish Parliament. This was held in September, 1997 and the Scottish people voted 75% in favour of its establishment.

Scotland comprises the northern part of the island of Great Britain; it is bordered on the south by England. The country consists of a mainland area plus several island groups, including Shetland, Orkney, and the Hebrides, divided into the Inner Hebrides and Outer Hebrides. Three main geographical and geological areas make up the mainland: from north to south, the generally mountainous Highlands, the low-lying Central Belt, and the hilly Southern Uplands. The majority of the Scottish population resides in the Central Belt, which contains three of the country's six largest cities, Edinburgh, Glasgow, Stirling, and many large towns. Most of the remaining population lives in the North-East Lowlands where two of the remaining three cities, Aberdeen and Dundee, are situated. The final city, Inverness, is situated where the River Ness meets the Moray Firth, on the fault between the North-West Highlands and the Cairngorms.

Church of England broke with Catholicism primarily for political reasons. Thus they replaced very little traditional Catholic theology, except to substitute the Crown for the Pope as the head of the Church. The Scots on the other hand were primarily Presbyterian, a movement which was the result of a strong theological rejection of certain Catholic teachings. In particular they were sceptical of the authority of the Pope and priesthood generally, which they rejected in favour of the priesthood of all believers. This doctrine was seen by both sides as radically undermining the authority not just of the priestly class, but of the aristocracy since it was essentially democratic.

Scotland retains its own distinct sense of nationhood. Academic research consistently shows that people in Scotland feel Scottish, whilst not necessarily feeling the need to see that translated into the establishment of a fully-independent Scottish nation-state.

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 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.

In 1547, after the death of Henry VIII, forces under the English regent Thomas Somerset were victorious at the battle of Pinkie Cleugh, the climax of the Rough Wooing and followed up by occupying Edinburgh. However it was to no avail since Queen Mary was in France and Marie de Guise called on French reinforcements who helped stiffen resistance to the English occupation. By 1550, after a change of regent in England, the English withdrew from Scotland completely.

Scotland's territorial extent is generally that established by the 1237 Treaty of York between Scotland and England and the 1266 Treaty of Perth between Scotland and Norway. Exceptions include the Isle of Mann, which is now a crown dependency outside the United Kingdom, Orkney and Shetland, which are Scottish rather than Danish, and Berwick-upon-Tweed, which was defined as subject to the laws of England by the 1746 Wales and Berwick Act.

Scotland retains its own unique legal system, based on Roman law, which combines features of both civil law and common law. The terms of union with England specified the retention of separate systems. The barristers being called advocates, and the judges of the high court for civil cases are also the judges for the high court for criminal cases. Scots Law differs from England's common law system.

Islam is the largest non-Christian religion in Scotland, although its numbers remain very small.

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.

Tied as it was to the health of the British Empire, Scotland suffered after the First World War as it had gained beforehand. In the Highlands, which, for cultural reasons, had provided a disproportionate number of recruits for the British army, a whole generation of young men were lost, and many villages and communities suffered greatly. In the Lowlands, particularly Glasgow, the terrible working and living conditions for the industrial workers, many of whom did not agree with the motives of the war, led to industrial and political unrest. John MacLean became a key political figure in Red Clydeside and on Bloody Friday January 31st 1919, the British Government was so fearful of a revolutionary uprising in Glasgow that tanks and soldiers were stationed in George Square.

The patron saint of Scotland is Saint Andrew, and Saint Andrew's Day is celebrated in the country on 30 November.