Jack McConnell resigned as leader of the Scottish Labour Party on Wednesday, leaving his party struggling to rebuild its support base after nationalists ended 50 years of Labour dominance in Scotland in May.
McConnell governed Scotland as first minister until the pro-independence Scottish National Party (SNP) became the largest party in the Edinburgh-based parliament, by one seat, in May's elections.
The SNP victory left Scottish Labour reeling but McConnell refused to resign at the time.
On Wednesday, he said he was stepping down to allow the party to carry out a process of "reflection and renewal" with a new leader.
"It is time for me to move on," he said in a statement. "The Scottish Labour Party needs to respond to the election defeat in May and hear what the Scottish people had to tell us."
The party will elect a new leader, with media speculating that Labour finance spokeswoman Wendy Alexander was the most likely successor.
McConnell will remain a member of the Scottish parliament but will now work with the Clinton Hunter Development Initiative -- a joint venture between the Clinton Foundation and the Hunter Foundation -- on education in Malawi and Rwanda.
Prime Minister Gordon Brown praised his leadership of Labour and named him British high commissioner to Malawi, once the current high commissioner leaves his post, due in early 2009.
"The whole of Scotland owes him a debt of gratitude for his tireless work and his lifelong commitment to the best for the Scottish people," Brown said in a statement.
The rise of the SNP is a headache for Brown, himself a Scot.
On Tuesday, the SNP set out its plans for a referendum on independence, publishing draft legislation.
Labour and the other main opposition parties oppose a vote on independence but the SNP's campaign could lead to more powers for the Scottish parliament.
The parliament has powers over health and education but London still rules on defence, foreign affairs and the economy.
More powers for the parliament could increase calls for a change in the constitutional settlement under which Scottish MPs in London can vote on health and education policy for England but English MPs have no say over those matters in Scotland.
Opinion polls show on average 30 percent of Scots would vote for independence but all parties have agreed that the Scottish parliament's limited powers should be reviewed.
