This paper explains how and why the Scottish juvenile justice system differs from that of other European countries and the United States. It highlights the manner in which penal-welfare values have continued to dominate all aspects of policy and practice in the face of the social and cultural processes that have been identified as prompting significant shifts in the nature and function of the penalty in other jurisdictions. The paper argues that this has occurred because of the enduring strength and influence of policy networks in Scotland, the distinctive character of Scottish civic culture, and the small scale of the system itself.