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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.

From 1652 to 1658, Scotland formed an integral part of the Puritan-governed Commonwealth, under English control but gaining equal trading rights. Upon its collapse, nominal independence returned with the restoration of Charles II to the throne. Scotland regained its parliament, but the English Navigation Acts prevented the Scots from sharing its commercial success to escape impoverishment. A formal frontier between the two countries was re-established, with customs duties which, while they protected Scottish cloth industries from cheap English imports, also denied access to English markets for Scottish cattle on the hoof or Scottish linens (Braudel 1984 p 370).

Historically the politics of Scotland have reflected those of the UK as a whole, although with some differences. For example, besides the main UK-wide political parties (Labour, Conservatives and the Liberal Democrats) a number of Scottish-specific parties operate. These include the Scottish National Party (SNP), the Scottish Socialist Party (SSP) and the Scottish Green Party. These parties became more of a force in Scottish politics after the establishment of the Scottish Parliament in 1998.

In 1997, the Blair Labour government of the United Kingdom held referendums on the issue of devolution: the creation of national assemblies in each of the three countries of the UK except England. Voters in all three countries voted in the affirmative, reversing parts of the three-hundred year old Union of the Parliaments. The new Scottish Parliament stands next to Holyrood House in Edinburgh.

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 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.

During the 1920s and 1930s, as ship-building and other industrial pursuits came to be more profitable outwith the British Isles, Glasgow and Clydebank slowly decayed and fell into economic depression.

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.

Humans have lived in Scotland since the end of the last glaciation, around 10,000 years ago. Of the stone, bronze, and iron age civilisations which occupied the country, many artefacts, but few examples of writing, remain. Thus the written History of Scotland largely begins with the arrival of the Roman Empire in Britain. From a classical historical viewpoint Scotland seemed a peripheral country, slow to gain advances filtering out from the Mediterranean fount of civilisation, but as knowledge of the past increases it seems remarkable how early and advanced some developments have been, and how important the seaways were to Scottish history. The country's lengthy struggle with England, its more powerful neighbour to the south, repeatedly forced it to rely on trade, cultural and often strategic ties with a number of European powers. Following the Act of Union and the subsequent Scottish Enlightenment and Industrial Revolution, Scotland became one of the commercial, intellectual and industrial powerhouses of Europe. Its industrial decline following World War II was particularly acute, but in recent decades the country has enjoyed something of a cultural and economic renaissance, fuelled in part by a resurgent financial services sector, the proceeds of North Sea oil and gas, and latterly a devolved parliament.