Portal:Scotland/Selected article/Week 46, 2008

The Darien scheme (colony of New Caledonia), was an unsuccessful attempt by the Kingdom of Scotland to establish a colony on the Isthmus of Panama in the 1690s.

The late 17th century was a difficult period economically for Scotland. The country's economy was relatively small, its range of exports limited, and furthermore Scotland was in a weak political position in relation to the great powers of Europe, including neighbouring England, and their overseas empires. In this era of economic uncertainty, rising tariff walls, and trade rivalries in Europe, Scotland was incapable of protecting itself from the effects of these trade wars. The kingdom had a tiny navy, and its merchants did not trade in any luxury goods which were in great demand. The 1690s also saw several years of widescale crop-failure, which brought famine and led to this period being christened as the "ill years." This only helped to further exacerbate the deteriorating economic position of Scotland.

Confronted by this alarming situation, a number of remedies for the desperate situation were enacted by the Parliament of Scotland; In 1695 the Bank of Scotland was established; the Act for the Settling of Schools established a parish-based system of public education throughout Scotland; and the Company of Scotland was chartered with capital to be raised by public subscription to trade with "Africa and the Indies."