Economy of Scotland in the early modern period

At the beginning of this period Scotland was a relatively poor country, with difficult terrain and limited transport, relying on traditional agricultural methods of jointly run fermtouns and bailes.

The late sixteenth century saw economic distress, inflation and famine, but also the beginnings of industrial production as new techniques were imported to the country.

[1] At the beginning of the era, with difficult terrain, poor roads and limited methods of transport, there was little trade between different areas of the country and most settlements depended on what was produced locally, often with very little in reserve in bad years.

They usually ran downhill so that they included both wet and dry land, helping to offset the problems of extreme weather conditions.

[2] From a low base at the beginning of the sixteenth century, trade expanded in the 1530s, but suffered from the English invasions of the Rough Wooing in the 1540s.

Haddington, which had been one of the major centres of trade in the late Medieval period, saw its share of foreign exports collapse in the sixteenth century.

There is evidence of single women engaging in independent economic activity, particularly for widows, who can be found keeping schools, brewing ale and trading.

The English invasions of the 1640s had a profound impact on the Scottish economy, with the destruction of crops and the disruption of markets resulting in some of the most rapid price rises of the century.

The English Navigation Acts limited the ability of the Scots to engage in what would have been lucrative trading with England's growing colonies, but these were often circumvented, with Glasgow becoming an increasingly important commercial centre, opening up trade with the American colonies: importing sugar from the West Indies and tobacco from Virginia and Maryland.

[4] The English protective tariffs on salt and cattle were harder to disregard and probably placed greater limitations on the Scottish economy, despite attempts of the King to have them overturned.

[12] However, by the end of the century the drovers roads, on which black cattle were driven from the Highlands through south-west Scotland to north-east England, had become firmly established.

[16] The "Company of Scotland" invested in the Darién scheme, an ambitious plan devised by William Paterson, the Scottish founder of the Bank of England, to build a colony on the Isthmus of Panama in the hope of establishing trade with the Far East.

Since the capital resources of the Edinburgh merchants and landholder elite were insufficient, the company appealed to middling social ranks, who responded with patriotic fervour to the call for money; the lower orders volunteered as colonists.

The East India Company saw the venture as a potential commercial threat and the government were involved in the War of the Grand Alliance from 1689 to 1697 against France and did not want to offend Spain, which claimed the territory as part of New Granada and the English investors withdraw.

Poorly equipped; beset by incessant rain; suffering from disease; under attack by the Spanish from nearby Cartagena; and refused aid by the English in the West Indies, the colonists abandoned their project in 1700.

[17] The cost of £150,000 put a severe strain on the Scottish commercial system and led to widespread anger against England, but also highlighted the problems of maintaining two economic policies, increasing pressure for full union.

Turnips and cabbages were introduced, lands enclosed and marshes drained, lime was put down, roads built and woods planted.

However, although some estate holders improved the quality of life of their displaced workers, enclosures led to unemployment and forced migrations to the burghs or abroad.

Rough plaids were produced, but the most important areas of manufacturing was linen, particularly in the Lowlands, with some commentators suggesting that Scottish flax was superior to Dutch.

These would make capital available for business and the improvement of roads and trade, which would help create the conditions for the Industrial Revolution that accelerated in the second half of the century.