This era included significant colonial expansion, particularly in the Dutch East Indies, coupled with the challenges posed by World War I and the Great Depression.
Although the Netherlands maintained neutrality during World War I, its strategic geographic location and colonial resources had profound implications for its economic and political stability.
The immediate post-war years were focused on rebuilding and economic stabilization, facilitated by U.S. aid through the Marshall Plan, which helped to revive the Dutch economy and infrastructure.
The post-war period saw significant changes in the Dutch empire, with Indonesia proclaiming independence in 1945, leading to a violent and tumultuous decolonization process completed in 1949.
In recent decades, the Netherlands has continued to play a significant role in global affairs, maintaining a strong economy and a high standard of living.
The Dutch population grew rapidly in the 20th century, as death rates fell, more lands were opened up, and industrialisation created urban jobs.
In the 1901 election, the Social Democratic Workers' Party increased its representation from two to six seats in the lower house of parliament, to the great unease of the confessional and liberal elite.
[10] Dutch society became divided among three large ideologies, Protestantism, Roman Catholicism and Socialism, who tried to protect their populations with a system called verzuiling or Pillarization.
The small minority of Liberals, though insisting that their "general" organizations were open to all, effectively consisting of a fourth pillar that held power through financial, rather than social, strength.
The worldwide Great Depression which began after the tumultuous events of Black Tuesday in 1929, that continued into the early-1930s had crippling effects on the Dutch economy; lasting longer than in most other European countries.
The long duration of the Great Depression in the Netherlands is often explained by the very strict fiscal policy of the Dutch government at the time, and its decision to adhere to the gold standard for much longer than most of its trading partners.
Neutrality was still the official policy, but the Dutch government tried to buy new arms for their badly equipped forces; however, a considerable share of ordered weapons never arrived.
Fighting against the Dutch army proved to be more of a burden than foreseen; the northern attack was stopped dead, the one in the middle came to a grinding halt near the Grebbeberg and many airborne assault troops were killed and taken prisoner in the west of the country.
But collaboration was not uncommon either; many thousands of young Dutch males, who often supported Nazi goals and policies, volunteered for combat service on the Russian Front with the Waffen-SS and many companies worked for the German occupiers.
[15][16] The First Canadian Army launched Operation Veritable in early-February, cracking the Siegfried Line and reaching the banks of the Rhine in early March.
On 27 April a temporary truce came into effect, allowing the distribution of food aid to the starving Dutch civilians in areas under German control (Operation Manna).
After the euphoria and settling of scores had ended, the Dutch were a traumatised people with a ruined economy, a shattered infrastructure and several destroyed cities including Rotterdam, Nijmegen, Arnhem and part of The Hague.
His tenure in office saw four major political developments: the traumas of decolonisation, economic reconstruction, the establishment of the Dutch welfare state, and international integration and co-operation, including the formation of Benelux, the OEEC, NATO, the ECSC, and the EEC.
A key contribution to the recovery in the post-war Netherlands came from the Marshall Plan, which provided the country with funds, goods, raw materials and produce.
For example, Dutch economists, especially Jan Tinbergen (1903–1994), Tjalling Koopmans (1910–1985) and Henri Theil (1924–2000), made major contributions to the mathematical and statistical methodology known as econometrics.
The national Delta programme continues to manage these works for the government under an independent Commissioner, with the aim of making the Netherlands climate-proof and water-resilient by 2050.
Increased political activism and Japanese occupation undermined Dutch rule culminated in nationalists proclaiming independence on 17 August 1945, two days after the surrender of Japan.
Washington now realised that Indonesia was part of the Cold War fight against communism, and the Indonesian government was a necessary ally—and that the Dutch tactics were counterproductive and chaotic, and could only provide help to Communist insurgencies.
[45] The Netherlands formally recognised Indonesian independence on 27 December 1949, when a "transfer of sovereignty took place", and on this date, Dutch politicians and military leaders stopped trying to hold Indonesia back from its attempt to dominate other regions.
[52] Young people, and students in particular, rejected traditional mores, and pushed for change over matters such as: women's rights, sexuality, disarmament and environmental issues.
During the Purple Coalition years, a period lasting until the rise of the populist politician Pim Fortuyn, the government addressed issues previously viewed as taboo under the Christian-influenced cabinet.
The voters rewarded the Purple Coalition for its economic performance, which had included reduction of unemployment and the budget deficit, steady growth and job creation combined with wage freezes and trimming of the welfare state, together with a policy of fiscal restraint.
[59] The power of the coalition waned with the introduction of List Pim Fortuyn in the Dutch general election of 2002, a populist party, which ran a distinctly anti-immigration and anti-purple campaign, citing "Purple Chaos" (Puinhopen van Paars) as the source of the countries social woes.
Though the party succeeded in displacing the rival Purple Coalition, without the charismatic figure of Pim Fortuyn at its helm, it proved to be short-lived; lasting a mere 87 days in government.
VVD Prime Minister Mark Rutte won the 2017 general election and formed a third government and was in first few months challenged after the People's Party for Freedom and Democracy voted since 2006.