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Most Scottish industry and commerce is concentrated in a few large cities on the waterways of the central lowlands. Edinburgh, on the Firth of Forth, is a cultural centre, the capital of Scotland, and one of the the top financial centres in Europe. Glasgow, one of the largest cities in the UK, lies on the Clyde; it is Scotland's leading seaport and was once a centre of shipbuilding and it supports numerous light industries. Although heavy industry has declined, the high-technology Silicon Glen corridor has developed between Glasgow and Edinburgh. Tourism is also very important.

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.

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.

Scotland is one of the four constituent nations of the United Kingdom of Great Britain and Northern Ireland. The UK has no single written constitution document. Until the 1707 Acts of Union Scotland was an independent nation state. However, upon these acts coming into effect both Scotland and England's parliaments were dissolved and reconstituted as a parliament for all of Great Britain using the former English parliament's buildings and executive institutions. The Scottish and English crowns were unified in 1603 when James VI of Scotland became James I of England. In 1801 the Kingdom of Great Britain was unified with Ireland.

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 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 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.

Much of Scotland (particularly the West Central Belt around Glasgow) has experienced problems owing to the religious divide between Presbyterians and Catholics. Many Scottish Catholics maintain that, because many Establishment and business figures have links to the Orange Order, sectarianism is deeply rooted in Scottish society. This problem has historically manifested itself in a number of ways, particularly in employment and in football fanaticism. The problems associated with sectarianism in Scotland have diminished markedly compared with the past, although issues do remain to a certain degree. Scottish police have recently moved to restrict the number of Orange parades.

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.

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