O ptimism � Scotland�s bursting with it if you believe Alex Salmond�s new year�s message and recent public opinion polls. But are we really so confident about the coming 12 months? We asked leading figures from across civic Scotland if they have reasons to be cheerful in 2008

Education David Caldwell, director Universities Scotland This is not a year higher education can look forward to with too much optimism. For a variety of reasons, especially quickly increasing pay and utilities costs, the cost of running a university in the coming year will rise faster than the public funding we will be given.

We estimate the funding for the sector as a whole will be at least £40 million short of what would be needed just to stand still. But universities are extremely well managed institutions and, while there will be pressures to address, universities will do their very best to do so in ways that don't impact on staff or students.

However, this does mean a cautious year lies ahead for many universities, which will have to prioritise stability over any more ambitious plans they had. Nevertheless, that does not mean there is no reason for optimism.

This year marks the start of the next three-year budget process and, while universities did not do well out of the last three-year spending review announced last November, we believe we continue to have a very strong case and we will do better next time.

We have no option but to look ahead and work to persuade politicians of all parties that Scotland's future rests heavily on its universities.

To that end, we welcome the Future Thinking Taskforce set up by the Scottish Government. Over the next six months there is an opportunity for universities to lay out their case to government and to discuss what government wants from universities.

We are optimistic this will move us further towards a national consensus that Scotland's future lies in high-skill people and top-level innovation. Universities are ready to deliver this.

Penny Ward, secondary school teacher Teachers enjoy good holidays - long enough to recharge the batteries and to let bygones be bygones. It wouldn't be a great idea to go back to work not feeling optimistic. Maybe the new year resolution is to notice and rejoice in the good kids, and to feel it is OK to ask colleagues for help when we need it.

One twig is easily broken; bind it with other ones and it is rock solid. Teachers are the same; alone we are vulnerable but standing together we are invincible.

Asked what the key issue for 2008 is, I'm tempted to say my desk, piled high, and to identify time as the biggest problem. But that applies to every teacher.

My concern is for children throughout Scotland with Additional Support Needs (ASN), and for the staff having to cope with them in classrooms, often without adequate help or specific training. For many of these pupils, mainstream is the right choice and they do well.

But an autistic pupil can miss out because noise levels are too high and he switches off. A child with emotional and behavioural difficulties can disrupt every class he walks into.

A bright dyslexic pupil misses one word in 10 - not obvious to the teacher, but enough to make the text incomprehensible. Differentiation is not yet a way of life, although it should be, for both the gifted and less gifted pupil.

I believe we fail some of our ASN pupils if we expect them to fit into a normality that isn't normal for them, and for them, in 2008, we need better solutions.

Health Dr Peter Terry, chairman of the BMA in Scotland I hope that 2008 is a good year for our staff and associate specialist doctors who, after years of waiting, deserve to have the opportunity to vote on a new contract. These doctors are an integral part of the medical team who have been neglected by the government.

Devolution has led to increased divergence in the NHS. Here we are moving towards a more integrated health service, mutually owned by the people of Scotland rather than a system of competition and privatisation, which exists in England. I hope that the spirit of collaboration which exists between the Scottish government, the professions and the NHS will continue.

My greatest fear for 2008 is that the junior doctor recruitment process could go as badly as it did last year. Without adequate planning, the levels of competition could result in a lottery for specialist training. NHS Boards need to get their recruitment practices in order and start preparing now to ensure that there is no unfairness and no negative impact on patient care.

This year, the NHS celebrates its 60th anniversary and it is a time to be proud of our health service. However, the NHS in Scotland struggles to deal with change, and the redesign of local health services will continue to cause turmoil in communities across the country. Whatever decisions are taken, the profession and the public need to be convinced that they are taken in the best interests of patient care, not politically driven.

Last year was a difficult one for doctors with a great deal of undeserved criticism from politicians and the media. It would make a big difference to doctors if we saw greater recognition of their professionalism and overwhelming commitment to the NHS and its patients in 2008.

Dr Des Spence, Glasgow-based GP With the potential for an economic slowdown, one issue is whether money is going to become tighter in the NHS. I suspect that GPs are a bit fearful that the government may change their contract in a different way and that is a potential concern.

There is always a concern over whether the NHS is going to become increasingly more fractionated and whether the private sector is going to become more involved. But on a point of optimism, I think there is an increasing recognition that the private sector probably has a very limited role in the NHS.

I feel that the NHS will always survive and grow stronger. It is a privilege to be a doctor or nurse and that is something that we keep hold of."

Theresa Fyffe, director of Royal College of Nursing Scotland Health and social care will continue to have a high priority and a high profile in Scotland in 2008, particularly with the NHS celebrating its 60th birthday this year.

There are some grounds for optimism across the health sector, with new money being put into public health issues such as reducing the harm done by alcohol and in tackling MRSA and other health acquired infections, which are of major concern to health professionals and the public alike.

At the end of last year the Scottish government published its Better Health, Better Care action plan, which sets out an ambitious plan for health for the next five years. RCN Scotland welcomed the move to a more mutual NHS, based on public, patient and staff involvement, and its focus on addressing health inequalities across Scotland.

Its focus on child health and mental health is of particular interest, too, as we believe this will reap benefits for all in the future.

For nurses and nursing, however, we are concerned about the sheer number of changes proposed this year and their possible impact. We question how all the proposals are to be resourced within the current budget spending review. For example, the shift from hospital-based care to care in the community needs to be fully resourced. Extending access to primary care and out-of-hours services are dependent on nurses and we believe their contribution needs to be more fully acknowledged, and nurses appropriately rewarded, this year.

We are also concerned that existing services are not neglected.

Overall, RCN Scotland believes it will be a challenging year for health delivery and for nurses and nursing in Scotland.

Science Professor Anne Glover, chief scientific adviser for Scotland It's hard not to be optimistic for the year ahead as a scientist, because new discoveries will be made. The science we do in Scotland is outstanding and recognised internationally, and I would foresee those incredibly high standards continuing in 2008 and beyond.

Stem cell science is really on the up, and in Scotland we have the biggest stem cell network in Europe. We might not see it this year, but I hope we can use stem cell science to design and deliver therapies for degenerative disorders, such as Alzheimer's and Parkinson's.

We really need to attract more venture capital funding to support the level of innovation in Scotland because most funding is based in the southeast. The big challenge this year is for us to make Scotland an absolutely compelling place to invest. When people come up with special scientific ideas, larger multinational companies often come in and buy the smaller ones and their ideas over. We need to intensify our links between universities and companies, and have bigger companies grown here in Scotland.

Another key challenge is to ensure policy is underpinned by strong scientific evidence. One of the most important things will be to discuss controversial topics freely and in a more rational way. The debate around genetically modified crops, for example, is not well informed by evidence at the moment. The public doesn't get good-quality information and decisions are being made based on prejudice about GM crops.

Something bound to have a huge impact in the science we do here and elsewhere is the Large Hadron Collider. It is an initiative based in Switzerland to construct an underground 27km circle for accelerating the collision of particles, a way of recreating particles at the big bang, and it comes online this year.

It will give us a clearer understanding of basic matter, and could potentially give us the key to do things such as transmute nuclear waste, turning it into something harmless. It could revolutionise medical therapies in targeting tumours and cancers.

It could even realistically give us the option of nuclear fusion, which could producing limitless amounts of energy, produce no waste and little carbon footprint. We're on the cusp of incredibly exciting things.

Roger Downie, professor of zoological education at Glasgow University There is worry across the universities that the research funding settlement has not been as good as we would hope, so it'll be up to us to persuade and demonstrate that science needs more investment and is vitally important to the Scottish economy.

This year will mark the 150th anniversary of the publication of Darwin's papers that started the theory of evolution. I hope it highlights the importance of biology generally, but there is anxiety about the continuing efforts of some religious fundamentals to deny the importance of evolution.

Also, 2008 has been designated the year of the frog. It's very timely because we in the conservation world are extremely worried about the decline of amphibian population worldwide. It's a problem that needs urgent action this year."

Business Iain McMillan, director CBI Scotland This will be the most challenging year for Britain's economy in over a decade, with the CBI forecasting an easing back in the growth rate to just 2%. However, it is important not to exaggerate the risks and talk ourselves into a more serious downturn.

The most likely outcome is a soft landing as the economy slows, despite the continuing credit crunch.

To succeed in this competitive new world, the country needs to focus on improving the public finances, raising skills at every level, strengthening our flexible labour market and developing our transport infrastructure.

We also need to secure a competitive tax and regulatory regime and fight the growth of protectionism in the developed world while putting in place the required measures to tackle climate change without compromising our competitiveness.

Much of this will fall to the UK government, but the devolved administration has a big role to play too. The SNP administration has got off to an encouraging start. But it must turn the early promise into real action if Scotland is to match the growth rate of the rest of the UK.

Key decisions will be taken this year on the next steps in the reform of Scotland's planning system. Ministers must deliver a system that both plans for growth and gives far greater weight to economic considerations when determining applications.

In transport, the Strategic Projects Review will determine the next tranche of key transport projects beyond 2011. Top of the list should be electrification of the Glasgow to Edinburgh railway, the upgrading of the M8 to three lanes and the start of dualling of the A9.

And in public sector reform, a far wider range of public services ought to be delivered by the private sector, subject to rigorous competitive tender. This will lead to improved performance, with competition spurring innovation in service design and working practices, and better value for money.

Andrew Watson, Federation of Small Businesses Scotland Small businesses form the backbone of the Scottish and UK economies and while they may suffer this year, they are likely to be sheltered from the worst effects of any downturn. Despite more difficult conditions, I am hopeful that small businesses will continue to grow in contrast to reports that large companies are looking at offloading staff as the credit crunch starts to bite. I hope the smallest companies can weather the storm.

In March the chancellor will deliver his budget, and we will see whether the UK government has seen sense and scrapped its plans to increase capital gains tax for small companies.

Social work Bernadette Docherty, president of the Association of Directors of Social Work We've got a government in Scotland where evidence to date suggests that it shares the same values as social work. They are committed to early intervention; they have committed to review free personal care to ensure the policy is properly funded; they are committed to reducing the prison population and better addressing the needs of those who offend. Their tone in relation to young people and their vision of more choices and chances is a significant improvement. I think the profession continues to feel optimistic. The government has committed to the delivery of Changing Lives - the programme for change in social work - and is now moving to identify the key tasks and strategic improvements that the government and the profession must major on in the coming year. The key issue facing social work is the rising volume and complexity of demand, alongside heightened public expectations. Too often it is the social worker at the coalface who must meet these expectations, but without the resources to do so. Ronnie Stevenson, a social worker in children and families and Unison's social work convener for Glasgow. One of our fears is increased privatisation of social work services. Clearly that has implications for people working in social services, because traditionally the private sector employees have been lower paid. There is a lot of pressure put on social work to deliver and I think some of the expectations are unrealistic. On the positive side, we are really looking forward to April 1 and the coming into place of the kinship carers allowance. That will provide opportunities to properly support young people and children who are not able to be looked after by their parents but will be able to be looked after, in the main, by grandparents. When things get tight one of the first things to go is public spending, and one of the first areas is quite often social services, perhaps because it is not the most popular form of public spending. Children Dr Jonathan P Sher, director of policy and research, Children In Scotland Daily life for most children and young people across Scotland is unlikely to change dramatically in 2008. Those consistently cared for by at least one loving, competent adult will have a far better year than those whose home lives are chaotic, abusive or loveless: predictably, 2008 will be best for children and young people enjoying good health and good education in good communities, and worst for those burdened by poverty, prejudice or peril.

All children and young people in Scotland need, and have a right to, the basic building blocks of wellbeing. The challenge for 2008 is to increase the number for whom these basics are realities, not just good intentions What could make 2008 different is the political context. The signs are hopeful: the Scottish government has promised more emphasis on the early years and support for parenting, and opportunities are arising to prevent childhood injuries, strengthen intergenerational relationships, improve transition from school to work, cut domestic violence and develop healthy eating and exercise habits.

This year, we will begin to discover whether big change in government will bring lasting benefits to all of Scotland's children, young people and families.

Marguerite Hunter Blair, chief executive, Play Scotland We expect the Scottish government to honour its commitment to a play strategy to ensure we reverse the trend towards an indoor, sedentary, risk-averse lifestyle. I hope we can encourage all local authorities to consider play a priority, as only 11 do so at the moment. We want public spaces in residential areas to be more child-friendly and councils to provide quality, accessible outdoor freeplay spaces.

The Scottish Play Commission was launched in December. We hope all parents, play workers and others concerned about children's play will participate in its events, and the online conversation starting later this month.

In 2008 we'd like to see the Scottish government commit to improving the quality and range of places for young people to go and things for them to do.

The environment Stuart Hay, head of Campaigns for Friends of the Earth Scotland Last year the reality of climate change struck home, based not only on an unprecedented barrage of scientific reports from the UN, but also images of large parts of England under water. Thankfully the SNP government kept its election promise of tough, legally binding climate change targets, setting a goal of an 80% cut in CO2 emissions by 2050 and a commitment to year-on-year reductions to get there.

Meanwhile, the threat of an expensive and unnecessary new generation of Scottish nuclear power stations receded. Instead, the Scottish government chose to concentrate resources on the real priorities for cutting emissions through energy conservation and ambitious targets to fully exploit Scotland's wind, waves and tides. The government's commitment to a Marine Bill to better protect Scotland's seas should help ensure this renewable power is harvested in a sustainable way.

Grounds for pessimism centre on whether climate change targets can be delivered, given the pending public inquiry into the highly controversial Aberdeen bypass and the government's hasty commitment to another Forth Road Bridge at a cost of £4 billion. Alongside the much-delayed M74 extension, these developments will generate more traffic, sending CO2 emissions soaring.

Meanwhile, money for much-needed new public transport projects will be in short supply, especially as any form of road pricing appears to be off the agenda.

Another potential source of local controversy - not to mention new emissions - is local authority proposals for incinerators. These will test the government's commitment to prioritising waste reduction and recycling.

The good news is that growing public awareness of climate change might just trigger enough opposition to these highly damaging developments, encouraging an unashamedly populist government to do the right thing, and stick by the environmental commitments that it made in 2007.

The law Gerry Considine, president of the Glasgow Bar Association I am fairly optimistic for the future of the criminal justice system in Scotland, although on a UK level I am pessimistic about the future of our fundamental rights.

It has been a positive start by the new Scottish government. For years new criminal justice legislation has been brought in without proper consultation. This has now changed.

As far as legal aid is concerned, a radical shake-up is planned with wide consultation on how best to improve the system, in particular looking at access to justice for the individual and effective use of court time while ensuring fairness for those in the profession.

This is in contrast to the previous Executive, where there was always conflict due to the lack of proper consultation. These positive changes will help ensure a more effective criminal justice system for everyone The same cannot be said for the Westminster government in London. The biggest attack on the fundamental rights and liberties of our citizens continues.

This year yet again there will be legislation on pre-charge detention in terror cases, although we already have the longest period in the civilised world by some margin, the continuing support for ID cards, restrictions on the right of free speech and protest, routine surveillance of road journeys and our cities, the DNA databases holding records of people with no convictions and the treatment of asylum seekers - all constitute an attack on our liberties.

John Scott, Edinburgh-based human rights lawyer Things are overwhelmingly pessimistic for 2008. Although Justice Secretary Kenny MacAskill has made it clear there are on-going consultations with the profession over the government's plans to reform legal aid, which could see accused people invited to represent themselves in court, there are going to be significant income reductions in legal aid for lawyers, and fewer young people coming into the profession at a time when few are already taking up jobs.

The number of cases going to be dealt with by the police and the fiscal, rather than going to court, is also worrying. This is not a golden age for the law, particularly in relation to appeals and maintaining the principles of Scots law.

We have some major appeals - including Luke Mitchell, William Beggs, and the Lockerbie appeal - that could determine what the law looks like. The system doesn't appear to have the fairness it used to have.

The arts Anne Bonnar, transition director for Creative Scotland I'm optimistic. The development of Creative Scotland will challenge some of our thinking about how to create a leading cultural development agency. As a small country in confident times, we have the opportunity to create a support structure which will enable our artists and creative communities to deliver for Scotland and the world. That's a fantastic opportunity.

The challenge for the arts and artists in Scotland has never been about talent or creativity. Its been about recognition and appropriate support and advocacy, here and abroad. Many artists, and those involved in the broader creative industries, are looking for clear leadership and for a co-ordinated approach to investment, development and advocacy across the sector. Over recent years there has been uncertainty about future support structures.

The Scottish government has made a commitment to the formation of Creative Scotland, which will have a leadership role across the arts, screen and the creative sector. During 2008 the role, shape and style of Creative Scotland will become clear as will its relationships with other public agencies, local authorities and others. This will present opportunities and perhaps some challenges for the arts and creative community and has the potential to make a positive difference to the arts in and from Scotland.

Richard Holloway, chairman of Scottish Arts Council By nature I'm optimistic. Interesting things are happening. The arts in Scotland are going through an extraordinary period of energy and creativity. Artists just come, they're like flowers in spring, nature produces them. But from my point of view helping to deliver the new agency, Creative Scotland, that's not neccessarily going to be a work of art, but I hope it will help Scotland to develop and expand its creativity.

There are two key issues for 2008. The first is forming the plan for Creative Scotland, which is the new agency that will take over, if the legislative time table goes ahead, by Easter 2009. We're working hard on developing plans and I'm optimistic we'll deliver something exciting for Scotland.

The other thing, however, is something I'm very passionate and optimistic about: El Sistema Scotland, my attempt to bring the Venezuelan music system to Scotland. We go up several gears in fundraising this month. We've enough to get us into orbit but we need to do massive fundraising to maintain ourselves. To change history costs money. It's long term generational change we're after. There's a lot of enthusiasm across the board in Scotland, so I'm hopeful about finding the money. I'm optimistic, but it will take hard work.

The rest of the world Robin Shepherd, senior fellow on Europe with Chatham House In the sphere of high politics, it's the year of the greatest show on Earth. The US presidential elections in November will herald a new beginning after President George W Bush's controversial two terms in office. The dress rehearsal has already begun in the shape of the primaries, often billed as the most impressive example of grassroots democracy in the world.

This year's contest has gifted the pundits a slew of novelties: Barack Obama, for the Democrats, is the first black American to have a real chance of securing the nomination; Hillary Clinton, also for the Democrats, is the first female; Mitt Romney, for the Republicans, is bidding to become the first Mormon president; and John McCain, also for the Republicans, would become the oldest man to become president should he win.

The year 2008 will also see change of sorts in Russia, the last country to challenge America's pre-eminence. Vladimir Putin will be replaced at presidential elections in March but will retain control of the country behind the scenes. An energy-rich and increasingly assertive Russia will continue to cause problems for the West on a range of issues from Kosovo to Iran, for whom Moscow has been a crucial ally in the development of its nuclear programme.

In Iran's neighbour Iraq, it remains to be seen whether recent US successes in stabilising the country can be maintained. The Bush administration is also committed to securing peace between Israel and the Palestinians.

The European Union will continue to absorb the consequences of Nicolas Sarkozy's ascension to the French presidency last year. France will take the EU presidency from Slovenia in July.

Back in Britain, Gordon Brown's shaky grip on power will be tested further as he continues to reject calls for a referendum on the EU reform treaty. The prime minister will take a lead in pushing for greater economic reforms across the EU.

The Nato summit in Bucharest in April will focus on achieving success in Afghanistan. where British troops will play a key role. The fate of Afghanistan's nuclear-armed neighbour Pakistan will be decided at elections in February.