Scotland should reach out to the rest of the world in a bid to attract talented workers to boost its economy, Jack McConnell has said.

Setting out his vision for a dynamic and attractive Scotland, the first minister pledged to "tell it like it really is" and accepted that some problems had to be tackled.

And he also appealed for an end to the unfair "talking down" of Scotland as part of a wide-ranging attempt to portray the country as an attractive destination in which to live and work.

McConnell said the new approach was needed to ensure the long term success of attempts to boost the Scottish economy.

At present Scotland was not seen as an attractive destination for skilled migrants, he said.

The first minister said "surprising" research conducted for the executive revealed that Scotland does not figure internationally as a top destination to set up home.

"Our survey work suggests we rank behind Scandinavia or Switzerland and even the south east of England," he said.

Attempts to boost immigration into Scotland have been prompted by fears that a declining population could damage prospects for economic growth and undermine public services.

Since 1997 there have been more deaths than births north of the border, while migration in and out of Scotland roughly balances.

Projections suggest that by 2009 the population could fall below the symbolic five million barrier.

"But these are projections, we can influence and shape the future. Scotland has a great opportunity to do so," McConnell said.

As part of a strategy to tackle the problem, the first minister said the executive would establish a "one-stop" relocation advice service for anyone interested in moving to Scotland.

It would help advise on jobs, accommodation, visas, work permits, school and university opportunities.

"But I want to make one thing very clear. I am not talking about a separate immigration system for Scotland," McConnell added.

"I am talking about using the system that exists to the benefit of our country. And there is plenty of scope for us to use the framework to our advantage.

"The UK is expanding significantly the number of work permits being made available to skilled people from overseas. I believe this is a great opportunity for Scotland - and one that we must grasp."

The first minister said there should be an enhanced campaign to promote Scotland as a place in which to live and do business to the rest of the world.

"We now need to make the rest of the world aware of the changing face of Scotland," he said.

"Above all we need every Scot to have pride in their country. Ambassadors who project a positive image of Scotland wherever they go

"Because if we create a Scotland all Scots can be proud to call home, a country bursting with opportunity, other people will want to call Scotland their home too."

The first minister pointed to world class universities, Scottish culture and sports, and beautiful scenery as key selling points.

But the first minister also accepted that the changes he was calling for posed wider questions for all Scots.

"We need nothing less than a shift in cultural attitudes. But that does not mean that I, and our government are passing the buck," said McConnell.

He added that efforts to tackle racism and sectarianism, improve Scotland's national health and protect the environment were all necessary because "I don't believe we can separate the social from the economic".

"Tackling racism and sectarianism will ensure we are genuinely and consistently a welcoming nation - and one where new talent can make Scotland their new home," he said.

"Improving our national health will end our damaging record as the sick country of Europe.

"And having due regard to the environment around us will improve the quality of life of those who live here.

"By tackling these issues head on now we will not only improve quality of life, but also our international reputation and our confidence for the long term."