Revolutionary Wars and Economic Change in the New State of the Netherlands, 1795–1815

The revolutionary wars of 1795-1815 struck the Dutch economy in harsh ways. Above all, Amsterdam was hurt substantially because of the obstruction of the networks overseas, and not least the loss of the colonial connection. This city lost its leading position in international trade and finance. As a result, the country was robbed of its most dynamic economic center. Numerous industries that had depended upon the overseas trading networks suffered. Nevertheless, the Netherlands continued to be one of the wealthiest countries in the world. Agriculture actually flourished. And whereas Amsterdam’s position weakened, Rotterdam managed to maintain a rather strong economic network. In the restoration that followed after 1815, however, the new government under King William I continued with old-fashioned, mercantilist policies, which failed to prepare the Dutch for the increased international competition in trade and industry. It took decades before shipping and foreign financial services were properly restored. Yet the revolutionary steps of 1795-1815 towards centralised government, unified taxation, and territorial economic integration, enabled the start of a period of true economic growth in the later 1860s. These measures were thus of profound importance for the economy in the longer term.