Trips Holidays and Vacations Travel Europe - Netherlands Destination
History of the Netherlands - Ducth Republic 1581–1795
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Since their independence from Phillip II in 1581 seven provinces formed the Republic of the Seven United Netherlands. The republic was a confederation of the provinces Holland, Zeeland, Groningen, Friesland, Utrecht, Overijssel and Gelre. All these provinces were autonomous and had their own government, the "States of the Province". The States-General, the confederal government, were seated in The Hague and consisted of representatives from each of the seven provinces. The very thinly populated region of Drenthe, mainly consisting of poor peatland, was part of the Republic too, although Drenthe was not considered one of the provinces. Drenthe had its own States but the landdrost of Drenthe was appointed by the States-General. The Republic occupied a number of so-called Generality Lands. These territories were governed directly by the States-General, so they did not have a government of their own and they did not have representatives in the States-General. Most of these territories were occupied during the Eighty Years' War. They were mainly Roman Catholic and they were used as a buffer zone between the Republic and the Southern Netherlands.
The Dutch grew to become one of the major seafaring and economic powers of the 17th century during the period of the Republic of the Seven United Netherlands. In the so-called Dutch Golden Age, colonies and trading posts were established all over the globe. During the 17th century, the Dutch population increased from an estimated 1.5 million to almost 2 million.
Many economic historians regard the Netherlands as the first thoroughly capitalist country in the world. In early modern Europe it featured the wealthiest trading city and the first full-time stock exchange. The inventiveness of the traders led to insurance and retirement funds as well as such less benign phenomena as the boom-bust cycle, the world's first asset-inflation bubble, the tulip mania of 1636–1637, and according to Murray Sayle, the world's first bear raider - Isaac le Maire, who forced prices down by dumping stock and then buying it back at a discount. The republic went into a state of general decline in the later 18th century, with economic competition from England and long standing rivalries between the two main factions in Dutch society, the Republicans and the Royalists or Orangists as main factors.
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