"There's a general feeling, even down south, that Scotland are starting to do better in terms of young players," Ferguson said.
"Hibs have shown the way in bringing young players through and they have sold a few on to Celtic and Rangers. That is a judgement from the two biggest clubs in the country that they are doing things right.
He continued: "Looking at the Scotland side there are a half-a-dozen who you can say are more than decent players.
"You are getting to a standard where you are expecting them to win in Macedonia and places like that, which is good.
"I think when Alan Hutton comes back, he will make a massive difference to the Scottish team because he is, without doubt, as good a young full-back as there is in Britain.
"He has great attacking qualities. And you have Darren Fletcher and Barry Ferguson - so a lot of them are doing quite well."