The Dutch Republic, though geographically small, was an economic giant during the 17 th century. The Golden Age of the Dutch Republic

During the 17 th Century the Dutch Republic was unique Perhaps no other area saw such a flourishing of progressive ideas Capitalistic energy Scientific and artistries achievement Fiercely republican Religiously tolerant While many nations were in the process of centralizing, the Dutch states remained a loose confederation of seven independent and strong states, each with its own provincial assembly or estate. They unified in a States General on foreign policy issues, where they also appointed a chief executive for each province, the stadholder. The sons of William the Silent of the House of Orange, who had led the independence movement, became the stadholder in all seven provinces. It was the Dutch stadholder William, husband to Mary, who became the king of England in 1689 in the Glorious Revolution Holland, because of its extraordinary wealth, was the dominant state of the seven

Many historians suggest that Dutch capitalistic success was connected, either as a cause or as a result, with the Calvinist work ethic and also with the concerted efforts of city councils to create good business climates. The city councils made sure that their granaries were full, so that famine was completely avoided and food prices stayed stable. The city council of Amsterdam guaranteed the deposits at the Bank of Amsterdam, thus attracting a great deal of foreign capital. The Dutch merchant marine, the largest in Europe (some 16,000 ships), charged the lowest rates in Europe. With these ships the Dutch were able to buy in bulk entire wheat crops in Poland, and sell the goods in Amsterdam and transport them on their own ships. The Dutch successfully expanded their sphere of business beyond Europe when they founded the Dutch East India Company in 1602 and the Dutch West India Company in They established important trading posts and settlements in South Africa, Ceylon, and Malacca, among others.

The Dutch lived better than everyone else in Europe in the 17 th century as a result of their success as merchants and traders. The Dutch began to fall on harder times due to increasing competition from France and Britain, both of which went to war with the United Provinces in the 1670s By the end of the War of Spanish Succession ( ), which drained Dutch resources, Dutch economic decline was under way.