Abstract

The prolonged economic slump which overshadowed much of the inter-war period encouraged a small number of Clydeside industrialists to intervene with bold plans to restructure and revive the Scottish economy. Key figures like Sir James Lithgow and Lord Weir exploited their business, banking and political connections, in Scotland and in London, to produce a uniquely Scottish response to the inter-war crisis. Championing the existing Union and imperial relationships, they nevertheless articulated a new sense of Scottish exceptionalism. Convinced that any revival in trade was dependent on rationalisation of the heavy industries and an ambitious programme of diversification, Lithgow, Weir and their associates promoted distinctive Scottish solutions. Building on the work of Graeme Morton, the article suggests that what emerged was an economic Unionist Nationalism which built alliances between business and civic Scotland to secure Scottish interests while acknowledging the primacy of Union. The mechanism used to achieve their aims was based upon the associational culture of Scottish business, ‘self-help’ voluntary bodies which carefully steered an independent path, avoiding, where possible, direct state involvement. Yet the depth and persistence of the global depression, and the urgency of the task at hand in Scotland itself, encouraged the business community to moderate its hostility to interventionism and economic planning and engage with new partners. The founding of the Scottish National Development Council in the early 1930s, bringing business and civil society together to help foster economic revival, was a crucial staging post on the journey towards corporatism. Motivated by a mix of public-spiritedness and self-interest, there was, however, a strong defensive element to their actions as the essentially conservative industrialists sought to ward off social, political and economic threats from within Scotland. Their willingness to step forward suggests a traditional sense of patrician responsibility, but there was also an acute awareness of the need to adapt; a progressive quality missing from other actors.

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