After independence, the provinces of Holland, Zeeland, Groningen, Friesland, Utrecht, Overijssel, and Gelre formed a confederation known as the Republic of the Seven United Netherlands. 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 sparsely 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 (Generaliteitslanden in Dutch). 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 were used as a buffer zone between the Republic and the Southern Netherlands.

Dutch Batavia built in what is now Jakarta, by Andries Beeckman c. 1656. The Dutch Empire grew to become one of the major seafaring and economic powers of the 17th century. In the so-called Dutch Golden Age ("Gouden Eeuw"), colonies and trading posts were established all over the world. Dutch settlement in North America began with the founding of New Amsterdam, on the southern tip of Manhattan in 1614. In South Africa, the Dutch settled the Cape Colony in 1652. By 1650, the Dutch owned 16,000 merchant ships.[13] 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 (Amsterdam) 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.[15] 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 Staatsgezinden (Republicans) and the Prinsgezinden (Royalists or Orangists) as main factors.

In the 17th century, plantation colonies were established by the Dutch and English along the many rivers in the fertile Guyana plains. The earliest documented colony in Guiana was along the Suriname River and called Marshall's Creek. The area was named after an Englishman.[16] Disputes arose between the Dutch and the English. In 1667, the Dutch decided to keep the nascent plantation colony of Suriname conquered from the English, resulting from the Treaty of Breda. The English were left with New Amsterdam, a small trading post in North America, which is now known as New York City. For a comprehensive list of the territories that formed the Dutch Empire, see Evolution of the Dutch Empire.

An anachronous map of the Dutch colonial Empire. Light green: territories administered by or originating from territories administered by the Dutch East India Company; dark green the Dutch West India Company.

French domination (1795–1815)

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