What did the Dutch gain from colonising Indonesia? by Julius Galih
Answer by Julius Galih:
Dutch gained huge amount of wealth from the trade monopoly of spices, from Indonesia into European market. They built first stock exchange of modern world, the Amsterdam Stock Exchange, and the first multinational company, which was listed in stock exchange, Dutch Indies Company or Verenigde Oostindische Compagnie. Such sophisticated system enabled Dutch to control the global price, and income from commodity trade, also the value of stock based on commodity trade, single handedly.
When adjusted for inflation, its highest market capitalization would be worth over $7 trillion today (i.e. ten times the size of Apple). More importantly, it completely dominated the Asian trade in the 17thand 18th centuries.While the British East India Company is usually more famous nowadays, VOC had almost twice as many ships and moved five times more cargo than its British rivals.
The company was so successful over the long-term that it paid an astonishing 18% annual dividend to its shareholders for almost 200 years.Given their long tradition of being financially savvy, when the Dutch do something dramatic in the financial markets, it’s important to take notice.Which is why when the Dutch Central Bank recently announced they had just moved 122.5 tons of gold, worth $5 billion, from storage in New York back to Amsterdam everyone’s alarm bells should be ringing.