section_path: History/Dutch Republic (1581–1795)
section_name: Dutch Republic (1581–1795)
paragraph_text: Dutch Republic (1581–1795)
  
  Following the declaration of independence, the provinces of Holland, Zeeland, Groningen, Friesland, Utrecht, Overijssel, and Gelderland entered into a confederation. All these duchies, lordships and counties enjoyed a significant degree of autonomy and were governed by their own administrative bodies known as the States-Provincial. The confederal government, known as the States General, was headquartered in The Hague and comprised representatives from each of the seven provinces. The sparsely populated region of Drenthe was part of the republic, albeit not considered a province in its own right. Moreover, during the Eighty Years' War, the Republic came to occupy a number of Generality Lands located in Flanders, Brabant and Limburg. These areas were primarily inhabited by Roman Catholics and lacked a distinct governmental structure of their own. They were utilized as a buffer zone between the Republic and the Spanish-controlled Southern Netherlands.
  
  In the Dutch Golden Age, spanning much of the 17th century, the Dutch Empire grew to become one of the major seafaring and economic powers. Science, military and art (especially painting) were among the most acclaimed in the world. By 1650, the Dutch owned 16,000 merchant ships. The Dutch East India Company and the Dutch West India Company established colonies and trading posts all over the world. The Dutch settlement in North America began with the founding of New Amsterdam in 1614. In South Africa, the Dutch settled the Cape Colony in 1652. Dutch colonies in South America were established along the many rivers in the fertile Guyana plains, among them Colony of Surinam (now Suriname). In Asia, the Dutch established a presence in India, the Dutch East Indies (now Indonesia), Formosa (now Taiwan), and the only western trading post in Japan, Dejima. During the period of Proto-industrialisation, the empire received 50% of textiles and 80% of silks import from the India's Mughal Empire.
  
  Many economic historians regard the Netherlands as the first thoroughly capitalist country. In early modern Europe, it had the wealthiest trading city in Amsterdam, and the first full-time stock exchange. The inventiveness of the traders led to insurance and retirement funds as well as phenomena such as the boom-bust cycle, the world's first asset-inflation bubble, the tulip mania of 1636–1637, and the world's first bear raider, Isaac le Maire. In 1672 – known in Dutch history as the Rampjaar (Disaster Year) – the Dutch Republic was attacked by France, England and three German Bishoprics simultaneously, in what would become known as the Franco-Dutch War. At sea, it could successfully prevent the English and French navies from blockading the western shores. On land, however, it was almost taken over by the advancing French and German armies from the east. It managed to turn the tide by inundating parts of Holland.
  
  From 1672 to 1712, the Republic, led by William III of Orange and Anthonie Heinsius would regularly clash with France in what some historians have come to call the Forty Years' War. In the Nine Years' War and the War of the Spanish Succession, the Republic was at the centre of anti-French coalitions. The Dutch ultimately successfully defended the Spanish Netherlands, established a barrier there, and their troops proved central to the alliance which halted French territorial expansion in Europe until a new cycle began in 1792 with the French Revolutionary Wars. However, the wars left them effectively bankrupt, and inflicted permanent damage on the Dutch merchant navy; while they remained the dominant economic power in the Far East, Britain took over as the pre-eminent global commercial and maritime power. Between 1590 and 1713, the Dutch army had been one of Europe's largest and most capable armies. However, following the conclusion of the War of the Spanish Succession, other major powers such as Prussia, Austria, Britain, and Russia significantly expanded their military forces. The Republic struggled to match these developments, and gradually assumed the status of a mid-tier power. However, historians have sometimes overstated the extent of this decline, especially when considering the period up to the 1750s.