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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.

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.

Scotland's location on the north-western periphery of Europe did not mean the country had a small part in the Second World War. October 1939 saw naval bases in Scotland taking the first German attacks on Britain, both submarine and bomber attacks on Scapa Flow and raids on Rosyth which met with RAF fighters getting their first successes over Britain downing bombers into the Firth of Forth and onto East Lothian. The shipyards and heavy engineering factories in Glasgow and Clydeside played a key role in the war effort, and soon became targets for the Luftwaffe. The town of Clydebank in particular suffered great destruction and loss of life during the blitz. The Highlands again provided a disproportionate number of troops for the war effort. Many thousands of Commandos and resistance fighters received training in the harsh conditions of the Lochaber mountains.

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, in the geographical sense it has retained for nearly a millennium, completed its expansion by the gradual subsumation of the Britons' kingdom of Strathclyde into Alba. In 1034, Duncan I, descended from Irish Ui Neill monastery protectors and appointed to the crown of Strathclyde some years earlier, inherited Alba from his maternal grandfather, Malcolm II. With the exception of Orkney, the Western Isles, Caithness and Sutherland, which had come under the sway of the Norse, Scotland stood unified.

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.

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.

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.

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.

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.

After World War II Scotland's economic situation became progressively worse until the 1970s, and only began to turn around after the discovery and development of North Sea oil and gas. During this period the Scottish National Party refocused their arguments for Scottish independence around their "It's Scotland's Oil" campaign.

The Scottish National Party (SNP) was formed in the 1930s with the aim of achieving Scottish independence. They are broadly on the left-of-centre and are in the European Social-Democratic mould. They are currently the second most popular party electorally, although their highpoint appears to have been in the 1970s.

Scotland has distinct media from the rest of the UK. For example, it produces many national newspapers such as The Daily Record (Scotland's leading tabloid), The Herald broadsheet, based in Glasgow, and The Scotsman in Edinburgh. The Herald, formerly known as the Glasgow Herald, changed its name to promote a national rather than a regional identity, while The Scotsman, which used to be a broadsheet, recently switched to tabloid format. Sunday newspapers include the tabloid Sunday Mail (published by Daily Record parent company Trinity Mirror) and the Sunday Post, while the Sunday Herald and Scotland on Sunday have associations with The Herald and The Scotsman respectively. Regional dailies include The Courier and Advertiser in Dundee in the east, and The Press and Journal serving Aberdeen and the north.