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There are several reasons.

First of all, the Dutch were located geographically very well. They lacked grain (products) but had a surplus in cheese, tulips and the like. So they began trading with the east. This gave their economy a huge boost.

Consequently, they started investing in different industries. For example, they devised new models for ships. These ships were more profitable than other ships (due to their outside appearance, they had to pay less taxes when travelling in other seas).

Going back to the context: the Dutch were divided and were at war with the Spanish Kingdom. After 1579 (Union of Utrecht and Atrecht), catholics stayed in the south of the Low Countries (nowadays modern Belgium) and protestants mostly fled to the north. They set up with other refugees a new agglomeration; namely Amsterdam.

Moreover, Amsterdam became the city of trade between 'European' Countries and the Low Countries (7x).

Huge stocks were made and this made the Dutch even more successful.

All these successful developments coincided with the Dutch exploring new lands (Indonesia). By using the native population there, forming plantations and eliminating (literally) other competition, such as the Portugese; the Dutch became a world power around 1650/1660.

For your information: their success basically lasted until 1972 when the Low Countries were attacked form all sides.

Their type of government did not allow any person to rule so as to fight like a dictator. This made the attacks from the British, French and other Germanic tribes come as a surpirse. And in the beginning, their economy was in a great depression until they showed resistance and drove their 'enemies' out.

However, this year left a scar on the Dutch economy and status in the world. They were forced to sign different treaties (trade treaties for example) to spread prosperity equally.

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Q: Why were the Dutch so successful during the 16th and 17th century?
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