Traditional Economies of Scotland
Scotland remained a primarily rural economy longer than its neighbor to the south, England. This was due in part to a lack of Roman influence, as well as poorer soils that could not support large, concentrated populations. As a result, its major cities, or burghs, would not develop until the 11th or 12th century. The early Scottish economy was largely agricultural, with communities clustered around noble halls, towns, and monasteries. Fishing, hunting, and gathering remained important elements of survival in the north and on islands with little arable land. It was easier to raise livestock than crops, and so animals like sheep and cattle were a major source of food and wealth.
The Rise of Burghs and Foreign Trade
This system began to change in the 12th century as King David I founded towns known as royal burghs. He elevated existing cities as well as building new ones, particularly along important harbors and rivers. The cities of Edinburgh, Stirling, and Glasgow all grew as royal burghs. Over time, these centers of trade passed into the hands of other nobles and high-ranking members of the clergy. They enjoyed relative independence and power within the kingdom and controlled foreign trade. Many imported a merchant class from thriving areas like the Holy Roman Empire, England, Scandinavia, and France.
Besides the burghs, medieval Scotland’s economy continued along its ancient patterns. Farmers raised crops and livestock, sold the excess at market, and paid taxes to their lords for generations. Under the feudal system, peasants traded a certain amount of labor to noble estates in exchange for land to farm. They weathered famines, fought in wars, and produced much of what they needed. Improved technologies and new crops like the potato improved yields in the 18th century, but skilled trades remained somewhat rare up to that point. The primary exports of Scotland at this time were natural resources and raw goods.
Economics of Modern Scotland
During the 18th century, Scotland’s economy began a substantial transformation. This occurred shortly after its unification with England. As part of Great Britain, Scotland became an important supplier of goods to a growing empire. This relationship would turn the nation into an industrial powerhouse within a few decades. Goods imported from the American colonies were processed in Scottish factories to be exported once more. Tobacco, linen, sugar, banking, and cotton made up its largest early industries. In addition, the nation possessed rich deposits of iron and coal.
But as its factories sprang into production, the majority of Scotland’s population still faced poverty and hardship. The urban economies tended to benefit a small working class, while the bulk of its people still lived as poor farmers. This poverty was especially pronounced in the Highlands, where whole populations were evicted to raise sheep instead. New generations left their homes in Scotland and Northern Ireland to set sail for British colonies like the United States, Canada, and Australia as pollution and wealth disparities increased. The World Wars brought another manufacturing boom, especially through the shipbuilding industry.
Following World War II, the importance of manufacturing in Scotland decreased. Its modern economy is driven mainly by the service, technology, and energy industries. The coal rush that once choked its cities with smog has declined in favor of oil and natural gas deposits. In recent decades, Scotland has also cultivated bustling technology and tourism sectors.
References
Foyster, Elizabeth ed. History of Everyday Life in Scotland, 1600 to 1800. Edinburgh University Press. 2010.
Hill, Roland. Scotland: Land of Lochs and Glens. I.B. Tauris. 2002.
Lang, Andrew. A Short History of Scotland. Dodd, Mead, and Co. 1912.
Sanderson, William. Scottish Life and Character. MacMillan Co. 1904.
“The World Factbook: United Kingdom.” Central Intelligence Agency, Central Intelligence Agency, 4 June 2018, www.cia.gov/library/publications/the-world-factbook/geos/uk.html.
Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c.1050-c. 1750. Routledge. 2014.
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