Amsterdam (The Netherlands)

Amsterdam began as a medieval fishing village on the mouth of the Amstel River. The settlement got its name in the 1200s after a dam was constructed between dikes to protect farmlands from flooding. The first written record of the name (originally spelled Amstelredam) is from 1275. Amsterdam was chartered as a city about the year 1300, and it became a member of the Hanseatic League (a German trading association) in 1369.

Amsterdam rose to prominence in Europe in the late 16th century after Spanish forces sacked Antwerp, then the leading commercial center of northern Europe. Protestant merchants in Antwerp fled to Amsterdam, which soon absorbed much of Antwerp’s trade. Other European refugees were also drawn to Amsterdam’s tradition of social and religious tolerance. They included Jews from Portugal and Germany, and later, French Huguenots, all of whom brought important skills to the city. In the 17th century, after the successful conclusion of the Dutch wars for independence from Spain, Amsterdam became the chief commercial and financial center for northern Europe. The city profited enormously from colonial trade generated by the Dutch East India Company (see East India Company) and the Dutch West India Company, both founded with help from Amsterdam.

The city held its dominant commercial position until the late 18th century, when trade declined as a result of the silting of the Zuider Zee and the British blockade before and during the Napoleonic Wars (1799-1815). In 1810 Napoleon incorporated The Netherlands into the French Empire. After his downfall The Netherlands regained its independence and the seat of government was moved from Amsterdam to The Hague. In the latter part of the 19th century, commercial activities revived with the opening of the North Sea and Merwede canals.

Amsterdam's economy suffered during World War I (1914-1918), but improved somewhat in the 1920s. In 1928 the city hosted the Summer Olympic Games. A few years later the worldwide depression of the 1930s slowed global commerce and brought much economic difficulty to the city. Amsterdam suffered additional hardship during World War II when it was occupied for five years by German military forces, beginning in 1940. In 1942 Germany relocated Jews from elsewhere in The Netherlands to the Jewish quarter of Amsterdam, and mass deportations to concentration camps began. Thousands of Jews, including Anne Frank and her family, went into hiding in the city. Near the end of the war Germany badly damaged the port and caused famine and starvation in the city. The port facilities were rebuilt and improved after 1945. The Amsterdam-Rhine Canal, constructed between 1934 and 1952, also boosted the postwar economy.

During the 1960s Amsterdam became a center for social and political activism. Spearheading such activism were radical groups such as the Provos, a youth organization known for staging street theater events, called happenings, and demonstrations that sometimes sparked riots. The city’s tolerant attitude toward drug use and alternative lifestyles also attracted large numbers of hippies and other young people. In the 1970s growing use of hard drugs, including heroin, led to an increase in crime. Media coverage of Amsterdam conveyed a negative image that the city has worked hard to counter.

In recent decades, Amsterdam has undertaken major urban renewal efforts to replace or rebuild some older parts of the city. Lack of affordable housing remains a serious problem, however, and it has led to confrontations with well-organized squatters, who take over unoccupied buildings to live rent-free or to prevent demolitions.

Amsterdam entered the 21st century with innovative plans for using technology to bring economic, social, and educational benefits. City-sponsored projects included providing free computers to school-aged children in low-income households and the construction of a universal public fiber-optic network to meet demands for high-speed Internet and other data services.