V.

Economy

Many aspects of the economy of Scotland are covered in the article on the United Kingdom. The Scottish economy changed dramatically during the second half of the 20th century, with services—including banking, retailing, public administration, and tourism—emerging as the leading economic sector. Today, services contribute 66 percent of Scotland’s gross domestic product (GDP). Industry, particularly manufacturing, remains an important part of the Scottish economy, contributing 32 percent of GDP. Agriculture, including forestry and fishing, contributes just 2 percent of GDP.

The chief exports of Scotland are petroleum and natural gas and manufactured goods, including microelectronics, textiles, and whiskey. The chief imports are food and iron. The center of Scottish trade unionism is the Scottish Trades Union Congress, which in 1996 had an affiliated membership of approximately 670,000.

A.

Agriculture

More than three-fourths of land in Scotland is used for agriculture, with approximately equal areas devoted to farming and grazing. The most important crops are wheat, oats, and potatoes. Other crops include barley, turnips, and fruit. Livestock and livestock products are also of major importance. Sheep are raised in both the Highlands and island groups and the Southern Uplands. Scotland is also known for its beef and dairy cattle and for its dairy products.

B.

Forestry and Fishing

About 607,000 hectares (about 1.5 million acres) of Scotland is forested, the majority of which is publicly owned. In Scotland fishing is economically more important than forestry. The principal fishing ports are Aberdeen, Peterhead, Fraserburgh, and Lerwick. The catch consists mainly of whitefish, herring, crab, and lobster. In recent years, overfishing in the North Sea, particularly of herring, has led the European Union (EU) to impose restrictions on the total tonnage of catch that can be landed. As a result, the Scottish fishing industry has undergone a significant reduction in employment and value of exports. At the same time, however, the commercial farming of fish—especially of salmon—has expanded.

C.

Mining and Manufacturing

Historically, coal was Scotland’s chief form of mineral wealth, and the coal industry was under state control for much of the 20th century. However, the privatization of the industry in the 1980s and 1990s led to a significant reduction in the number of working mines; today, there is only one active coalmine in Scotland. Nearly all the major coal deposits are found in the Central Lowlands. Limestone, clay, and silica are still mined in significant quantities, while iron ores and other metals have been virtually exhausted.

North Sea oil and natural gas reserves, first discovered in the 1960s, became an important part of Scotland’s economy during the 1970s. Oil and natural gas are sent by pipeline to points in the Orkney and Shetland islands and to the mainland. Major oil refineries are located at Grangemouth and Dundee.

About 20 percent of Scotland’s labor force is employed in manufacturing. Historically, Scotland’s industrial reputation was built on shipbuilding, steel production, and heavy engineering. However, in recent decades most of the factories engaged in these traditional industries have closed down. Today, the manufacture of electronic items—including silicon chips, personal computers, workstations, automated teller machines, and many other products—has become the primary source of export income for Scotland. The main location for this activity is “Silicon Glen,” a modern industrial complex in suburban Glasgow and the urban regions east of that city. Other important manufactured products include woolen textiles and yarn, chemicals, and whiskey.

D.

Services

In the decades after World War II (1939-1945) services replaced manufacturing as the primary source of income and employment in Scotland. Today, nearly 79 percent of the Scottish workforce is employed in the service sector. Services encompasses a broad range of economic activities, including wholesale and retail trade, transportation, mail and telecommunications, finance and insurance, real estate, business services, hotel and restaurant trades, health, education, welfare, and public administration. Among the most important services in Scotland are public administration and financial services, which together account for nearly 50 percent of national income.

E.

Transportation and Communications

About 48,000 km (about 30,000 mi) of highways and about 6,400 km (about 4,000 mi) of railroads serve Scotland. Public buses provide transportation throughout most of the country. The three major airports are in Edinburgh, Aberdeen, and Glasgow. Most of Scotland’s international flights land at Glasgow Airport.

Most radio and television programs in Scotland originate in England. About 17 daily newspapers and 120 weeklies are published in Scotland.

F.

Currency and Banking

The currency of the United Kingdom, the pound sterling, is the legal tender of Scotland. However, the three principal Scottish banks—the Bank of Scotland, the Royal Bank of Scotland, and the Clydesdale Bank—are permitted to print their own banknotes under license to the Royal Mint. These notes are worth the same as notes printed for the Bank of England, the United Kingdom’s central bank, but they are not strictly legal tender outside of Scotland (although they are generally accepted elsewhere in the United Kingdom).