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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.

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

Scotland has a civic culture somewhat distinct from that of the rest of the British Isles. It originates from various differences, some entrenched as part of the Act of Union, others facets of nationhood not readily defined but readily identifiable.

In 1603, the Scottish King James VI inherited the throne of England, and became James I of England. James moved to London and only returned to Scotland once. In 1707, the Scottish and English Parliaments signed the Treaty of Union, which was deeply unpopular in Scotland, as it had been negotiating from a position of economic weakness and suffering from English tariffs. Implementing the treaty involved dissolving both the English and the Scottish Parliaments, and transferring all their powers to a new Parliament sitting in London which then became the Parliament of the United Kingdom. A customs and monetary union also took place.

The written history of Scotland largely begins with the coming of the Roman empire to Britain. Although the pre-Roman inhabitants occasionally used writing for commemorative purpose, these societies favoured a strong oral history. With the loss of the druidic tradition (due to war, famine, and particularly the proscriptions of later Christian missionaries), the people forgot much of this lore. The only surviving pre-Roman account of Scotland originated with the Greek Pytheas of Massalia who circumnavigated the British islands (which he called PretThe British Saint Ninian conducted the first Christian mission in Scotland. From his base, the Candida Casa (present-day Whithorn) on the Solway Firth, he spread the faith in the south and east of Scotland and in the north of England. However, according to the writings of Saint Patrick and Saint Columba, the Picts appear to have renounced Christianity in the century between Ninian's death (432) and the arrival of Saint Columba in 563. The reason is not known. The Gaels re-introduced Christianity into Pictish Scotland, gradually pushing out worship of the older Celtic gods. The most famous evangelist of that period, Saint Columba, came to Scotland in 563 and settled on the island of Iona. Some consider his (possibly apocryphal) conversion of the Pictish King Brude the turning point in the Christianization of Scotland.

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.

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.

A number of other Christian denominations exist in Scotland, amongst them Roman Catholicism, which made a comeback through immigration from Ireland, after Protestants brutally repressed it during the 16th to late 18th centuries. It has now become the largest faith after The Kirk. As well as The Kirk we find various other Protestant churches, including the Scottish Episcopal Church, which forms a full part of the Anglican Communion, and the Free Church of Scotland, a Presbyterian off-shoot from the established Church of Scotland.

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.

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.

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.

Scotland was historically represented in the UK government by the Secretary of State for Scotland. This post was established in the 1880s but recently it has been the topic of much speculation. Many believe that since devolution there is no need for such a role to exist. The current Secretary of State is Alastair Darling.

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.

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.

Almost all residents of Scotland speak English, although many also speak various dialects of Lowland Scots which differ markedly from Scottish Standard English. Slightly greater than 1% of the population use Scottish Gaelic as their language of everyday use, primarily in the northern and western regions of the country. Almost all Scottish Gaelic speakers also speak fluent English.