Golden Age of the Netherlands

During the long struggle for independence, the Dutch republic became the leading nation in colonial trade. By 1600 the Dutch had begun to compete for the lucrative East Indies commerce held by Portugal. The Dutch East India Company was formed in 1602, the Dutch West India Company in 1621. Trade settlements were established in Indonesia in 1619, South America in 1623, North America in 1625, the West Indies in 1634, and South Africa in 1652. By the middle of the 17th century Holland (as the Dutch republic was commonly known) was the greatest maritime power of the world, and Amsterdam was Europe's financial center.

A system of government developed slowly in the Dutch republic, with considerable conflict between the States-General and the nobility. The stadholder of the province of Holland, traditionally a member of the House of Orange, came to be recognized as the ruler of the whole country, taking the title of governor. At various times, however, the States-General transferred power to the grand pensionary (prime minister).