of the Province". The States-General, the confederal government, were seated in The Hague and consisted of representatives from each of the seven provinces. The sparsely populated region of Drenthe, mainly consisting of poor peatland, was part of the republic too, although Drenthe was not considered one of the provinces; it had its own States, but the landdrost of Drenthe was appointed by the States-General. Moreover, the Republic had come to occupy during the Eighty Years' War a number of so-called Generality Lands (Generaliteitslanden in Dutch). These territories were governed directly by the States-General. They did not have a governmental structure of their own and did not have representatives in the States-General. Their population was mainly Roman Catholic, and these areas were used as a buffer zone between the Republic and the Southern Netherlands.
The Dutch Empire grew to become one of the major seafaring and economic powers of the 17th century. In the Dutch Golden Age ("Gouden Eeuw"), colonies and trading posts were established all over the world. Dutch settlement in North America began with the founding of New Amsterdam, on the southern part of Manhattan in 1614. In South Africa, the Dutch settled the Cape Colony in 1652. By 1650, the Dutch owned 16,000 merchant ships. During the 17th century, the Dutch population increased from an estimated 1.5 million to almost 2 million.
For a comprehensive list of the territories that formed the Dutch Empire, see Evolution of the Dutch Empire.
Many economic historians regard the Netherlands as the first thoroughly capitalist country in the world. In early modern Europe it featured the wealthiest trading city (Amsterdam) and the first full-time stock exchange. The inventiveness of the traders led to insurance and retirement funds as well as phenomena such as the boom-bust cycle, the world's first asset-inflation bubble, the tulip mania of 1636–1637, and, according to Murray Sayle, the world's
