ABSTRACT
This chapter explains the economic framework under which the Scottish Government is developing its policies for sustainable economic and inclusive growth. It provides a personal reflection on the input of Professor Ailsa McKay to the development of childcare policy in Scotland. Ailsa's legacy and influence are reflected in the recognition of the close interaction between the social and wellbeing aspects of economic policy that are central to Scotland's Economic Strategy (SES). The global financial crisis of 2008 impacted in Scotland with output contracting by 5 per cent over five quarterly periods, which was broadly in line with the Organisation for Economic Co-operation and Development (OECD) average and slightly lower than the aggregate for the United Nations (UN) and European Union's (EU). The labour market response was similar to the UK with more people staying in employment, but working typically fewer hours and on more flexible and less secure conditions.
