The Borders area is very rural with a low population density, no railway station and poor road links. The largest towns in the constituency are Penicuik, Galashiels, Peebles and Selkirk.
The economy is dependent on a narrow range of industries including textiles, electronics and agriculture. The decline in all of these industries has caused great economic problems over recent years. Nearly 1,000 jobs were lost when the US electronics firm Viasystems pulled the plug on their Selkirk and Galashiels factories.
The future of the area would look brighter if the campaign for the restoration of the rail link from Edinburgh to Carlisle known as the "Waverley Line" was successful. The Scottish Executive announced a £1.9m grant to the Scottish Borders Council in November 2000 to help it prepare a parliamentary order and examine funding opportunities for re-opening the line.
The Liberal Democrats’ Michael Moore won this seat in 1997 following the retirement of former Liberal leader Sir David Steel, with a majority of just 3.8%.