What effects did the Dutch East India Company have on Dutch/European society and economics?

by ManyStaples

Sources would be greatly appreciated.

prooijtje

First I'd like to discuss the Netherlands *before* the founding of the VOC (until the 80 Years' War, modern-day Belgium should also be included here).

Dutch society had already stopped fitting into a purely Malthusian model since the 15th century as it had been forced to abandon growing grain in the western part of the country. As a result, the relation between national agricultural production and population growth became much less important than it was in other countries thanks to the grain imports from Eastern Europe that were meant to compensate for reduced fertility. This had allowed a large number of Dutchmen to become involved in the trade or services sectors. Urbanization was also much higher than in other regions in Europe (perhaps maybe Northern Italy? My sources don't discuss Italian urbanization sadly).

Another uniquely Dutch trait was the large amount of farmers who owned the land they worked on. This fact motivated many farmers to try out other crops that could turn more of a profit. Especially farmers in the West became much more specialized than their European colleagues and started growing products that were needed in the production sector, such as flax or other plants used for making rope.

This production sector was mostly concentrated in the Southern Netherlands (Flanders and Brabant) while shipbuilding was concentrated in the Northern Netherlands (Zeeland and Holland). The center of this economic region at the time was Antwerp, with Amsterdam still just being a small fishing village. Only after the start of the Dutch Revolt and the siege of Antwerp by the Spanish did the, largely protestant or Jewish, merchants and skilled artisans of Antwerp move to the Northern Netherlands. (Fun fact: Many of those Jews' parents or grandparents had come to the Netherlands as refugees from Spain via Portugal and were thus known locally as 'Portugese Jews'.)

Why all this text about the pre-VOC era? Just to show that the Netherlands was already heavily commercialized as a result of the trade with Northern and Eastern Europe. This trade in fact, would still remain the most important source of trade income after the founding of the VOC and was known as the "Moedernegotie" (Mother [of all] negotiation). The Netherlands also already held large industrial and services sector as a result of its early departure from the Malthusian model in the 15th century.

As a result of the founding of the VOC (and its cousin the West India Company which history has forced to live in a cupboard under the stairs) the service sector became even bigger and more diversified as Dutch trade networks came to cover areas like the Caribbean, Suriname, South Africa, Sri Lanka, Taiwan, and Indonesia.

As Dutchmen flocked to the cities to work in banks, trading companies, and insurance companies, the industry sector saw itself forced to mechanize even more, resulting in the development of more advanced wind- and watermill designs. Jobs that couldn't yet be replaced by building more windmills were usually filled with foreign labour: according to estimates, 50% of all paid labour in the Netherlands was performed by immigrants from countries like Poland or Germany. As for the role played by the VOC in this, an equivalent percentage of VOC workers were from Scandinavia, Germany or Eastern Europe.

As for effects on other European countries, I know very little sadly.

Outside of Europe however, the WIC and VOC had a large impact on many societies they encountered:

As a rule, these companies would first try to enter into contracts with local rulers. In return for political and financial (and occasionally military) support, Dutch traders received monopolies on trading in certain goods. Especially modern-day Indonesia saw less inter-state wars as a result of this. Monarchs who could rely on Dutch support however, also saw themselves able to tax their citizens much more than they had done before as they were less dependent on their own subjects for military power.

Other societies were impacted much more directly by the VOC and WIC. The inhabitants of the Banda islands were largely killed, driven away to starve in the jungle or deported to Java as punishment for selling spices to the British for example. As a result, many inhabitants of these islands today are actually descendants of migrants and slaves who were brought in by the Dutch to replace the massacred locals.

Other examples of heavily impacted countries are Suriname and South Africa. As more and more Dutch, German, Scandinavian or Polish VOC employees settled into farming societies, the native population was slowly converted into little more than a cheap source of labour for the Company, which officially owned all of the land in the Kaap colony. As their population kept increasing, the Boer descendants of these European settlers would keep advancing further inland, resulting in more conflicts and the displacement of more native populations.
Suriname's native population also found itself being pushed away from the coast, which was quickly settled by African slaves and their European masters, many of which were British, French or Spanish. Their owners being described by their contemporaries as exceptionally cruel, many slaves escaped into the heavily forested southern part of Suriname. Called 'bosnegers' (Bush-negros) by the WIC authorities, these men would form bands that posed such a threat to the plantations that the colonial government was eventually forced to ally itself to some of these bands in order to fight off attacks by other bands or by the native Americans.

Source: K. Davids & M. 't Hart De Wereld & Nederland. Een sociale en economische geschiedenis van de laatste duizend jaar (Amsterdam 2011), 57-121.