The British might be the most associated of the great European traders, but they weren't the only ones. But ahead of the British Empire was another European who transformed trade in the Indian Ocean. The Dutch not only traded, they redistributed. They connected Europe to the East Indies to connect markets, extend control of the seas, and forge a new economic empire. What is interesting about their story is that it wasn't just about discovery, it was about the creation of an empire.
How to Turn a Trade Empire into Power in the Indian Ocean?
The Dutch were successful in the Indian Ocean thanks to technology, strategy and power. In this article we explore the role of trade, war and geography in building the world trade in the early modern era.
Merchants with a Ross and a Map
The Dutch came up the ranks with the creation of the Dutch East India Company, a private enterprise with a bit more than trade on its mind. The company, supported by the Dutch monarchy, was granted a monopoly of Asian commerce and became like a state in itself. It had the power to negotiate deals, raise fortifications, wage war and employ troops. This resulted in the fusion of trade and politics, a new form of empire.
By the mid 17th century, the company had a presence in key spice markets in Southeast Asia. This was accomplished away from the free market. The Dutch fought a series of wars with the Portuguese, capturing their territories and hampering their business. They also compete with the English, either losing out diplomatically or militarily. The Dutch's monopoly of the trade in luxury commodities (particularly spices such cloves, nutmeg and pepper) gave them an advantage in global markets that allowed them to consolidate their power.
The Dutch regulated, managed and controlled trade. Marrying military might to trade, they made trade routes routes of power.
Geography, Exploration, and Opportunity
The Dutch presence in the Indian Ocean needs to be seen in the broader European efforts at exploration. The fall of Constantinople in 1453 meant that overland trade-routes from Europe to Asia were less secure, prompting a quest for alternatives. This caused a world-wide sea Frenzy.
It was found in 1498 when Vasco de Gama of Portugal rounded Africa to reach India. This was a trans-formative moment for world trade, as it afforded Europe a sea route to Asia. The Dutch were ready with their shipbuilding and navigation skills. They were a sea-faring and commercial people, and were ready to take advantage of this opportunity.
They established trading stations in India, as well as Indonesia (for example at Malacca and Timor). These were pivotal points, in which the Dutch could control the passing of trade goods. These fortresses allowed them to direct the flow of goods from Asia to Europe, enabling them to optimize the flows of trading goods around geography.
Weapons of Control: Technology and Infrastructure
As well as geographical and military advantage, they had a technological one. Their ships were built to last on voyages of discovery, and had guns. This allowed them to capture the locals and survive in competition with the Europeans. In such places as Indonesia, this meant they were able to capture territory and ports.
Equally important was the infrastructure they built for shipping. In 1652, the Dutch established a colony at the Cape of Good Hope, a vital point for ships travelling from Europe to Asia. This allowed more distance to be covered due to being able to re-supply and make repairs. It is questionable if the trade network would have been viable if this support had not been present.
The Dutch East India Company claimed control of the Southeast Asian region by taking control of key ports, like Batavia ( Jakarta) and others in Indonesia. These were not only trade sites, but also administrative sites that allowed the Dutch to monitor, regulate and control their trade network.
It's not just what's traded that matter: it's who plays the game. It is also the control points that connect them.
Fall from Grace
It wasn't always smooth sailing for the Dutch. In the 18th century, they began to falter. The English East India Company commenced to challenge the Dutch by creating its own trading company - the English East India Company. The English, like the Dutch, did their trading, political and military gamesmanship, but to a greater extent.
The Dutch East India Company, a paragon of the modern and the powerful, faced financial problems. Its cumbersome government, corruption and competition led to downfall. It was bankrupt in 1799 and its assets taken into government control. It also marked the end of an era when it was possible for a private company to establish a monopoly on international trade.
In the meanwhile, the British were busy. They started controlling strategic outposts such as the Cape Colony and increased their presence in key harbors such as Singapore and Penang. Their enhanced challenge in India facilitated the rise of the British Raj, who would govern the Indian subcontinent for more than a century.
The Dutch continued to rule Indonesia but lost its power in the Indian Ocean region. By the middle of the 19th century, Britain was the region's global empire, a sea change in empire and trade.
