Book Description

"In most narratives of the history of global economic development, the Netherlands plays an early and leading role. Indeed, the Netherlands has maintained a leading position among the most wealthy nations since at least the fifteenthcentury. Adding to the literature on economic development, Maarten Prak and Jan Luiten van Zanden, bring new evidence to bear on our understanding of how institutions in the Netherlands fostered unprecedented, long term economic growth that changed the course of history. The authors argue that informal institutions had developed long before the statecreated the institutions commonly held to be decisive . These informal institutions -believed in Dutch folklore to have originated in the polders, tracts of low land reclaimed from the sea-demonstrate how private and semi-public organizations provided public safeguards for economic activity in the state's absence. The authors explore how cities, corporations, guilds, commons, and other civil society organizations were structured and how they delivered advanced levels of security for market transactions. The Dutch Miracle argues that it was this sociopolitical structure in which the early market economy of the Netherlands emerged and that enabled the country's almost uninterrupted long-term economic growth"--