page_title: Economic history of Scotland
section_title: 19th century
hierarchical_section_title: Economic history of Scotland / 19th century
caption_attribution_description: English: The gravestone of William Beattie and family in St. Cuthbert's Kirkyard reveals the high rate of infant mortality in Edinburgh in the first half of the 19th century.
context_page_description: The economic history of Scotland charts economic development in the history of Scotland from earliest times, through seven centuries as an independent state and following Union with England, three centuries as a country of the United Kingdom. Before 1700 Scotland was a poor rural area, with few natural resources or advantages, remotely located on the periphery of the European world. Outward migration to England, and to North America, was heavy from 1700 well into the 20th century. After 1800 the economy took off, and industrialized rapidly, with textile, coal, iron, railroads, and most famously shipbuilding and banking. Glasgow was the centre of the Scottish economy. After the end of the First World War in 1918, Scotland went into a steady economic decline, shedding thousands of high-paying engineering jobs, and having very high rates of unemployment especially in the 1930s. Wartime demand in the Second World War temporarily reversed the decline, but conditions were difficult in the 1950s and 1960s. The discovery of North Sea oil in the 1970s brought new wealth, and a new cycle of boom and bust, even as the old industrial base had decayed.
context_section_description: Scotland grew steadily in the 19th century, from 1,608,000 in the census of 1801 to 2,889,000 in 1851 and 4,472,000 in 1901. The economy, long based on agriculture, began to industrialize after 1790. At first the leading industry, based in the west, was the spinning and weaving of cotton. In 1861 the American Civil War suddenly cut off the supplies of raw cotton and the industry never recovered.  Thanks to its many entrepreneurs and engineers, and its large stock of easily mined coal, Scotland became a world centre for engineering, shipbuilding, and locomotive construction, with steel replacing iron after 1870.
  Liberalism emerged from urban Scotland, the free-trade sentiments and strong individualism of entrepreneurs merging with the radical emphasis on education and self-reliance as a means of community betterment. Despite political challenges, especially by the 1900s, these distinctive liberal values remained strong.
caption: Evidence of high infant mortality on an Edinburgh gravestone
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