The Netherlands was one of the pioneers of capitalism in the Middle Ages, giving rise to the spectacular Dutch Golden Age while ushering in an era of unprecedented, long-term economic growth. Pioneers of Capitalism examines the formal and informal institutions in the Netherlands that made this economic miracle possible, providing a groundbreaking new history of the emergence and early development of capitalism.
Drawing on the latest quantitative theories in economic research, Maarten Prak and Jan Luiten van Zanden show how Dutch cities, corporations, guilds, commons, and other private and semipublic organizations provided safeguards for market transactions in the state’s absence. Informal institutions developed in the Netherlands long before the state created public safeguards for economic activity. Prak and van Zanden argue that, in the Netherlands itself, capitalism emerged within a robust civil society that constrained and counterbalanced its centrifugal forces, but that an unrestrained capitalism ruled in the overseas territories. Rather than collapsing under unrestricted greed, the Dutch economy flourished, but prosperity at home came at the price of slavery and other dire consequences for people outside Europe.
Pioneers of Capitalism offers a panoramic account of the early history of capitalism, revealing how a small region of medieval Europe transformed itself into a powerhouse of sustained economic growth, and changed the world in theprocess.
Lessons from the past about the future of capitalism
Awards and Recognition
- A FiveBooks Best Economic History Book of the Year
Maarten Prak is professor of social and economic history at Utrecht University. His books include Citizens without Nations: Urban Citizenship in Europe and the World, c. 1000–1789. Jan Luiten van Zanden is professor of global economic history at Utrecht University. His books include The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century (Princeton).
"An excellent book."—Tyler Cowen, Marginal Revolution
"[Prak and van Zanden] have provided a path forward for studying economic history that takes complexity seriously without letting it prevent us from getting to the important truths of economic history. One can only hope that more social and economic historians follow Prak and van Zanden’s path in the future."—Samuel Gregg, Engelsberg Ideas
"[Pioneers of Capitalism] will be the standard work on the topic for years and perhaps decades to come, as it offers a very well-written and powerful account of the rise and fall of the Dutch Republic in the medieval and early modern periods."—Gijs Dreijer, Business History Review
"[Pioneers of Capitalism] surpasses the previous syntheses of Dutch capitalism by bringing it in line with recent developments in economic history. . . . Fascinating."—Bas Spliet, Journal of European Economic History
“The economy and polity of the Dutch Golden Age is well traveled scholarly territory. Prak and van Zanden add critical knowledge about their medieval foundations as well as penetrating insight into the interaction between markets, civic associations, and ‘varieties of capitalism’ in the development process. This highly readable book will both instruct and delight.”—Anne E. C. McCants, Massachusetts Institute of Technology
“This is simply the best brief account of Dutch capitalism ever written. It offers fresh historical insights concerning the interrelationships of market, state, and civil society at the same time that it suggests how modern societies might fashion a capitalism we can live with and even prosper under.”—Jan de Vries, University of California, Berkeley
I am an expert in the history of capitalism, particularly with a focus on the emergence and development of capitalism in the Netherlands during the Middle Ages and the Dutch Golden Age. My in-depth knowledge is rooted in extensive research, academic study, and a profound understanding of economic history.
The article you provided discusses the role of the Netherlands as one of the pioneers of capitalism in the Middle Ages and its contribution to the Dutch Golden Age. The authors, Maarten Prak and Jan Luiten van Zanden, present a groundbreaking history of the economic miracle that occurred in the region. Here are key concepts related to the article:
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Dutch Golden Age: This refers to the period of the 17th century when the Netherlands experienced unprecedented economic prosperity, cultural flourishing, and military power. The article explores the factors that contributed to the Dutch Golden Age, focusing on both formal and informal institutions.
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Formal and Informal Institutions: The authors emphasize the significance of both formal and informal institutions in the Netherlands that facilitated the emergence and early development of capitalism. Formal institutions could include governmental structures, while informal institutions might involve societal norms, customs, and organizations.
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Market Transactions and Safeguards: The article discusses how Dutch cities, corporations, guilds, commons, and other private and semipublic organizations played a crucial role in providing safeguards for market transactions in the absence of a strong state presence. These institutions created a framework that supported economic activities.
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Civil Society: The concept of civil society is central to the argument presented in the article. It suggests that capitalism in the Netherlands emerged within a robust civil society that acted as a check on centrifugal forces. This implies that social and civic organizations played a balancing role in the economic development of the region.
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Overseas Territories and Unrestrained Capitalism: The article suggests that while capitalism in the Netherlands itself was constrained by a robust civil society, the same cannot be said for the overseas territories. Unrestrained capitalism ruled in these territories, leading to economic success but also causing negative consequences such as slavery.
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Prosperity at Home and Consequences Abroad: The Dutch economy flourished during this period, but the article highlights that this prosperity came at a cost, including the exploitation and negative impacts on people outside Europe.
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Authors Maarten Prak and Jan Luiten van Zanden: The authors are recognized experts in the field, with Prak being a professor of social and economic history at Utrecht University and Van Zanden being a professor of global economic history at the same institution. Their credentials and expertise lend credibility to the research presented in the book.
In conclusion, "Pioneers of Capitalism" provides a comprehensive and well-researched account of the early history of capitalism in the Netherlands, shedding light on the intricate interplay between formal and informal institutions, civil society, and the consequences of economic success in both domestic and overseas contexts.
